Pagbilao Coal-Fired Power Plant

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The Pagbilao power plant was a 750 MW plant fuelled by imported coal. The project was located on Pagbilao Grande Island in Quezon Province, and provides power to the Luzon grid near Manila under a power purchase agreement with the National Power Corporation (NPC). The plant was initially owned by Consolidated Electric Power Asia (CEPA, 49% with US$20 million equity, a subsidiary of Mirant), Mitsubishi, the IFC, Black & Veatch and Slipform engineering. By 2005, the plant was owned by Mirant Philippines, a subsidiary of Mirant (USA). Cofinancing without guarantees was provided by Jexim and USExim Bank, by the IFC ($10 million) and CDC ($10 million). In its fiscal year 1993, the IFC also provided debt financing in the form of a $60 direct million loan and a $40 million syndicated loan. The US Exim provided an $185 million loan for construction which Citibank arranged. The first 367.5 MW unit became operational in 1995, and the second in 1996. In September 2004, Mirant announced intentions to expand the plant by an additional 345 MW, at a cost of US$300 million. The expansion was expected to be completed by early 2008. In July 2007, a consortium comprising Japan's Tokyo Electric Power Company (Tepco) and Marubeni Corporation completed its purchase of the US's Mirant Asia Pacific. The acquisition was made through the TeaM Energy Corporation, a special purpose vehicle established in the Philippines by the consortium. The newly acquired generating assets were backed by power purchase agreements and back-to-back fuel supply contracts with the state-owned National Power Corporation. The sale of the portfolio of private generation assets was agreed on December 11, 2006 with the equal joint venture acquiring a 100% equity stake in the 1,218MW Sual coal-fired plant in Pangasinan province; a 100% interest in the 735MW Pagbilao coal-fired plant in Quezon province; and a 20% stake in the 1,251MW Ilijan natural gas-fired combined-cycle plant in Batangas province. Mirant Asia Pacific reported that it would receive net proceeds of US$3.215 billion after transaction costs and the repayment of US$642 million in debt. The consortium offered US$3.424 billion in cash and debt assumption following an international competitive tender to secure the 2,203 MW of capacity. The payment of US$3,424 million included US$724 million of shareholder equity and senior debt of US$2.7 billion, made up of US$1.6 billion Japan Bank of International Cooperation (JBIC) loan and US$1.1 billion commercial bank loan syndication from Sumitomo Mitsui Banking, Mizuho Corporate Bank, Calyon, ING Bank and the Australia and New Zealand Banking Group. The financial close date of the deal was June 22, 2007. The loan was signed but disbursement of the funds depended on the certification of Sual's operational condition. In July 2008, TeaM Energy Corporation was reviewing the proposed 345 MW expansion of the Pagbilao plant, announced by Mirant in September 2004. As of July 2008, TeaM Enery had not awarded an EPC contract for the expansion. The ownership changed from Marubeni (50%) and Tokyo Electric Power (50%) to Marubeni (25%), Tokyo Electric Power (25%) and Aboitiz Power Corp (50%) as of June 2014. http://www.teamenergy.ph/about01_pagbilao.php Updated US$1 billion expansion in 2014 with new sponsors. Expected to be expanded in 2013/2014, originally planned in 2008: http://www.philstar.com/business/2013/06/03/949386/first-gen-still-keen-pagbilao-plant-expansion