Quezon Power Plant

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Quezon Power Ltd. Co. developed a 440 MW coal-fired plant in Mauban, in Quezon province. The project also included a 31-km transmission line. The plant was to sell power to the Manila Electric Company under a 25-year power purchase agreement. The Philippines government did not provide any financing or guarantees to the project, making this the first project in the Philippines with no government guarantees. The project also included a 31 kilometer transmission line in Mauban, Quezon. Quezon Power was initially joint venture between Bechtel, Ogden, GPI and PMR. By 2005, Quezon Power was owned by InterGen (46%), GN Power (Philippines), the International Finance Corp and Covanta Energy. In May 2012, the Thai IPP Electricity Generating Plc (EGAT) expanded its stake in the project company to 98%. The additional 45.875% interest was bought from IonterGen and QGC Holdings, wholly-owned subsidiaries of InterGen NV, for US$375 million. The deal also included 100% ownership over the power plant's services company, InterGen Management Services. The remaining 2% was held by PMR Group. Financial closure was reached in January 1996. The US$ 835 million project was financed by a US$207 million equity bond issue, a US$400 million loan from US EXIMBANK, and a US$238 million loan from Union Bank of Switzerland. The Union Bank of Switzerland loan includes both unsecured loans and a political risk guarantee up to $100 million from Overseas Private Investment Corporation. Debt financing for the project is split in five tranches: 1) US$405 million guaranteed by US Exim, to be refinanced by US Exim; 2) US$100 million guaranteed by OPIC; 3) US$115 construction term loan (no guarantee); 4) US$30 million cost over-run loan (no guarantee); 5) US$12.5 million fuel-supply and power purchase letter of credit facility. Fieldstone Private Capital Group LP was lead financial advisor. The OPIC tranche was later replaced by a bond issue and a US$12.5055m letter of credit. In the second quarter of 2001, the Private Export Finance Corporation (Pefco) became the biggest creditor after the commercial banks in the US EXIM bank tranche were repaid in April 2001. The US Exim Bank has provided a comprehensive coverage of the construction loan facility and repaid the banks. Pefco subsequently refinanced the loan but it is still lending under the US Exim guarantee. The refinancing of this tranche was solely arranged by BNP Paribas, replacing the former lead arranger and agent bank of the loan, UBS Warburg. The tenor of the refinanced portion is 12 years. The plant was designed and built by Bechtel, operated by InterGen and managed by Ogden. The plant became operational in August 2000. Bangkok Post, Egco raises Quezon stake to 98%, 15 May 2012 Source: Thai EGCO to search solar, wind project options in Philippines - report, SeeNews Renewables, 23 July 2012 Source: Thai generators add to solar capacity, Power in Asia (21 June 2012).