Santa Rita Power Plant

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This project was located in Santa Rita, Batangas, on the island of Luzon. The project was expected to reach up to 1500 MW upon completion. Phase 1 was to consist of 1000 MW of generating capacity and Phase 2 was to consist of 500 MW. Project equity of $211 million was divided between sponsors First Philippines Holdings Corp. (51%), British Gas (40%), and Meralco Pension Fund (9%). First Gas Holdings was a partnership between First Philippine Holdings and British Gas. In May 2012, BG Group solds its 40% equity stake to First Gen, making First Gen 100% owner. The joint venture agreed to sell electricity to Manila Electric Co. (Meralco). at 1.29 pesos per kWh. The first phase of the project was valued at $892 million. ABN Amro was to underwrite the financing (50%) with co-arrangers Bank of Tokyo-Mitsubishi (25%) and Westdesutsche Landesbank (25%). A fuel-supply agreement was signed with Enron. Project financing was projected to consist of $669 million in debt and $233 million in equity. Financing entities included US Ex-Im Bank, EIB, Hermes, KfW, Commonwealth Development Corp., and Malaysia Export Insurance. Financial advisors include JP Morgan; and Chadbourne & Parke. $669 million in debt financing for Phase 1 was arranged by ABN-AMRO Bank, Bank of Tokyo, Mitsubishi and Westdeutsche Landesbank. Of this $669 million, approximately $410 million consists of export credits from KfW, Hermes of Germany, Malaysian EXIM Bank, and Malaysian Export credit Insurance; $160 million was provided as a bond; and $100 million was arranged as a commercial loan by PCI Capital. Advisors to the developers included Sedgwick, Stone & Webster; and Skadden, Arps, Slate, Meagher & Flom. A fuel supply agreement with Enron was signed under which Enron was to supply 30,000 to 35,000 barrels per day of liquid fuel to the project for up to 15 years. The plant converted entirely to gas in January 2002, when gas from the Malampaya field became available. Gas supply was covered by a 22-year agreement with the Malampaya consortium, consisting of Shell, Chevron Texaco and Philippine National Oil Company - Exploration Corporation. In Aug. 2000, the commercial operations of the first phase of the project commenced. As of Dec. 31, 2008, First Gas Power Corporation was owned 60% by First Gen Corporation (a company owned 55% by First Phillipine Holdings Coporation and 45% by private investors via the stock market) and 40% by British Gas Group. As of June 21, 2012, British Gas Group has agreed to sell its 40% stake in the Santa Rita project (as well as the San Lorenzo project) to First Gas Power Corporation, via First Gas' wholly-owned subsidiary Blue Vulcan holdings Corporation. First Gen issued Peso 10 billion (US$233 million) of preferred shares to finance the acquisition.