Sual Pangasinan Coal-Fired Power Plant

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The 1218-MW Sual plant is located in Pangasinan province on Luzon, and was developed on a build-operate-transfer basis for a period of 25 years by the Pangasinan Electric Corporation. Mirant acquired a 92% interest in Pangasinan Electric through its purchase of Hong Kong's Consolidated Electric Power Asia in 1997. The other investors were the UK's CDC Globeleq and the International Finance Corporation (IFC). In April of 2004, CDC Globeleq completed the sale of its 2.94% equity stake to Mirant for consideration of US$21 million. The plant was built under an engineering, procurement and construction contract by a consortium comprising CEPA Slipform and Alstom, with the latter supplying the two 600MW sets. The project began construction in 1995 and entered commercial operation in 1999. The US$1.35 billion project closed finance in mid-1995, with the US$1.04 billion of debt being backed by almost US$800 million of export credit cover from the UK's Export Credit Guarantee Department (US$446 million), the US Eximbank (US$200 million) and France's Coface (US$150 million). In addition, the IFC was responsible for providing a US$50 million direct loan and a US$200 million syndicated loan to the project. 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 take-over was partially funded by a mezzanine loan facility agreement with PPF Company BV. The loan was refinanced in July 2012 as a 12-year credit. 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 June 2012, the project closed a new supply agreement with Meralco, the utility Manila Electric Company (Meralco), securing 500MW of capacity from 2013 onwards. Sponsor Mirant filed for Chapter 11 Bankruptcy in June 2003 with business plan reorganization expected for early 2004. Check revised business plan for impact on Philippine operations. Source: TeaM Energy obtains $220m loan facility, Manila Standard, 2 July 2012 Source: Meralco Secures 500 MW from Sual, 27 June 2012