Subic Bay Plant

cancelled

The 105-MW Subic Bay Bunker-C oil-fired plant is located in Subic Bay, Olongapo, Luzon. Enron formed a joint venture with a local Philippine company, Subic, to win the 15-year BOT contract, following which plant ownership will be transferred to Napocor. Financing closed at the end of 1993 when Subic obtained fixed rate financing of $105 million, 9.5% senior secured notes maturing in 2008. The Subic Notes are guaranteed by recourse to all assets owned by Subic. The bonds were guaranteed by Enron prior to the project's operation; following operation, the bonds were to be assigned to the developer on a non-recourse basis. Agreement between Subic and Enron affiliate Enron Subic Power Corp. (ESPC) calls for ESPC to provide supervisory and management services, for which Subic will reimburse any costs incurred. Power generated by the plant is sold to the Subic Bay Metropolitan Authority. In 2003, Prisma Energy International Inc. was created to, through its subsidiary Prisma Energy International Services LLC, provide management and operational support for the major international businesses owned by Enron. In April 2003, the government acquired the Subic Bay Plant. The early termination of the build-operate-transfer (BOT) agreement with Enron Development Corp./Subic Power Corp. (SPC) was made at a cost of US$113 million. None None