Therma South Coal-fired Power Project

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Therma South Inc., a wholly-owned subsidiary of Aboitiz Power Corporation, is the project company responsible for the development of a 300 MW circulating fluidized-bed coal-fired power plant in Barangay Binugao, Toril District, Davao City and Barangay Inawayan, Sta. Cruz, Davao del Sur. The power project was initiated by Therma South in response to the urgent need to build the plant in order to augment power supply in Davao and the entire Mindanao. The project received endorsement from local government units in Davao City and the municipality of Sta. Cruz in Davao del Sur. The total cost of the project was estimated at $720 million with 75 percent funding from nonrecourse financing while the remaining 25 percent to be funded by equity. The project achieved financial close in October 2013 after signing a USD 557 million loan agreement with a consortium of lenders and banks for the construction and operation of the power plant. The two 150-MW units are slated to start commercial operations in the first half of 2015.