Therma Visayas 340MW Coal Power Plant

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The US$937 million (PHP31.9 billion) Cebu 340MW (net capacity 300MW) Coal Power Plant project reached financial closure on Jun 18 2015, as Therma Visayas, Inc. (TVI), or the project company signed an omnibus agreement with a consortium of lender-banks to obtain loans and credit accommodations in the amount of up to US$708.4 million(PHP31.9 billion). This BOO project would entail the development of a 340MW (net capacity of 300MW) coal-fired power plant in Cebu province, the Philippines, which was composed of 2 x 170 MW steam turbines using the latest circulating fluidized bed (CFB) boilers to ensure the power plant to meet government standards on health, environment protection and safety. Therma Visayas is a joint venture between Therma Power, Inc. (80%) and Vivant Integrated Generation Corp. (20%). Therma Power was the holding company of AboitizPower’s investments in non-renewable generation assets. Vivant Integrated Generation Corp, on the other hand, was a wholly-owned subsidiary of Vivant Energy Corp. The joint venture between Aboitiz Power Corp. and Vivant Corp. has secured over US$700 million worth of loan financing to partly fund the construction of its 340MW coal-fired plant in Cebu province. Construction of the project started in April and would be commercially operational by early 2018. The plant’s operator plans to further expand the plant to 510 MW. Engineering, Procurement and Construction (EPC) contract was awarded in 2014 Hyundai Engineering Co., Ltd. and Galing Power Energy Co., Inc. Legal adviser was Picazo Buyco Tan Fider & Santos Law. Financing comprised US$575.419 million (PHP25.97 billion) 15-year term loan and US$132.937 million (PHP6 billion) 15-year term loan. Lead arrangers was First Metro Investment Corp. Remaining lenders are Asia United Bank Corp, BDO Capital & Investment Corp, BPI Capital Corp, China Banking Corp, Development Bank of the Philippines, Land Bank of the Philippines, Maybank Philippines, and SB Capital Investment Corp. Facility agent was BDO Unibank. Government Funding = Stat-owned Development Bank - Development of the Philippines. Equal amount was assumed for 8 bankns