PNB, MHPC sign P2.4-B loan deal for construction of hydroelectric power plant

The Philippine National Bank (PNB) and Mangima Hydro Power Corp. (MHPC) have signed a loan deal for the construction of a hydroelectric power plant in Bukidnon.

In a joint statement, PNB and MHPC said they signed an omnibus loan and security agreement worth P2.4 billion.

The loan will go towards the construction of a 12-megawatt run-of-river hydroelectric system in Manolo Fortich, Bukidnon.

“We at Mangima Hydro Power are really passionate about making Bukidnon a sustainable, energy-secure, renewable energy-powered province, and this project is our big step towards that vision,” said Senator Juan Miguel Zubiri, president and CEO of MHPC.

“Bukidnon is one of the richest provinces in the country in terms of natural resources, so it’s a perfect area for developing renewable energy or RE. And the future is in RE and sustainability,” he said.

“That is of absolute import, particularly in the countryside and especially in Bukidnon, where to this day, some towns and even cities like Malaybalay often face power supply problems,” added the senator.

The project, which is set to be completed in 2024, is projected to have an annual generation of 64.12 gigawatt hours.

Along with Zubiri, the signatories to the loan agreement were PNB president Wick Veloso, PNB executive vice president Jun Audencial, and MHPC chairman Nicandro Linao, who also heads the Sta. Clara International Corp. (SCIC)—the engineering, procurement, and construction contractor of the project.

The project is a joint venture of SCIC’s affiliate, Philnew River Power Corp., and Zubiri’s Green Renewable Holdings Corporation, which came together to form MHPC.

“Through this joint project, I am confident that we can contribute to Mindanao’s continuing economic growth. PNB is one with Mangima Hydro Power Corporation in supporting green projects and paving the way for a sustainable tomorrow,” said Veloso.

Linao also discussed their goals for the project.

“For decades, our country’s power industry has depended heavily on fossil fuel, which has both burdened our economy and our environment. Our project aims to help address these problems and continue towards energy independence and a cleaner tomorrow,” Linao said.

“The construction of this project will create jobs and opportunities for various localities in Bukidnon and nearby provinces." — VBL, GMA News