IFC to lend $100M to new owners of Ambuklao-Binga hydro power plant

MANILA, Philippines- International Finance Corp., private sector investment arm of the World Bank is planning to lend some $100 million to SN Aboitiz Power Benguet Inc., the owner of the 175MW Ambuklao-Binga hydroelectric power plants. SNAPB is a joint-venture between SN Power Invest (SN Power) of Norway and Aboitiz Equity Ventures, with each holding a 50 percent stake. They group won the bidding for Ambuklao-Binga facilities with an offer of $325 million. "The proposed IFC investment will partly finance the privatization and rehabilitation of the 75 MW Ambuklao hydroelectric power plant and the 100 MW Binga hydroelectric power plant, currently owned by National Power Corp," IFC said. The proposed loan contained in the IFC's latest investment report will enable the Aboitizes to support its bid for assets of the National Power Corp. IFC said the loan would also help sustain momentum and investor interest in the country's privatization program of it power assets. "IFC's presence is seen as a critical safeguard from regulatory and implementation uncertainty," it said. The agency's report likewise indicated that the multilateral lender will provide an IFC-A loan of $85 million and IFC-C loan of $15 million. Aside from the IFC loans, Nordic Investment Bank will provide a loan of $60 million, a consortium of local banks will provide financing of up to $200 million and SNAPB will raise the remaining amount through equity and internally generated cashflow. - GMANews.TV