Masinloc power plant operator assures consumers of stable electricity

MASINLOC, Zambales - The US-based company which acquired the 600-megawatt Masinloc coal-fired power facility on Wednesday assured consumers of efficient, reliable, and inexpensive electricity rates. At least 60 percent of power generated at the Masinloc plant will be sold to electric distribution companies, cooperatives, and special economic zones through supply contracts, Paul Hanrahan, President and Chief Executive Officer (CEO) said during the recent ceremonial turn over of the plant. On the other hand, the remaining capacity will be sold through the wholesale power pool or under new contracts. According to Hanrahan, the company considers the plant acquisition as an “excellent entry point" in the Philippines, especially since they had been wanting for a long time to have presence in the country. “This is a particularly attractive investment because the existing facility has the infrastructure in place to allow AES to add an additional 600 MW of generation capacity. As AES has done through similar acquisitions in other parts of the world, we expect to improve the overall efficiency and output of the existing plant, providing more reliable energy to the Philippine market," Hanrahan said. The 660 MW (gross) Masinloc coal-fired thermal power plant is located in Barangay Bula, Zambales. Last April 16, AES and its eight percent minority partner International Finance Corp. (IFC)—the World Bank’s investment arm—fully settled the $930 million purchase price. The full payment includes transaction costs and completion of a planned upgrade program to improve environmental and operational performance, the total project cost is estimated at $1 billion. The transaction funding included $635 million in secured non-recourse financing comprised of a $240 million, 18-year facility from IFC, a $200 million, 15-year facility from Asian Development Bank, and a $195 million, 10-year facility from a consortium of banks including ING Bank, Security Bank, Bank of Philippine Islands and Rizal Commercial Banking Corporation. In addition, over $30 million of unsecured working capital facility commitments have been obtained from three local banks. AES has been operating in Asia since 1994. AES’s current businesses in the region include electric utilities and generation facilities in China, India, Jordan, Oman, Pakistan, Qatar and Sri Lanka. AES has more than 5,000 MW of generation capacity in the region. - GMANews.TV