Philippine JV secures funds for coal power plant

Funding will double capacity to 270 MW.

Trans-Asia Oil and Energy Development Corporation said its joint venture company with AC Energy Holdings Inc. has secured a US$162 million loan from a group of local banks to fund the expansion of a 135 MW coal power plant in Batangas province south of Manila.

The JV, South Luzon Thermal Energy Corporation, signed a loan contract this week with Banco de Oro Unibank Inc., Security Bank Corporation and Rizal Commercial Banking Corporation.

Proceeds of the loan will be used to fund the expansion of SLTEC’s power plant currently under construction in Calaca, Batangas, increasing the plant’s capacity from 135 MW to 270 MW.

In March, Trans-Asia said it would invest US$34.7 million in SLTEC to support an expansion program to increase the parent company’s power generation portfolio.

The second 135 MW coal fired fluidized bed is expected to be fully operational by 2016.