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MANILA - Renewable energy firm Sunwest Water and Electric Power Co Inc plans to borrow from a consortium of banks to help finance its hydro projects in the country.
Elizaldy S. Co, Suweco chairman, said the company tapped Investment Capital Corp of the Philippines (ICCP) to arrange a P4 billion syndicated loan from a number of local lenders.
Among the lenders eyed for the Suweco loan are Security Bank, Development Bank of the Philippines, Land Bank of the Philippines, China Bank, Philippine Veterans Bank, PBCom and BDO.
"ICCP is working on it... the P4 billion is only 70 percent of the project financing [for four hydro projects]," Co said.
Suweco will use the amount to finance the construction of the following hydro power plants: the 9.4-megawatt Villasiga II and 15.0-megawatt Main Aklan in Aklan; the 6.0-megawatt Pinacanauan in Cagayan; and the 1.5-megawatt Bangsud in Oriental Mindoro.
The four plants, which are targeted for commissioning in 2013-2015, are estimated to cost a combined P5.7 billion.
The company will use internally generated funds to finance the balance of the project cost of P1.7 billion.
The said projects are on top of the nine hydro projects (including Villasiga II and Main Aklan) the company is putting up on Panay Island that are among the "most advanced" in terms of development in the company's portfolio.
Suweco has 59 projects at different stages of development. These are expected to generate a total capacity of 280 megawatts in the next 10 years.
Bulk of the company's projects are hydro plants although "we have wind and solar but we prioritize hydro [because] mas grabe kasi ang impact niya sa community," Jose Silvestre M. Natividad, Suweco president, said.
Co said the company plans to sell shares to the public but has yet to firm up the details.
"For the initial public offering it might be Suweco or the holding company ECO Utility Energy Ventures Co," Co said.
The Electric Power Industry Reform Act of 2001 mandates power firms and electric utilities to "offer and sell to the public a portion not less than 15 percent of their common shares of stocks."
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