Firm taps BDO Capital for funding of Panay power plant project

THE Palm Concepcion Power Corp., a subsidiary of publicly listed A Brown Co. Inc., is tapping BDO Capital to arrange the debt financing requirements for its proposed 200-megawatt coal-fired power plant on Panay Island.

Based on a disclosure to the Philippine Stock Exchange, Palm Concepcion has already secured the commitment of the bank for the project, causing the Department of Energy to reclassify the project as “committed” rather than indicative. The financial closure for the power project, estimated to cost P10 billion for the first phase of 100 MW, is expected by July 2012.

“So as not to cause any delay in your negotiation with BDO and consequently, in the project implementation, we hereby list your project as committed in the 2012 list of power projects. However, the project’s financial closing should conclude before the finalization of the 2012 power development plant and transmission development plan by 2012. Otherwise, we will reclassify back your project to indicative,” the DOE said in a letter to Palm Concepcion.

The DOE letter explained that it wanted the company to push through with the power project “in view of the capacity gap in the Visayas by 2015.

“We are looking at this project to provide the required capacities by 2015, given that the target commissioning of your project (will be) by the third quarter of 2015 for Phase 1 and November 2016 for Phase 2,” the DOE said. /INQUIRER