AboitizPower company hikes borrowings for hydro projects

The unit of Aboitiz Power Corp. has increased its borrowings in order to bankroll the rehabilitation of its hydroelectric projects, a document filed with the Philippine Stock Exchange (PSE) showed.

A PSE disclosure showed on Friday that its unit SN Aboitiz Power, Inc. (SNAP) refinanced the peso loan component of its existing US$375 million credit facility it obtained from a consortium of domestic and international lenders in August, 2008.

After refinancing, SN Aboitiz credit facility will be up to US$436.23 million from the remaining lenders: International Finance Corporation, Nordic Investment Bank, Bank of the Philippine Islands, and BDO Unibank, Inc.

SN Aboitiz is the owner and operator of the Ambuklao-Binga Hydroelectric Power Complex, which consists of the 105-MW Ambuklao Plant located in Bokod, Benguet and the 140-MW Binga Hydroelectric Power Plant located in Itogon, Benguet.

“The proceeds of the refinancing will be used to partially fund the rehabilitation of the 105 MW Ambuklao Hydroelectric Power Plant [HEPP] and the refurbishment of the 140 MW Binga HEPP, repay existing loans or advances, and for other general corporate purposes,” AboitizPower told the stock exchange.

A joint venture between AboitizPower and SN Power AS of Norway, SN Aboitiz acquired the then 175 MW Ambuklao-Binga HEPP for US$325 million through a competitive bidding conducted by PSALM in November, 2007.

A few months ago, AboitizPower just increased the rated capacity of Binga HEPP to 140 MW from 125.8 MW. The plant has an economic life of 48 years.

In the company’s pipeline is the proposed big-ticket greenfield development, 350-megawatt Alimit hydropower complex in Ifugao province.

The planned hydropower venture will have three components: the 100MW Alimit, 10MW Olilicon and 240MW Alimit pumped storage facilities.

Based on DOE’s rule-of-thumb estimate, for that scale of development, total investment to be injected by the Norwegian firm-Aboitiz group joint venture may reach $875 million to $1.050 billion.