AC Energy Holdings, a subsidiary of multinational conglomerate Ayala Corporation, said financial close has been achieved on the $1bn project in the municipality of Kauswagan in Lanao del Norte province. The project is to be funded by 70 per cent debt from domestic and foreign banks plus 30 per cent equity, Ayala Corporation said.
The first three 135 MW units are currently under construction and unit 1 is planned to be completed late next year, with the entire plant expected to come online in 2018. According to AC Energy Holdings’ website, the plant will feature pulverized coal combustion technology with Shanghai boilers and Siemens turbines and generator.
As the Philippines prepares to draft an energy policy under the new administration of President Rodrigo Duterte, energy secretary Alfonsi Cusi said last week that “As a developing country we cannot afford not to have coal,” and that “We have to find a happy balance. We cannot afford to rely solely on renewables. … Coal is the more dependable, the more reliable source for baseload”.