A CONSORTIUM of six banks is raising P11 billion to build the second coal-fired power plant of Panay Energy Development Corporation (PEDC) in Iloilo City.
PEDC, a subsidiary of Global Business Power Corporation (GBPC), signed a 12-year loan agreement for the construction of the 150MW clean coal-fired plant.
The P11 billion represents 70 percent of the total project cost of P15.6 billion.
The consortium is made up of Bank of the Philippine Islands, China Banking Corporation, Land Bank of the Philippines, Rizal Commercial Banking Corporation, Philippine National Bank and the Philippine American Life and General Insurance Company.
Construction has started on the plant, which is expected to be operational by June 2016. Once completed, it will establish PEDC and GBPC as the largest power generating facility in the Visayas.
PEDC operates a 184-MW coal-fuelled facility and the 64-MW diesel power plant of its sister company Panay Power Corp (PPC) in Brgy Ingore, La Paz district.
Construction of the 150MW expansion project is ahead of schedule and 40 percent complete as of March 15.
PEDC sees the need to build a second plant to cope with Panay's rising power demand.
The island is experiencing a surge in economic growth. It is evident particularly in Iloilo City, where there is a surge in property development.
The city boasts of the 75-hectare Iloilo Business Park of Megaworld Corporation, the 20-hectare Atria Park District of Ayala Land, the 20-hectare Gaisano Business Center and the high rise commercial and residential condominiums of Double Dragon Properties.