Pagbilao Energy Corp. has reached the maximum 420-megawatt capacity of its $1-billion Pagbilao 3 coal-fired power plant in November, its top executive said over the weekend.
Aboitiz Power Corp. president and chief operating officer Antonio Moraza said the new power plant was undergoing testing and commissioning for its full commercial operation by the end of the year.
“We’ve reached full capacity, 420 MW a few days ago. It’s still commissioning but we already hit the 420 MW,” Moraza said, adding the testing and commissioning might take two to three months.
Pagbilao Energy is the joint venture of TPEC Holdings Corp. and Therma Power Inc., wholly-owned subsidiaries of TeaM Energy Corp. and Aboitiz Power, respectively.
TeaM Energy, the joint venture of Tokyo Electric Power Co. and Marubeni Corp., operates the existing 735-MW Pagbilao coal plant.
Energy Department records earlier showed the new power plant was expected to start commercial operations by November and would secure the country’s power generation requirements.
“We are pretty much on time and budget and so far construction is ongoing. Construction is progressing well, “ Moraza said earlier.
Pagbilao Energy announced in 2015 that the joint venture partners were investing close to $1 billion to put up the coal project. Construction of the project started in the same year.
The project has been approved by the Quezon provincial government, the local government of Pagbilao and by the barangay government unit, Ibabang Polo, in three separate endorsements.
The new plant is being built as a merchant plant, or one without contracts. Aboitiz Power said it was confident competing in the “regime of open access.”
Aboitiz Power chief executive officer Erramon Aboitiz earlier said the Pagbilao expansion was “a manifestation that the private sector is willing to take risks if they anticipate an environment of consistent policies, open competition and level playing field for all.”
Pagbilao Energy tapped Mitsubishi Hitachi Power Systems Ltd. and Daelim Industrial Co. Ltd. as engineering, construction and procurement contractor for the project.
Pagbilao Energy signed an omnibus agreement to finance the construction of the project, securing P33.3 billion in debt financing through joint arrangers composed of BDO Capital and Investment Corp., BPI Capital Corp. and First Metro Investment Corp.
SB Capital investment Corp. serves as co-lead arranger for the project. PNB Capital and Investment Corp. and China Banking Corp. were the co-arrangers. PNB Savings Bank also participated as lender to the project.