IFC Increases Investment in Hydropower Generation in the Philippines
Manila, September 18, 2008-IFC, a member of the World Bank Group, has signed a loan agreement with SN Aboitiz Power-Benguet, Inc., known as SNAPB, to help rehabilitate two hydroelectric plants. This will boost electricity output in the Benguet province of Luzon, Philippines, and catalyze economic development.
(Media-Newswire.com) - Manila, September 18, 2008—IFC, a member of the World Bank Group, has signed a loan agreement with SN Aboitiz Power-Benguet, Inc., known as SNAPB, to help rehabilitate two hydroelectric plants. This will boost electricity output in the Benguet province of Luzon, Philippines, and catalyze economic development.
IFC’s $100 million’s loan will enable SNAPB to install new turbines and generators at the Ambuklao and Binga hydro facilities. Ambuklao’s three 25-megawatt generating units have not been functioning since 2000, and Binga’s four 25-megawatt generators operate as a base-load plant when the water level is high and as a peaking plant when the level is low.
SNAPB is a joint venture between Aboitiz Power Corporation and SN Power Invest AS of Norway, a global renewable energy company. The Ambuklao and Binga plants are part of the privatization program under the Philippines’ Electric Power Industry Reform Act. The transaction is IFC’s second loan to the Aboitiz Power Corporation-SN Power Invest consortium, as the same sponsors won the bid for the 360-megawatt Magat hydro project in 2007 through SN Aboitiz Power-Magat, Inc.
"The Ambuklao-Binga acquisition is another building block of our strategic vision of positioning Aboitiz Power as the country's leading provider of energy from renewable sources. We will continue prioritizing investments in renewables and pursuing our vision of making Cleanergy available to every Filipino," said Erramon Aboitiz, President and CEO of Aboitiz Power. Cleanergy is the Aboitiz brand of energy sourced from clean and renewable sources.
“The transaction aligns with IFC’s strategy to support the implementation of the Electric Power Industry Reform Act through key milestone projects. It also fits within the World Bank Group’s climate change strategy, which calls for increased investments in renewable energy. We are pleased to work again with SNAPB, which shares IFC’s vision for sustainability,” said Jesse Ang, IFC’s Resident Representative for the Philippines.
SNAPB is also looking into obtaining carbon credits for the plants under the Kyoto Protocol’s Clean Development Mechanism scheme, and IFC has expressed its full support of the effort.
About IFC IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $16.2 billion in fiscal 2008, a 34 per cent increase over the previous year. For more information, visit www.ifc.org.
IFC has been investing in the Philippines for more than 40 years and established an office in Manila in 1977. As of June 2008, the country ranked second among IFC’s exposures in the East Asia and Pacific Region, with about $898 million in 32 projects. To complement its growing investments, IFC is also expanding its advisory services to include public-private partnerships and supporting the development of small and medium enterprises. IFC is focusing on Mindanao and in 2006 opened an office in Davao City.
About SN Aboitiz Power-Benguet, Inc. SNAPB is a joint venture between Aboitiz Power Corporation ( AP ) and SN Power Invest AS of Norway, a global renewable energy company. AP is listed in the Philippine Stock Exchange. AP is a subsidiary of Aboitiz Equity Ventures, Inc., a holding and management company of the Aboitiz Group, which is also listed in the Philippine Stock Exchange.
This story was released on 2008-09-19. Please make sure to visit the official company or organization web site to learn more about the original release date. See our disclaimer for additional information.