While Cebu’s power supply is facing gloom, the P16-billion loan package finally secured for the 246-megawatt Toledo power project will ease what is anticipated as electricity end-users’ agony over supply shortfall.

The credit facility to be extended by a consortium of 11 banks and insurance companies was arranged by First Metro Investment Corporation. It is part of the P22-billion estimated project cost of the coal-fired facility.

Project sponsor Cebu Energy Development Corporation (CEDC) said prospects of finally moving the project into smooth sailing construction phase serves as “a major step forward in its goal to alleviate the power situation in the Visayas.”

“Eleven banks and insurance companies pledged to lend CEDC P16 billion over twelve years. The loan is already considered the largest peso-denominated project financing in the Philippines to-date,” the company bared.

CEDC is a joint venture among Global Business Power Corporation of the Metrobank Group, Aboitiz Power, Vivant Corporation, and Formosa Heavy Industries of Taiwan.

Over and above the equity portion, the secured loan facility will already complete the project’s funding.  CEDC president Jesus N. Alcordo said the first of the plant’s three generating units with about 82-MW capacity is now 50-percent complete and due on stream by the first quarter of 2010.

“The Cebu economy has been growing strongly, with corresponding demand for energy. CEDC’s plant is expected to come online in time to avert a true power crisis,” Alcordo said.  He further intimated that the plant’s commissioning would also be the exact time frame when “power situation in Cebu and the Visayas moves from critical to actual shortage.”

The project will be utilizing clean coal technology, reported to be the latest in the market being supplied by Formosa Heavy Industries (FHI) of Taiwan. CEDC said such technology  application is parallel to what Formosa has done for coal-fired projects in Taiwan, Indonesia and the United States.

The core of customers to be served by the facility would be the Balamban EnerZone, which hosts the shipbuilding facility of Japanese firm Tsuneishi Heavy Industries; as well as Carmen Copper which is now fully operational at the previous Atlas mining site.