The 82-megawatt capacity expansion of Toledo Power Company (TPC) has finally secured P7.0 billion financing from a syndicate of local banks.

In a press statement, Toledo Power’s parent firm Global Business Power Corporation, noted that “the loan amount represents 70-percent of the P10.175 billion total project cost.” The equity portion will be 30-percent, which is a standard in project finance scheme.

With the project’s construction already proceeding, the facility can be targeted on stream December 26 next year, the sponsor firm said.

The loan facility for the project was lead arranged by First Metro Investment Corporation, also an affiliate of the Ty-owned Global Power.

The omnibus facility agreement was inked with the Bank of the Philippine Islands, Chinabank, East West Bank, Rizal Commercial Banking Corporation, Philam Life, Union Bank and United Coconut Planters Bank.

The co-arrangers of the credit facility were: BPI Capital Corporation, China Banking Corporation, LBP, RCBC Capital Corporation, Union Bank and RCBC. Tapped as facility agent was RCBC Trust and Investments Group; while Metrobank serves as the trustee and paying agent.

The added capacity of the Toledo plant is intended to supply the electricity needs of Carmen Copper, which has been expanding its operations. Carmen Copper is a subsidiary of Atlas Mining and Development Corporation.

It has been noted that from the mining firm’s current load requirement of 40MW, Carmen Copper will beef up this supply via the power purchase agreement it sealed with Toledo Power last year. The requirement is seen increasing to 60MW immediately.

“Carmen Copper will need additional electric supply to power its mining expansion undertakings,” Toledo Power said.

Taiwanese firm Formosa Heavy Industries was tapped for the design, engineering, procurement and construction of the expanded facility.