AC Energy gets additional funding for Mindanao plant

AC Energy Holdings, Inc. of the Ayala Corp. and its partners have attained additional funding for the construction of the fourth unit of its Kauswagan plant, aimed at supporting the economic development of Mindanao.

Ayala Corp. announced yesterday that GNPower Kausawagan Ltd. Co. has “achieved financial close for the additional funding to enable the construction of the fourth Unit, of its 4 x 135MW coal-fired power plant in Kauswagan, Lanao del Norte.”

“Construction of the first three units of the plant is in full swing, with Unit 1 expected to be completed by fourth quarter 2017,” the disclosure read.

Ayala Corp. currently has 700 megawatts (MW) in its energy portfolio. The project is among the many that the company is rolling out to meet their 1,000-MW attributable capacity target.

AC Energy president and CEO John Eric Francia said the total estimated costs of all four units are worth over $1 billion. The project will be funded through 30 percent equity and 70 percent debt through domestic and international banks.

Currently, AC Energy has a coal-fired power plant in Batangas, a wind farm in Bangui and Pagudpud, Ilocos Norte, and is expanding its plant in Bataan.

GNPower Kausawagan Ltd. Co. is a Philippine limited partnership of AC Energy, the Philippine Investment Alliance for Infrastructure Fund, and Power Partners Ltd. Co.