President Rodrigo Duterte led the inauguration Thursday of the newly completed 420-megawatt Pagbilao Unit 3 project coal-fired power plant here that is expected to stabilize energy supply in Luzon as well as boost the economy.
In his speech, President Duterte expressed his gratitude to the Department of Energy and Aboitiz Power Corp. for working together to make the Pagbilao energy venture possible.
“This event reaffirms not only the government’s commitment to empower our citizens into proactive agents of social transformation, but also the private sector’s crucial role in augmenting our local industries,” Duterte said.
“Without doubt, this joint venture between Aboitiz and [TeaM] Energy has ensured energy sustainability that will allow us to support the electric demands of the country. Your multiple investments across the archipelago surely bolsters our efforts in advancing the country’s development,” he added.
The opening of the Pagbilao Unit 3 plant is expected to provide employment and business opportunities to the residents of Quezon.
Duterte stressed that the distribution of reliable and affordable electricity would complement government programs paving the way to national development.
He encouraged private energy producers to find viable solutions that will deliver reliable and inexpensive electricity to homes and industries.
He likewise hoped that private firms will introduce other technological advancements to produce clean energy.
“This administration has been clear about safeguarding our environment [for] future generations. We intend to have more compliant companies and power plants that prevent damage and reduce emission from harmful effects in the years to come,” he said.
The $976-million project is a joint venture between TPEC Holdings Corp. And Therma Power Inc., which are wholly owned subsidiaries of TeaM Energy Corp. (TEC) and Aboitiz Power, respectively.
Located near the Pagbilao Units 1 and 2, the construction works for the Pagbilao Unit 3 started in December 2014. The Pagbilao Units 1 and 2 have a total generating capacity of 735 megawatts.
The Pagbilao Energy Corp. signed an agreement to finance the construction the Pagbilao Unit 3, securing a total of P33 billion debt financing from various lenders.
Among its joint arrangers were BDO Capital and Invetsment Corp., BPI Capital Corp., and First Metro Investment Corp. SB Capital Investment Corp. served as co-lender arranger while PNB Capital Investment Corp. and China Banking Corp. served as co-arrangers. The Philippine Savings Bank is also a project creditor.
Aside from securing steady supply of electricity to the Luzon grid, the Pagbilao Unit 3 project is also expected to generate multi-billion peso in taxes both for the local and national governments. PND