SMC Global Power Holdings Corporation has partnered with First Gen Corporation as the Filipino partners of Korea Water Resources Development Corporation (K-Water) for the 218-megawatt (MW) Angat Hydro Electric Power Plant (HEPP) in Bulacan.
The partnership for the project of a power facility to be run by water from Angat dam in Bulacan comes four years after the Korean corporation won the project bid; at a total cost of $440.88-million
San Miguel Corporation President Ramon S. Ang said in an interview that details have already been ironed out, with SMC Global and FGen each having a 30 percent stake while K-Water will hold the remaining 40 percent ownership of the project.
According to Ang, issues they had with the local government and the Power Sector Assets and Liabilities Management Corporation have likewise been dealt with, allowing the local partners to take over and operate the project.
Initially, K-Water planned to take out a $500 million bridge loan to meet immediate financial commitments for Angat, after which the corporation would then start project financing with Korean and Philippine banks.
The companies involved will move to set up a special purpose company (SPC) in which SMC Global and Fgen will have a combined 60 percent equity as the Philippine partner; with K- Water lending its technical expertise in operation and maintenance, and San Miguel leading local management of the Angat plant.