Alsons eyes P3 B borrowings
Danessa Rivera (The Philippine Star) - November 19, 2017 - 4:00pm

MANILA, Philippines — Alsons Consolidated Resources Inc., the listed holding firm of the Alcantara Group, is set to borrow up to P3 billion by mid-2018 to bankroll the completion of the 15-megawatt (MW) Siguil run-of-river power plant in Maasim, Sarangani, its first renewable energy venture.

The company is in talks with a couple of banks for a project finance loan of up to P3 billion, Alsons executive vice president and COO Tirso Santillan said in a text message to The STAR.

“We are in serious talks with a couple of banks. A P3-billion loan will likely require only one or two banks,” he said.

The company, however, is not in a hurry to close the project financing, which would take place by the middle of 2018.

“Bank financing is usually the last piece to be put in place in a project,” Santillan said. “We won’t need to draw on the loan until mid next year.”

In September, Alsons infused up to P1 billion in the Siguil run-of-river power plant under Siguil Hydro Power Corp. (SHPC), a subsidiary of its renewable energy unit Alsons Renewable Energy Corp. (AREC).

Construction of the Siguil hydro project, which has a total cost of P3.7 billion, is expected to start within the year once it completes all necessary permitting and formalities.

The project is expected to begin commercial operations within the first half of 2020, providing power to Sarangani province, General Santos City and key municipalities of South Cotabato.

Once operational, half of the project’s carbon credits will be sold to the Japanese government, after an international consortium agreement was signed among Alsons, AREC, SHPC and long-time Japanese partner Toyota Tsusho Corp.

This will be done through the Japanese government’s Joint Credit Mechanism (JCM) for the reduction of world-wide carbon emissions.

A JCM project is typically implemented by Japan and a host country through bilateral agreements. Under the mechanism, projects using advanced low-carbon technology are implemented and the resulting greenhouse gas emission reductions may be credited to the project proponents of both participating countries.

Alsons said this would allow the Siguil project to receive additional revenues through the sale of carbon credits.

Philstar
Facebook
  • Latest
  • Trending
Latest
Are you sure you want to log out?
X
Login

Philstar.com is one of the most vibrant, opinionated, discerning communities of readers on cyberspace. With your meaningful insights, help shape the stories that can shape the country. Sign up now!

SIGN IN
or sign in with
Read and share the latest news
whenever and wherever you are.
Top Stories
Features the most relevant stories,
exclusive content, analyses and special reports.
As It Happens
Get bite-sized highlights and up-to-date
information as the news breaks.
Latest
View the most recent
stories of the day.
Log-in
Lorem ipsum dolor sit amet,
consectetur adipiscing elit.
Quisque justo est, auctor vel ullamcorper.
Log-in
Lorem ipsum dolor sit amet,
consectetur adipiscing elit.
Quisque justo est, auctor vel ullamcorper.
How to follow As It Happens stories
STEP 1
Click the story in the As it Happens section.
How to follow As It Happens stories
STEP 2
Click "Follow Story" for updates on the news.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Aliquam eu metus vitae felis tincidunt finibus ut id sapien. Integer volutpat dui eu malesuada dignissim. Sed varius justo nulla, fringilla convallis sem porta sed.
How to follow Author
STEP 1
Click on the author's name in the article.
How to follow Author
STEP 2
Once you click on the author's name, you will be
brought to the Authors page. Click "Follow Author"
to stay updated on the author's works
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Aliquam eu metus vitae felis tincidunt finibus ut id sapien. Integer volutpat dui eu malesuada dignissim. Sed varius justo nulla, fringilla convallis sem porta sed.
How to follow Tags
STEP 1
Click on a tag in the article.
How to follow Tags
STEP 2
When you click on a tag, it will take you to the
dedicated tag page where you'll see the article
viewed, along with other stories with that tag.

Click the "follow tag" button to stay updated on
the topic.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Aliquam eu metus vitae felis tincidunt finibus ut id sapien. Integer volutpat dui eu malesuada dignissim. Sed varius justo nulla, fringilla convallis sem porta sed.