U.S Exim lends $400m to RP project

U.S Exim lends $400m to RP project

MANILA (AFP): The U.S. Export-Import Bank on Saturday signed a memorandum of understanding to extend more than US$400 million in political risk guarantees and term financing to a power project in the Philippines.

The agreement will support the construction of a 440-megawatt, coal-fired power plant being set up in Mauban town, in Quezon province, by a consortium, the Quezon Power (Philippines) Ltd. Co.

The signing of the agreement was witnessed by U.S. Secretary of State Warren Christopher who is attending the Asia-Pacific Economic Cooperation (APEC) forum ministerial meeting being held here.

Litz Manuel Santana, spokeswoman of Quezon Power, said the plant would be built under the "build-own-operate" system where a private firm constructs a key piece of public infrastructure and then operates it.

The plant's construction is expected to begin this year and its completion is scheduled for late-1999, Santana said, adding that it would sell the power it generates to the Manila Electric Co., the country's main power retailer.

Quezon Power will also be the first private power generator in the Philippines to set up its own transmission lines, Santana said.

Quezon Power is owned by U.S. firms, International Generating Co., (InterGen), and Ogden Projects Inc., and a Philippine partnership, PMR Power Inc., she added.