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.