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Maibarara geothermal project secures $55 million loan

Maibarara geothermal field at Mount Makiling, Philippines
Alexander Richter 30 Sep 2011

The project partners of the Maibarara geothermal power project in the Philippine secure a US$55 million loan package from Rizal Commercial Banking Corp. and the Bank of Philippine Islands after Trans-Asia Oil committed to buying the plant's output for 20 years.

The project partners of the “Maibarara geothermal power project have secured a P2.4-billion (US$54.8 million) loan to develop the steam fields and build a power plant on the site.

Maibarara Geothermal, Inc. signed a loan agreement with Rizal Commercial Banking Corp. and Bank of Philippine Islands, according to a disclosure from Trans-Asia Oil and Energy Development Corp., which holds a 25% stake in the steam field operator.

“The funds will primarily be used for the development of the Maibarara steam field and construction of a 20-megawatt power plant,” Trans-Asia said.

“The project is expected to start operation in the third quarter of 2013,” the firm added.

The P3.22-billion project (US$74 million) — located in Calamba, Laguna and Sto. Tomas, Batangas — counts PetroGreen Energy Corp. and Philippine National Oil Co.-Renewables Corp. as the other project operators aside from Trans-Asia.”

The loan was granted after Trans-Asia committed to buy the plant’s output for 20 years.

National Grid Corp., meanwhile, had already agreed to connect the planned Maibarara geothermal power plant to the Luzon system.”

Source: Business World Online