MANILA, Philippines --- Additional capital of P1.6 billion will be infused by First Metro Investment Corporation (FMIC) for the capacity expansion of the 82-megawatt Toledo power plant to be undertaken by affiliate firm Global Business Power Corporation.
"The capital infusion is pursuant to a capital call by GBPC and represents the proportionate share based on FMIC'current ownership of 49.11%," the company has noted in its disclosure to the Philippine Stock Exchange.
It added that up to P5 billion worth of fixed rate corporate bonds will be issued to raise part of the amount that it will need for its equity outlay in the coal plant project.
The project firm previously revealed to media its proposed capacity expansion, primarily to supply the 60 megawatts requirement of Carmen Copper Corporation of Atlas Mines. The targeted commercial commissioning of the added capacity will be December 26, 2014.
As culled from the terms of agreement, Toledo Power will "design, engineer, finance and construct" the proposed expanded capacity of 82MW; and the bulk of the generated electricity will be contracted by Carmen Copper.
The project proponent has noted that "the inking of the power supply agreement with Carmen Power is a homecoming of sorts for Toledo Power", because the company's power facility was, in the past, built to serve the electricity needs of Carmen Power.
Onward, the capacity hike is aligned "to address the projected increase in Carmen Copper's power requirements as a result of the expansion of its mining operations."
Global Power has emphasized that with the proposed expansion of the Toledo plant, the facility would be able "to respond to the projected increase in power demand in the area."
The facility will be utilizing circulating fluidized bed (CFB) boiler, which is in the genre of the so-called "clean coal technology" and widely-used in new coal-fired plants.
Apart from capacity expansion in its Cebu facility, Global Power is also lining up additional investments to increase the capacity of its acquired assets in Iloilo.