Corporate News

Maibarara geothermal project bags P2-B loan

Posted on September 29, 2011

PROPONENTS BEHIND the Maibarara geothermal power project have bagged a P2.4-billion 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 -- 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.

Trans-Asia, a unit of Phinma Corp., recorded a P136.3-million net income in the first half of the year compared to its net loss of P113.9 million in the same period last year.

Consolidated revenues from January to June were down by 5.5% to P469.2 million from P496.3 million despite increased generation revenues of P27.8 million from P26.8 million.

The drop was due to lower revenue shares in a joint venture brought by low power rates and low volume of energy sold.

Trans-Asia shares rose by .03% to close at 95 centavos yesterday.