K-Water and San Miguel to co-manage Philippine hydropower plant

Will start by the end of this year.

Korea Water Resources Development Corporation or K-Water is officially taking over the 218 megawatt Angat hydroelectric power plant in Bulacan province north of Manila with the Philippines’ San Miguel group as its partner. State-owned K-Water signed a memorandum of agreement with the San Miguel group last Aug. 23.

K-Water won the bid to operate the facility three years ago. With an offer of US$441 million, K-Water bested San Miguel and four other firms.

K-Water is set to receive a US$500 million bridge loan to cover immediate financial commitments for Angat. It will then start project financing tapping Korean and Philippine banks. The Export-Import Bank of Korea and some Philippine banks will be engaged involved in financing.

The partners will later set-up a special purpose company in which San Miguel will have 60% equity as Philippine partner.

The participation of other Filipino companies will depend on discussions with both K-Water and San Miguel.