Tiwi and MakBan Geothermal Power Green Bonds Project (ADB-48423-001)

Countries
  • Philippines
Where the impacts of the investment may be experienced.
Specific Location
Province of Albay, Province of Laguna
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jul 2, 2015
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
AP Renewables, Inc.
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Guarantee, Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 8,025.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Loan Amount (USD)
$ 1,800.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ ADB website

Updated in EWS Nov 14, 2017

Disclosed by Bank Jul 28, 2015


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Project Description
According to bank documents, the project aims to rationalize the capital structure, operational support and maintenance of two geothermal power plants in Luzon, the Philippines, namely, the Makiling-Banahaw Geothermal Power Plant (MGPP) and the Tiwi Geothermal Power Plant (TGPP). TGPP consists of three geothermal power plants located approximately 40 kilometers (km) north of Legazpi City with an installed gross generating capacity of approximately 234 MW. The MGPP is a complex of seven geothermal power plants located approximately 70 km southeast of Metro Manila with an installed generating capacity of approximately 442.90 MW. In July 2008, AP Renewables Inc. (Borrower) , which is a wholly owned subsidiary the Aboitiz Power Corporation (Sponsor), won the bid conducted by the Power Sector Assets and Liabilities Management Corporation (“PSALM”) and acquired both MGPP and TGPP. ADB’s financial assistance is requested as a partial credit guarantee for up to 75% of US$ 240 million equivalent in pesos project bonds and US$ 40 million equivalent in pesos project loan. The debt will be used to partly refinance the equity capital infused for the purchase and rehabilitation of the power plants.
Investment Description
  • Asian Development Bank (ADB)
Borrower/Company: AP Renewables, Inc. Project Sponsor: Aboitiz Power Corporation
Contact Information
Project Officer: Taneja, Anshukant Private Sector Operations Department No contact information provided at the time of disclosure. ACCOUNTABILITY MECHANISM OF ADB The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main