Milbank, Tweed, Hadley & McCloy LLP advised Abotiz Power, Ayala Corporation’s AC Energy Holdings Co. and Power Partners as sponsors in connection with GNPower Dinginin Ltd. Co.’s US$1.7 billion supercritical coal-fired power plant project in Bataan Province in the Philippines. Milbank represented the project in the first 668 MW unit closing in September 2016, and the project will now be expanded to include a second 668 MW unit.
The deal amends the EPC arrangements to two units and adds a US$434 million expansion facility. The expansion to two units was contemplated in both the original EPC contracts and financing documents, and allowed the project company to conclude the EPC and financing documentation on an expedited basis.
The two units will expand the capacity of GNPower Dinginin to 1,336 MW to serve the Philippine islands of Luzon and Visayas. The construction of the first unit is set to be complete by 2019, and the second unit by 2020.
The Milbank team was led by Hong Kong Global Projects, Energy & Infrastructure Finance Group of counsel Desiree Woo, as well as Singapore Project, Energy and Infrastructure Finance Group partner James Murray, with support from associate Ari Singzon.
Ms. Woo said: “With power sales to a diversified customer base and the Wholesale Electricity Spot Market here to stay, it has become clear that power producers in the Philippines have to evolve with the changing industry landscape. We are delighted to have played an integral role in this deal, which pushed the market to finally recognize these changes. We are also pleased to see engagement from banks who have the vision to grow alongside Aboitiz Power, AC Energy and GNPower, and have taken the initiative to help develop creative solutions to meet the changing landscape.”
Mr. Murray added: “This project is now owned entirely by Philippine sponsors, as three of the leaders in the Philippine IPP industry sponsored the closing for the second unit: Aboitiz Power, Ayala Corporation’s AC Energy and GNPower. It is an honor to have once again been tapped for our expertise in executing highly significant transactions in Asia, and we look forward to continuing to strengthen our presence throughout the region.”
The deal closed on December 12, 2017.
