The Manila Electric Company (Meralco) has recently signed mandate letters with a group of seven Philippines banks for PhP 107 billion worth of debt financing for the 1,200 MW Atimonan One Energy ultra supercritical coal-fired power project in Quezon province. This is reportedly the biggest project finance deal done locally. A mandate letter sets out the terms of a loan being procured for the project and it also manifests the intent of the bank’s readiness to lend money to the borrower. Other preparatory works being advanced by MGen for the Atimonan project are continued evaluation and negotiations for the EPC contract for the project; as well as the signing of an MoU with MIESCOR for the construction of the transmission line that will underpin the capacity wheeling of generated electricity from the plant. It is expected that the first unit of 600 MW will be completed by the end of 2021.
