KfW IPEX-Bank to finance the construction of the most efficient power plant in Southeast Asia

• Hermes-covered loan of USD 265 million
• State-of-the-art power plant construction in the Philippines
• Key German technology from Siemens facilitates lower-CO2 energy production at optimal efficiency

Frankfurt, Germany, 11-7-2014 — /EuropaWire/ — KfW IPEX-Bank is financing the construction of a 414 MW combined cycle gas-fired power plant, “San Gabriel”, located in Batangas City in the Philippines, with a loan of USD 265 million. The proceeds of the loan will be used to primarily finance the eligible German and other goods and services under its Equipment Supply Contract. The highly-productive plant with an efficiency level of over 60 per cent will utilize equipment and parts supplied by the German company Siemens AG through the Equipment Supply Contract. Its Philippine subsidiary, Siemens Inc., will act as general construction contractor of the plant while another subsidiary, Siemens Power Operations, Inc., will serve as operator. The investor and borrower is a wholly-owned subsidiary of First Gen Corporation, one of the largest power generation companies in the Philippines. The financing is covered by an export credit guarantee of the Federal Republic of Germany and has a tenor of about 14 years.

“This project is an example of successful exporting of German high technology with added value: After completion, San Gabriel will be the most efficient combined cycle gas-fired power plant not only in the Philippines but in the rest of Southeast Asia, a real showcase project for the energy market in the whole region. Thus, key German technologies are helping to relieve the burden on the environment,” commented Markus Scheer, the responsible member of the Management Board of KfW IPEX-Bank, on completion of the financing deal.

San Gabriel is being built in Batangas City on the island of Luzon, approximately 112 kilometres south of Manila (capital of the Philippines). A top-of-the-line SGT6-8000H gas turbine from Siemens is at the heart of the plant. It will ensure optimal efficiency and produce low CO2 emissions while maintaining high operational flexibility. Commissioning is scheduled for March 2016.

In the past, KfW financed at the site the construction of the 500 MW San Lorenzo and 1000 MW Santa Rita combined cycle gas-fired power plants. These plants can now play a role in relieving the strain on the environment during the building phase of the new plant, as San Gabriel will be able to optimize the use of equipment of the other two power plants’ existing infrastructure.

About KfW IPEX-Bank GmbH
Within the KfW Group, KfW IPEX-Bank is responsible for international project and export finance. Its function of providing financing to boost the German and European economy is derived from the legal mandate assigned to KfW. It offers medium- and long-term financing to support key export industries, to develop economic and social infrastructure and to fund environmental and climate protection projects. KfW IPEX-Bank operates as a legally independent group subsidiary and plays a major role in fulfilling KfW’s promotional mission. It is represented in the most important economic and financial centres across the globe.

Thomas Krick
Phone+49 69 74 31-84 54Fax+49 69 74 31-94 09
thomas.krick@kfw.de