All agreed loans

Philippines. SN Aboitiz Power Inc.

Date of loan: 1 Oct 2007
Country: Philippines
Customer: SN Aboitiz Power Inc.
Amount in USD: USD 47 million
Amount in EUR: EUR 33.1 million
NACE sector / loan type: Electricity, gas, steam and hot water supply
Business area: Energy and environment

Project

The loan totalling USD 47 million will be used to finance SN Aboitiz Power's (SNAP) acquisition and rehabilitation of the 360 MW Magat hydropower plant, which supplies energy to the Luzon electricity grid in the Philippines. SNAP is a special purpose company owned by the Norwegian company Statkraft Norfund Power Invest AS and the Philippine power generation and distribution company Aboitiz Power Corporation. With its significant experience in the hydropower sector, SN Power will contribute to improving the efficiency of the plant and operating it in the Philippine wholesale electricity market. Increased energy output from Magat will displace energy generated by thermal plants on the Luzon grid thus reducing emissions.

Sustainability summary

The acquisition of the Magat power plant will improve the environmental performance of the hydropower plant. SNAP will implement a programme for reducing the environmental impacts of the plant and engaging with the community. Furthermore, due to the increased generation of electricity, the project will contribute to the reduction of greenhouse gas emissions. A 25% share of the project qualifies as an environmental investment.