Financing for the 500mw San Lorenzo Power Project at Batangas in the Philippines is a rare ray of sunshine in the gloom of the regional project finance market. Beset by non-payment problems in Indonesia, low merchant power prices in Australia and overcapacity elsewhere in the region, international power sponsors, investors and lenders can take heart from the fact that even in this environment, deals can get closed in Asia.
The project is sponsored by FGP Corporation, a 6040 joint venture between First Philippine Holdings and BG Energy Holdings. It is the largest greenfield independent power project to be successfully financed since the Asian financial crisis and follows on from the sponsors' success in...
