PSIREN

The CBK power complex in Laguna is operated by CBK Netherlands Holdings B.V. (CBKNH), a 50:50 joint venture of Electric Power Development (J-Power) and Sumitomo Corp. The J-Power-Sumitomo consortium acquired CBK from the joint venture of IMPSA (Argentina) and Edison Mission Energy (USA) in 2005; the Kalayaan Power Management Corp was responsible for operation and management. CNK rehabilitated all three plants, completed in 2004, and sold the electric power produced to NPC for a period of 25 years. Nearly half of the purchase price of 23B yen was covered by Japan Bank for International Cooperation (JBIC) and other Japanese banks, the first time that JBIC supported the acquisition of overseas IPP interests by a Japanese company on a project finance basis. In March 2005, JBIC provided a US$100M loan to CBKNH cofinanced with private financial institutions; JBIC also provided political risk coverage. This was the first JBIC project finance provided to support Japanese firms in the acquisition of a concession or operation of an existing IPP project in Asia.

J-Power – The CBK takeover deal marks the second IPP project for J-Power in the Philippines, following the Leyte Geothermal Power Plant (49MW; equity share 10%) project of 1998. J-Power has already established a solid record of engagement in the country in the form of providing consultant services to NPC for nearly 30 years. J-POWER's IPP business began in July 1997, with aggressive growth in the overseas IPP business, particularly in Asia. As of September 2008, J-POWER has 23 power projects operating in 6 countries/regions. J-Power has been an electric power wholesaler for over half a century; in October 2004, it was listed on the Tokyo Stock Exchange, completing its transformation to a private sector company.

Sumitomo Corp – Sumitomo was established in 1919 and engaged in multifaceted business activities, selling a variety of domestic products and services, conducting import/ export and trilateral business transactions, providing domestic and international business investment, facilitated by its global network built with corporate business partners and consumers in various industrial sectors around the world. The CBK deal is Sumitomo’s first IPP acquisition project in Asia; it plans to be an active player in large-scale IPP projects in Asia in the future.

NOTES:
CBK is a 755MW hydro power complex in Laguna, about 90 km south of Manila, and consists of (a) 23.5MW Caliraya built by NPC in 1942-1950; (b) 23MW Botocan built by NPC in 1946-1948; and (c) 684MW Kalayaan built in 1982. www.jcmiras.net/surge/p77.htm

http://www.jbic.go.jp/en/about/press/2004/0316-02/index.html; http://www.jpower.co.jp/english/news_release/news/news050316.pdf

http://www.jpower.info/; http://www.jpower.co.jp/english/news_release/news/news050316.pdf

http://www.sumitomocorp.co.jp/english/; http://www.jpower.co.jp/english/news_release/news/news050316.pdf

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FROM:
CBK Power (J-Power-Sumitomo) in Philippines
By Violeta P. Corral, PSIRU-Asia www.psiru.org, July 2009