develop an international financing plan. Preparation for the project included acquisition of both
a site for the power plant and a right of way for a 31-kilometre transmission line. A site map for
the project is shown in Exhibit 11.2. The project company was formed in 1996 and financing was
completed in February 1997. To meet schedule requirements, the sponsors began construction
two months before the financial closing. The plant began commercial operation in May 2000.^4
As part of its diversified fuel strategy, the government mandated coal as the source of
fuel for the project. At that time an indigenous gas supply had not yet been developed. The
sponsors selected coal from Indonesia because of its competitive cost, low sulphur content
and burn characteristics. They modelled the plant on the cleanest-burning coal plant in the
United States. Pollution control equipment incorporated into the plant’s design surpassed
legal requirements, reducing particulates to one half of the accepted international standard,
and virtually eliminating NOX and sulphur oxides from air emissions.
POWER PLANT
Exhibit 11.1
Project commercial structure
Ogden
ProjectsOgden
affiliateGuaranteeInterGenInterGen
affiliateGuaranteeQuezonBechtel Power
CorporationLime Supply
AgreementCoal Supply
AgreementEPCM
Guarantee contract
Quezon Power
(Phillippines), Limited Co.O&M
AgreementManagement Services
AgreementSite leases AgreementForeshore Transmission LineAgreement Power PurchaseAgreementOverseas
Bechtel, IncQPI MeralcoBechtel
Overseas Corp.PT Adaro
IndonesiaPT Kaltim
Prima CoalForeshore leaseMeralco MeralcoForeshore leaseRepublic of
Philippines NPCMeralco