The Asian Development Bank (ADB) is to provide $120m to KEPCO SPC Power (KSPC) to help build a coal-fired power plant to provide power to Visayas, in the Philippines.
The new 200MW plant, to be built in Naga City on Cebu Island, will use circulating fluidised bed combustion boilers technology.
The KSPC plant will supply electricity to to Cebu and Negros islands and to the wholesale electricity spot market once it is set up in the Visayas.
The 12-year loan is in line with ADB's Energy Policy (2009) of helping Asia secure adequate power supply while promoting cleaner power generation.
At present, geothermal resources provide 70% of power in the Visayas, which is not adequate for immediate, reliable and low-cost power.
The first 100MW unit will come online in February 2011 followed by the second in May 2011.