Sta. RIta 1,000 MW Combined Cycle Gas Turbine (CCGT) Power Plant

P O W E R U P D A T E

Sta. Rita Gas-Fired Power Plant Starts Testing

The first unit of the 1,000 megawatt combined cycle power project ofFGHC in Sta. Rita, Batangas City started testing in thefirst week of January 2000. The first block or unit consists of 500 MW and is expected to bethe first natural gas-fired power facility in the Philippines to supply partof the requirements of the Luzon grid. The second block, with a capacity of500 MW is scheduled to become available by second quarter of this year.

The Sta. Rita power project is a component of the Camago-Malampaya Gas Power Project,which calls for the supply of natural gas to an aggregate capacity of up to 3,000 MW.The project will deliver competitively-priced energy to Meralco under a25-year Power Purchase Agreement (PPA).

Based on current rates and projections, the entry of the first block alone isexpected to pare down Meralco's rate by about 15 centavos per kilowatt-hour,and 30 centavos per kwh if the whole facility is brought online.

First Gas Holdings Corp. First Philippine Holdings Corp.

BG plc Meralco Pension Fund

FGHC-FGPC is
tasked to build,
own and operate
the first gas-fired
combined cycle
gas turbine
power plant
in the
Philippines.

The plant is
being built on a
35-hectare site
in Santa Rita,
Batangas City
along Batangas
Bay.

Sta. Rita 1,000 MW Combined Cycle Gas Turbine Plant

Construction of the 1,000 mw gas-fired combined cycle power station of First Gas Power Corporation (FGPC) in Santa Rita, Batangas City continues to be on-track.

FGPC is a wholly-owned subsidiary of First Gas Holdings Corporation (FGHC), the joint venture company owned by First Philippine Holdings Corporation (51%), BG plc (formerly British Gas) (40%) and Meralco Pension Fund (9%). FGHC was established in 1995 to pursue opportunities in the emerging natural gas sector, particularly due to the discovery of the Camago-Malampaya gas field off the island of Palawan.

The project brings together leading global firms and top local corporations. FGPC, which has the lowest rates among Meralco’s Independent Power Producers, will supply electricity to Meralco under a power purchase agreement.

By November 1999, FGPC will usher in a new era in the Philippine power industry. Upon its commissioning, the 1,000 megawatt gas-fired power plant will mark the entry into the energy sector of new, highly efficient combined-cycle power plants capable of burning environment-friendly natural gas from the country’s first commercial gas field.

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FGHC-FGPC
Sta. Rita
Combined
Cycle Gas
Turbine
Power Plant

PROJECT FINANCIALS

Total project cost is estimated at $890 million, inclusive of capital costs, working capital requirements, related transmission upgrades and financing, insurance and development costs. The financing is based on a 75% debt and 25% equity structure. Given the optimal risk allocation achieved in the course of developing the project, FGPC secured $680 million worth of limited recourse project financing on September 3, 1997 with favorable terms, notwithstanding the onslaught of the regional financial crisis.

The $680 million debt financing is broken down as follows: $190 million KFW-Hermes guaranteed loan facility; $160 million U.S. private placement; $110 million Philippine FCDU syndication; $78 million EIB loan facility; $66 million MEXIM-Mecib guaranteed loan facility; $26 million MEXIM loan facility; and $50 million revolving credit / working capital facility.

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