Japan Bank for International Cooperation (JBIC) has signed a loan agreement totalling up to Y6.8bn with National Power Corporation (NPC) of the Philippines. The loan was co-financed with private banks (agent bank: UFJ Bank Ltd).
The loan will support Japanese plant exports by financing the import/delivery of submarine cables and transforming equipment from Kanematsu Corporation/J-Power Systems Corp, items which are necessary to boost power transmission capacity (230kV x 3) between Leyte and Cebu Islands.
Power demand has been growing in Cebu. The department of energy of the government of the Philippines projects that power supply and demand will become critical in Cebu around 2006 (average annual growth in excess of 7% is projected until 2013). This project is aimed at adding Leyte-Cebu submarine cables to strengthen transmission capacity from Leyte to Cebu. The project will also upgrade equipment at the existing substations located in those islands.
The loan is expected to support not only plant exports by Japanese companies, but overseas business activities of many Japanese companies operating in Cebu as well, by helping to secure a stable power supply through the project.