IFC said it had signed the loan agreement with SN Aboitiz Power-Benguet Inc (SNAPB), which was named winning bidder late last year and to which the facilities were handed over in July.

The loan is for US$100M against SNAPB’s winning bid of US$325M at the auction in November 2007. SNAPB is a JV of SN Power, of Norway, and local group Aboitiz. The JV financed the acquisition through seller credit and a loan from Aboitiz.

The 75MW Ambuklao plant was built in 1956 and has been inactive in recent years but headwater releases have continued to regulate flows to the 100MW Binga plant, completed in 1960 and which generates 360GWh annually.

Ambuklao is to be rehabilitated to have 65MW of operational capacity within seven years, and has said it plans to have a total installed capacity of 225MW between the two plants within a few years.

The majority of the output from the plants will be sold a peak periods, like SN Power and Aboitiz will do with the 360MW Magat plant they bought at auction previously.

IFC is part of the World Bank Group.

SN Power is a 50:50 JV between Norwegian power utility Statkraft and Norfund, a Norwegian investor in emerging markets.