Jul. 20-- THE Asian Development Bank (ADB) is in talks with foreign investors for possible financing of new power plants in the Philippines' central provinces.

"Significant new capacity is coming up in Visayas including two foreign investors . . . These are green projects. I'm talking of new capacity. As you know Visayas has a separate power supply-demand balance," Neeraj Jain, ADB country director, told The Manila Times.

The ADB official, however, refused to provide additional details, citing its policy of "confidentiality" when it comes to discussions with clients.

He, however, said that the new facilities would involve 400 megawatts to 500 megawatts of capacity.

In March, the Korean Electric Co.-SPC Power Corp. (KSPC), a joint venture of Kepco Philippines Corp. and SPC Power Corp., said it was seeking a hundred million-dollar loan from the ADB to fund the construction of a 200-megawatt coal-fired power plant in the Visayas.

The government earlier signed an agreement with the Korean government for this purpose because of the Visayas' looming supply shortage.

"If there will be no new power plants to be constructed in the Visayas grid by 2011, there will be a deficit of power supply because demand continues to increase annually," KSPC earlier said.

Based on government projections, the Visayas grid's electricity supply will be critical starting this year and onward.

According to the National Transmission Corp. Visayas System Operation, the grid has limited reserves of 121 megawatts, and so may suffer a deficit of 133 megawatts by 2011.

Other energy projects in the Visayas include a 246-megawatt coal plant in Toledo, Cebu.

Cebu Energy Development Corp. (CEDC), a joint venture among Global Business Power Corp. of the Metrobank Group, Aboitiz Power Corp., Vivant Corp., and Formosa Heavy Industries of Taiwan, earlier said that First Metro Investment Corp. has arranged for the company a P16-billion loan from a group of 11 lenders and insurance companies for their new generating facility.

The Philippines is among the largest recipients of non-sovereign support from the ADB.

Under its current partnership strategy with the Philippines, the lender aims to fund infrastructure projects in power generation and transmission, renewable energy, energy efficiency, water supply, sanitation and waste management, toll road construction and operation, housing finance, light rail transit systems, and port operations.

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