“The proceeds of the loan will be used to partly finance the establishment of OPI’s 10-megawatt Inabasan  mini-hydro power plant project in San Teodoro, Oriental Mindoro,” Jolliville said in a disclosure to the stock exchange.

Ormin executives earlier said the hydro project would help stabilize power supply in Oriental Mindoro.

The project is also expected to reduce system loss and eventually lower the power generation cost in the area.

The Energy Department said it issued a certificate of commerciality to the company, which would pave the way for the construction of the plant.