Aboitiz Power Corp and its joint venture partner – the US based SunEdison, have awarded an engineering procurement and construction (EPC) contract for a $75.6 million (P3.5 billion) power project – their first in a series of utility-scale solar power projects in the Philippines.
Aboitiz Power earlier disclosed to the stock exchange that its wholly owned subsidiary Aboitiz Renewables Inc (ARI) had signed shareholders’ agreements with SunEdison Philippines Helios BV to formalise the equity sharing, governance structure, and other terms and conditions of the ARI and SunEdison partnership, in their joint venture firm Maaraw Holdings San Carlos Inc.
Maaraw, which is 60 per cent owned by Aboitiz Power, will undertake the acquisition, development and exploration of the 59-MWp solar photovoltaic power generation project in San Carlos City, Negros Occidental. The parties have engaged China-based electric power equipment supplier Nari Group Corporation as EPC contractor for the project.
“The Negros solar energy project is set for commercial operations in the first quarter of 2016 and will be one of the largest solar power projects in the Philippines to date,” Aboitiz Power said in a statement.
Aboitiz Power president and COO Antonio Moraza said the project is in line with the government’s aim to maximize the renewable energy potential of the country.
“Aboitiz Power is one of the biggest renewable energy producers in the country and we will continue to expand this capacity. This project is a testament to that commitment,” Moraza said. “Aboitiz Power will continue to pursue the right mix of energy sources to ensure reliability and a reasonable cost of power to the end consumers.”
Aboitiz Power and SunEdison plan to construct several utility-scale solar photovoltaic power generation projects in the Philippines with a combined capacity of 300 MW over the next three years.
Currently, Aboitiz Power and its partners produce a total of 3,044 MW of power, 40 per cent of which comes from its Cleanergy portfolio made up of hydro and geothermal power plants.
SunEdison is headquartered in Belmont, California and has 1,000 operational sites in 35 locations across North America, Europe, and Asia, vertically integrated from silicon to solar panels.
Only last June, Aboitiz Power’s subsidiary Therma Visayas Inc obtained a total of P31.97 billion loans and credit accommodations from lender-banks, to finance the construction of a 300 MW coal-fired power plant in Barangay Bato, Toledo City in Cebu.
Aboitiz Power’s last trading price decreased 0.11 per cent or P0.050 to close at P43.45.