THE Lopez-led Energy Development Corp. (EDC) has signed a $315-million financing agreement with a group of foreign and local banks for the construction of the 150-megawatt (MW) Burgos Wind Project (BWP) in Ilocos Norte.
The facility, which consists of US dollar and Philippine peso tranches, will mature in 15 years.
Eksport Kredit Fonden, Denmark’s export-credit agency, guaranteed a part of the dollar-loan component. The mandated lead arrangers for the foreign tranche are Australia and New Zealand Banking Group Ltd., DZ Bank AG, ING Bank NV, Malayan Banking Bhd (Maybank) and Norddeutsche Landesbank Girozentrale.
The local tranche was arranged by PNB Capital and Investment Corp. and SB Capital Investment Corp. among a syndicate of local lenders namely BDO Unibank Inc., Land Bank of the Philippines, Philippine National Bank and Security Bank Corp.
“This fresh loan is a sign of confidence from funding institutions on EDC’s ability to execute a strategic business plan for our wind project amid intense competition in the renewable energy industry. With construction in full swing, we are confident that we will meet our target commissioning date and avail of the feed-in Tariff,” EDC President and Chief Operating Officer Richard Tantoco said.
The BWP aims to be the first wind project to avail of the feed-in tariff (FIT) which the Department of Energy will grant to 200 MW of wind projects on a first to commission, first served basis. Its entire electrical output is intended to be sold under the FIT system pursuant to the Renewable Energy Act of 2008. Once operational, the BWP will be the largest wind farm in the Philippines comprising a total of 50 large-scale Vestas V90-3-MW wind turbines and ancillary plant to be supplied and constructed by Vestas, the world’s leading wind-turbine manufacturer. Aside from the wind farm, the project also includes a 115 kilovolt transmission line connecting the wind farm from the Burgos substation to the Laoag substation of the National Grid Corp. of the Philippines, as well as the expansion of the switchyard/substations.
“This project underlines EDC’s strategy to be the country’s leading diversified renewable power company. As we provide 370 GWh of electricity to power approximately 2 million households, we also will displace about 200,000 tons of carbon emissions annually,” Tantoco added.
The BWP is one of the largest investments to date in Ilocos Norte. It occupies a 600-hectare site covering three barangays, namely, Saoit, Poblacion and Nagsurot, in Burgos, Ilocos Norte. It is also EDC’s first wind-power project after establishing itself as the country’s leading geothermal producer.
Meanwhile, the DOE has awarded EDC one solar-energy service contract and six wind-energy service conracts.
The wind-energy contracts include the Iloilo 1 power project in Batad and San Dionisio; Iloilo 2 in Concepcion; Matnog 1, 2, and 3 power projects in Matnog; and Negros power project in Manapla and Cadiz City in Negros Occidental.