XIDIAN Holdings Philippines Corp. is pouring in $500 million (P12.38 billion) to develop renewable-energy (RE) projects in Ilocos Norte.
The power firm, funded by Chinese investors, led by Zhang Peng, together with a Singaporean-based consortium, will put up 232 megawatts (MW) of wind and solar projects, the single-largest RE project by a developer in the country to date.
The company plans to finance the project construction through equity and local financing.
The RE project forms part of Xidian Holdings’s 500-MW RE investment portfolio for completion by 2020, which also includes possible investments in hydroelectric projects, said Peng, who is also the company’s managing director.
Peng said the company plans to start construction of the RE projects in March. Xidian is currently working to seal the engineering, procurement and construction contract.
These projects will generate 2,000 jobs during construction and 500 jobs during operation and maintenance, Peng said.
“Our projects will not only secure Luzon’s power needs, but also help boost the Philippine economy by creating employment and livelihood opportunities,” he said.
Last December Xidian Holdings bought into Energy Logics Philippines as majority shareholder. Energy Logics, which holds solar- and wind-service contracts in Ilocos Norte, is the project proponent of the planned 232-MW wind and solar projects.
After the successful buy-in, Energy Logics is now moving forward with the RE projects with target completion by the middle of 2018.
This latest investment is an offshoot of the successful visit of President Duterte in China last October.
This transaction is a very strategic partnership by and between the group of Marco Delgado and the new majority stakeholders of Energy Logics.
Peng said the company and the consortium, led by his partner Jose Silvestre Natividad, who was appointed Energy Logics president, signed the share-purchase agreement with the Delgado Group last December 16.
Peng hopes to entice other Chinese investors to invest in the RE sector in the Philippines, such as solar-panel and equipment manufacturing.
“We are very excited with opportunities in the Philippine power sector and we are very bullish of our investments under the Duterte administration,” Natividad said.
The company is also eyeing to put up conventional power plants to balance and address the country’s growing power demand.