Trans-Asia Oil and Energy Development Corp.’s unit has signed a combined P4.3-billion project financing facility for its 54-megawatt (MW) wind farm project in San Lorenzo, Guimaras province.
In a disclosure to the Philippine Stock Exchange, Trans-Asia said its subsidiary Trans-Asia Renewable Energy Corp. (Tarec) sealed the loan deal with the Development Bank of the Philippines and Security Bank Corp.
The 15-year loan will be used to fund the construction and development of the wind project, Trans-Asia said.
The Guimaras wind farm project, which has pre-qualified under the Feed-in-Tariff (FIT) scheme, is being undertaken by Tarec, which has 12 wind energy service contracts.
Other projects prequalified for FIT are Energy Development Corp.’s 87-MW wind farm in Burgos, Ilocos Norte province; Alternergy Wind One Corp.’s 67.5-MW Pililla wind power project in Rizal; PetroWind Energy Inc.’s 50-MW Nabas wind project in Aklan; Northern Luzon UPC Asia Corp.’s 81-MW Caparispisan Wind Power Project in Pagudpug, Ilocos Norte; and FirstMaxpower International Corp.’s 50-MW Pulupandan Wind Power Project in Negros Occidental.
Department of Energy director for renewable energy Mario C. Marasigan has said that, contrary to initial skepticism that the first-come, first-served policy on FIT allocation will discourage investments, the number of serious players competing for allocation has gone up and that such competition will help ensure reliable renewable energy capacity in the future.
Prequalification for the FIT scheme gives the project developers a chance to secure an allocation from the 760-megawatt installation target or the total capacity of renewable energy projects that will be allowed to be constructed within a three-year period. Securing an allocation will make the project eligible for the FIT rate, a mechanism that will secure for the developer a fixed cash flow for 20 years.