Chinese firm eyes $500-M clean energy deal in Ilocos
A Chinese firm and a Singapore-based consortium have unveiled plans to build what could be the single largest renewable energy project in the country to date—a $500-million wind and solar power facility in Ilocos Norte.
In a statement, Xidian Holdings Philippines Corp., led by Chinese businessman Zhang Peng and a group of investors, said it was aiming at generating as much as 232 megawatts from wind and solar sources in Northern Luzon.
Xidian Holdings and a consortium of Singaporean investors bought into Energy Logics Philippines in December 2016. They now own a majority stake in the company.
Energy Logics holds solar and wind service contracts in Ilocos Norte.
After the successful buy-in, Energy Logics started moving forward with renewable energy projects that were targeted for completion by the middle of 2018.
The company said this transaction marks a “strategic partnership” between the group of businessman Marco Delgado and Xidian Holdings as the new majority stakeholders of Energy Logics “which will surely move this project forward.”
It added that this investment “is an offshoot of the successful visit of President Duterte to China” in October 2016.
Peng, who is Xidian Holdings managing director, said the company and the consortium led by his partner and newly appointed Energy Logics president Jose Silvestre Natividad signed the share purchase agreement with the Delgado group on Dec. 16, 2016.
Peng said the company planned to start construction of the renewable energy projects by March 2017. It is presently working on the engineering, procurement and construction contracts.
These projects will generate 2,000 jobs during construction and 500 jobs during the operation and maintenance phases.
“Our projects will not only secure Luzon’s power needs but will also help boost the Philippine economy by creating employment and livelihood opportunities,” Peng said.
The company plans to finance the project construction through equity and local financing.
Peng said the 232-MW renewable energy project formed part of Xidian Holdings’ 500-MW renewable energy investment portfolio set for completion by 2020, which also includes possible investments in hydroelectric projects.
The company is also eyeing putting up conventional power plants to balance and meet the country’s growing power demand.
Peng said he had hoped to entice other Chinese companies to invest in the renewable energy sector such as solar panel and equipment manufacturing.
“We are very excited with the opportunities in the Philippine power sector and we are very bullish of our investments under the Duterte administration,” Natividad said. —DAXIM L. LUCAS
