Ayala Corp. subsidiaries have forged a joint venture with affiliates of Citicore Holdings Inc. to develop, build and operate a 50-megawatt solar plant in Pampanga, which is expected to go online in November.
AC Energy Corp. (Acen) will provide funding through a loan of about P2.7 billion. The project will rise in an area that straddles the towns of Arayat and Mexico.
Meanwhile, Citicore Solar Energy Corp. (CSEC) is committed to build the solar farm through affiliate Megawide Construction Corp. or any group that Megawide designates.
CSEC will also provide project development as well as operation and maintenance of the power facility through its parent firm, Citicore Power Inc., or any group under it.
The special purpose vehicle for this project is Greencore Power Solutions 3, with which Acen and subsidiary ACE Endevor Inc. as well as CSEC signed a shareholders agreement last Feb. 4.
The deal provides that CSEC will acquire 50 percent of the shares in Greencore, while Acen will acquire 45 percent and Endevor, 5 percent.
Also, Acen signed with Greencore a subscription agreement for 2.25 million shares in Greencore at P1 apiece.
Acen said Greencore would use the proceeds from the subscription to partially fund the development and construction of the Pampanga solar farm.
“This joint venture supports (Acen’s) strategic objective to be the growth platform of the AC Energy Group in the country,” the Ayala unit said.
“(We) will have the opportunity to develop a greenfield stand-alone solar farm, which will provide daytime power to the Luzon grid, in partnership with CSEC,” Acen added.
Acen wants to build up a portfolio of 5,000 MW of renewable energy capacity by 2025. It also wants to become Southeast Asia’s largest listed renewable energy platform. —RONNEL W. DOMINGO