Energy Development Corporation (EDC) has signed a US$315 million financing agreement with a group of foreign and local banks for the construction of the 150-MW Burgos Wind Project (BWP) in Ilocos Norte, Philippines.
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 Limited (ANZ), DZ Bank AG, ING Bank NV, Malayan Banking Berhad (Maybank) and Norddeutsche Landesbank Gironzentrale. The local tranche, meanwhile was arranged by PNB Capital and Investment Corporation and SB Capital Investment Corporation among a syndicate of local lenders namely BDO Unibank, Inc., Land Bank of the Philippines, Philippine National Bank, and Security Bank Corporation.
The total project investment is estimated at US450 million.EDC President and Chief Operating Officer Richard Tantoco stated:
“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 amidst 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,”
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 V90-3.0MW wind turbines and ancillary plant to be supplied and constructed by Vestas. Aside from the wind farm, the project also includes a 115 kV transmission line connecting the wind farm from the Burgos substation to the Laoag substation of the National Grid Corporation of the Philippines (NGCP), as well as the expansion of the switchyard/substations.
The 150 MW BWP will be developed in two phases: 87MW (phase 1) expected to be operational by the end of 2014 and 63MW (phase 2) which is expected to be operational by the beginning of 2015.