PHILIPPINE conglomerate Ayala Corporation (AC) said on Wednesday its power unit AC Energy Holdings Inc. has signed investment agreements with an Indonesian company for the development, construction, and operation of a wind farm project in Sidrap, South Sulawesi, Indonesia.
In a disclosure to the Philippine Stock Exchange, Ayala said AC Energy has signed investment agreements with UPC Renewables Indonesia Ltd. to develop, construct, and operate a 75-megawatt (MW) wind farm in Indonesia with a total project cost of $150 million.
The project will be developed by Indonesia-based special purpose company PT UPC Sidrap Bayu Energi.
Expected to be completed by the end of 2017, the Sidrap project will be the first utility scale wind farm project in Indonesia and the first greenfield offshore investment of AC Energy through its affiliate AC Energy International Holdings Pte Ltd., a Singapore private limited company.
The $150 million project cost will be funded through equity and project financing to be provided by the Overseas Private Investment Corp., the U.S. government’s development finance institution, and PT Bank Sumitomo Mitsui Indonesia, the Indonesian subsidiary of the Sumitomo Mitsui Banking Corp. of Japan.
UPC Renewables is a global energy group that develops, finances, constructs, owns, and operates a portfolio of wind power generation assets. The group has successfully developed and operated renewable energy projects in Italy, the US, Canada, China, and the Philippines.
UPC Renewables and AC Energy are two of the owners of North Luzon Renewable Energy Corp., the owner and operator of the 81-MW Caparispisan wind farm project in Pagudpud, Ilocos Norte.
AC Energy is the power unit of Ayala Corporation, the publicly listed holding company for the group’s diversified businesses which include water (Manila Water Company Inc.), telecoms (Globe Telecom Inc.), property (Ayala Land Inc.), semiconductors (Integrated Micro-Electronics Inc.), banking (Bank of the Philippine Islands), infrastructure (AC Infrastructure Holdings Corp.), automotive (Ayala Automotive), and BPO and education (LiveIt Investments Ltd.), among others.
Kristyn Nika M. Lazo