THE 150-megawatt (MW) Burgos wind project of Lopez-led Energy Development Corp. (EDC) in Ilocos Norte is expected to top company revenues next year by 10 percent over 2013 figures, EDC President and Chief Operating Officer Richard Tantoco said.
The company has secured a $315-million financing deal with a group of foreign and local banks for the construction of the wind project, Tantoco said at the signing of a financial agreement with local and foreign lenders on Thursday night.
“Burgos is going to bring 10 percent next year on the revenue and about 5 percent on the net income of the company,” Tantoco told reporters.
With the 10 percent projection, the wind project will add P3.2 billion given last year’s revenue of P32 billion.
The Burgos project is EDC’s first venture into the wind energy industry, and to date the largest wind power project in Southeast Asia.
EDC Burgos Wind Power Corp., an EDC affiliate, closed its $315-million, 15-year financing term with a group of foreign and local banks led by Eksport Kredit Fonden, Denmark’s export credit agency, which guaranteed $150 million of the loan’s dollar component.
Lead arrangers for the US dollar tranche are Australia and New Zealand Banking Group Limited, DZ Bank AG, ING Bank NV, Malayan Banking Berhad, and Norddeutsche Landesbank Gironzentrale.
The peso tranche was arranged by PNB Capital and Investment Corp. and SB Capital Investment Corp., among a syndicate of banks that include BDO Unibank, Inc., Land Bank of the Philippines, Philippine National Bank, and Security Bank Corporation.
“The overwhelming support of our lenders is a stamp of approval of EDC’s compliance with high standards in developing projects,” EDC chief finance officer Nestor Vasay said.
Tantoco said both of the project’s Phase 1 and 2 were commissioned last week.
“I would like to thank our financial partners in the Burgos wind project financing. Your vote of confidence is well founded,” Tantoco said.
Moreover, he said the Burgos project was endorsed by the Department of Energy to the Energy Regulatory Commission as a feed-in tariff eligible project.
Feed-in tariff is a policy mechanism designed to accelerate investment in renewable energy technologies. It achieves this by offering long-term contracts to renewable energy producers, typically based on the cost of generation.