EDC secures $315 million loan for wind farm project in Ilocos Norte

Listed geothermal and renewable energy producer Energy Development Corp. (EDC) has secured a $315-million loan from foreign and local banks to start the full-swing construction of the 150-MW Burgos Wind Project in Ilocos Norte.

 

In a disclosure to the Philippine Stock Exchange Monday, EDC said the financing agreement, 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, while mandated lead arrangers 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, on the other hand, was arranged by PNB Capital and Investment Corp. and SB Capital Investment Corp. among a syndicate of local lenders namely BDO Unibank Inc., Land Bank of the Philippines, Philippine National Bank, and Security Bank Corp.

 

“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," EDC president and COO Richard Tantoco said in a statement.

 

With the intention to sell its entire electrical output under the Feed-In-Tariff system pursuant to the Renewable Energy Act of 2008, the Burgos Wind Project aims to be the first wind project to avail of the FIT which the Department of Energy will grant to 200 MW of wind projects on a first to commission, first served basis.

 

"With construction in full swing, we are confident that we will meet our target commissioning date and avail of the Feed-in-Tariff,” Tantoco said.

 

The company aims to complete the 150-MW wind farm by end November, EDC executive vice president Ernesto Pantangco told GMA News Online in a text message.

 

Once operational, the Burgos Wind Project 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 global wind turbine manufacturer Vestas.

 

It is also one of the largest investments to date in Ilocos Norte as it occupies a 600 hectare site covering three barangays, namely, Saoit, Poblacion and Nagsurot, in Burgos, Ilocos Norte.

 

Aside from the wind farm, the project also includes a 115 kilo-volt 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.

 

“This project underlines EDC’s strategy to be the country’s leading diversified renewable power company. As we provide 370 GWh of electricity to power approximately 2 million households, we also will displace about 200,000 tons of carbon emissions annually,” Tantoco noted. — TJD, GMA News