Government seeks private help in P18 billion offshore wind push

MANILA, Philippines — It will require up to P18 billion to construct the country’s first three offshore wind terminals, so the government is turning to the private sector for help in building the projects.

The Philippine Ports Authority (PPA) is finalizing the construction framework for three projects that seek to turn some of its ports into offshore wind farms to boost the country’s energy supply.

Although the first one, worth P2.27 billion, has already been awarded, PPA general manager Jay Santiago said the agency is still consolidating the properties needed for the project.

In February, the PPA awarded the contract to undertake the first phase of development works for the Port of Mercedes in Camarines Norte. The contract was granted to the joint venture of Khan Kho Chi Construction and Development Corp. and SB Construction Corp.

However, Santiago said the project is on hold because the PPA is still completing the documents for the construction site. If things go as planned, development will still proceed this year, putting the project on track for completion within at least 18 months.

The bigger question of viability lies in two projects: the Port of Sta. Clara in Batangas and Port of Currimao in Ilocos Norte.

Santiago said for the Port of Sta. Clara, the PPA is eyeing to work with a private partner through the port terminal management framework (PTMF), the agency’s public-private partnership.

The conversion of the Port of Sta. Clara into an offshore wind terminal would require up to P3.6 billion, which Santiago said would be difficult for the PPA to shoulder on its own.

The PPA is currently studying how it can use its PTMF for the project, targeting to craft a contract this year so bidding could start as soon as possible. Santiago expects the development of the Port of Sta. Clara to progress faster since it requires less work.

The most challenging of the three is the Port of Currimao, both for its capital and infrastructure requirements. Based on initial estimates, the project would cost more than P12 billion.

On top of this, the project will require floating turbines, the newest technology in offshore wind, as compared to the others that are capable of holding up fixed-bottom turbines.

Putting up an offshore wind farm in the Port of Currimao will require a larger space of around 25 hectares, adding to the challenges of pushing through with the project.

“We are willing to allow the Port of Currimao to be used, but we are hoping that whoever would come in to supply the power would also develop the offshore wind terminal,” Santiago said in an interview with The STAR.

“The requirement is about 25 hectares, and the estimated development cost is about P12 billion, which the PPA is incapable. Besides, according to the DOE (Department of Energy), the technology of floating turbines is still further down the road,” he added.

Despite this, Santiago said he is confident the Philippines can generate its first kilowatt of offshore wind energy by 2028 as planned. The projects may have taken a hit in schedule, but he noted that agencies are working toward speeding them up.

Earlier, the DOE confirmed it is down to just nine offers for the country’s first offshore wind auction, with the target of issuing the final list of bidders by July.