PNOC-EDC, Aboitiz to undertake phase 2 of wind power project

The PNOC-Energy Development Corp. (EDC) has signed a memorandum of agreement (MOA) with the Aboitiz group for the construction of the second phase of the proposed $120-million wind power project.

"We have forged a joint venture agreement with the Aboitiz group. The agreement will allow us to conduct jointly a feasibility study on the second phase of the wind project. They will also join us in looking for financing for said phase," EDC president and chief executive officer Sergio Apostol said, adding that the feasibility study is expected to be completed within one month.

He said negotiations for the JV started about six months ago. "We have been in constant talks with the group. Until we decided to form a JV to study and finance the proposed project," he added.

According to Apostol, the Aboitiz group, based on the agreement will take up at least 50 percent of the project and the other 50 percent will be taken care of by EDC.

Apostol said EDC has received a number of offers from various foreign financial institutions and government entities to finance the second phase of the wind project.

"There is a proposal from Swedish government to provide us some $25-million worth of loans," he said.

The Dutch government’s financial assistance group, DANIDA, has also proposed to give at least $30 million.

He said the Spanish government has likewise expressed willingness to provide as much loan as they want to.

"But we only need $40 million for the project. We will see where we can source the funds that will offer the best rates," he said.

The EDC is expected to raise another $35 million to $40 million for the third phase of the wind project. The company is putting up the first phase in Burgos, Ilocos Norte. They are eyeing other Ilocos provinces and some part of Cebu and Mindanao for the second and third phase.

The Wind Energy Resources Atlas of the Philippines prepared by the NREL, on the other hand, has identified possible sites for wind power projects aside from Ilocos Norte. These are: Batanes; Busuanga and Cuyo Islands in Palawan; Casiguran and Polilio Islands in Quezon; Lubang Island in Mindoro Oriental; Marinduque; Masbate and Siquijor. Best wind resources are also found in Babuyan Island, Mindoro, Samar, Leyte, Panay, Negros, Cebu, Eastern Mindanao and adjacent islands.