JBIC manager Floro O. Adviento said the bank will re-evaluate the proposed funding for the wind project to determine if there would be a need to adjust costs.
"We’re reviewing the funding for some cost adjustments…like we have seen that the price of steel has gone up, so there would be some cost overruns," he said.
Adviento said they expect to complete the financing cost re-adjustments within this month.
The original project cost was earlier estimated at 5.857 billion yen, to be extended from JBIC’s special yen loan package. But it was noted that there has been an increase in the prices of steel recently which may affect the original proposed project cost.
PNOC-EDC announced earlier that at least six Japanese firms have been pre-qualified to bid for the turnkey contract of the planned wind facility. In the short list are Itochu Corp. with Neg Micon, Sumitomo Corp. with GE Wind, Marubeni Corp. with Mitsubushi Heavy Industries and Kanematsu Corp.with Nordex.
For the transmission line’s turnkey contract, it was learned that Sumitomo and Marubeni have submitted their bids.
The turnkey contract covers the construction of a 42-kilometer transmission line connecting the facility to the National Transmission Co.’s substation in Laoag; the construction of a switchyard at Burgos; and the interconnection works at the Laoag substation to accommodate the power facility’s output.
The entire North Luzon wind power project (NLWPP) is targeted to generate an aggregate capacity of 120 MW to be implemented in three phases at 40 MW each.
For the company’s next wind farm projects, PNOC-EDC has tapped Spanish firm Elecnor S. A. to carry out a feasibility study to assess the viability of potential wind power projects in Camiguin Island and Taytay, Palawan.
Such an initiative comes with financing from Spanish FEV (Linea de Financiacion de Estudios de Viabilidad) granted through the Spanish government through its Instituto de Credito Oficial (ICO) lending unit.
The proposed study covers an 18-month duration and shall include site identification, wind resource assessment, and feasibility study of the wind farm sites.
PNOC-EDC’s foray into wind facility development is in line with the government’s thrust to shore up the country’s energy self-sufficiency, by enhancing utilization of renewable and indigenous energy resources.
The Department of Energy (DOE) recently opened for tenders at least 17 wind farm sites that are viable to bring in additional 500 MW in total capacity to add up to the country’s power supply.
In the first wind contracting round, the department offered 16 wind sites culminating in the signing of pre-commercial contracts for five areas with private investors.