Investments in renewable energy projects seen to reach $200 million

MANILA, Philippines - Over $200 million worth of investments for renewable energy development in the country are expected to come in this year, House committee on energy chairman Rep. Miguel Arroyo said.

He said he had been informed that funding for several renewable energy (RE) projects are currently being worked out by a number of investor groups.

“I was told that there are some projects being conducted by the Aboitizes and Zamoras on renewable energy,” he said.

Arroyo noted that the Aboitiz group plans to invest about $70 million for RE development projects while the Zamora group may pour in $150 million worth of investments for various RE-related projects.

The Zamora group is close to finalizing a loan from the Development Bank of the Philippines to finance these projects.

The group is eyeing a biomass project in Luzon and a hydroelectric power project in Mindanao.

To further boost RE development, Arroyo said they are encouraging local and international roadshows.

“This way we can encourage more players to come in and invest on RE,” the Pampanga lawmaker said.

Aboitiz Power Corp. has lined up investments in generation facilities with a total generating capacity of 1,957 megawatts, more than 70 percent of which are powered by renewable sources of energy.

Meanwhile, Montalban Methane Power Corp. (MMPC) run by the Zamoras, confirmed that they have tapped DBP to finance the construction of another biomass project.

“We cannot disclose yet because we don’t want to pre-empt anything. Before the end of the month, we may have something,” MMPC executive vice president Danilo Cantiller said.

Cantiller said the group’s methane project in Montalban, Rizal is estimated to cost $33 million. The group is also looking at constructing methane-based power facilities in San Pedro, Laguna and Navotas with a total of 14 megawatts at an estimated cost of around $42 million.

MMPC is a unit of Tranzen Group Inc., the holding company of Salvador Zamora II, who has been into nickel mining and real estate businesses in Mindanao and Palawan . MMPC is a joint venture between UK-based firm Carbon Capital Markets (CCM).

Aside from these biomass projects, Cantiller said the Zamora group is eyeing to develop other renewable energy power sources such as wind and mini-hydro.

Cantiller said they are currently evaluating a wind power project in Ilocos Norte.