Alternergy wind farm project gets $130 M loan

MANILA, Philippines - Four local banks led by BDO Unibank Inc. are extending a $130 million loan to Alternergy Wind One Corp., the developer of the 67.5 megawatt wind farm power project in Pililla, Rizal province.

Alternergy Wind One is a partnership between Alternergy Viento Partners Corp, founded by former Energy Secretary Vincent Perez, and Korea East West Power, a generation subsidiary of Korea Electric Power Co. (KEPCO).

The $130 million financing is the first all-Filipino commercial bank syndicated term loan facility for a wind power project.

The 67.5 MW Pililla Wind Farm Project is the first renewable power project that has received full project financing on the Feed-in Tariff (FIT) regime under the Renewable Energy (RE) Law.

“This is a testament to the domestic banking industry’s growing awareness and confidence in helping the private sector develop power generation projects that harness renewable energy,” BDO Capital & Investment Corp. president and BDO Unibank EVP Eduardo Francisco said.

Francisco said the team up of four all-Filipino commercial banks demonstrates the technical and commercial viability of renewable power projects in the country, specifically for large-scale wind projects.

Aside from BDO Unibank, the other banks that will lend to Alternergy are Philippine National Bank, Rizal Commercial Banking Corp. and China Banking Corp. BDO Capital is the lead arranger and sole bookrunner.

The syndicated loan facility has a term of 12.5 years and is available in both Philippine pesos and US dollars.

The Pililla Wind Farm Project involves the construction and installation of 27 wind turbines along the ridge of the mountainous Rizal province.

Based on the Wind Atlas of the Philippines conducted by the National Renewable Energy Laboratory of the United States, the Pililla wind site has a promising wind resource.

Alternergy Wind One verified and confirmed the potential after more than three years of wind resource assessment by GL Garrad Hassan, the world’s leading wind consultancy firm. The Asian Development Bank partly-financed the feasibility study under a technical assistance facility.

The Pililla Wind Farm Project received the Confirmation of Commerciality from the Department of Energy (DOE) last May 17, 2013.

Under the RE Law, the first batch of wind power projects would receive a P8.53 per kWh FIT rate for the next 20 years.

The ground breaking ceremony of the Pililla Wind Farm Project was held last June 18.

The project is expected to be ready for commissioning by late 2014.