MANILA, Philippines — The solar team-up of San MiguelCorp. big boss Ramon Ang and tycoon Edgar Saavedra is off to a blazing start, with plans to energize their Bataan facility as early as next year.
Saavedra-led Citicore Renewable Energy Corp. (CREC) has partnered with Ang’s San Miguel Global Light and Power Corp. (SMGLP) to jointly develop and operate a 153.5-megawatt (MW) solar power plant in Mariveles, Bataan.
The companies are finalizing the engineering design and currently securing permits to start the construction, CREC president and CEO Oliver Tan told reporters late Tuesday.
“We’re looking to start the construction before this year ends. The timetable would be one year, so by 2025 the facility will be completed,” he said.
Upon completion, the joint venture is expected to add 76.75 MW to CREC’s solar energy capacity as it works to achieve an ambitious 5,000-MW target by 2028.
The financial details of the project were not immediately made available, but based on industry estimates, solar developers are expected to spend P40 to P50 million per MW.
Initially, CREC will own 49 percent of the project, while SMGLP, a unit of SMC Global Power Holdings, will hold a 51-percent stake.
The Saavedra-led firm will increase its stake to 50 percent during the construction phase of the project, resulting in equal ownership between CREC and SMGLP.
The deal marks the first partnership between Ang and Saavedra, with CREC officials hoping that it will trigger future collaborations between the two tycoons.
“Anything is possible. If San Miguel is happy with the partnership, then it may lead to more projects together,” Tan said.