Singaporean Renewables company Nexif Ratch Energy has completed a financial close and begun construction of a 74MWp ground-mounted solar PV project in the Philippines.
Located in Calabanga, South Luzon, the project will sell about 85% of the generated electricity through a power supply agreement with two subsidiaries of Filipino renewable energy company AboitizPower Corporation after completion. The remaining generated power will be supplied to the wholesale electricity spot market or commercial and contestable customers via direct short-term contracts.
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Construction will be undertaken via a lump-sum turnkey engineering, procurement, and construction (EPC) contract with a consortium of PowerChina Huadong Engineering Corporation and PowerChina Philippines Corporation. The project will be completed by the second half of 2024, with commercial operations date commencing thereafter.
Moreover, debt financing for the project was provided by Security Bank Corporation as the lender, with SB Capital Investment Corporation acting as the lead arranger, to fund 70% of the project cost on a limited recourse basis.
Surender Singh, chairman of Nexif Ractch Energy, said, “We are also making rapid progress in achieving financial close of our 150MWp NPSI PV solar project in Negros later this year and are rapidly advancing the development of our offshore wind project pipeline in Luzon, which comprises five project concessions totalling over 2GW of potential wind capacity, the first of these projects targeted for financial close in 2024.”
Nexif Ractch added that PowerChina Philippines Corporation will conduct operations and maintenance activities of the project for the first two years from the start of commercial operations. After that, it will transition the scope to the in-house operations team of Nexif Ratch Energy.