The Market Monitor Minding the Nation's Business
Ayala Corp. unit AC Energy Holdings Inc. (AC Energy) signed investment agreements with UPC Renewables Indonesia Ltd for the development, construction, and operation of a 75-megawatt (MW) wind farm project in Sidrap, South Sulawesi, Indonesia.
The Sidrap Project will cost $150 million to be funded through equity and project financing from the US government’s development finance institution – the Overseas Private Investment Corp. (OPIC) and PT Bank Sumitomo Mitsui Indonesia, a unit of the Sumitomo Mitsui Banking Corporation of Japan.
The “Sidrap Project” will be developed through PT UPC Sidrap Bayu Energi, a special purpose company based in Indonesia. The project is the first greenfield offshore investment of AC Energy, through its affiliate, AC Energy International Holdings Pte Ltd., a Singapore private limited company.
The project’s completion by the end of 2017 will provide Indonesia with its first commercial-scale wind farm project. UPC Renewables and AC Energy are owners of North Luzon Renewable Energy Corp. which operates the 81-MW Caparispisan wind farm project in Pagudpud, Ilocos Norte.
UPC Renewables operates a portfolio of wind power generation assets, having successfully developed and operated renewable energy projects in Italy, the USA, Canada, China, and the Philippines.
AC Energy recently also signed documents to sell all of its ownership stake in each of QuadRiver Energy Corp, Philnew Hydro Power Corp and PhilnewRiver Corp to Sta. Clara Group Inc. Prior to the sale, AC Energy held some 70 percent of the outstanding capital stock in the hydropower companies, with Sta. Clara Power Corp. owning the remaining 30 percent.
The hydropower companies holds several hydropower service contracts from the Department of Energy (DOE).
Last December 23, AC Energy signed the share sale and purchase agreements with Chevron Global Energy Inc., Union Oil Company of California and their relevant affiliates for the purchase of Chevron’s geothermal operations in Indonesia and the Philippines.
The Indonesia consortium consists of AC Energy (with 19.8 percent stake), Star Energy Group Holdings Pte. Ltd., Star Energy Geothermal Pte. Ltd., and Electricity Generating Public Company Ltd. and the acquisition will be made through their joint venture company, Star Energy Geothermal (Salak-Darajat) B.V. The Philippine consortium consists of AC Energy and Star Energy Group Holdings Pte. Ltd. and the acquisition will be made through their joint venture company, ACEHI-STAR Holdings, Inc.
The closing of the transaction is subject the approval of the Philippine Competition Commission, among others. “This acquisition is a major milestone for AC Energy as this scales up our renewable energy platform and establishes our presence in Indonesia.
This is a significant step towards attaining our goal of reaching 2000MW by 2020.” AC Energy President and Chief Executive Officer John Eric Francia said.
RIZA LOZADA