ADB to help finance PH's largest wind farm
MANILA, Philippines — The Asian Development Bank (ADB) and a group of lenders will lend up to $20 million to help develop a 150-megawatt (MW) wind farm project in Burgos, Ilocos Norte.
The bank said in a statement that it has signed a financing assignment agreement with EDC Burgos Wind Power Corporation (EBWPC), Eksport Kredit Fonden, and a syndicate of international and local commercial banks to support development of the largest wind farm in the Philippines.
The Burgos wind farm was completed in November 2014 and is owned and operated by the EBWPC. EBWPC is controlled by listed firm Energy Development Corporation (EDC), which is the largest geothermal energy producer in the Philippines and largest integrated steam and geothermal energy producer in the world.
"This Burgos wind farm is a major contributor to the government’s drive to scale up renewable energy use and to reduce its reliance on coal and petroleum for power generation," Christopher Thieme, director of ADB’s Private Sector Operations Department, said in the statement.
"The operation of this farm will avoid the production of over 200,000 tons of carbon dioxide equivalent emissions a year, making it a sustainable energy source for the country." he added.
Build up renewable energy
The Philippines is pushing to build up its renewable energy sector by cutting its heavy dependence on fossil fuels for electricity generation.
The country’s untapped renewable energy resources are estimated at about 250,000 MWs and the Department of Energy is targeting about 2,870 MWs of additional installed capacity from these sources by 2030.
According to ADB, the wind farm will provide "a shot in the arm to the government’s push to diversify its energy sources and reduce harmful greenhouse gas emissions."
ADB said it decided to invest in the project because of EDC's successful track record in financing, constructing, owning and operating renewable energy projects in the Philippines.
The bank also cited Ilocos Norte’s high potential for energy generation and meeting rising power demand as reasons for helping finance the Burgos wind farm.
"The Burgos wind project is one of EDC's proudest achievements as a company...ADB's entry is yet another testament that Burgos is a world class project, meeting the high standards of multilateral funding organizations," EDC president and COO Richard Tantoco said.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration.
In 2014, ADB assistance totaled $22.9 billion, including cofinancing of $9.2 billion. — Rappler.com