PNB, Security Bank to help finance Burgos wind project expansion
MANILA, Philippines – The Lopez-led Energy Development Corporation (EDC) has secured financing packages from two banks to partly bankroll the expansion of its wind power project in Burgos, Ilocos Norte.
The company also plans to raise $315 million for the wind project but decided to secure bank loans to bridge finance it, which is expanding by 63 megawatts (MW) more from the current 87 MW.
EDC signed separate 2-year bridge facilities totaling P2.7 billion ($61.41 million) with the Philippine National Bank (PNB) and Security Bank Corporation to partly finance the construction of Phase 2 of the 150 MW Burgos Wind Farm while the company is arranging the project financing, EDC Investor Relations Manager Erudito Recio said Tuesday, June 17.
The 87 MW, phase 1 of the project will be completed by last quarter this year. The 63 MW, phase 2 will be completed by the first quarter of 2015.
EDC has also signed on for the installation of an additional 21 wind turbines for the expansion, raising the total project investment cost to $450 million from $330 million.
Largest PH wind farm
The completion of the project will increase its total generating capacity to 150 MW from 87 MW – making it the largest operating wind farm in the Philippines, generating approximately 365 gigawatt per hour (GWh) annually to supply electricity requirements to over a million households.
The Burgos wind project is expected to help address the power supply situation in the Luzon grid, which needs an additional 4,200 MW in the next 10 years due to the projected 4.5% annual increase in electricity demand.
EDC has selected Vestas of Denmark, the world’s largest wind turbine manufacturer, for the construction of the Burgos project. It will also supply the 29 V90-3.0 MW wind turbines.
Apart from the Burgos project, EDC is also pursuing other wind projects in Baloi-Pagudpud, Ilocos Norte, and in Camiguin.
EDC is an integrated geothermal producer and one of the leading renewable energy companies in the Philippines with a portfolio of 1,150 MW of geothermal, 132 MW of hydroelectric plants, and soon the 150 MW Burgos wind project. – Rappler.com