This marks a significant step forward in our commitment to investment in sustainable energy in the Philippines.
The Calabanga project is being implemented by our Philippines' subsidiary, Calabanga Renewable Energy, Inc., and will sell about 85% of the generated energy through a power supply agreement with two subsidiaries of AboitizPower Corporation and the remaining in the Wholesale Electricity Spot Market or direct short-term contracts with commercial and contestable customers.
Debt financing for the project is provided by Security Bank Corporation as Lender with SB Capital Investment Corporation acting as the Lead Arranger, to fund 70% of the project cost on a limited recourse basis.
Construction will be undertaken via a lump-sum turn-key engineering, procurement, and construction contract with a consortium of PowerChina Huadong Engineering Co. Ltd and PowerChina Philippines Corporation. The construction of the project is expected to be completed by 2Q 2024, with commercial operations date commencing thereafter.
PowerChina Philippines Corporation will conduct operations and maintenance activities of the Project for the initial two years from the start of commercial operations before transitioning their scope to the in-house operations team of NEXIF RATCH Energy.
Matthew Bartley, Director and Interim CEO, NEXIF RATCH Energy, said: "We wish to acknowledge the efforts and support of key project stake holders in delivering on our plans to provide renewable energy to the Philippines. In particular, AboitizPower related companies, AP Renewables Inc. and Adventenergy Inc., whom we are excited to able to assist in supplying renewable energy to assist in servicing their customers, Security Bank, which has supported the project by agreeing to provide debt financing as a single lender, and Power China Philippines whom is already well advanced on their preparations to build the project.
Mr. Sakarin Tangkavachiranon, Director, NEXIF RATCH Energy, added: "We are excited to achieve the first financial close and commencement of construction of a project under the NEXIF RATCH Energy joint venture. With this project now moving to construction, it builds on our under construction / operating portfolio, which already comprises a hydro power project in Vietnam, one stage of which is operating and the other stage that is under construction. We are expecting that this financial close will soon be followed by others this year, with development and financing of projects in Vietnam and Philippines gathering pace."
Surender Singh, Chairman, NEXIF RATCH Energy, said: "The start of construction of the Calabanga solar project is an important milestone in our plans to add much needed renewable energy to the Philippines. We are also making rapid progress to achieve financial close of our 150 MWp 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 5 project concessions totalling over 2000MW of potential wind capacity, the first of these projects targeted for financial close in 2024."
The issuer is solely responsible for the content of this announcement.
ABOUT NEXIF RATCH ENERGY
NEXIF RATCH Energy, a joint venture company owned 51% by Nexif Energy of Singapore and 49% by RATCH Group of Thailand, kicked-off in December 2022 and has a portfolio of over 4000MW under ownership and management across South-East Asia and Australia, including operating and under construction wind, gas and hydro generation assets of over 400MW and a pipeline of propriety wind, solar, and energy storage projects totalling over 3,600MW. The new platform is set for fast growth benefitting from Nexif Energy's and RATCH's proven power expertise and track record as it converts the pipeline and adds new projects.
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