Energy Development Corporation, the geo-thermal company under the Lopez group, has signed a $315m financing agreement with a group of foreign and local banks for setting up the 150MW Burgos Wind Project (BWP) in Ilocos Norte, the Philippines.

According to EDC, the facility, which consists of US dollar and Philippine peso tranches, would mature in 15 years.

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The plant is expected to be the first project to use the Feed-in-Tariff (FIT), which the the Department of Energy will grant 200MW wind power projects on first-to-commission, first-served basis, the company claimed.

The power generated from the facility will be sold under the FIT system as part of the Renewable Energy Act of 2008.

Danish export credit agency Eksport Kredit Fonden will guarantee a part of the dollar loan component.

The mandated multiple lead arrangers for the foreign tranche include Australia and New Zealand Banking Group Limited (ANZ), DZ Bank AG, ING Bank NV, Malayan Banking Berhad (Maybank) and Norddeutsche Landesbank Gironzentrale.

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PNB Capital and Investment Corporation and SB Capital Investment Corporation along with a group of local lenders such as BDO Unibank, Land Bank of the Philippines, Philippine National Bank, and Security Bank Corporation had arranged the local tranche for the loan.

"With construction in full swing, we are confident that we will meet our target commissioning date and avail of the Feed-in-Tariff."

EDC president and chief operating officer Richard Tantoco said: "This fresh loan is a sign of confidence from funding institutions on EDC’s ability to execute a strategic business plan for our wind project amidst intense competition in the renewable energy industry.

"With construction in full swing, we are confident that we will meet our target commissioning date and avail of the Feed-in-Tariff.

"This project underlines EDC’s strategy to be the country’s leading diversified renewable power company. As we provide 370GWh of electricity to power approximately two million households, we also will displace around 200,000t of carbon emissions annually."

Danish wind turbine manufacturer Vestas will set up 50 large-scale V90-3.0MW wind turbines and supply ancillary plant for the facility.

The project also includes setting up of 115kV transmission line that will connect the facility from Burgos substation to Laoag substation of the National Grid Corporation of the Philippines (NGCP).

Energy