Firm eyes Laguna, Mindoro, Rizal
MANILA, Philippines—The Asian Development Bank said it might consider providing loans of up to $200 million to help finance the planned wind power projects of local renewable energy firm Alternergy Philippine Holdings Corp.
Christine Genalin Uy, investment specialist for the private-sector operations department at the ADB, confirmed that the Manila-based lender was interested in looking beyond the provision of a technical assistance of $630,000 to Alternergy.
Uy said in an interview that there were several ways that the ADB could be involved in the three wind power projects–through direct loans in either local or foreign currency and the provision of guarantees to mobilize financing from commercial sources.
“I cannot tell right now how much we will be able to loan out as this will be based on the results of the due diligence on the wind projects. But based on our policy, we have a limit as to how much we can loan out, which should be of 25 percent of the total project cost or $200 million, whichever is lower,” Uy explained.
“We always emphasize that wind power is something we are very much in favor of pursuing, particularly for the Philippines, as this will help stop the country from relying on imported coal or oil to power its [generating facilities],” Uy added.
Early this month, ADB announced that it would fund the planned feasibility studies for three potential wind farm projects in Laguna, Mindoro and Rizal, together with the government of Japan, through a technical assistance.
Uy said the ADB was in the process of recruiting consultants for the planned studies, which were targeted to be completed after two years. Only then will the company be able to determine whether the three projects are economically viable.
According to the Manila-based lender, the technical assistance would produce the site-specific feasibility studies, including wind assessment for each of the three proposed wind power plants. These studies would determine the commercial viability of the wind projects for further development by Alternergy.
Among the key activities to be conducted under the technical assistance included developing the basic layout of the wind farm and the detailed design of the wind monitoring program based on preliminary layout; monitoring, collecting and analyzing wind data; ensuring quality control of the reference station, and selecting and specifying wind turbine generator sets.
“Energy plays a vital role in economic growth and poverty reduction and ADB is playing a prominent role in helping countries like the Philippines, which are heavily reliant on imported coal and oil, to tap renewable power sources to achieve energy security and to mitigate greenhouse gas emissions which contribute to climate change,” added Joe Yamagata, deputy director-general of the ADB’s private sector operations department.
ADB noted that a large proportion of the Philippines’ electricity was currently generated from imported coal and oil, leaving it exposed to price volatility and energy security concerns. At the same time, the reliance on fossil fuels has seen the country’s greenhouse gas emissions rise significantly.
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