Guimaras wind farm gets green light to proceed

Business World Online

Posted on May 20, 2013 11:08:58 PM

TRANS-ASIA Renewable Energy Corp., a wholly owned unit of listed Trans-Asia Oil and Energy Development Corp., can proceed with construction of its 57-megawatt (MW) wind power project in Guimaras Island after the Energy department declared the venture as commercially feasible.

BLADES of a model wind turbine spin at an energy conference in SMX Convention Center in Pasay City in this photo taken in September 2011. Wind power is one of the renewable energy resources the country hopes to tap. -- JLC

In a statement yesterday, the parent company said that the Department of Energy (DoE) “confirmed the declaration of commerciality” of the subsidiary’s 54-MW project located in San Lorenzo, Guimaras under an existing wind energy service contract (WESC).

“The DoE confirmation affirms the conversion of said WESC from pre-development to development/commercial stage and full term of 25 years or until October 2034,” the disclosure read.

In a separate disclosure yesterday, Trans-Asia also noted that “negotiations on the EPC (engineering, procurement and construction) contract, contracts for the operation and maintenance, project management, and for the project’s P4.3 billion debt financing facility, have all been completed.”

Based on the company’s 2012 annual report, the project is estimated to cost some P6.3 billion, 70% of which will be financed by debt and the balance by equity.

Project construction is targeted to begin within the year and is expected to take 18-20 months.

The report also said construction of the wind farm will involve the installation of 27 wind turbines, with an installed capacity of 2 MW each.

Company officials were not immediately available for comment yesterday.

Besides Trans-Asia, two other firms last Friday also secured the certificates for “declaration of commerciality” for their power projects.

These are Energy Development Corp. for its 87-MW wind power project in Burgos, Ilocos Norte and Alternergy Wind One Corp. for its 67.5-MW wind project in Pililla, Rizal.

Mario C. Marasigan, director of DoE’s Renewable Energy Management Bureau, said on Saturday: “The declaration of commerciality proves that a project is commercially feasible.” This, he said, in turn marks the beginning of the “development and commercial stage of the service contract” involving “construction, development and operation of the wind power project.”

Trans-Asia engages in oil and gas resource exploration and development, power generation and electricity supply. Its shares shed four centavos or 1.43% to close at P2.75 apiece yesterday. -- Claire-Ann Marie C. Feliciano  source