Metrobank units tap renewables energy sector

Manila Times.net

FIRST Metro Investment Corp. and Global Business Power Corp. have teamed up to offer financial and project development assistance to proponents of renewable energy projects.

Under a memorandum of understanding (MOU), both member firms of the Metrobank group agreed to cooperate in promoting and encouraging investments in the renewable energy sector.

“We recognize that the power industry is very critical in the development of our economy,” said Arthur Aguilar, Global Power senior executive vice president. “At the same time, we have a huge advantage of having renewable energy sources in the country which should be tapped.

With this MOU, First Metro and Global Power hope to make a significant contribution through its various growth initiatives and funding programs.”

Aguilar previously chaired the National Renewable Energy Board, the agency mandated to oversee the implementation of the Renewable Energy Act of 2008.

Based on the MOU, First Metro will structure the funding requirements of renewable energy projects, be they equity or borrowed funds. It shall also raise project finance on commercial terms, or where available and applicable from special funding sources like multilateral agencies and international development funds.

Global Power, on the other hand, shall lend assistance in establishing the commercial viability of the proposed projects including commercial agreements, tariff setting as well as technical support in terms of fuel supply and technology validation.

In the last two years, First Metro has raised over $1.5 billion for the power sector and expects to generate more as the environment is now ready for new investments, new undertakings and commitments.

Last year, First Metro and Global Power sponsored the Renewable Energy Summit Philippines and the Renewable Energy Conference and Expo Manila.

Francisco Sebastian, First Metro president, said there is a need for such support for renewable energy projects to help the country realize its potential for green power sources.

“The key to realizing the potentials of the renewable energy projects in the Philippines is establishing the business viability and financial feasibility of these projects that will make these projects bankable on a commercial basis. While the passage of the Renewable Energy Act tilts the balance towards energy from renewable sources, there is a need to bridge the gap between these projects and the reality of generating bank financing for these projects,” he said.

With the passage of the said law, the Department of Energy expects to generate 4,000 megawatts of renewable energy capacity in the medium term, providing up to 40 percent of the country’s primary energy requirement.

Euan Paulo C. Añonuevo