METROBANK Group units First Metro Investment Corp. and Global Business Power Corp. (Global Power) will be utilizing their respective expertise in undertaking renewable-energy (RE) projects in the country.
In a statement, the two companies announced they have forged a memorandum of understanding (MOU) so they can synergize on their competencies, with First Metro taking care of the project finance and Global Power developing power projects.
“It is hoped that with this joint cooperation, renewable project proposals can be realized, thereby promoting and encouraging investments in this sector. First Metro supports the expansion of the power-generation sector as key to the country’s economic development and believes that renewable-energy alternatives should be pursued as a priority,” the statement said.
First Metro’s role will be to structure the funding requirements of renewable-energy projects, be they equity or borrowed funds. It shall also undertake raising project finance on commercial terms, or where available and applicable from special funding sources like multilateral agencies and international development funders.
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.
The Department of Energy said with the passage of the Renewable Energy Act, about 4,000 megawatts of renewable-energy capacity is expected to be generated in the medium term, or 40 percent of the country’s primary energy requirement.
“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 toward 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,” First Metro president Francisco Sebastian said.
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. These were organized to increase awareness and understanding of the growth potential of renewable-energy and how it could greatly contribute to the country’s economic growth and stability.
“We recognize that the power industry is very critical in the development of our economy. 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,” said Arthur Aguilar, senior executive vice president of Global Power and formerly the chairman of the National Renewable Energy Board.
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