Published January 3, 2017, 10:01 PM By Myrna M.
Velasco
Aboitiz Renewables, Inc. (ARI) has
bailed out its solar development firm San Carlos Sun Power, Inc. (SACASUN) by
assuming project loan worth P2.882 billion that partly bankrolled the
59-megawatt peak (MWp) San Carlos solar farm facility in Negros Occidental.
In a disclosure to the Philippine
Stock Exchange, parent firm Aboitiz Power Corporation noted that subsidiary
Aboitiz Renewables has signed a memorandum of understanding with Banco de Oro
Unibank Inc. (BDO) and SACASUN “for the acquisition by ARI of SACASUN’s loan.”
Previously, SACASUN signed omnibus
loan agreement and security agreement with BDO “to secure a loan in the amount
of up to P3.7 billion to fund the project.”
SACASUN is the corporate vehicle
jointly owned by ARI and American firm partner Sun Edison Philippines Helios
B.V. which pursued the development of the San Carlos solar project.
The US firm, however, suffered
financial setbacks that then triggered some problems and complications on its
partnership with the Aboitiz group on the solar venture.
The SACASUN facility joined the
second wave race of feed-in-tariff (FIT) race, but it is now among the projects
on which fate still hangs on the propounded incentive.
In July last year, Sun Edison filed
for bankruptcy proceedings under Chapter 11 of the United States Bankruptcy
Code, citing grounds on bids for “voluntary petition for reorganization.”
Following that development, ARI
issued “default notices” to its joint venture partner relative to their
investment pact on the SACASUN project; and for the Aboitiz group to also
protect its interest in the venture.
No further development had been
disclosed so far from then, including on queries if the Aboitiz Group opts to
explore investment tie-up with other parties.
Company officials just indicated
that despite the setbacks, they are “fully committed to the solar project” and
will also judiciously raise their concern with government on project completion
concerns relating to the FIT race.
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