By Danessa Rivera (The
Philippine Star) | Updated July 23, 2017 - 12:00am
MANILA, Philippines - Basic Energy
Corp. will soon start due diligence on solar farms in Japan after remitting ¥50
million, or roughly P22.74 million, to Solmax Power Ltd. of Hong Kong.
Basic Energy told the Philippine
Stock Exchange it signed the investment term sheet and has remitted a
refundable earnest deposit to Solmax to trigger the due diligence work.
“The refundable deposit allows Basic
Energy to begin due diligence on Solmax and its solar projects,” Basic Energy
senior vice president and general manager Anthony Cuaycong said in a text
message.
“Should the due diligence prove
satisfactory, Basic Energy will then endeavor to make a proper investment
offer, with the refundable deposit slated to form part of the equity investment
of Basic Energy in Solmax,” he added.
Earlier, the company said it is
scouting for solar power investments overseas, particularly in Asia.
It is exploring opportunities with
its partner Vintage Engineering Public Co. Ltd., a publicly listed company headquartered
in Thailand, with a nine-percent stake in Basic Energy and has the option to
raise its interest to 25 percent.
This is in light of the recent
pronouncement by government to scrap the feed-in tariff (FIT), a set of
incentives given to power developers for a period of 20 years to invest in the
more expensive renewable energy sector.
Solar is the top choice given their
fast turnaround time and Japan is being considered for its expansion after
being invited by Solmax to take a look at its assets in the country, Cuaycong
said.
Basic Energy has previously
partnered with German-backed solar developer nv vogt Singapore Pte. Ltd to look
at the potential of doing a solar project in one of its properties located in
Bolinao and Fabian in Pangasinan and Labason in Zamboanga del Norte.
Apart from solar, Basic Energy and
VTE have agreed the latter has the right to invest in the Mabini Geothermal
Project and other projects of Basic.
Currently, the company has five
geothermal service contracts, namely the Mabini Geothermal Service Contract
(SC) in Batangas, East Mankayan Geothermal Prospect in Ifugao, Mt. Mariveles
Geothermal Project in Bataan, Mt. Iriga Geothermal Project in Albay and West
Bulusan Geothermal Prospect in Sorsogon.
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