By: Ronnel W. Domingo - 05:30 AM
November 18, 2017
Basic Energy Corp. has agreed with
Thailand-based Vintage Engineering PCL (VTE) on the terms of investing in
two of the latter’s subsidiaries involved in what is considered as Southeast
Asia’s largest solar power project.
Basic Energy said in a disclosure to
the Philippine Stock Exchange that it had signed with VTE an investment term
sheet, which covered its nonbinding intention to invest in Vintage EPC Co. Ltd.
and Vintage International Construction Co. (Vinter).
Under the plan, Basic Energy will
take up a 12.5-percent equity in both firms.
Both Vintage EPC and Vinter are in
partnership with GEP (Myanmar) Co. Ltd.—also a Thai firm—on the engineering,
procurement and construction of a 220-megawatt solar plant at the Minbu
District of Myanmar’s Magway Region.
Tagged at $270 million, the Minbu
project is expected to help boost Myanmar closer toward the government’s goal
to increase electricity production from 2,500 MW as of 2015 to 30,000 MW by
2030.
According to Basic Energy,
development and construction of Phase I of the Minbu project, which is expected
to generate 50 MW, are on-going.
The company said it also had an
option to raise its equity in Vintage EPC and Vinter to 20 percent. The terms
of the agreement also provides that Basic Energy complete due diligence work
within 60 days, which may be extended on mutual agreement of the parties
involved.
In October, Basic Energy announced
it was acquiring interest in four renewable energy projects abroad, with an
aggregate power generating capacity of 260 megawatts, including the Minbu
project.
Aside from the Myanmar project, two
others are located in Japan and a fourth one in Thailand.
The company behind all four projects
is mainly VTE, which is listed on the Stock Exchange of Thailand.
“Basic Energy’s participation in the
aforementioned projects is in line with its thrust to expand its portfolio of
renewable energy projects in the Philippines and abroad,” the company said in
the disclosure.
“The investments are seen to provide
Basic Energy with revenue streams off projects with fast turnaround times,” the
company said.
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