Chinese, Singaporean investors plan to invest $500 M for wind, solar projects

MANILA, Philippines - Chinese and Singaporean investors are planning to invest $500 million to put up a new 232-megawatt (MW) wind and solar project in Ilocos Norte – the largest renewable energy project in the country to date – after buying into local firm Energy Logics Philippines.

Last month, Xidian Holdings Philippines Corp., funded by Chinese investors led by Zhang Peng together with a Singaporean-based consortium, successfully bought a majority stake in Energy Logics Philippines which holds solar and wind service contracts in Ilocos Norte.

After the successful buy in, Energy Logics is now moving forward with the renewable energy project targeted for completion by mid-2018.

Peng said the company plans to start construction of the wind and solar project by March and is presently working on the engineering, procurement, and construction contract.

“Our project will not only secure Luzon’s power needs but also help boost the Philippine economy by creating employment and livelihood opportunities,” Peng said.

The company official said they would be funding the $500-million project cost through equity and local financing.

The project will generate 2,000 jobs during construction and 500 jobs during operation and maintenance.

The 232-MW renewable energy project forms part of Xidian Holdings’ 500 MW renewable energy investment portfolio in the Philippines by 2020. 

Forming part of the target portfolio are possible investments in hydroelectric projects.

Apart from renewables, the company is also eyeing putting up conventional power plants to balance and address the country’s growing power demand, Peng said.

“We are very excited with opportunities in the Philippine power sector and we are very bullish of our investments under the Duterte administration,” Energy Logics president Jose Silvestre Natividad said.