Chinese firms eye $4 billion energy investments

MANILA, Philippines — Two Chinese companies are looking to invest around $4 billion for the manufacturing of wind energy equipment, the head of the Board of Investments (BOI) said.

In an interview with reporters yesterday, Trade Undersecretary and BOI managing head Ceferino Rodolfo expressed hope these two deals, worth around $2 billion each, would be closed within the year.

“They have already gone to the Philippines to look at different locations and I think they have targeted already on closing in on one particular location where they might be close to each other,” Rodolfo said.

He said one company is involved in the manufacturing of turbines and blades, while the other is engaged in the manufacturing of monopile towers for offshore wind projects.

“So when you say renewable energy, the opportunity for the Philippines is not just in the project service part or the development of the projects to deliver renewable energy, but very important also as the hub for manufacturing of equipment and components needed for renewable energy,” Rodolfo said.

He said local demand as well as the opportunity to make the country their hub for the region given its geographical setup were among the reasons the companies cited in choosing to locate here.

In a Malacañang briefing last week, Rodolfo affirmed the interest from foreign companies for renewable energy (RE) projects, citing that several projects are in the pipeline, particularly from European investors.

He attributed the strong interest from Europe to the President’s efforts to invite investors, citing his previous roundtable meeting with businessmen in Brussels, Belgium.

In a bid to attract more investments in RE, the Department of Energy issued a circular last year, allowing 100 percent foreign equity in renewables.

With the rising interest for RE projects in the country, Trade Secretary Alfredo Pascual said RE projects are seen to account for a third of the BOI’s P1.5-trillion approved investments target for this year.