ADB to Help Finance Philippines Largest Wind Farm
OREANDA-NEWS. The Asian Development Bank (ADB) has signed a financing assignment agreement of up to $20 million with EDC Burgos Wind Power Corporation (EBWPC), Eksport Kredit Fonden, and a syndicate of international commercial banks to support development of the largest wind farm in the Philippines. Other lenders include a syndicate of local commercial banks who have provided local currency debt.
The Philippines is making a concerted push to build up its renewable energy sector with the goal of cutting its heavy dependence on fossil fuels for electricity generation. The country’s untapped renewable energy resources are estimated at about 250,000 megawatts (MW) and the Department of Energy is targeting about 2,870 MW of additional installed capacity from these sources by 2030. The wind farm will provide a shot in the arm to the government’s push to diversify its energy sources and reduce harmful greenhouse gas emissions.
“This Burgos wind farm is a major contributor to the government’s drive to scale up renewable energy use and to reduce its reliance on coal and petroleum for power generation,” said Christopher Thieme, Director of ADB’s Private Sector Operations Department. “The operation of this farm will avoid the production of over 200,000 tons of carbon dioxide equivalent emissions a year, making it a sustainable energy source for the country.”
The 150 MW Burgos wind farm, which is situated in the northern province of Ilocos Norte on the main island of Luzon, was completed in November 2014 and is owned and operated by the EBWPC. This special purpose company is controlled by Energy Development Corporation (EDC), a publicly listed firm which is the largest geothermal energy producer in the Philippines and the largest integrated steam and geothermal energy producer in the world today.
ADB decided to invest in the project because of EDC’s successful track record in financing, constructing, owning and operating renewable energy projects in the Philippines, as well as the high potential for energy generation at the target site in Ilocos Norte, and the contribution the farm will make to the government’s drive to diversify its fuel mix and to meet rising power demand without the use of fossil fuel generation plants.
"The Burgos Wind Project is one of EDC's proudest achievements as a company. We are happy of our lenders’ strong support for the project. ADB's entry is yet another testament that Burgos is a world class project, meeting the high standards of multilateral funding organizations," EDC President and Chief Operating Officer, Richard Tantoco said.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members – 48 from the region. In 2014, ADB assistance totaled $22.9 billion, including cofinancing of $9.2 billion.