The signing will pave the way for possible financing of the country’s first commercial wind farm by JBIC. The project is estimated to cost $5.5 million or around P2.9 billion.
It was learned that a four-man appraisal team was dispatched by JBIC this month to carry out a field survey and study the feasibility of the proposed wind project to be constructed in the town of Burgos, Ilocos Norte.
A loan pledging which is scheduled in January will signify the commitment from the Japanese government to extend financing to the project. JBIC normally extends financing of up to 85 percent of the cost of such project which will most likely be covered by a special yen loan package.
The project consists of a wind farm and a 42-kilometer, 230-kilovolt transmission line from Burgos to the National Power Corp. (Napocor) substation in Laoag.
Last month, JBIC included the wind farm as one of eight projects shortlisted for possible funding. Earlier, the Arroyo administration submitted 23 project proposals for JBIC’s consideration.
"The wind farm will not only be the country’s first but the first in South East Asia," PNOC-EDC chairman Sergio Apostol said.
Apostol said this project demonstrates EDC’s capacity to trailblaze and branch out to other forms of energy especially those that are environment-friendly. "Moreover, the project is in line with government’s policy to promote new and renewable energy sources," he added.
Other wind farm power projects that are in the pipeline included one that will be undertaken by Northwind Power and another by Smith Bell-RESCO, both in Ilocos Norte.
The PNOC-EDC wind project will have three phases. The project is expected to generate some 120 MW in the next few years.
The Northwind project, on the other hand, will have a capacity of 60 MW and Smith Bell 40 MW.