Phl-Japan group mulls $150-M solar project

MANILA, Philippines - Japanese-Filipino joint venture firm Eco-Merge Philippines Inc. plans to invest about $150 million over the next three years for the construction of 41 megawatts (MW) of solar projects all over the country.

Eco-Merge president, Edgar Morada said they would be initially putting up an 11-MW solar farm in a 22-hectare property in Pili, Camarines Sur within the year.

 “This is one of the first projects we’re planning to undertake. After that we will be eyeing other solar farms in the Visayas and Mindanao,” he said.

Morada said they would be spending around $40 million for the 11-MW project which would be completed before the end of the year.

Eco-Merge has appointed SMEC Philippines Inc., the local unit of the Australia-based engineering consultancy firm with 20 years experience on renewable energy development, as its partner in the project.

SMEC and Eco-Merge signed an agreement yesterday for the preparation of a detailed feasibility study and provide assistance in securing government clearance and permits, particularly the service contract (SC) with the Department of Energy (DOE).

 “It’s just one of the projects we’re going to undertake in cooperation with SMEC (Snowy Mountain Engineering Corp.). Essentially, our initial foray will be in the solar power area, but eventually the goal really is in renewable energy. We will eventually diversify our RE portfolio, but for now the focus is on solar energy,” Morada said.

“It’s a long-term commitment of Eco-Merge with support from SMEC for this series of projects we’re going to have.”

SMEC chief operating officer for Asia Pacific Michael Blee, for his part, said they expect to complete the feasibility study within six months in time for the planned completion date of the 11-MW solar project of Nov. 11, 2011.

Blee said SMEC, established 20 years ago, has been a long-time partner of Filipino power firms in their RE projects.

According to SMEC head of power division Gabriel Zamudio Jr., they have been commissioned by other big time RE developers like First Gen Corp., Aboitiz Corp. and PNOC-Renewable Corp. for their projects.

Zamudio said they also have existing cooperation with the World Bank and the Asian Development Bank for various government RE development projects and energy efficiency programs.

Eco-Merge, Morada said, is eyeing to put up other solar farms in Negros Occidental in the Visayas (10 MW); Agusan del Norte (10 MW); and Zamboanga (10 MW), both in Mindanao .

The Japanese-Filipino partnership’s model is to partner with the local government units for the provision of land required for the solar power projects either through a joint venture or lease agreement.

For the case Camariñes Sur project, Eco-Merge is currently discussing initial collaborations with potential partners, including the provincial government of Camarines Sur.

Eco-Merge would also be tapping a number of commercial banks and multilateral financial institutions to raise 70 percent of the total funding.