MANILA, Philippines — Basic Energy Corp. (BEC) has firmed up its entry into renewables with equity investments in the engineering, procurement, and construction (EPC) contractors for the 220-megawatt (MW) Myanmar solar power project.
In a disclosure to the Philippine Stock Exchange, BEC said its board confirmed the company’s 15 percent stake in Vintage EPC Co. Ltd. and VTE International Construction Co. Ltd.
“BEC will now proceed with the execution of the covering share purchase agreement and the shareholders agreement. The execution of these agreements will be the basis for the conversion of BEC’s earnest money deposit into equity in said companies,” the company said.
In November 2017, the company signed a term sheet with Vintage Engineering Public Co. Ltd. (VTE) of Thailand, as the owner of the said companies, to start the necessary due diligence.
It has also remitted $2.622 million (P136 million) as earnest money deposit and for the completion of the due diligence work on the companies.
BEC said the equity investment is part of its plans to be a major renewable energy and power company.
“With this objective, BEC was tasked to develop a robust portfolio of renewable energy projects such as solar, wind and biomass energy projects, in the Philippines and abroad, that will provide BEC with a continuing stream of revenues in the short and mid-terms,” it said.
Vintage EPC and VTE International are the suppliers and EPC contractors for the installed capacity of the 220-MW solar power project owned and developed by Green Earth Power in Minbu District, Magway Region, Myanmar.
The design and construction of the project commenced in 2016 and was planned to be completed in four phases of 50 MW for Phases 1, 2 and 3 and 70 MW for Phase 4.
Phase 1 is ongoing with a targeted completion date of year-end 2018. The subsequent phases shall be pursued after completion of the previous phases to achieve full completion of the four phases on or before 2021.
BEC has been scouting for solar power investments overseas, particularly in Asia, given its fast turnaround time compared with geothermal projects.
Currently, it has five geothermal service contracts, namely the Mabini Geothermal Service Contract (SC) in Batangas, East Mankayan Geothermal Prospect in Ifugao, Mt. Mariveles Geothermal Project in Bataan, Mt. Iriga Geothermal Project in Albay and West Bulusan Geothermal Prospect in Sorsogon.
Among its projects in the pipeline, the Batangas project is the most advanced, with the drilling of an exploratory well underway. Basic partnered with Trans-Asia Oil and Energy Development Corp. to develop the resource.
Basic has also been conducting due diligence on a 14-MW solar farm in Japan after remitting 50 million yen, or roughly P22.74 million, to Solmax Power Ltd. of Hong Kong.
It was also cleared by its board to acquire 10 percent—with the option to increase to 20 percent—in a 25-MW biomass power plant project in Japan, and make a 49 percent equity investment in V.O. Net Biodiesel Asia Co. Ltd. which operates a 1.2-MW solar power plant located in Kalisin, Thailand.