SPNEC expects entry of foreign investors in Q4

MANILA, Philippines — SP New Energy Corp. (SPNEC) of tycoon Manuel V. Pangilinan wants to secure foreign investments for its P200-billion Terra Solar development as early as October this year.

Pangilinan, SPNEC chairman, noted that a “very long list” of actively interested foreign investors eager to partner with them and support the project, which is poised to become the world’s largest solar facility once completed.

“I think the actual bid date for the binding offer should be Aug. 15. So by the end of August, the (SPNEC) board will have to choose (the investors),” he said.

According to Pangilinan, they are keen to welcome “at most two” investors, though “most likely one.”

Pangilinan earlier said that SPNEC was willing to sell as much as 40 percent of Terra Solar to foreign investors, with the company holding the remaining 60 percent.

Emmanuel Rubio, newly elected SPNEC president and CEO, told The STAR that there would be a period for detailed due diligence and finalization of the shareholders’ agreement once the possible investor is selected.

“I still believe we can close this out by Q4 (fourth quarter) of this year,” he said.

Rubio told reporters on Monday that Terra Solar has drawn interest from companies based in Japan, the United Kingdom, the Middle East and the US.

Asked about the valuation of the shares to be sold, he said they have yet to receive the offers, which are expected “probably in the middle of August.”

SPNEC, through Terra Solar Philippines Inc., is developing a massive solar farm, which will consist of 3,500 megawatts (MW) of solar panels and 4,000 MW-hours of battery storage.

Rubio said they had achieved around 54 percent in overall development as of mid-July, citing key progress in land control, permitting, and interconnection development.

“The Terra Solar project remains on track for key milestones, with significant progress anticipated in the coming months,” he said.

The project straddling the provinces of Nueva Ecija and Bulacan will be done in two phases.

The first phase, with a target capacity of 2,500 MW, will be finished by 2026, while the second phase with a capacity of 1,000 MW is targeted for completion by 2027.