Green power for the Philippines
The 150-MW Burgos Wind Project heralds a new chapter in the Philippines’ development of renewable energy projects. The ground-breaking project was sponsored by the Energy Development Corporation (EDC) and at that time was one of the first wind farm projects completed in the country under the feed-in-tariff regime. Project Finance International (PFI) has named this project the Asia-Pacific Renewables Deal of the Year.
The project achieved financial close despite the absence of an off-take agreement. It is EDC’s first ever wind energy project and its largest investment to date, reaching US$450 million, of which US$315 million was project financing raised by a syndicate of banks, including ING.
“This project represents a major leap forward for the Philippine’s push towards renewable energy development. Working with a key relationship client and applying our sector expertise and knowledge of the Philippine electricity market presented a winning combination for the bank,” remarked Leo van Stijn, ING’s global head for utilities & infra finance.
Burgos will provide 370 GWh of electricity to power approximately 2 million households and will displace about 200,000 tons of carbon emissions annually. In doing so, it provides much-needed capacity to the Philippines’ energy sector, and supports its drive to increase renewable energy supplies. Demand for electricity in the Philippines is expected to grow steadily in the coming years.
'The Burgos Wind Project bears witness to ING’s growing focus on renewable energy and sustainable businesses in the region.'- Erwin Maspolim, ING Asia
“Burgos demonstrates that international banks are prepared to take long-term risks in the Philippines and it is widely considered to be a model for future non-recourse project financed wind farm transactions in the country,” explains Erwin O. Avante, EDC’s vice president, Finance. ING Asia’s team head for utilities & infra finance, Erwin Maspolim, further commented: “The Burgos Wind Project bears witness to ING’s growing focus on renewable energy and sustainable businesses in the region. We are pleased to have been able to support our valued customer in this landmark undertaking.”
ING was the mandated lead arranger of one of the two tranches of the loan assembled by the lenders. “ING is an expert in the field of renewable energy project financing. They understand the vital aspects of due diligence and documentation and know the right buttons to push to ensure a successful transaction,” says Avante.
EDC and ING enjoy a longstanding working relationship. ING worked extensively on fund-raising activities with its parent companies, First Gen and First Philippine Holdings Corporation, and also acted as financial advisor to EDC’s former parent company, Philippine National Oil Company.
The (financing of the) Burgos Wind Project has been awarded by several globally renowned institutions:
- Asia Pacific Wind Deal of the Year by IJGlobal
- Asia Pacific Renewable Deal of the Year by Project Finance Int.
- Best ECA-backed green deal by Trade Export Finance
- Best deal of 2014 by Global Trade Review.
Energy Development Corporation (EDC)
“We are committed to provide the present and the future generations a better life with clean and renewable energy. We are committed to promote customer and investor interest, employee development, community welfare and environmental stewardship at all times.”
Energy Development Corporation is a global geothermal energy industry pioneer and the recognised world leader in wet steam field technology. EDC is the Philippines’ largest vertically-integrated geothermal developer, delivering 1,130 MW of clean and renewable energy to the country. We continue to diversify our renewable energy portfolio through investments in hydropower and wind power projects in the Philippines. With almost forty years of geothermal mastery, EDC is set to deliver the benefits of sustainable geothermal development to communities around the world.
Erwin O. Avante
Mr Avante, Filipino, was appointed by the board in March 2011. He is also a vice-president in First Gen Corporation and has been a member of the board of trustees of the CFA Society of the Philippines since 2010. Prior to joining the Lopez Group in 1998, Mr Avante worked as senior audit in-charge at SyCip, Gorres, Velayo & Co.