Citicore Renewable Energy Corp. (CREC) and partner San Miguel Global Light and Power Corp. (SGLP) plan to start the construction of a 153.5-megawatt solar power project in Barangay Lucanin, Mariveles, Bataan in the first quarter of 2025.
“We’re doing na the design already. So, target to break ground may be first quarter this year,” CREC president Oliver Tan said.
Tan said construction is expected to take a year, with completion targeted by early 2026, with the San Miguel Group as offtaker of the electricity produced by the solar plant.
He said while this is the first joint venture of the two companies, they are hoping for a continuing partnership for more projects in the future.
“We hope that if successful, both parties are happy, we hope that it will continue to the next and the next,” Tan said.
Construction is expected to cost around P6 billion based on industry estimates, and the joint venture is looking at a 70-percent project financing and 30-percent equity funding for the project.
CREC signed on June 28, 2024 an investment and shareholders agreement with SLGP to jointly develop, build and operate the solar power plant.
SLGP, a unit of San Miguel Global Power Holdings Corp., is engaged in power generation such as the exploration, development and utilization of renewable energy resources.
The parties agreed to work and cooperate in the financing, construction, ownership, operation and maintenance of the plant through the subscription to a special purpose entity.
CREC will initially own 49 percent and SGLP will take 51 percent of the total issued and subscribed capital stock of the joint venture company.
CREC said that upon reaching the construction phase, it would subscribe to additional shares, resulting in an ownership split of 50 percent each between CREC and SGLP.
CREC said the transaction would increase the company’s attributable solar energy capacity in line with its goal of contributing 1 gigawatts of ready-to-build/under construction solar energy capacity a year for the next five years.
“The joint venture will add approximately 76.75 MW to the company’s attributable solar energy capacity,” it said.
