Mindalago project secures further investments
Emerging Power, Inc. (EPI) has attracted further investments by Mekong Brahmaputra CDF and Netherlands Development Finance Company (FMO) in its $185-million geothermal power project in Oriental Mindoro.
In a statement over the weekend, EPI Chairman Martin Antonio G. Zamora announced the intended entry of Mekong Brahmaputra Clean Development Fund (MBCDF) — under management of the Dragon Capital Group — and the Netherlands Development Finance Company (FMO) in EPI’s 40-MW project.
“The entry of our pro-environment investors (Dragon Capital’s MBCDF and FMO) is in sync with the President’s call for renewable energy companies like EPI to help solve the power problem without harming the environment,” Mr. Zamora said.
He also welcomed the entry of the two investors, which advocate sustainable development projects.
Joseph Hoess, director at Dragon Capital, said: “The MBCDF is proud to be making its first investment in the Philippines with a highly reputable renewable energy company like EPI.”
Mr. Hoess said MBCDF engages in clean development investments to meet sustainable values that demand specific, measurable criteria for every investment’s positive impact to society.
EPI’s Mr. Zamora noted that drilling activity for its projects is expected to start next month. Once completed, it will help stabilize the power supply and bring down electricity costs.
It also seen to uplift the economic conditions of the people in Mindoro without harming the ecological balance on the island.
“The geothermal project is expected to result in as much as P2.1 billion in savings (or by 40% from P11 per kilowatt-hour [/kWh] to P6.58/kWh) in electricity bills the people of Mindoro will pay in four years’ time,” according to Mr. Zamora.
He said that with geothermal, the people of Mindoro will be assured of a sustained, low-priced power as opposed to the cost of power derived from fossil fuel such as coal.
House Energy Committee Chair and Oriental Mindoro Rep. Reynaldo V. Umali welcomed EPI’s project.
“We are happy that Dragon Capital and FMO share our vision of bringing in progress and development without disturbing the ecological balance that this virgin-forested island is known for,” Mr. Umali said.
EPI, which is responsible for the exploration and development of the geothermal project, has tapped the expertise of the Geo-Survey Institute of Iceland and the Institut Teknologi Bandung of Indonesia.
The total investment cost, according to Mr. Zamora, will be financed through 30% equity and 70% debt, which will sourced from local banks.
Dragon Capital’s MBCDF and FMO are looking to invest around 15% in equity.
FMO is an entrepreneurial development bank of the Netherlands.
Meanwhile, MBCDF is a limited partnership established in Guernsey focused on the development and deployment of Clean Technology to promote economic growth in Asia.
It is managed by Dragon Capital Clean Development Ltd., a subsidiary of the Dragon Capital Group.”
Source: Business World Online