Aboitiz Power Corp. said Tuesday wholly-owned subsidiary Aboitiz Power International Pte. Ltd. signed a compromise agreement with SunE Solar B.V. of the Netherlands that will allow the former to fully own a 59-megawatt solar power plant in San Carlos City, Negros Occidental.
Aboitiz Renewables Inc., the renewable energy arm of the Aboitiz Group, sent notices of default on July 13, 2016 to SunEdison Philippines Helios BV., its joint venture partner in San Carlos Sun Power Inc. which owns the Sacasun project.
“The compromise agreement between AP International and SunE Solar settles the joint venture issues and provides an exit for Sunedison Philippines in the Sacasun project. It will also enable AP International to acquire all the interests of SunE Solar in Sacasun and Maaraw Holdings San Carlos Inc.,” the company said.
The Sacasun project sits on a 75-hectare property inside San Carlos Ecozone in Barangay Punao, San Carlos City on the eastern side of Negros Island.
Aboitiz Renewables is a wholly owned subsidiary of Aboitiz Power and an affiliate of AP International. SunEdison Philippines is a wholly-owned subsidiary of SunE Solar.
Under the agreement, Aboitiz Power International will acquire the entire issued and outstanding shares of SunE Solar in SunEdison Philippines. Aboitiz Power, which already owns 60 percent of Maaraw and Sacasun, through Aboitiz Renewables, will increase its ownership to 100 percent.
SunEdison Philippines owns 40-percent equity interest in Maaraw and Sacasun.
Aboitiz Renewables already acquired the loan of Sacasun from BDO Unibank Inc. amounting to P2.882 billion which was used to fund the development of the 59-MW solar plant.
Aboitiz Power and Sun Edison already completed the solar plant. The project started delivering energy to the Visayas grid on March 9, 2016 but failed to get the feed-in-tariff incentives of P8.69 per kilowatt-hour.
