SP New Energy Corp. (SPNEC) expects to take in “at most” two foreign partners in Terra Solar Philippines Inc. within the year, an executive said Tuesday.
SPNEC chairman Manuel Pangilinan said the company was in talks with three to five prospective partners who would likely take a 40-percent stake in Terra Solar.
Terra Solar is developing a solar farm in Nueva Ecija and Bulacan with 3,500 megawatts of solar panels and 4,000 megawatt-hours of batter energy storage that require investments of about P200 billion.
“They’re now talking to several foreign investors. So, nothing definite yet,” Pangilinan said.
Pangilinan said they were looking at trimming down the prospective partners to two companies taking a 20-percent stake each.
He said while there were “indicative numbers” on the value of the 40-percent stake, “ it’s too early to tell anybody.”
Pangilinan earlier said the company was looking at investors to help fund Terra Solar’s solar project, touted as the world’s biggest solar project.
“We will have to get in new investors into the Terra Solar project company level to help us with the financing of the total project because the estimated cost is about P200 billion to implement the project in full,” Pangilinan said.
Pangilinan said the company was in the process of talking to potential investors, with the help of financial advisors.
“Most likely foreign investors will come in for an up to 40-percent equity stake at the Terra Solar level,” Pangilinan said.
SPNEC organized a team dedicated to the execution of the project and ensure its timely completion.
“We intend to meet our targets, which is our commitment to the government to energize this by 2026,” he said.
SPNEC started clearing operations for the Terra Solar site in January, ahead of the construction of the project’s interconnection facilities with the National Grid Corp. of the Philippines and the installation of over five million solar panels to meet its construction timeline.
The company secured over 3,000 hectares, primarily in Nueva Ecija and Bulacan, most of which were converted into industrial use.
SPNEC is now controlled by the MVP Group, through MGen Renewable Energy Inc. (MGreen), a wholly-owned subsidiary of Meralco PowerGen Corp. after a series of acquisitions.
MGreen recently raised its stake in the company to 55.96 percent from 50.53 percent after acquiring 2.17 billion shares of SPNEC from Solar Philippines Power Project Holdings Inc. for P2.50 billion, representing 4.34 percent.
MGreen previously invested P15.9 billion for 15.7 billion common shares and 19.4 billion preferred shares of SPNEC.
