MANILA, Philippines — San Miguel Global Light and Power Corp. (SMGLP) and Citicore Renewable Energy Corp. (CREC) are collaborating to build a sizable solar power project in Mariveles, Bataan.
An investment and shareholders’ agreement was inked by the two businesses last Friday to collaboratively develop and run a 153.5 megawatt (MW) solar power plant in Mariveles.
CREC notified the Philippine Stock Exchange on Monday that “the parties shall collaborate and cooperate in the financing, construction, ownership, operation, and maintenance of the plant through the subscription to a special purpose entity.”
With this joint venture, CREC will increase its solar energy capacity by 76.75 MW, helping them to meet their five-year target of delivering 1,000 MW of ready-to-build and under-construction solar power capacity yearly.
The agreement’s financial information has not been made public. In the beginning, Ramon Ang’s SMGLP, a division of SMC Global Power Holdings under San Miguel Corp., will own 51 percent of the joint venture, with CREC owning 49 percent. CREC will subscribe for additional shares during the construction phase, dividing ownership 50:50 between CREC and SMGLP.
The deal’s completion is contingent upon a number of factors. SMGLP is an energy company that specializes in producing and storing electricity as well as processing fuel substitutes for power generation, including the discovery, growth, and application of renewable energy sources.
