A Chinese engineering, procurement and construction (EPC) contractor, which bagged the contract to construct in the Philippines the biggest wind and solar projects to date, is optimistic in clinching more big-ticket projects in the country.
“We hope to secure more projects. We hope this will be the start of more projects to demonstrate our commitment here,” Qingdao Hengshun Zhongsheng Group Co. Ltd. Chairman Lu Min said. “This is also a test for ourselves to make sure we would deliver the product. And from there, we hope to secure more projects and contribute back to the Philippines.”
Lu was referring to the $500-million, 232-megawatt (MW) wind and solar project that will be constructed by his company. Of the amount, $430 million is the EPC cost. “These are the biggest projects to date for wind and solar energy combined here in the Philippines. We aim to complete this around 18 months,” said Lu, while adding that this is also the biggest project in the company’s portfolio.
Of the 232-MW power project, a 132-MW wind project will be put up in Burgos, Ilocos Norte, while the remaining 100 MW is a solar project in Pasuquin, Ilocos Norte. The proponent of these projects is Energy Logics Philippines Inc. (ELPI), which had been awarded with the service contracts by the Department of Energy.
“What we’re trying to strive is, although construction period is 18 months, we want to, by end of this year, have some windmills and solar panels start contributing to the grid,” Lu said. If the target timetable pushes through, the project would be competed by end-2018.
“We are looking at completing this as soon as possible. We cannot commit the timeline but it’s already ongoing. The preliminary work has already started,” Lu added. Xidian Holdings Philippines Corp., which is funded by Chinese investors, led by Zhang Peng together with a Singaporean-based consortium, is the majority shareholder of ELPI.
The 232-MW renewable energy projects (RE) are part of Xidian Holdings’s planned 500-MW RE
investment portfolio for completion by 2020. The investment of the Chinese firm is an offshoot of the successful visit of President Duterte to China in October 2016.