First Metro Investment Corp. and Global Business Power Corp. (Global Power), two units of the Metrobank Group, have formed a partnership to promote renewable energy projects.
First Metro’s role will be to structure the funding requirements of renewable energy projects, be they equity or borrowed funds. It will also undertake raising of project finance on commercial terms or from special funding sources such as multilateral agencies and international development institutions.
Global Power will lend help in establishing the commercial viability of proposed projects through commercial agreements, tariff setting and technical support for fuel supply and technology validation.
“The key to realizing the potentials of renewable energy projects in the Philippines is establishing the business viability and financial feasibility of these projects that will make these projects bankable on a commercial basis,” said Francisco Sebastian, president of First Metro.
“While the passage of the Renewable Energy Act tilts the balance towards energy from renewable sources, there is a need to bridge the gap between these projects and the reality of generating bank financing for these projects,” he added.
In the last two years, First Metro has raised over $1.5 billion for the power sector and expects to generate more as the environment is now ready for new investments, new undertakings and commitments.
Last year, First Metro and Global Power sponsored the Renewable Energy Summit Philippines and the Renewable Energy Conference and Expo Manila, which were organized to increase awareness and understanding of the growth potential of renewable energy and how it could contribute to the country’s economic growth and stability.
“We recognize that the power industry is very critical in the development of our economy,” said Arthur Aguilar, senior executive vice-president of Global Power.
“At the same time, we have a huge advantage of having renewable energy sources in the country which should be tapped. With this MOU, First Metro and Global Power hope to make a significant contribution through its various growth initiatives and funding programs.”
Aguilar was formerly chairman of the National Renewable Energy Board.
