Basic Energy Corp. (BEC) has secured equity investments in the engineering, procurement, and construction (EPC) contractors for a 220-megawatt (MW) solar power project in Myanmar.
In a disclosure to the Philippine Stock Exchange (PSE), BEC said that its board confirmed the company’s 15 percent equity investments in the Vintage EPC Company Limited and VTE International Construction Company Limited.
“BEC will now proceed with the execution of the covering share purchase agreement and the shareholders agreement. The execution of these agreements will be the basis for the conversion of BEC’s earnest money deposit into equity in said companies,” the company said.
In 2017, the company signed a term sheet with the Vintage Engineering Public Company Limited (VTE) of Thailand, as the owner of the said companies, to begin the necessary due diligence on the said companies.
It has remitted $2.622 million or around P136 million as earnest money deposit and with the completion of the due diligence on the said companies.
BEC stressed that the equity investment is part of its plans to be a major renewable energy and power company.
“With this objective, BEC was tasked to develop a robust portfolio of renewable energy projects such as solar, wind and biomass energy projects, in the Philippines and abroad, that will provide BEC with a continuing stream of revenues in the short and mid-terms,” it said.
Vintage EPC and VTE International are the suppliers and EPC contractors for the 220-MW solar project owned and developed by the Green Earth Power in Minbu District, Magway Region, Myanmar.
The construction began in 2016 and is divided into four phases, 50 MW for Phases 1, 2 and 3 and 70 MW for Phase 4.
Phase 1 is looking to be completed by end of 2018. While the subsequent phases are seen to be completed on or before 2021.