Listed mining firm Oriental Peninsula Resources Group Inc. has officially joined the power sector through a 30 percent share with its affiliate renewable energy company Oriental Energy and Power Generation Corp.
In its disclosure to the Philippine Stock Exchange, Oriental Peninsula said that the acquisition was a result of the Securities and Exchange Commission’s approval of the increase of authorized capital stock of Oriental Energy from P30 million to P2 billion.
Oriental Energy, an affiliate of Oriental Peninsula, is majority owned by Citimax Group Inc., which is also majority owned by its chairman President and CEO Caroline Tanchay.
Oriental Energy shall own, operate, and maintain an 18 MW hydropower plant in Timbaban, Madalag, Aklan.
It also has hydropower projects in Manolo Fortich, Bukidnon, and Odiongan, Romblon.
Oriental Peninsula is also delving into a corporate guaranty for Oriental Energy’s obligations with the Development Bank of the Philippines (DBP).
This venture will ensure that the mining firm backs Oriental Energy in repaying its loan of up to P2 billion with a fixed interest rate of 6.75 percent per annum.
The loan has a 12-year term but the guaranty will be extinguished once Oriental Energy submits proof of project takeover and Department of Energy (DOE)-certified copy of the Certificate of Endorsement of Feed-in Tariff (FIT) Eligibility or a signed power purchase agreement.
The said loan amount will be used to partially finance the construction of the 18-MW Timbahan hydropower plant, scheduled to start operations before the FIT expires by end-2019.