MANILA, Philippines — Solar Philippines and Razon-led Prime Infra have agreed to advance their partnerships covering several solar projects.
In a disclosure last Friday, SP Energy said its board approved the planned memorandum of agreement (MOA) between Solar Philippines and Prime Infra.
The MOA covers Terra Solar Philippines Inc., Solar Tanauan Corp. and Solar Philippines Tarlac Corp. Solar Philippines’s shares in these joint ventures are part of SPNEC’s share swap.
The MOA also includes an amendment to the shareholders’ agreement of Terra Solar to streamline the decision-making process and reach agreements efficiently and commercially via deadlock resolution mechanisms.
The parties agreed to continue the Terra Solar joint venture, which signed an 850-megawatt power supply agreement with Manila Electric Co. with a scheduled delivery date by the first quarter of 2026.
Terra Solar plans to break ground on this project within the year.
The MOA also covers the sale of common shares in Solar Tanauan by Solar Philippines to Prime Infra for P1 billion upon execution of the agreements, which would result in Prime owning 100 percent of Solar Tanauan.
Proceeds of the sale will go to SPNEC after the share swap, subject to regulatory approvals.
Solar Tanauan, which has a power supply agreement with Meralco for 50 MW, has secured over 140 hectares of land, and is currently under construction.
Also part of the MOA is the redemption or purchase of preferred shares in Solar Tarlac of Prime Infra by Solar Tarlac or Solar Philippines for P1.5 billion plus accrued dividends by or before March 31 2024.
This would result in Solar Philippines or SPNEC owning 100 percent of Solar Tarlac after the share swap and with additional equity.
Solar Tarlac has a power supply agreement with Meralco for 85 MW. It has secured over 140 hectares of land, and currently has 100 MW operating and 50 MW under construction.
With these agreements, Solar Philippines and Prime Infra have agreed to focus the efforts of their joint venture on Terra Solar, in recognition of the value in working together for the success of the Terra Solar project.
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The article was originally published in PhilStar Global and written by Iris Gonzales.
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