AC Energy Inc. signed an agreement to transfer its indirect ownership interest in the 540-megawatt, coal-fired power project in Kauswagan, Lanao del Norte to Power Partners Ltd. Co.
Power Partners is AC Energy’s existing developer-partner in the GN Power Kauswagan project.
“The transfer will be implemented in tranches, with the final transfer price to be agreed upon by the parties at a later date after taking into account agreed adjustments,” AC Energy parent Ayala Corp. disclosed to the Philippine Stock Exchange on Friday.
The completion of the transfer is subject to the satisfaction of certain conditions precedent, including approvals by the Philippine Competition Commission and the lenders of the GN Power Kauswagan project.
“The transfer of AC Energy’s interest in the GNPK project is part of AC Energy’s plan to rebalance its generation portfolio as it aims to grow its renewable energy assets with a target of achieving at least 5 gigawattts of attributable renewable energy capacity by 2025,” AC Energy said.
GNPower Kauswagan is a subsidiary of Ayala-owned AC Energy, with its 85 percent economic stake, while Philippine Investment Alliance for Infrastructure Fund and Power Partners owns 15 percent.
The plant comprises four units of 135-MW thermal plant with Shanghai boilers and Siemens turbines and generators.
The Kauswagan plant is strategically located as the effective gateway to the Mindanao-Visayas transmission interconnection.
The construction of the base load plant is in full swing and is expected to be in commercial operation this year.
The Department of Energy issued a certificate of energy project of national significance to GNPower Kauswagan on March 13 to speed up the construction and project completion this year.
AC Energy earlier announced that other interested investors continued to have discussions with the Ayala energy company on the sale of the rest of its thermal portfolio, which includes the GN Power Kauswagan plant.