Citicore Renewable Energy Corp. (CREC) said Monday its board approved the proposed joint venture with San Miguel Global Light and Power Corp. (SGLP) for the 153.5-megawatt solar power project in Barangay Lucanin, Mariveles, Bataan.
CREC said in a disclosure to the Philippine Stock Exchange it signed on June 28 an investment and shareholders agreement with SLGP to jointly develop, build and operate the solar power plant.
It said the parties should collaborate and cooperate in the financing, construction, ownership, operation and maintenance of the plant through the subscription to a special purpose entity.
CREC will initially own 49 percent and SGLP will take 51 percent of the total issued and subscribed capital stock of the joint venture company.
CREC said that upon reaching the construction phase, it would subscribe to additional shares, resulting in an ownership split of 50 percent each between CREC and SGLP.
The special purpose entity’s board will consist of six directors, where each of the parties will be entitled to nominate three directors each.
CREC said the transaction would increase the company’s attributable solar energy capacity in line with its goal of contributing 1 gigawatt of ready-to-build/under construction solar energy capacity a year for the next five years
“The joint venture will add approximately 76.75 MW to the company’s attributable solar energy capacity,” it said.
SMC Global Light and Power, a unit of San Miguel Global Power Holdings Corp., is engaged in power generation such as the exploration, development and utilization of renewable energy resources.