BAGUIO CITY – An Australian-based renewable energy recently entered into partnership agreements with two local groups for the establishment of solar farms in Baguio and Benguet in order to boost the marketability of cheap solar panels beneficial to the growing number of patrons of renewable energy.
CW Developments, Inc. represented by its managing director Peter Kabanagh signed the partnership agreements with the Lepanto Project Development Consultancy Services Corporation led by its president Christian Matt B. Luspian for the put up of the solar farm in Mankayan, Benguet and the Blessed Association of Retired Persons (BARP) led by its president Prof. Federico A. Balang for a similar project in Baguio City.
Solar Power International Developer (SPID) is the local counterpart of an international investor CW Capital Company based in Western Australia in partnership with ISLA Solar energy Inc..
Under the agreement, the local party concerned shall be responsible in looking for an area suitable for solar power farm project within Mankayan, Benguet and Baguio City, respectively; maintain peace and order and secure the safety and orderliness of the project before, during and after the construction phase, during the pre-development stage, it shall obtain power purchase agreement with the Benguet Electric Cooperative and Lepanto Mining Corporation, respectively, together with local permits required and lease contract of solar farm lands and perform other tasks relative to the success of the project development.
On the other hand, the developer shall conduct ocular inspection and site evaluation to determine the viability and feasibility of the identified site of the solar power farms, undertake project study and prepare the necessary design and all documents or papers to secure required permits from national government agencies, responsible in project development and management including financing of project expenses from pre-development stage, rental of solar farm land, development cost, supply and installation of solar panels and accessories and commissioning/test run, social corporate responsibilities and other incidental expenses and after completion of the project development, the parties will engage the services of a third party who is competent to manage the operation and maintenance of a solar power farm plant and the financial engineering management including distribution of shares to the contracting parties.
In terms of profit sharing, the developer shall receive 70 percent of the total net income while the local partner will receive 30 percent of the total net income after the 10-year payback period in the Mankayan project while in the Baguio project, the developer will be entitled to 8 0 percent of the net income with the BARP receiving 10 percent and the local government another 10 percent of the total net income.
The developer committed that once the areas identified will be feasible, it will complete the project within two years from the issuance of required permits or depending upon the engineering estimates or programs of work prepared by the technical experts.
By Dexter A. See
