Basic Energy invests in Myanmar solar project

DE Venecia-led Basic Energy Corp. has signed a deal to acquire a 15 percent interest in two Thai firms that bagged the contract to build a 220-megawatt (MW) solar power plant project in Myanmar.

The company told the Philippine Stock Exchange on Wednesday that it signed share purchase and shareholders agreements with Thailand’s Meta Corporation Public Co. Ltd. (META) for 15 percent of the outstanding capital of Vintage EPC Co. Ltd (VEPC) and VTE International Construction Co. Ltd. (VINTER).

META was formerly known as Vintage Engineering Public Co. Ltd. (VTE).

The transfer of shares will take effect on July 2 upon receipt of notice from the company acknowledging receipt of closing documents from META, Basic Energy said.

Basic Energy did not disclose the financial details of the transaction.

In April, the company said the total amount of the planned investment was 106.19 million baht (P178.33 million).

“The equity investments in VEPC and VINTER, who are the primary EPC (engineering, procurement, and construction) contractors for the Project, mark the first endeavor of the Company into solar-related energy projects abroad,” Basic Energy said, adding this would provide them a steady source of revenue in the short-term.

In December last year, Basic Energy remitted $2.62 million as earnest deposit to be converted into paid-in capital contribution in VEPC and VINTER on the closing dates stipulated in the deal. Under the deal, its president and chief executive officer, Oscar de Venecia, Jr., will represent Basic Energy and be nominated as one of the directors of the said firms.

VEPC and VINTER are subsidiaries of VTE, which currently owns 99.99 percent of the two entities. They were commissioned by Myanmar’s Green Earth Power as the owner-developer of the project and holder of the power purchase agreement with Myanmar’s government.

VEPC is the supplier of materials and equipment for the construction of the 220MW solar power project located in Minbu District, while VINTER handles the construction services.

Construction began in 2016 and is in four phases: 50MW for the first three phases and 70MW for the last phase. Construction of Phase 1 is ongoing with completion targeted for the first quarter of 2019. Full completion the solar project is expected on or before 2022.

Basic Energy is a holding company with interests in renewable energy and alternative fuels and oil and gas exploration and development. It holds a 70 percent stake in Hong Kong-based electronic manufacturer Grandway Group Ltd.

Basic Energy shares were up 2.97 percent at P0.24 each on Wednesday.

Source : The Manila Times

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