Under the agreement, SPI has committed to invest $250 million (roughly P11.75 billion) within two years. BCDA will receive annual lease payments and shares in the revenues of generated power.
SPI also has committed to employ 1,000 workers during the construction and at least 250 workers during operations.
The term of the lease is 25 years and this may be renewed for another 25 years, subject to renewal negotiations. The location is a reserved space for green development programs such as renewable energy (RE), urban farming and forest reserves.
“We look forward to the long-standing partnership with SPI to provide clean and renewable energy not only to Clark Green City but also to the neighboring areas in Central Luzon,” saidArnel Casanova, BCDA president and chief executive officer.
Casanova said RE facilities such as the solar farm will lead to the establishment of technology development centers focusing on green and smart technology. As part of the agreement, BCDA and SPI will invest in training young Filipinos on the latest developments in green and smart technology in line with the company’s corporate social responsibility program.
He added the use of RE such as solar power to energize Clark Green City forms part of BCDA’s commitment to address the effects of climate change and global warming.
“We are very mindful of the impact of climate change in the Philippines and there is no other recourse but to adopt renewables as the main source of energy to power Clark Green City,” Casanova said.
He noted that BCDA’s commitment to renewables is also in line with the thrust under the recent COP21 Paris Climate Summit to transition to a green and sustainable economy to address climate change.
SPI is a Philippine corporation formed to develop, construct and own utility-scale power generating facilities for the production, generation, sale and storage of electricity harnessed from RE sources such as solar, wind and waste-to-energy technology.
SPI and its consortium of green technology companies have expertise in RE and the power industry, and possess proprietary licenses for solar photovoltaic, wind, waste-to-energy and storage equipment not available in the Philippines.
It can be recalled that last July,BCDA also signed a lease agreement with SSR C-Solar Power, Inc. to build a solar energy farm in Clark Green City capable of generating some 20 megawatts of electricity, with the latter committing to invest some P1 billion for the project within the next two years.
The entire Clark Green City is a 9,450-hectare master planned property within Clark Special Economic Zone in the province of Tarlac. It is envisioned to be the first smart, disaster-resilient and green city in the Philippines.
At full development, it will have some 1.12 million residents and 800,000 workers, and contribute a gross output of approximately P1.57 trillion per year to the national economy or roughly four percent share in the county’s gross domestic product.
Clark Green City is positioned strategically between highly urbanizing cities of San Fernando, Angeles and Olongapo in Central Luzon as well as the cities of San Carlos, Dagupan and Urdaneta in Northern Luzon. It is also near the Clark International Airport and the Subic Seaport.
The strategic location and its connectivity to major cities in Central Luzon through North Luzon Expressway, Subic-Clark-Tarlac Expressway, Tarlac-Pangasinan-La Union Expressway and soon the Central Luzon Link Expressway will allow the convergence from north, east, south and west, and serve a catchment population of some 12 million people.
December 10, 2015