Basic Energy eyes stake in Myanmar solar projects

Basic Energy Corp. is looking to acquire minimum stakes in the firms building a 220-megawatt (MW) solar plant in Myanmar as part of getting revenue streams while development for long-gestating projects are ongoing.

Basic Energy said it has signed an investment term sheet with Vintage Engineering Public Co. Ltd. (VTE) of Thailand to invest in its subsidiaries that bagged the supply and construction service contracts for the engineering, procurement and construction (EPC) of the solar farm.

The term sheet grants Basic Energy the exclusive right to negotiate and finalize the terms of the investment.

Basic Energy is eyeing to acquire a minimum 12.5 percent stake in Vintage EPC Co. Ltd. and in Vintage International Construction Co. Ltd.

“A refundable deposit will be made to begin the due diligence process on the two VTE companies, namely, Vintage EPC and Vintage International Construction,” the firm said.

Basic Energy will complete the due diligence process in 60 days. If results are favorable, the firm will sign shareholders’ agreement with VTE, with the option to increase its investment up to 20 percent in both VTE companies.

“Basic Energy’s participation in the aforementioned projects is in line with its thrust to expand its portfolio of renewable energy projects in the Philippines and abroad. The investments are seen to provide Basic Energy with revenue streams off projects with fast turnaround times,” it said.

The company has been scouting for solar power investments overseas, particularly in Asia, given its fast turnaround time compared with geothermal projects.

Currently, it has five geothermal service contracts, namely the Mabini Geothermal Service Contract (SC) in Batangas, East Mankayan Geothermal Prospect in Ifugao, Mt. Mariveles Geothermal Project in Bataan, Mt. Iriga Geothermal Project in Albay and West Bulusan Geothermal Prospect in Sorsogon.

Among its projects in the pipeline, the Batangas project is the most advanced, with the drilling of an exploratory well under way. Basic partnered with Trans-Asia Oil and Energy Development Corp. to develop the resource.

Basic has been conducting due diligence on a 14-MW solar farm in Japan after remitting 50 million yen, or roughly P22.74 million, to Solmax Power Ltd. of Hong Kong.

It was also cleared by its board to acquire 10 percent— with the option to increase to 20 percent—in a 25-MW biomass power plant project in Japan, and make a 49 percent equity investment in V.O. Net Biodiesel Asia Co. Ltd., which operates a 1.2-MW solar power plant located in Kalisin, Thailand.