Conglomerate Ayala Corp. has signed a deal with UPC Renewables Indonesia Ltd. for the construction and operation of a $150-million wind farm project in Sidrap, South Sulawesi, Indonesia, its first greenfield offshore investment.
Ayala told the local bourse the Sidrap project was an investment of its subsidiary AC Energy Holdings, Inc., through its affiliate, AC Energy International Holdings Pte Ltd., a Singapore private limited company.
The wind farm project, with generating capacity of 75 megawatts, is targeted for completion by the end of 2017, and will be the first utility-scale wind farm project in Indonesia once completed.
It will be developed through PT UPC Sidrap Bayu Energi, a special purpose company based in Indonesia.
The project will be funded through equity and project financing to be provided by the Overseas Private Investment Corp., the United States government’s development finance institution, and PT Bank Sumitomo Mitsui Indonesia, the Indonesian subsidiary of the Sumitomo Mitsui Banking Corp. of Japan.
UPC Renewables is a leading global energy player that develops, finances, constructs, owns and operates a portfolio of wind power generation assets.
The company and its proponents have successfully developed and operated renewable energy projects in Italy, the United States, Canada, China and the Philippines.
UPC Renewables and AC Energy Holdings, Inc. are two of the owners of North Luzon Renewable Energy Corp., the owner and operator of the 81-MW Caparispisan wind farm project in Pagudpud, Ilocos Norte.