Cagayan de Oro Solar Power Project

active

In August of 2003, Cagayan Electric Power & Light Co., Inc. (CEPALCO) began construction works on a US$5.3 million solar power project in Cagayan de Oro on the island of Mindanao. The 1-MW, 6,480 solar cell unit project was to be the largest distributed, grid-connected photovoltaic installation in the developing world and was to supply power to not less than 770 Cepalco residential consumers. Sumitomo Corporation of Japan was the turnkey contractor for the project and the solar modules were manufactured by Sharp Corporation of Japan. Commercial operation commenced when the plant was issued a Certificate of Compliance by the Energy Regulatory Commission on September 22, 2004. CEPALCO was one of five electricity distribution utilities serving the Northern Mindanao region in the Philippines. The private company operated electricity distribution services in the city of Cagayan de Oro and the municipalities of Tagoloan, Villanueva, and Jasaan, all in the province of Misamis Oriental in the island of Mindanao under an exclusive franchise awarded in 1961. The legislative franchise was to be extended for another 25 years starting in 2011. CEPALCO was a closely held company, where the Abaya family was the founding and the major shareholder. The combined four top shareholders (Fullmax Philippine Development, LLC, Abaya Investments Corporation, Breavel, Inc., and the Abaya family) together owned 63.1% of the company. In June of 2003, The International Finance Corp. (IFC) agreed to provide US$4 million to finance the project from its Global Environment Facility (GEF), a financing window for innovative applications of renewable energy technologies. IFC said the loan may be converted into a grant after five years if certain conditions were met. Cepalco invested the remaining US$1.4 million as equity.