MGen Renewable Energy Inc. (MGreen), the renewable energy arm of Meralco PowerGen Corp. (MGen), and its partner Singapore-based Vena Energy have secured an P18.3-billion Green Loan facility to complete the 550-megawatt (MW) Bugallon Solar Power Project in Pangasinan. 

The project, now under construction, is scheduled for completion by the fourth quarter of this year.  

The financing, arranged by Security Bank Corp., Rizal Commercial Banking Corp. (RCBC) and Philippine National Bank (PNB), is vital to the project’s development. 

SB Capital Investment Corp., RCBC Capital Corp., and PNB Capital and Investment Corp. acted as Mandated Lead Arrangers, with RCBC serving as the Green Loan Coordinator.  

Inspiring journey

“This event marks not just the closing of a deal, but the beginning of an inspiring journey between two like-minded organizations,” MGreen president and CEO Dennis B. Jordan said on Wednesday.

“We bring our collective strengths and visions into alignment, enabling us to make a definitive step towards making a greater impact in the country’s journey towards a cleaner and sustainable energy future.”  

For, Simone Grasso, chief investment officer at Vena Energy, the project will significantly help advance the national energy goals of increasing renewable energy share in the total power mix.

The project, overseen by 3 Barracuda Energy Corp., as part of the joint venture, is expected to generate approximately 7,000 jobs during its construction, with a strong focus on hiring local community members. 

Once operational, it will produce around 958 gigawatt-hours of clean energy annually, sufficient to power more than 810,000 households.  

In addition to supplying clean energy, the facility will prevent over 640,000 tons of greenhouse gas emissions annually, equivalent to planting 11 million trees.