MRC Allied, China Energy ink renewable-power deal

MRC Allied Inc. and China Energy Engineering Group Guangdong Power Engineering Co. Ltd. (GPEC) signed a Memorandum of Understanding (MOU) to explore opportunities in the renewable-energy (RE) sector.

“The purpose of the MOU is to confirm that both parties have an interest in developing renewable-energy projects in the Philippines as identified by MRC Allied Inc.,” stated a company disclosure.

Under the agreement, GPEC will conduct a due diligence for a period of one year after the MOU signing.

The purpose of the due diligence is to help GPEC decide whether to pursue RE projects with MRC Allied.

Also, the parties are bound by the terms and confidentiality while the agreement is in force and within one year thereafter.

GPEC, a foreign company based in Guangzhou, China, is engaged in the business of exploration, development and construction of energy projects.

MRC Allied is diversifying into the energy sector, particularly RE. Company President Gladys Nalda Nalda has said that the company plans to put up at least 1,000megawatts (MW) of RE in the next five years.

“In line with our vision to be one of the major players in the Philippine power industry, we plan to develop at least 1,000 MW of clean and renewable energy by 2022,” Nalda said.

For this year MRC Allied has an aggregate of 160-MW solar capacity in the pipeline. These are in Clark Green City, Pampanga, and in Naga City, Cebu, with a target installed capacity of 100 MW and 60 MW, respectively.

Last June MRC Allied said its board implemented a P1-billion private placement and offered preferred shares to increase the company’s authorized capital stock.

The authorized capital stock of the company is P3.5 billion, consisting of 3 billion common shares with par value of P0.50 per share and 2 billion preferred shares with a par value of P1 per share.

The company was expecting to generate a combined P2 billion from both capital-raising moves. Another P1 billion is expected to be raised from other sources, including institutional investors.