The local government of Burgos in Ilocos Norte has inked a debt payment deal with Energy Logics Philippines Inc. (ELPI) that will allow the latter to pay its PHP15.59 million debt to the municipal government.
Burgos Mayor Crescente N. Garcia told the Philippine News Agency on Wednesday that ELPI, the developer of the 95-megawatt solar farm in the villages of Tanap and Agaga, needed to pay the municipality a total of PHP15.59 million in connection with its application for building permit.
Because of the energy company’s failure to pay its obligations, Garcia said they have made a compromise agreement that will allow ELPI continued operations, which started earlier his year.
“As we have agreed upon, ELPI has already paid in full the principal [basic assessment fees ]for the building permit, which is more than PHP8.1 million,” Garcia said.
The remaining PHP7.47 million, which accounts for the power producer’s fines and penalties, will be paid in terms after considering the company’s financial woes.
Under the agreement, the municipality has the right to impose necessary penalties and actions if ELPI fails to comply with the conditions set on the compromised agreement.
In 2011, the Philippine government granted ELPI the exclusive right to develop the Ilocos Norte solar power project in Burgos town to provide the Luzon grid additional energy capacity at lower cost.
Under the plan, the energy firm will put up 279,410 solar panels, which have an individual capacity to produce 340 watts.
The same company also plans to develop 132-megawatt wind energy projects in the towns of Vintar and Pasuquin. (PNA)
