A consortium comprising of Coastal Power Development Corp and Applied Research Technologies Philippines have won a bid to supply power to the Philippine islands of Marinduque, Romblon, and Tablas.
The winning bidder will develop a 25 MW hybrid diesel-wind system to power the off-grid islands.
The Philippine Department of Energy and the International Finance Corporation (IFC), the private sector arm of the World Bank Group, announced the concession-type contract between the Coastal consortium and local electric cooperatives that take the power on these islands.
The contract will lead to a reduction of about 40% from the current generation cost in the islands.
“This model public-private partnership structure, wherein the investor achieves full cost recovery and profits from the electric cooperatives and partially through government subsidy, can be replicated for other infrastructure transactions in the Philippines and elsewhere,” said IFC director of advisory services Bernie Sheahan.