IN voids agreement with Korean company for Currimao solar power project

By Leilanie G. Adriano

Staff reporter

Laoag City—The major proponent of a multi-million solar power project in Currimao town, about 25 kilometers from Laoag City has been barred from cutting almost a thousand trees to give way for the establishment of a 20-megawatt (MW) solar project here.

This came following the February 2 Sangguniang Panlalawigan resolution abrogating the lease agreement entered into by and between the provincial government and Mirae Asia Energy Corporation, a South Korean power firm which initiated the project in 2012.

During the deliberation at the Sangguniang Panlalawigan, Atty. Joel Garcia, chairperson of the committee on environment recalled that the Mirae assured that it has sufficient fund to finance an initial US$15 million capitalization of the proposed Currimao solar project. However, it turned out that Mirae does not have enough operational capital, prompting the latter to sell its shares to Soleq Philippines Inc., a firm backed by the Equis Funds Group, a leading private equity group with interest on energy and infrastructure development in Asia.

As a result, Soleq Philippines has expressed interest to continue to project but the company wants Mirae Asia on the frontline to transact business with the provincial government.

On August 27, 2014, Mirae Asia has entered into a lease agreement with the Ilocos Norte government for the development of a 60-hectare forest land covering Brgys. Bimmanga and Paguludan-Salindeg in Currimao. The agreement is for 25 years and renewable for another 25 years.

In view of this, the provincial government has nullified its lease contract with Mirae Asia as it welcomes another investor with a capacity to develop a solar project in neighboring Paoay town if not in Currimao.

In a separate interview, Ilocos Norte Governor Ma. Imelda “Imee” R. Marcos reiterated that the cutting of trees is really a “problematic process” particularly in emergency situations where most of the proposed trees to be cut are rare species of Agoho located near the shoreline.

Agoho trees in Ilocos Norte are high valued tree species as it takes years for it to grow and some of these kinds are being threatened by a virus in some parts of Suba, Paoay and Laoag City.

Despite the grant of cutting permits from the Department of Environment and Natural Resources of some 741 trees—reduced from a total of 1,281 trees proposed to be cut by the company, Ms. Marcos said the number of trees to be cut is still very high considering that most of the trees are agohos, some were also planted during her time as representative of the second district of Ilocos Norte.

Ms. Marcos also reported that some local residents were alarmed of a clearing operation in the area, cutting down about 50 young saplings.

“Wala pang kasunduan sa Forest Land Used Agreement. Huwag kayong nagmamadali kasi dun sa clearing na ‘yon, nabalintaan ko na may 50 saplings o maliliit na puno. Eh ‘yung mga maliliit, mas mahirap mabuhay kaya dapat pangalagaan ‘yon,” she underscored hoping to bring down the number of trees to be cut even if there was already an approval from the DENR Regional Office.

The Currimao solar project’s construction should have started in 2014 after Mirae Company has secured a certificate of commerciality from the Department of Energy including an engineering, procurement, and construction contract but it failed to get the full endorsement of the provincial government.