LISTED firm Basic Energy Corp. said that it had received from the Energy department a service contract for its planned 50-megawatt (MW) wind project in Mabini, Batangas.
In a disclosure to the local bourse on Thursday, Basic Energy said that the wind energy service contract (WESC) provides for a non-extendible, five-year, pre-development stage and a 25-year development stage, counted from contract signing.
The development stage may be extended for another 25 years, subject to the approval of the Department of Energy (DoE).
The wind project will be undertaken by Mabini Energy Corp., a wholly owned unit of Basic Energy. The parent firm said that the planned project, which will cover over 4.860 square meters of land in the Mabini Peninsula, is targeted to begin its commercial run by 2027 or five years from the date of the WESC awarding.
A WESC is awarded to eligible applicants that pass the legal, technical and financial evaluations on proposed wind power projects, which are meant for commercial use, the DoE said in its work program on on-shore wind projects.
In a separate disclosure on Thursday, Basic Energy said that it had amended its articles of incorporation to double its authorized capital stock to P5 billion from the P2.5 billion.
The firm said that it added two more provisions in its amended by-laws, including conferring the honorary title of chairman emeritus to a former chairman, and the deletion of the profit-sharing provisions for directors and officers.
Last month, Basic Energy said that the board of directors of the Mabini Energy Corp. gave the go signal for Oscar L. de Venecia, Jr., the parent firm’s president, to sign the service contract.
Shares of Basic Energy in the local bourse improved 24.66% or 18 centavos to finish at P0.91 apiece on Thursday. — Angelica Y. Yang