As published on BusinessWorld
MRC ALLIED, Inc. said on Wednesday that it had executed a memorandum of agreement (MoA) to build a solar photovoltaic rooftop system for two rice milling plants with a capacity of at least 550 kilowatt-peak (kWp).
The company did not disclose the other parties to the deal except to say that the development, design, construction and installation of the solar energy systems are for milling plants in northern Luzon.
Under the MoA, the company will be the project developer and owner of the solar facility, while a “private entity” that owns and operates the milling plants will be the off-taker of the produced power.
MRC Allied said the total investment cost for the project is estimated at P34 million. It said the MoA would become effective upon the issuance of the acceptance certificate by the power off-taker to the listed company “after successful completion of actual performance testing and interconnection.”
The cooperation period of the parties under the MoA will be for 20 years from the issuance of the certificate.
MRC Allied described the signing of the memorandum as “a significant milestone” for the company, and will kick off its pilot project in its current solar photovoltaic pipeline. The company aims to develop at least 4 megawatts of solar energy projects within the pilot project area, it added.
The MoA comes after the company last month announced a reorganization that consolidates under MRC Allied all its assets and portfolio while its operating subsidiaries will be implementing the projects.
As part of the reorganization, it announced the appointment of Augusto M. Cosio, Jr. as president and chief executive officer and the resignation of Gladys N. Nalda in those positions. The moves were unanimously approved by the board.
Ms. Nalda also resigned from MRC Allied’s board of directors, while Mr. Cosio was named as a new member. Both actions will take effect on Oct. 16, 2018. The new composition of the board committees are also to take effect on that date.
“The Company will continue to pursue renewable energy projects thru Menlo Renewable Energy Corp. (MREN) and Ms. Nalda will be appointed as its new President & CEO,” MRC Allied had said.