BDO Unibank Inc., the largest bank in the Philippines, is funding a second biomass power project, which will be deployed by Surallah Power Generation, a renewable energy developer based in the South Cotabato province.
Manila Standard reported that the firm said it had approached BDO due to its reputation as "a pioneer in sustainable finance" in the Philippines - although there was no mention of the amount of funding Surallah would receive.
The move follows the success of the two organisations' initial partnership on a biomass project in Surallah, and the power company said it is "now constructing its second biomass-fired power plant in Palawan."
Rio Balaba, Surallah spokesperson, said "BDO is very supportive [of] our endeavour", and noted the bank has been supplyingb“technical advice on how to efficiently and effectively manage and operate the power plant.”
The energy firm executive added “our credit facilities, lease lines and loan term are readily available and tailor-fit to our corporate requirements.”
Increasing the share of renewable energy (RE) generation in the power mix is a major anchor to the country’s energy transition agenda – and that will largely underpin the Philippines’ contribution to global decarbonisation as a way to abate climate change impacts.
In the credit window that BDO had extended to Surallah, it was emphasised that when the developer-firm “discovered that agricultural waste is best recycled into biomass energy to create a sustainable energy source, [it] recognised the need for a reliable banking partner who will provide financing as [it] ventures into [the] power plant business.”
BDO stated that “as a key contributor to help accelerate the Philippine economy, the bank continues to engage and lend eco-friendly companies to fuel long-term development and business success while protecting the planet.
It added it has an excellent grasp on biomass energy financing as it already has 15 projects of this technology type in its portfolio.
Philippines’ largest bank invests in second biomass project
