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Commission Decision No. 40-M-048 Joint Venture between Prime Metro Power Holdings Corporation and San Lorenzo Ruiz Piat Energy and Water Inc. (Chico JVCo)
Commission Decision No. 40-M-048
Joint Venture between Prime Metro Power Holdings Corporation
and San Lorenzo Ruiz Piat Energy and Water Inc. (Chico JVCo)
ABSTRACT:
The proposed transaction is a joint venture between San Lorenzo Ruiz Piat Energy and Water Inc. (SLRPEWI) and Prime Metro Power Holdings Corporation (PMPHC) to form the Chico JVCo.
The Chico JVCo will construct and establish hydropower facilities for the supply of hydropower to power distributors and end users in Luzon. Its principal assets will be located in the area covered by the Chico Hydropower Service Contract in Tabuk, Province of Kalinga, Luzon, Philippines.
SLRPEWI is the assignee and holder of Hydropower Service Contract No. 2013-12-354-A issued by the Department of Energy (DOE), referred to as the “Hydropower Service Contract,” which grants the contractor the exclusive right to explore, develop and utilize the hydro resources within the contract area in Tabuk, Kalinga. The Chico Hydropower Service Contract was duly assigned to SLRPEWI by San Lorenzo Ruiz Builders & Developers Group, Inc. (SLRBDGI) under a Deed of Assignment dated 29 April 2015 duly approved by the DOE known as the Chico Hydropower Project.
SLRPEWI shall contribute the Chico Hydropower Service Contract to the joint venture company, Chico JVCo, in exchange for 18 percent share thereof. PMPHC undertakes to raise project funding for the Chico Hydropower Project once it is convinced of its legal, commercial, and financial viability after its conduct of due diligence within a period of one year. PMPHC shall have control over the Chico JVCo with 82 percent share ownership.