Solar Philippines and Prime Infra agreed to expand their partnership covering multiple solar projects. SP Energy disclosed that its board had approved the proposed agreement between Solar Philippines and Prime Infra.
The agreement includes Solar Tanauan Corporation, Terra Solar Philippines Inc., and Solar Philippines Tarlac Corporation. These joint ventures include Solar Philippines shares.
To streamline the decision-making process, the agreement includes an amendment to Terra Solar’s shareholders’ agreement. This allows for faster resolution and efficient commercial agreements via deadlock resolution.
Both parties agreed to continue Terra Solar’s joint venture. Terra Solar signed a 850 MW power supply contract with Manila Electric Company, with a delivery date in the Q1 of 2026.
Terra Solar hopes to get this project off the ground within the next year.
Prime Infra would also be covered by the agreement. Prime Infra would sell Solar Tanauan common shares to Solar Philippines for P1 billion, which would mean that Prime would own 100% of Solar Tanauan.
The MOA also includes the redemption or purchase of preferred shares in Solar Tarlac, Prime Infra Solar Tarlac or Solar Philippines worth P1.5 billion and accrued dividends.
After the share swap, Solar Philippines or SPNEC would own 100% of Solar Tarlac.
Solar Tarlac has an 85 MW power supply agreement with Meralco. It owns 140 hectares of land and has 100 MW in operation and 50 MW under construction.
These agreements allow Prime Infra and Solar Philippines to concentrate their efforts on Terra Solar. This is in recognition of the value of working together to ensure the success of Terra Solar.
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