News & Update

Investment agreement signed for Wawa River small-scale hydroelectric plant on Mindanao island

On August 27^th,Chodai Co., Ltd. and group company Kiso-Jiban Consultants Co., Ltd. signed an investment agreement with three local companies including Equi-Parco Construction Company and thus reached a final agreement on the establishment of the special-purpose company Wawa Green Energy Corporation (the “SPC") for the opening of a 23 MW hydroelectric plant on Mindanao island in the Philippines, the Wawa River small-scale hydroelectric plant (the “Project”), for operations in fiscal year 2018.

As part of the agreement, Chodai and Kiso-Jiban agreed to 8% and 2% investments, respectively. The Chodai group will thus invest a total of 10% in the SPC and also agreed to dispatch one company executive on a part-time basis.

In the master agreement which was signed prior to this on May 17^th, the Chodai group also agreed to perform five kinds of consulting work related to engineering reviews, construction supervision, installation of water turbine generators, and O&M as part of the Project.

The Project qualified for the fiscal year 2013 “Preparatory Survey for PPP Infrastructure” under the Japan International Cooperation Agency (“JICA”), and a survey is to be implemented by the end of December next year. Once a survey has been made to confirm the feasibility of a project, a special-purpose company is normally established, related approvals obtained, and fundraising then carried out. However, since early commercialization has been given highest priority for this Project, related approvals will be obtained, funds raised, and plant procured simultaneously with the JICA study.