Listed Basic Energy Corporation has signed a term sheet with Vintage Engineering Public Company Limited (VTE) of Thailand for the possible acquisition of a minimum 12.5 percent stake in two companies that hold the Engineering, Procurement, and Construction (EPC) contract of the ongoing 220-megawatt (MW) solar power plant project in Minbu, Myanmar.

The term sheet grants Basic Energy the exclusive right to negotiate and finalize the terms of the investment in Vintage EPC (VEPC) and Vintage International Construction Co. Ltd (VINTER), the company said in a disclosure to the Philippine Stock Exchange.

As of now, the development and construction of the first of four phases of the solar plant, which is expected to initially generate 50 MW, is ongoing.

While the companies are at it, a refundable deposit will be made to begin the due diligence process on the two VTE companies.

Under provisions of the term sheet, Basic Energy will strive to complete the due diligence process in 60 days, but may ask for an extension subject to VTE’s consent.

The covering shareholders agreement will then be signed upon favorable results of the due diligence process on the VTE companies and the EPC contract, during which time Basic Energy can opt to increase its planned investment to up to 20 percent.

“Basic Energy’s participation in the aforementioned projects is in line with its thrust to expand its portfolio of renewable energy projects in the Philippines and abroad,” the company told the local bourse.

“The investments are seen to provide Basic Energy with revenue streams off projects with fast turnaround times,” it added.

Source: https://business.mb.com.ph/2017/11/20/basic-energy-plans-to-invest-in-220-mw-myanmar-solar-plant/