MANILA, Philippines – Megawide Construction Corp. has earmarked $100 million to develop several renewable energy projects to help address the country's power shortage issues.
The firm said the funds will be used to build a portfolio of 100 megawatts of renewable energy, including biomass, hydro, wind, solar and geothermal, over the next two years.
Megawide chief finance officer Oliver Tan said groundbreaking for a 3.5 megawatt biomass project in Northern Luzon, its first power generation project, is scheduled by the end of the year.
Megawide will finance investments in the power sector through internally generated funds.
The company said it is expecting its net income to hit P2.8 billion and revenues to reach P22 billion over the next three years as it adds airport and hospital projects into its business portfolio.
In 2013, Megawide posted net income and revenues of P1.4 billion and P10.88 billion, respectively.
"We will still retain current market share in the construction business, because we all know the cyclical nature of industry we are operating in. So we are pursuing assets that will provide us with stable recurring income," Tan said.
Megawide has won contracts for four public-private partnership projects, including the expansion of the Mactan-Cebu International Airport in partnership with GMR Infrastructure.