In its 2020 annual report, MRC reported that it booked a P25 million impairment loss incurred in the pre-development of a 60-megawatt solar power plant in Naga City, Cebu.
MRC was granted a Solar Energy Service Contract (SESC) by the Department of Energy (DOE) for the exclusive right to explore and develop a solar project in Naga City, Cebu.
But it did not go beyond the pre-development stage as the Department of Environment and Natural Resources (DENR) ordered the suspension of development activities within the solar project’s area “because of supervening events affecting the condition and feasibility of the area.”
“As a result, the company had to surrender its service contract with the DOE. The DOE is re-evaluating the project’s technical feasibility and design and the result is still pending,” said MRC.
The Naga solar project was supposed to either supply electricity to the Visayas grid and/or offer its production to large power consumers within and around Southern Cebu.