The first phase of a 48-megawatt wind power project in the Philippines will begin construction this month after the Italian government signed a memorandum of agreement with local project developers.

The $44 million first phase will involve the installation of 16 MW of wind power. The project to be located in the province of Oriental Mindoro in eastern Luzon could be among the largest renewable energy undertakings in the Philippines.

The project phase will be managed by local energy firm Philippine Hybrid Energy Systems, Inc., which handles electric transmission grid projects and specializes in operating electric transmission stations and power plants.

Additional projects planned for the future include the installation of a submarine cable connecting Mindoro island to the country's Luzon Grid.

When completed, the entire wind project will reduce electricity costs in the country's Oriental Mindoro province by half, according to the project proponents.

Other projects like hydropower, gas and coal plants are being developed as well in the province.