EDC investing US$ 3.9 million in geothermal activities in Q1 ’09

Alexander Richter 10 Apr 2009

As reported in the Philippine Daily Inquirer, “Lopez-led Energy Development Corp. (EDC) has put in about P119 million (US$ 2.5 million) in geothermal projects and another P65.4 million (US$ 1.3 million) in the upgrade of its existing rigs in the first quarter of 2009.

EDC chief financial officer Fenina O. T. Rodriguez said that the capital outlay came from the remaining proceeds of the company’s P9.28-billion initial public offering in 2006.

Rodriguez told the Philippine Stock Exchange yesterday that EDC still had P699.3 million left over from the IPO proceeds as of end-2008. Over P400 million of this amount went to import expenses.

Meanwhile, P118.9 million went into the development of EDC’s various projects that would further strengthen its position in the geothermal industry.

These geothermal projects included the Mindanao III, which got P41.47 million; Rangas, Tanawon, Kayabon, which got a collective P5.06 million; Dauin, P1.37 million; Nasulo, P2.23 million; and Northern Negros buffer zone, P68.7 million.

The Tanawon project in Albay and Dauin in southern Negros each has the potential to generate 40 megawatts (MW) of power, while the Nasulo project in Negros Oriental may add another 20 MW to the grid. Meanwhile, the Mindanao III project in Cotabato may boost capacity in the Mindanao grid by 50 MW.

EDC also allocated P65.37 million for the upgrading of its drilling rigs, in a bid to become more competitive in the drilling industry.

Of this amount, P1.41 million was spent on the commissioning and testing of its rigs, while P38.8 million went to the purchase of a crane.

Another P8 million was used to buy a tractor from Western Star Trucks, while another P11.78 million was used to buy a forkloader with a six-ton capacity from Caterpillar.”

Source: Philippine Daily Inquirer