EDC assumes operations of Tongonan and Palinpinon after paying US$83 million
Alexander Richter
27 Oct 2009
Energy Development Corp. (EDC) on Friday assumed operations of the 112.5-megawatt (MW) Tongonan 1 and 192.5-MW Palinpinon geothermal power plants after paying US$ 83 million.
Reported from the Philippines, “Energy Development Corp. (EDC) on Friday assumed operations of the 112.5-megawatt (MW) Tongonan 1 and 192.5-MW Palinpinon geothermal power plants.
In a statement, EDC said it assumed operations of the two geothermal plants after it paid the Power Sector Assets and Liabilities Management Corp. (Psalm) P3.9 billion (US$ 83 million)representing 40 percent of the purchase price and $7 million for the purchase orders, rental, option price, performance security deposit on land lease, and industrial all-risks insurance policy and comprehensive general liability.
For the remaining balance, EDC is tapping Psalm’s staple financing scheme allowing deferred payments of up to seven years in 14 equal semi-annual installments.
EDC, through Green Core Geothermal Inc. (GCGI), acquired the two plants in Leyte and Negros Oriental in an auction conducted by Psalm on September 2 when it submitted the highest complying financial bid of $220 million.
GCGI is a subsidiary of First Luzon Geothermal Energy Corp., which is wholly owned by EDC.
“The acquisition of the National Power Corp.’s [Napocor] geothermal power plants is one of our major platforms for future growth. We have set our target and achieved it,” said Paul Aquino, GCGI president.
He added that the turnover of the Tongonan and Palinpinon power plants fully integrates the value chain of EDC’s geothermal business from steam production to power generation.
“And with the industry leaning more toward clean energy, EDC, with its 33-year head start in the geothermal business, is well positioned to address the supply shortage in the Visayas grid by providing cheaper and green power,” Aquino said.
EDC said the two plants boost EDC’s current portfolio of geothermal power-generation assets to 1,049 MW.
In Leyte, EDC operates the Unified Leyte plants consisting of the 125-MW Upper Mahiao, 232.5-MW Malitbog, 180-MW Mahanagdong and 51-MW Optimization plants. In Mindanao, EDC runs the 106-MW Mindanao 1 and 2 plants.”
For the full article, which provides further details on the company and some of the financial details read the full article, link below.
Source: Business Mirror
