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EDC holding 7 service contracts for geothermal fields in the Philippines

Tongonan, Leyte Geothermal power plant, Philippines
Alexander Richter 20 Mar 2012

Energy Development Corp. continues to hold 7 service contracts for geothermal production fields and expects to spend $33 million on rehabilitating the Bacon-Manito plant and is repairing the Palinpinon-Tongonan plants.

Reported last week from the Philippines, “Energy Development Corp., continues to hold 10 renewable energy (RE) service contracts for geothermal and wind, based on a certification issued by the Department of Energy.

In a disclosure to the Philippine Stock Exchange, EDC said it was still the service contractor for seven geothermal production fields in Tongonan, Leyte; Palinpinon, Negros Oriental; Bacon, Sorsogon and Manito in Albay; Ilomavis, Kidapawan City; Northern Negros, Negros Occidental; Camarines Norte, Camarines Sur, Quezon; and Surigao del Norte.

By certifying that the renewable energy service contracts for these fields were valid, the DOE has declared EDC to be in compliance with its obligations and that it has no pending violations over its work commitments to the government.

However, EDC has been required to submit a revised and updated feasibility study for geothermal service contract No. 7 covering the Mt. Cabalian project.

EDC has allocated P12.3 billion for it capital expenditures this year. Of this, 48 percent or P5.76 billion will be allotted for the project development costs of the Burgos wind project. Meanwhile, 11.6 percent of the total capex budget for this year or P1.43 billion ($33 million) will be used for the remaining rehabilitation costs of Green Core Geothermal Inc. and Bacman Geothermal Inc., both of which are wholly owned subsidiaries of EDC.

Bacman Geothermal is rehabilitating the 150-MW Bacon-Manito (BacMan) geothermal facilities while Green Core is repairing the 305-MW Palinpinon-Tongonan power plants so these can run on full capacities.

The capex budget also included expenditures amounting to P1.86 billion ($48 million) for the acquisition of  two drilling rigs to support exploration activities within prospective geothermal areas. These rigs will help the company move forward its greenfield and expansion projects that will increase EDC’s attributable generating capacity by 38 percent to 1,542 MW, from the current 1,116 MW, within a five-year period starting 2011.”

Source: Business Inquirer