EDC to venture into Indonesia with stake in 220 MW project
EDC is acquiring an initial 25-percent stake in a joint venture that will build four power plants with a combined capacity of 220 megawatts in Indonesia.
At its recent Stockholder meeting, First Philippine Holdings Corp. announces that Energy Development Corp. (EDC) is acquiring an initial 25-percent stake in a joint venture that will build four power plants with a combined capacity of 220 megawatts in Indonesia.
First Philippine Holdings Corp. chief finance officer Francis Giles Puno said in an interview at the sidelines of the annual stockholders’ meeting of FPHC that EDC might finalise the geothermal venture in Indonesia by the second half of the year.
EDC is a unit of First Gen Corp., which in turn is a subsidiary of FPHC. EDC in joint venture with an Indonesian concession holder will build four units with a generation capacity of 55 megawatts each in Indonesia at an estimated cost of over $1 billion.
“EDC is having partnership discussions with an Indonesian concession holder for the possible joint development of one of their geothermal sites with a target development capacity of at least 200 megawatts (MW) and with an estimated project cost of $1 billion,” the company said.
Puno said the 4×55-MW geothermal power plant will cost $1 billion but EDC will pour in around $200 million in funding, with the rest of the requirements to be taken care of by the Indonesian partner and project financing.
While EDC will start with a minority, it will operate and maintain the power plant, Puno said, adding that the company has more than 40 years of experience in the field of geothermal power.
FPH chairman Federico Lopez said the company is looking at Indonesia for possible expansion after Jakarta decided to open up its power sector.
Source: Manila Standard Today Website