Envent secures new contract in the Philippines increasing profitability
Envent Holding Philippines Inc. announces that the contractual base for its Biliran geothermal project has been substantially enhanced with a new contract with the Philippine Department of Energy (DOE).
In a release by the company, “Envent Holding Philippines Inc. (Envent), a major geothermal developer in the Philippines and Indonesia, today announced that the contractual base for its Biliran geothermal project has been substantially enhanced with a new contract with the Philippine Department of Energy (DOE).
With the new contract, Biliran Geothermal Incorporated (BGI), the project company executing the project in Biliran, will take advantage of the ground-breaking Philippine Renewable Energy Act that was passed December 16, 2008. The new contract converts the 2008 “Geothermal Service Contract” (which is based on the older legislation) to a “Renewable Energy Service Contract” (which falls under the new legislation). Advantages include various fiscal incentives such as income tax exemption for the first seven years of commercial operations and special tax rates on equipment and machinery.
Envent is a geothermal developer active in Indonesia and the Philippines. Envent´s most advanced project is its Biliran island project. Additionally, Envent has multiple applications for new geothermal working areas pending consideration by the Philippine DOE, and is preparing applications for geothermal working areas in Indonesia.
Envent recently announced the signing of Power Purchase Agreements worth more than USD 350 million for the Biliran geothermal project. Biliran Unit 1 is scheduled to come online in 2012 with a capacity of 50 MW. Biliran, which lies just a few kilometers north of the island of Leyte, is located in the Eastern Visayas region of the Philippines and has an existing connection to the national power grid.
Mr. Gudmundur F. Sigurjonsson, Chief Executive Officer, Envent: “The signing of this agreement with the DOE allows the Biliran project to take advantage of the multiple advantages that the recent ground-breaking Philippine renewable energy legislation offers. With that legislation, the Philippines has taken a leadership position in Asia in terms of enabling private renewable energy companies to utilize renewable energy resources in a clear and well-defined manner.”
Source: Envent release via Marketwire