business mirror
SUNDAY, 24 JULY 2011 17:15 PAUL ANTHONY A. ISLA
LISTED Energy Development Corp. (EDC)—the country’s largest geothermal power producer—is expecting another $75 million financing from the International Finance Corp. (IFC) before the end of the year.
Richard Tantoco, EDC president and chief operating officer, said proceeds of the loan will be used to support the company’s medium-term capital requirements.
“We will use the funds for our medium-term capital requirements such as the Burgos wind project as well as for our drilling equipment,” he said.
With close to P10 billion cash in hand, Tantoco said the company has a fully funded business plan that focuses on speeding up the development of the Burgos project.
EDC expects to spend P14.447 billion for an 86-megawatt wind power plant in Burgos, Ilocos Norte, its first foray in a series of renewable energy projects in the country. The power facility will start commercial operation in December 2014 employing 25 people.
In May this year, EDC signed a 15-year $75-million loan also with IFC to also fund its medium-term capital expenditure program.
“We have embarked on a capital expenditure program that will achieve optimum availability and reliability for all our operating steam fields and power generating assets. We have also programmed the commissioning of the Bacon-Manito geothermal power plants by June this year,” Tantoco said.
IFC is a cornerstone equity investor in EDC after investing $49 million during its IPO in 2006. EDC was fully privatized in December 2007.
IFC made a second investment providing EDC its first commercial long-term loan for $86 million in 2008. IFC holds a 5-percent stake in EDC.
“We did the equity in the beginning because it was a key investment and now it’s a fully privatized company and so I think it was a good thing to do,” IFC said.
(Paul Anthony A. Isla)
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