First Gen Explores Financing Options

For 2 Mindanao Hydro Projects
By JAMES A. LOYOLA
Manila Bulletin
October 21, 2011, 12:02am


MANILA, Philippines — First Gen Corporation, the renewable energy unit of the Lopez group, is exploring all possible financing options, including selling debt and equity, to fund various projects’ including two hydro power projects worth about P8 billion.


In a disclosure to the Philippine Stock Exchange, First Gen said it is giving priority to the development of the 30-megawatt Puyo and 23-MW Bubunawan run-of-river hydro power projects, in Jabonga, Agusan del Norte and Libona, Bukidnon, respectively.


The firm said preliminary engineering studies were now ongoing for the two power projects. The projects are being undertaken by wholly-owned subsidiary First Gen Mindanao Hydro Power Corporation.


First Gen is building up its hydroelectric power portfolio and aims to produce a total of 100MW after the construction of a total of five run-of-river plants in Mindanao.


Aside from the Puyo and Bubunawan projects, First Gen said it has also executed hydropower service contracts with the Energy Department for run-of-river projects in Cabadbaran River in Agusan del Norte; Tumalaong River in Baunongon Bukidnon; and the Tagoloan River in Impasugong and Sumilao Bukidnon.


The service contracts were executed in line with the Renewable Energy Act of 2008 and gives First Gen the exclusive right to explore, develop and use renewable energy resources within its contract areas.


First Gen said it will also continue to pursue the development of geothermal power sources through subsidiary Energy Development Corporation.


Last July, First Gen raised P10 billion from the sale of preferred shares to fund expansion and repay debts.


First Gen has an installed energy capacity of 2,833 MW, accounting for about a fifth of the country's total. Its portfolio also includes the 1,000 MW Santa Rita and 500 MW San Lorenzo natural gas-fired power plants.