EDC eyes $200 million from bonds to fund wind power projects

By Zinnia B. Dela Peña (The Philippine Star) Updated December 17, 2010 12:00 AM

MANILA, Philippines - Geothermal power producer Energy Development Corp. (EDC), the renewable energy arm of the Lopez Group, is planning to raise at least $200 million from the issuance of dollar bonds to fund its wind power projects in the northern part of Luzon.

In a briefing yesterday, Francis Guiles Puno, a director of EDC and concurrent president and chief operating officer of its parent First Gen Corp., said the bond issue will likely take place in the first quarter next year.

Proceeds from the bond issue will be used to partly fund the 86-megawatt wind project in Burgos, Ilocos Norte.

Puno said the Burgos project will require an investment of $240 million to $250 million and will start rolling once the government’s feed-in tariff is approved.

EDC earlier obtained the Department of Energy’s green light to proceed with its wind farm projects including the 40-MW Balaoi-Pagudpud project and those in Taytay, Rizal and Camiguin, Dinagat and Surigao.

Ilocos Norte currently hosts the country’s first and only wind project, the 33 MW wind farm of NorthWind Power Development Corp. located in Bangui, the biggest in Southeast Asia to date.

Puno said EDC, owned by First Gen, plans to further strengthen its renewable energy business.

EDC is the largest producer of geothermal energy in the Philippines to date, accounting for 62 percent of the country’s total installed geothermal capacity.

Meanwhile, Puno said First Gen is in the process completing feasibility studies on the construction of three hydro plants in Mindanao, estimated to cost around $150 million. All three plants are expected to have a total capacity of 50 MW. “Our target is to start construction next year and finish it in the next two or three years.

To further expand its business, Puno said the group is interested to bid as independent power producer administrator (IPPA) for the 640-megawatt (MW) contracted capacity of the Unified Leyte geothermal power plants.

Elpidio Ibanez, president of First Philippine Holdings Corp., said the group, through First First Philec Solar Corp. (FPSC), the country’s sole manufacturer of solar wafer, is accelerating expansion as part of a long-term goal to venture into solar power generation.