EDC earmarks P32b for 2013 investments

Manila Standard Today

By Alena Mae S. Flores   Posted on Mar. 04, 2013 at 12:02am

Energy Development Corp., a unit of First Gen Corp., is investing P32 billion in 2013, with the bulk to be spent for the 87-megawatt Burgos wind project in Ilocos Norte province.

“Bulk of that [P32 billion] will be the Burgos wind project. Burgos [investment] is close to P11 billion,” EDC chief finance officer Nestor Vasay told reporters over the weekend.

This year’s capital expenditure is higher than P22 billion, which the company spent in 2012.

“The rest [of the capex] will be spread out to the other projects that we’re pursuing like the drilling of wells for geothermal,” Vasay said.

EDC is the world’s largest integrated geothermal producer and one of the leading renewable energy companies in the Philippines with a portfolio of 1,130 megawatts of geothermal and 132 MW of hydroelectric plants.

The company has 317 MW of renewable energy projects in the pipeline, including the 87-MW Burgos wind project and 230 MW from five geothermal contract areas as part of its aggressive growth targets.

Vasay said the company would fund this year’s capital expenditure from internally generated funds.

He expects the company to post revenues of P30 billion this year, up 15 percent from P26 billion in 2012.

“We have these new contracts in Green Core and… we’re expecting more contributions from Bacman,” he said.

EDC owns the 150-MW Bacon-Manito geothermal plants in Bacon, Sorsogon and Manito, Albay. The company, however,  shut down the Bacman plants on Feb. 5 a few days after resuming commercial operations due to vibration problems. EDC has not determined the timetable for Bacman’s resumption.

Vasay said the company remained bullish of the company’s geothermal operations in the country and was exploring huge opportunities in the international geothermal industry.

“We know that there’s going to be a steady growth until 2016 to 2017. That’s when we will start exploring our international sites. So domestically, there’s just so much we can do,” he said.   source