Business World Online
Posted on May 26, 2014 09:32:39 PM
By Claire-Ann M. C. Feliciano, Senior Reporter
ENERGY DEVELOPMENT Corp. (EDC) is set to enter into a partnership this year for a 220-megawatt (MW) geothermal power project in Indonesia, officials of the Lopez-led firm told reporters yesterday.
Federico R. Lopez, chairman and chief executive officer (CEO) of First Philippine Holdings Corp. (FPH), said EDC is exploring several power projects outside the Philippines.
“We are looking at a number projects in ASEAN (Association of Southeast Asian Nations), in particular, I think, geothermal,” Mr. Lopez said on the sidelines of FPH’s annual stockholders’ meeting in Makati City.
Mr. Lopez, who is also EDC’s chairman and CEO, said the power firm -- which is the Philippines’ largest geothermal energy producer -- is banking on its experience and track record to bag projects in neighboring markets.
“In the context of ASEAN, where we would begin through investment in geothermal [projects] in Indonesia, we have a number of opportunities there that we’re pursuing,” said Francis Giles B. Puno, FPH’s chief financial officer.
EDC is a unit of First Gen Corp., which in turn is the energy investment arm of FPH.
Pressed for details, Mr. Puno said a project in Indonesia -- which will involve a geothermal plant with four 55-MW units -- is expected to advance this year.
“We hope by this year we would make some announcements on a joint venture,” said the official, who also sits as First Gen’s president and chief operating officer.
“We hope that by the second half, we can start pursuing more aggressively the opportunities there.”
The 220-MW plant, Mr. Puno said, would entail investment of over $1 billion, including EDC’s share of “around $200 million.”
But Mr. Puno said the company will initially take a minority interest in the project.
“They asked us to operate and maintain the plants, so that’s our advantage. We are looking at a situation where we would have, at first, minority ownership but management control of the investment,” he explained.
“And then, over time, [we will] build that up so that we have majority ownership and also management control.”
The same official said its potential foreign partner has already started drilling in the geothermal concession area.
“Our responsibility is to do further drilling and eventually construct and operate the plants,” Mr. Puno added.
The project is expected to be developed in two phases, with each segment involving two 55-MW power plant units.
MT. APO PROJECTS
In another development, EDC also intends to participate in the selection of the independent power producer administrator (IPPA) for the Mt. Apo 1 and 2 geothermal power plants in Mindanao.
“Yes, we will participate,” said Mr. Puno. “We are the one operating the plant. It makes sense for us to also sell the capacity to the market.”
The Power Sector Assets and Liabilities Management Corp. (PSALM) earlier this month invited interested parties to participate in the auction for the plants’ IPPA. The auction has been scheduled for Sept. 24, with a pre-bid conference on June 26.
As IPPA, the winning bidder will be in charge of managing contracted capacities of the power assets, which have a rated capacity of 54.24 MW each.
Located in Kidapawan City, North Cotabato, the power plants were commissioned on Feb. 15, 1997 and June 17, 1999 under a build-operate-and-own contract with EDC.
The cooperation period for both plants is 25 years, which will expire on Feb. 15, 2022 and June 17, 2024, respectively.
EDC last year partnered with Canada-based Alterra Power Corp. for the development of geothermal concessions in Chile and Peru. The firm also teamed up with Australian firm Hot Rock Ltd. (HRL) for various geothermal resource exploration projects, also in Chile and Peru.
EDC currently operates 12 power facilities in five geothermal service contract areas in the country, including the 192.5-MW Palinpinon plant in Negros Oriental and 112.5-MW Tongonan plant.
It is also involved in hydropower generation through First Gen Hydro Corp., which operates the 132-MW Pantabangan-Masiway plant in Nueva Ecija.
The firm is also building a 150-MW wind farm in Burgos, Ilocos Norte -- the 87-MW portion of which is scheduled to be operational late this year, while the remaining 63 MW is expected to start operating in March next year.
Profit of EDC fell 15.36% to P2.524 billion as of end-March from P2.982 billion a year ago. Revenues climbed 2.85% to P7.138 billion from P6.940 billion, while expenses jumped 17.91% to P4.377 billion from P3.712 billion.
Shares of the company gained four centavos or 0.65% to end P6.15 apiece yesterday from P6.11 each on Friday last week. source
No comments:
Post a Comment