FGen sets $80-M capex for hydro, LNG projects

by Myrna Velasco October 15, 2016

http://www.mb.com.ph/fgen-sets-80-m-capex-for-hydro-lng-projects/

First Gen Corporation will earmark $80-million capital expenditures (capex) next year for a hydropower project and site preparation works for its proposed onshore liquefied natural gas (LNG) import terminal.

Of the amount, $50 million will initially bankroll its planned 32-megawatt Bubunawan hydropower project in Bukidnon; while $30 million will for the pre-construction activities at its LNG site.

First Gen President Francis Giles B. Puno said the allotment for the hydro project will just be for the initial 3 years as its total cost actually hovers at $150 million.

So far, the Bubunawan project will be the first one taking off from blueprint, out of the three developments that the company had set for implementation.

The two others would be the 30MW run-of-river Puyo hydropower project in Agusan del Norte; and the 40.5MW Tagoloan facility in Misamis Oriental.

Altogether, these three hydropower developments could add up 102.5MW aggregate greenfield capacity in the Lopez Group’s hydropower portfolio.

The Puyo project had its financing penciled in at up to $140 million; while Bubunawan was actually set a higher project financing of up to $190 million – based on previous numbers crunched by the company.

These projects are set for development over five years; hence, getting them on commercial stream could reach until years 2021 to 2022.

The Bubunawan project is seen getting headway following the rehabilitation of its access roads that are set for completion this year.

First Gen is firmly cementing its branding as a “clean and renewable energy company” without it acquiescing to the allure of the coal development bandwagon in the country.