EDC allots P7 B capex for 2019

Danessa Rivera (The Philippine Star) - April 22, 2019 - 12:00am

https://www.philstar.com/business/2019/04/22/1911393/edc-allots-p7-b-capex-2019

MANILA, Philippines —  Lopez-led Energy Development Corp. (EDC) has allocated over P7 billion in capital expenditures (capex) this year to improve the reliability of its geothermal facilities.

The company’s 2019 capex amounts to approximately P7.45 billion, based on a regulatory filing.

About 88.11 percent or P6.56 billion, will finance acquisitions to support the operations and maintenance requirements of the geothermal plants in Leyte, Negros Island, Bacon-Manito and Mt. Apo.

“This amount is mainly for power plant and steamfield reliability improvement in said sites,” it said.

In Leyte, the company owns and operates the 112.5-megawatt (MW) Tongonan, 180-MW Mahanagdong, 125-MW Upper Mahiao and 232.5-MW Malitbog geothermal projects.

EDC also operates the 112.5-MW Palinpinon I, 60-MW Palinpinon II and 49.4-MW Nasulo geothermal facilities in Negros Island.

The Bacon-Manito Geothermal Production in Sorsogon is composed of the 120-MW Bacman I and 20-MW Bacman II.

It also has geothermal power plants in Mindanao which have capacities of 52 MW and 54 MW.

Meanwhile, the balance of the capex or P890 million will be used as investments in First Gen (FG) Hydro, Wind Ilocos Norte Business Unit, Solar Business Unit, Latin America, geothermal, wind and solar expansions, and for the head office.

FG Hydro is a 60 percent-owned subsidiary of EDC and operated the 132-MW Pantabangan-Masiway hydroelectric plants (PAHEP/MAHEP) located in Nueva Ecija.

EDC also operates the 150-MW Burgos Wind Energy Project in Ilocos Norte through subsidiary EDC Burgos Wind Power Corp. (EBWPC) and an 84-MW wind farm in Brgy. Balaoi and Caunayan in Pagudpud, Ilocos Norte under EDC Pagudpud Wind Power Corp.

It still has several wind farm expansions and prospects in Burgos and Pasuquin Ilocos Norte; in Matnog and Magdalena, Sorsogon; and in Batad and San Dionisio, Iloilo.

Apart from the existing 6.82 MW Burgos Solar Project in Ilocos Norte and solar rooftop in Gaisano, Iloilo, EDC also has other possible solar projects namely the President Roxas Solar Project in President Roxas, North Cotabato, Kilada - Matalam Solar Project in Matalam, North Cotabato, Bogo Solar Project in Bogo, Cebu and the Iloilo Solar Project in Iloilo City.

EDC also has 15 geothermal contract areas, of which only four are in commercial operations.

Outside the Philippines, the Lopez firm has a joint venture agreement with Canada-based energy company Alterra Power Corp. for geothermal projects in Chile and Peru but these have been put on hold due to challenging economic conditions.

EDC was delisted on the Philippine Stock Exchange Nov. 29, more than a year after parent firm First Gen Corp. entered into an agreement with Philippines Renewable Energy Holdings Corp. to sell up to 31.7 percent of its stake in the subsidiary.

Last year, EDC reported a net income of P9.59 billion, a 20 percent jump from P7.94 billion in the previous year.