MANILA, Philippines -- Power producer PNOC Energy Development Corp. said Friday it would spend 13 billion pesos for capital expenditures this year, which will be partly funded by loans.

PNOC-EDC, which produces geothermal power or electricity generated with heat stored beneath the earth's surface, told Manila's stock exchange that the capex budget covers the construction of four power plants and the possible acquisition of two power plants from the government.

PNOC-EDC is planning to construct four plants with a combined capacity of 150 megawatts in the southern part of the archipelago.

The company has expressed interest in two plants with a combined capacity of 339 megawatts -- the 192.5-MW Palinpinon geothermal power plant and 146.5-MW Panay diesel power plant -- which the government may put on the auction block in the first quarter of this year.

PNOC-EDC is planning to raise up to 6 billion pesos through borrowings to fund this year's capex. But company officials said the financing mix has yet to be finalized.

PNOC-EDC is now controlled by First Gen Corp., which led a consortium that made a winning bid of P58.5 billion last November for the government's remaining 60 percent stake in the power company.

Last week, First Gen said it has bought out its minority partner, Netherlands-based Spalmare Holdings BV, in Red Vulcan Holdings Corp. -- the consortium which acquired 60 percent of PNOC-EDC.

Shares in PNOC-EDC closed unchanged at P6.50 on Friday. First Gen fell 50 centavos or 0.9 percent to P55.50.

($1 = P40.60)

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Philippine Stock Exchange
PNOC Energy Development Corp