MANILA, Philippines -- PNOC Energy Development Corp. is expected to award next month a contract to build a 20-megawatt Nasulo geothermal power plant in the central Philippines province of Negros Oriental, its chief executive said.

PNOC-EDC president Paul Aquino said the company was evaluating the lone bid, from Japan’s Toshiba Corp., for engineering, procurement and construction contract for the project.

“We’ll come out with something before the end of March,” he said.

PNOC-EDC in late 2005 signed an emission reduction purchase agreement with the World Bank for the Nasulo project.

The agreement will give the Nasulo project around $224,000 a year for carbon credits that the plant will generate.

The Dutch government has offered to buy 40,000 tons worth of carbon credits from the Nasulo project at $5.60 per ton starting in 2008. The project, however, will not come on stream until 2010.

PNOC-EDC investor relations senior manager Erudito Recio earlier said the company was planning to build new integrated steam and power generating plants with a total capacity of up to 310 megawatts.

These are to be built in the provinces of Albay, Sorsogon, Negros, Southern Leyte and Cotabato. Abigail Ho; edited by INQUIRER.net