STATE-RUN PHILIPPINE NAtional Oil Co. (PNOC) plans to invest an initial P2 billion in the predevelopment this year of its renewable projects.

According to a government source, PNOC is mulling over two options to raise funds for its 11 hydropower projects?the service contracts for which were awarded last year?and possibly, four geothermal power projects pending at the Department of Energy.

The highly-placed source said PNOC was planning to tap the local debt market, form partnerships with other firms to finance these projects, or both.

The source added that the state-owned firm was in talks with Korean, Japanese and American investors. It also has ongoing discussions for possible tie-ups with National Power Corp. and Korea Electric Power Co. (Kepco).

PNOC, through its wholly owned subsidiary PNOC-Renewables Corp., has 11 hydropower projects that are expected to generate a combined 276.2 megawatts (MW).

Data from the Department of Energy showed that PNOC-RC had plans to invest as much as P25.9 billion for these projects, which are located in Luzon and Visayas.

PNOC-RC?s projects in Negros Oriental include the Pacuan-Guinoba hydroelectric power (HEP) project in La Libertad, which is projected to generate some 33 MW in additional capacity for the island; Okoy HEP in Valencia with 11 MW; Siaton HEP in Siaton, 5.4 MW; and Sicopong HEP in Sta. Catalina, 45 MW.

The company also has the Jalaur HEP in Calinog, Iloilo, which is expected to produce 17.8 MW of hydropower; Dulangan hydropower (HP) project in Baco, Oriental Mindoro, which would have an 18-MW capacity.