EDC sets P6.6B for BacMan3, eyes modest gains in 2015

MANILA, Philippines–The Energy Development Corp. (EDC) will spend P6.6 billion on the latest expansion of its 140-megawatt (MW) Bacon Manito (BacMan) geothermal power plant complex in Albay and Sorsogon.

Company president and COO Richard B. Tantoco said during the company’s stockholders’ meeting that the expansion project called BacMan 3, with a capacity of up to 31 MW, would be built to the tune of $150 million (roughly P6.6 billion).

Construction may begin in the next quarter, while commissioning is expected after 27 months.

EDC has also earmarked spending for other steam-field developments, not just that of BacMan3. Overall, EDC will borrow P5 billion from local banks to fund its projects, likely within the next quarter.

Erwin O. Avante, EDC vice president for finance, said the P5-billion borrowing exercise would come before the development of BacMan3.

In terms of income outlook, the company had a “good” first quarter and could post “modest” gains, despite the expected absence of one-off gains this year, Tantoco said.

Also, Avante said that there could be a big increase in revenue this year from the P30.9 billion reported in 2014, but income in 2015 could be “flat to modest” from P9.last year’s 2 billion.