EDC sets aside P20B for projects in 2012
Energy Development Corp. has earmarked P20 billion for its capital expenditure program this year, as the Lopez affiliate moves to further increase its generating capacity from the current 1,130 megawatts.
In a briefing following the company’s stockholders’ meeting Wednesday, EDC president and COO Richard B. Tantoco said about P6 billion of the budget would go to the 86-MW Burgos wind power project in Ilocos Norte, assuming that the feed-in-tariff rates would be issued within the year.
About P1.4 billion was earmarked for the remaining rehabilitation activities at the 130-MW Bacon-Manito geothermal complex in Sorsogon and Albay, which would likely be completed by September.
“While there have been some delays in the completion of the Bacman rehabilitation, our target is to get it operational in 2012. We estimate that Bacman will contribute yearly revenue of about P4.3 billion starting 2013,” Tantoco said.
“The Bacman will generate strong returns and cash flows from a vertically integrated operation that provides us with the levels we need to optimize geothermal supply and electricity generation,” he added.
Another P2 billion will be used for the acquisition of two new rigs that the company will use for its drilling activities within its geothermal sites, while some P500 million will be earmarked for EDC subsidiary Green Core Geothermal Inc.
Tantoco added that a “decent” budget was allocated for the transfer of the 49-MW Northern Negros Geothermal Plant (NNGP) to the Nasulo geothermal site in southern Negros.
NNGP was shut down earlier because the steam resources in its northern Negros geothermal concession area could generate only 5 to 10 MW, which fell short of the requirement of the 49-MW facility in the area.
This resulted in a P5-billion non-cash impairment that had affected the company’s earnings last year.
According to Tantoco, the 49-MW facility will be used in the Nasulo concession area, which can provide steam resources to generate 45 MW. At present, there is a 20-MW plant in Nasulo.
