EDC seeks new $75-M loan from IFC

Energy Development Corp., the country’s largest producer of geothermal energy, plans to secure another loan worth $75 million from International Finance Corp. to help finance its planned power projects.

“We are in discussions with IFC to draw the facility within the year. We will use the funds for our medium-term capital expenditure requirements, including the Burgos wind power project and our drilling equipment,” said EDC president and COO Richard B. Tantoco.

“With our close to P10 billion cash in hand, we have a fully funded business plan, particularly to move rapidly on the 86-megawatt Burgos wind project,” Tantoco told the Inquirer in a text message.

Just last May, the Lopez-led geothermal firm secured a loan from IFC worth $75 million, which will be used to  partly bankroll its capital expenditure program that calls for the construction of power plants with a combined output of 230 MW, as well as a wind farm in Burgos, Ilocos Norte.

Company officials had said that EDC would have to invest $1 billion over the next five years to put up these geothermal power plants, which will help make EDC the leading geothermal company in the world.

EDC is currently the second largest geothermal developer in the world, next to Chevron.

Among the projects expected to be completed by 2015 are the 150-MW Bacman geothermal plant and the 86-MW wind farm in Burgos, Ilocos Norte (2012); the 40-MW Tanawon and 20-MW Nasulo geothermal projects (2013); 50-MW Mindanao 3 geothermal project (2014); 40-MW Rangas geothermal project and 40-MW Kayabon project (2015).

Overall, the company hopes to increase its generating capacity by 38 percent to 1,542 MW, from the current 1,116 MW, over the next five years.