PNOC-EDC may transfer wind power project to Visayas

The PNOC-Energy Development Corp. (EDC) is looking at the possibility of putting up the proposed phase II of the wind power project in the Visayas.

"We are conducting a feasibility study if we could shift the planned third phase of wind power in the Visayas area from the present Ilocos Norte location, EDC chairman and president Sergio Apostol said in an interview.

Apostol said they are considering three areas – Antique City, Northern Samar and Northern Cebu – as possible site for the wind power facility.

The EDC official said they thought of shifting the location for the proposed phase II of the wind project since there is a projected demand for electricity in the Visayas region in 2004.

"I think, it will make more use of this facility in areas where there is a need for more power," he said.

At present, he said they are negotiating for a loan that will finance the second and third phases of the project.

He said they are currently talking with the governments of Spain, Sweden and Netherlands for possible loans.

Among the three countries, he said Spain is the most aggressive. "We have received proposal from Spain that we could borrow from them," he added.

For each wind power facility, EDC will need about $35 million to $40 million in funding requirement.

EDC is planning to put up 120 megawatt (MW) wind power development project which will be divided in three phases.

In February this year, the Japan Bank for International Cooperation (JBIC) approved a loan pledge of about ¥5.86 billion (approximately $48 million) to fund the first phase of the wind project.

The loan will be utilized for the engineering, design, and construction of a 40-MW turnkey wind farm, including a substation and a 42-kilometer, 230 kilovolt (kV) transmission line from Burgos town to the National Power Corp. (Napocor) substation in Laoag City in Ilocos Norte.

The soft loan from JBIC provides for a 40-year repayment period inclusive of a 10-year grace period and carries an annual interest rate of 0.95 percent for goods and services and 0.75 percent for consulting services.

Apostol said the local investment requirement or local counterpart fund amounting to P366 million would come from EDC’s internal cash generation and would serve as the state firm’s equity in the project.

With the approval of the loan, EDC is preparing for the pre-qualification and bidding stages for phase I of the proposed wind farm so that the terms and conditions for interested bidders can be ready for approval by JBIC.

Before venturing into wind power development, EDC is a leader in geothermal energy in the country. Recently, the firm decided to diversify into the development of other home-grown energy sources such as natural gas and hydro. – Donnabelle Gatdula