PNOC-EDC to seal $120-M geothermal deal with US firm

The PNOC-Energy Development Corp. (EDC) will sign a $120- million contract with US energy firm Frontier for the optimization of its Bacon-Manito (Bacman) geothermal project in Sorsogon.

"We have a joint venture with an American firm, Frontier to put up an additional 40 megawatt (MW) in our geothermal facility in Sorsogon. A contract will be signed next month," EDC chairman and president Sergio Apostol told The STAR.

Apostol said the project will involve the construction of a power plant and development of geothermal fields in the area.

EDC was able to firm up the contract with Frontier during President Arroyo’s recent state visit to the US, he said.

The project will bring up to 190 MW the total capacity of its Bacman geothermal facilities. At present, EDC operates Bacman I and II with total capacity of 150 MW.

Aside from this project, Apostol said they are also in the process of finalizing the Palinpinon and Northern Negros Geothermal Project (NNGP) and a windmill project in Ilocos Norte.

He said EDC is expected to award these two geothermal projects this month after they have already pre-qualified the bidders.

Earlier, Apostol said EDC has reviewed the technical and financial bid of Kanematsu Corp., one of the four bidders pre-qualified last March this year. The other three pre-qualified bidders were: Marubeni Corp., and Mitsubishi Corp., Israel’s Ormat Industries Ltd.

Once operational, NNGP will be EDC’s fifth operating geothermal field in the country. The company also operates geothermal steamfields in Leyte, Negros Oriental, Bacon-Manito in the Bicol region, and North Cotabato.

EDC also operates geothermal power plants in Leyte and North Cotabato under build-operate-transfer schemes.

The EDC chief said the wind- mill project, on the other hand, will be auctioned off next month.

EDC is planning to put up 120 MW, three-phase wind farm project in Ilocos Norte. To date, a total of 285 hectares has been leased to EDC for the wind farm. Negotiations for the right-of-way of the 42-kilometer transmission line (230 kilovolt) are almost complete, with 92 percent of the lots to be occupied by the 130 transmission line towers/poles successfully leased and negotiations for easement at 87 percent completion.

The estimated total cost of the wind farm project is $414 million of which $48 million will be sourced outside while the remaining $366 million be sourced internally.

Apostol said EDC will not enter into any new contracts upon firming of these four projects, as the elections draw nearer.