CAMCE is a state-owned corporation of the People’s Republic of China specializing in the development and implementation of large-scale international engineering projects. EDC, on the other hand, is the geothermal development arm of the state-run Philippine National Oil Co. (PNOC).
EDC president Paul Aquino and CAMCE president Luo Yan signed the MOU during the state visit of Chinese President Hu Jintao to the Philippines.
Under the MOU, CAMCE will provide assistance to EDC for the conduct and update of feasibility studies, technology assessments, and short-term experts relative to project preparation for renewable energy projects.
CAMCE is also expected to secure the necessary financing facility from government financial institutions in China for the renewable energy projects by way of a loan agreement subject to the approval of the Philippine and Chinese governments.
EDC, on the other hand, shall consider such financing with the objective of securing the most advantageous financing for the projects.
"We are eyeing opportunities for developing geothermal energy resources in China in light of the passage of a law on renewable energy sources by the National People’s Congress (NPC) of China," Aquino said.
The law, which is expected to be enforced in China in January 2006, provides for the central government to set prices for electricity from renewable sources according to source types and mandates power grid companies to buy a certain percentage of power supply from such sources.
Aquino said the implementing rules and regulations of the law, including licensing mechanism for power projects are still being worked out but as much as 10 percent of China’s energy consumption is expected to be sourced from renewable energy by 2020.
EDC is the Philippines’ largest producer of geothermal energy and the acknowledged world leader in wet steamfield technology. Its four geothermal fields in Leyte, Negros Oriental, Bicol and Cotabato have a total capacity of 1,150 megawatts, accounting for more than 60 percent of the country’s installed generating capacity.