EDC mulls partner for Indonesia venture

Lopez controlled geothermal power firm Energy Development Corp.(EDC) is planning to tap a partner for a proposed subsidiary that would handle its operations in Indonesia, a top company official said.

EDC president Paul Aquino said in preparation for their Indonesian venture, “we are eyeing to tap a partner, possibly a government-run company.”

But he pointed out that they have not yet started talks with any potential partner.

He said in relation to their proposed operations in Indonesia, they may also update a study conducted in 2003.

“We will pursue our earlier plan to explore an area in Sulawesi which would allow us to generate 50 megawatts (MW),” he said.

He said they expect the Indonesian business to bring in more revenues for the company.

“We are looking at business opportunities in Indonesia which has an estimated 20,000 MW of geothermal power still to be developed,” he said.

Aside from the subsidiary for Indonesian operations, EDC would also create a special purpose vehicle to manage the assets that would be acquired through the privatization of the National Power Corp. (Napocor) assets.

Aquino said they are planning to bid for the geothermal assets of Napocor such as Tiwi-Makban, Palinpinon and Tongonan which are set to be auctioned off in June, September and December this year, respectively.

According to Aquino, the creation of SPVs and subsidiaries, approved at the company’s recent stockholders meeting, would enable the company to limit the liabilities of the mother firm.

The company’s stockholders also approved a resolution allowing its board to tap equity partners and issue guarantees.

“These moves would be beneficial to the company as these will allow the mother company to limit its liabilities and at the same time allow it to get partners to share any possible risk,” Aquino said.

During the stockholders meeting, a stock purchase plan for employees and officers of the company was also approved.

Aquino said he is also optimistic EDC would continue to give its stockholders regular and special dividends.