EDC set to take over 2 geothermal power plants

MANILA, Philippines - Energy Development Corp. (EDC) expects to take over the operations of the Palinpinon-Tongonan geothermal power facilities by the end of the year, a top company official said.

EDC president and COO Richard Tantoco said they are targeting to take over the geothermal plants by the fourth quarter of 2009.

He said they are currently preparing the financing for the 40-percent downpayment for the geothermal plants.

The remaining 60 percent, he said, would be paid through the financing scheme being offered by the Power Sector Assets and Liabilities Management Corp. (PSALM), the government entity handling the privatization of the National Power Corp. (Napocor) assets.

“We already have the financing for the 40-percent downpayment. In the meantime, we will avail of the 60-percent staple financing of PSALM,” he said.

After taking over the geothermal power plants, Tantoco said they would work on ways to maximize the plants’ output.

For Palinpinon, the priority is to rehabilitate and bring it back to its rated capacity of 192.5 megawatts. At present, Palinpinon currently can do only 180 MW. On Tongonan, we want to bring it back to 112 MW, currently it’s at 84 MW,” he said.

Green Core Geothermal Inc., a subsidiary of the Lopez-controlled EDC, submitted the highest bid for Palinpinon-Tongonan geothermal power plant package in last week’s bidding.

The EDC unit submitted a bid of $220 million, topping the $200 million, offer of Thermal Power Visayas Inc. of the Aboitiz group.

The bidding procedures require PSALM to verify the accuracy, authenticity and completeness of the bid documents that Green Core submitted before the company can be formally declared the winning bidder for the packaged sale of the Palinpinon-Tongonan power facilities.

Located in Valencia, Negros Oriental, the Palinpinon geothermal power plant consists of two power stations — Palinpinon I and II — which are approximately five kilometers apart.

Commissioned in 1983, Palinpinon I comprises three 37.5-MW steam turbines for a total rated capacity of 112.5 MW.