EDC allots $66.3 M for Chile, Peru projects

MANILA, Philippines - Lopez-led geothermal firm Energy Development Corp. (EDC) is spending roughly $66.3 million for its projects in Chile and Peru.

EDC would spend $58.3 million for its projects in Mariposa in Chile and the remaining $8 million for its Peruvian projects, the company said in a disclosure to the Philippine Stock Exchange (PSE) yesterday.

EDC’s investments in the project form part its joint venture agreement with Alterra Power Corp., a Canada-based energy company for geothermal projects in Chile and Peru.

The company announced in June that under a shareholders’ agreement for the Mariposa project in Chile, EDC would acquire 70 percent interest in Compañía De Energia (Enerco).

Enerco is an Alterra subsidiary in Chile that owns the Mariposa project. Alterra will continue to hold a 30 percent interest in Enerco through its wholly owned subsidiary Magma Energy Chile Limitada, subject to the terms of the shareholders’ agreement for the Mariposa project, EDC added. 

“The terms of the project agreements call for EDC to fund the next $58.3 million in project expenditures in the Mariposa project and $8.0 million in project expenditures for all the Peruvian projects to top up Alterra’s past development costs,” EDC said in its disclosure.

For the Mariposa project, the agreement contemplates implementing an agreed work plan that will further develop the Mariposa Project by building infrastructures over the next 18 months, EDC also said.

For the Peruvian projects, proponents would conduct various exploration surveys over the next 12 to 15 months.

Furthermore, under the joint venture agreement, EDC’s wholly-owned subsidiary in Chile, EDC Geotermica SPA, will subscribe to Enerco’s increased shares to be able to have equity, operational and management control in Enerco.

For the Peruvian projects, EDC and Alterra through Magma Peru will incorporate a company that would develop each of the project, with EDC also having the same equity, operational and management control.

The joint venture partnership with Alterra strengthens EDC’s overseas presence, EDC president Richard Tantoco earlier said.