Bac-Man expansion to cost EDC P7.6B

MANILA, Philippines - Lopez-led Energy Development Corp. (EDC) has earkmarked P7.6 billion for the 31-megawatt (MW) expansion of the Bacon-Manito (Bac-Man) geothermal power plant in Albay, the firm said in a statement yesterday.

EDC said the additional capacity from  Bac-Man Unit 3 would come online by the last quarter of 2017.

“Once operational, Bac-Man 3 project will augment the power generating capacity of the Luzon grid and address the projected demand growth in the region with clean and affordable power,” EDC business development vice president Vincent Villegas said.

The Bac-Man 3 project will reduce greenhouse gas emissions by about 270 kilotons of CO2 annually if a fossil-fired power plant with a similar capacity will  be built.

“Given its specifications, the Bac-Man 3 power plant is expected to withstand harsh weather conditions and improve plant reliability,” Villegas noted.

For the project, EDC has tapped Hyundai Engineering Co. Ltd. (HEC) for the design and equipment supply contract, and Galing Power & Energy Construction Co. Inc. for the construction services contract.

“This project is meaningful to HEC since we will be focusing largely on renewables as one of our strategic businesses in the future,” HEC power and energy head Park Jun Sung said.

Last week, EDC subsidiary Bac-Man Geothermal Inc. (BGI) obtained a P5-billion loan from the Bank of the Philippine Islands, BDO Unibank Inc., and Security Bank Corp. to refinance  the rehabilitation of the Bac-Man plant.

Apart from Bac-Man 3, EDC will add another 17 to 20 MW through Bac-Man 4. Meanwhile, Bac-Man 5’s capacity is still to be determined

EDC acquired the Bac-Man plant from the government in May 2010 after it submitted the highest bid of $28.25 million in an auction conducted by the Power Sector Assets and Liabilities Management Corp. (PSALM).

It rehabilitated the power facility in December that year, which was only generating three percent of its 140-megawatt (MW) full capacity then, until earlier this year.

Bac-Man 3 will add to EDC’s geothermal portfolio, solidifying its leadership in the Philippine geothermal industry.

It currently owns and operates 1,169 MW of integrated geothermal projects in Leyte, Negros Islands, Bicol and North Cotabato.

It is also into wind technology through its 150-MW Burgos wind project, the largest in Southeast Asia. It also operates hydropower and solar energy plants.