By Alena Mae S. Flores – March 23, 2018 at 07:15 pm
Renewable power producer Energy Development Corp. and International Finance Corp., a member of the World Bank Group, signed a 15-year financing agreement covering $90 million to fund a portion of the company’s 2018 capital requirements.
EDC said in a disclosure to the stock exchange Friday the capital expenditures would cover the balance of work related to the return of service of the geothermal power plants in Leyte that were affected by the July 2017 earthquake and other project initiatives aimed at increasing the reliability, efficiency and throughput of EDC’s existing geothermal facilities and reducing outages and health, safety and environment risks.
“With this most recent financing on the back of previous financings in 2011, 2008, and even an IPO-enabling IFC investment in 2006, EDC and IFC continue to strengthen our partnership. We share a joint commitment to provide sustainable energy sources for the Philippines and to mitigate carbon emissions,” EDC president and chief operating officer Richard Tantoco said.
EDC and its subsidiaries own and operate renewable energy projects in the Philippines with a total installed capacity of 1,472 megawatts, including geothermal, hydro, wind and solar projects as of end 2017.
As a leader in the geothermal industry, EDC aims to promote and improve the utilization of indigenous geothermal technology, which is still the most superior renewable energy technology offering base load operations, low greenhouse gas emissions and low land and water utilization.
EDC’s power generation in 2016 represented 9 percent of the country’s total power generation capacity.
“Securing this financing with IFC further confirms that EDC continues to adhere to the high standards of multi-lateral funding organizations in the aspects of financial discipline, good corporate governance, environmental and social stewardship, safety and security, and fair labor practices,” EDC senior vice president and chief financial officer Nestor Vasay said.
EDC posted a recurring net income attributable to equity holders of the parent of P8.8 billion in 2017, or 4 percent lower than P9.2 billion in 2016 as revenues dropped 3 percent to P33.3 billion from P34.2 billion in 2016.
Revenues and recurring net income attributable to equity holders of the parent declined last year following the strong 6.5 magnitude earthquake that hit Leyte island in July and typhoon Urduja that struck in late December last year.
“Our Leyte unit, which generated almost 45 percent of our revenues in 2016, was on track for a record year last year until it got struck by two major calamities,” Vasay said.