EDC sets P4.29-B spending for 2018

By Jordeene Sheex Lagare – April 2, 2018
from The Manila Times

LOPEZ-LED Energy Development Corp. (EDC) has programmed P4.29 billion in capital expenditures (capex) for this year, with most of the funds to be used for improving the geothermal facilities of its subsidiaries.

In a detailed information statement, EDC told the stock exchange that the “total 2018 budget for capital expenditures amounts to approximately P4.29 billion.”

The listed firm said about P4.16 billion, or about 96.97 percent of this year’s budget, will be allocated for acquisitions to support the operations and maintenance requirements of the following segments: Leyte Geothermal Business Unit, Negros Island Geothermal Business Unit, Bacon-Manito Geothermal Business Unit, and Mt. Apo Geothermal Business Unit.

“This amount is mainly for power plant and steamfield reliability improvement in said business units,” it added.

 EDC has geothermal power sites in the Bicol Region, Leyte Province, Negros Island, and in Kidapawan, Mindanao. It holds 15 geothermal contracts with the Department of Energy (DoE).

At present, the company owns and operates the Unified Leyte plants consisting of the 125-megawatt (MW) Upper Mahiao, 180-MW Mahanagdong, 232-MW Malitbog and 51-MW optimization plants.

Through its units, it also runs the 172.5-MW Palinpinon and 112.5-MW Tongonan 1 geothermal power plants in Negros Oriental and Leyte, respectively; the 150-MW Bac-Man Geothermal Power Plant in Bacon, Sorsogon City and Manito, Albay in Bicol; and the 52-MW Mindanao 1 and 54-MW Mindanao 2 geothermal power plants in Kidapawan.

 The remaining P130 million, or 3 percent of the budget, will go to “investments in First Gen Hydro, Wind Ilocos Norte Business Unit, Latin America, geothermal, wind and solar expansions, and Head Office.”

Last month, EDC secured a $90-million (P4.71 billion) financing facility from the International Finance Corp. (IFC) to fund a portion of its capex for this year.

The company said it signed a 15-year financing agreement with the IFC for an amount in Philippine pesos equivalent to $90 million.

It added the programmed capex includes restoration works on its geothermal power plants in Leyte which were affected by the 6.5 magnitude earthquake that struck Leyte Island in July 2017.

EDC is part of First Gen Corp., which has the largest portfolio of power plants using clean and renewable technology in the Philippines.

As of December 2017, EDC and its units own and operate a diversified portfolio of renewable energy projects (RE) in the country with a total installed capacity of 1,472 MW, including geothermal, hydro, wind and solar projects.

Shares of EDC slipped slightly on Wednesday, down 0.18 percent to close at P5.59 each.