EDC creates subsidiary for the auction of government power assets

Alexander Richter 7 Tem 2009

Reported in the Philippines, “First Luzon Geothermal Energy Corp., a unit of Lopez-led Energy Development Corp. (EDC), has established its own subsidiary in preparation for the auction of government power assets in August.

In a telephone interview, Paul A. Aquino, EDC vice-chairman, president and chief executive officer, said the new firm, Green Core Geothermal, Inc., would be the company’s special purpose vehicle when it bids for the Tongonan and Palinpinon plants, which are located in Negros Oriental and Leyte, respectively.

The Palinpinon plant has a capacity of 192.5 megawatts (MW), while the Tongonan facility can generate 112 MW. The Power Sector Asset and Liabilities Management Corp. have combined the two facilities into a single auction.

The Philippines is the world’s second-largest geothermal producer after the United States.

Green Core Geothermal has P1 million in authorized capital, almost a quarter of which was subscribed and paid by First Luzon. EDC officers Oscar M. Lopez (chairman), Mr. Aquino, Richard B. Tantoco (deputy president), Federico R. Lopez, Ernesto B. Pantongco (executive vice-president), and board members Peter D. Garrucho, Jr. and Francsi Giles B. Puno, each own one share.

The Securities and Exchange Commission approved the firm’s incorporation on June 22. Aside from the two plants, the EDC plans to bid for the Bacon-Manito facilities in Bicol.

The firm said the planned acquisitions, if successful, would make it the world’s top geothermal power producer as these would increase its current generating capacity of 1,194.5 MW by 455.5 MW.

EDC said the increased capacity would allow it to overtake American energy firm Chevron Corp., which has a yearly output of 1,273 MW from the Philippines and Indonesia.”

Source: Business World Online