Lopez-led EDC puts energy prospects on hold

MANILA, Philippines - Listed Energy Development Corp. (EDC) may postpone prospective energy projects abroad because of tight world credit markets and the slowing global economy. "We are currently putting [our foreign prospects] on hold due to the current situation," EDC President and Chief Executive Officer Paul A. Aquino told reporters Wednesday. He declined to identify the projects. EDC was said to be looking at a geothermal service contract in Indonesia and was reportedly in talks with Indonesian utility PT Perusahaan Listrik Negara (Persero) to develop geothermal sites in Manado, Sumatra and Java. He also said EDC was evaluating the feasibility of a wind project in Ilocos Norte. EDC earlier said it was planning to put up an 86-megawatt wind power facility in Burgos, Ilocos Norte but did not disclose a schedule. "Prices have been going up. We’ll have to wait for prices of turbines to dip," Mr. Aquino said. He added that the company was pursuing the expansion of it geothermal plant that covers part of the Mt. Kanlaon buffer zone. The government has allowed EDC to enter the buffer zone so it can expand its plant in the area. Kanlaon provides geothermal steam for the northern Negros geothermal plant of the former Philippine National Oil Co.-EDC. The plant produces about five megawatts, less than a tenth of its capacity of 49 megawatts, and needs to expand inside the buffer zone to generate more power. Environmental groups and the Catholic Church, however, are opposing the project because of its effect on nearby communities. On Tuesday, EDC obtained a P4.1-billion loan ($82.9 million) from the World Bank’s International Finance Corp. to fund more acquisitions. It will use the money to finance its bid to buy state-owned geothermal assets next year. EDC now accounts for more than 60% of the country’s installed geothermal capacity of 1,905 megawatts. The company’s total production of 1,150 megawatts comes from its geothermal stream fields in Leyte, Negros Oriental, Negros Occidental, Bicol and North Cotabato. EDC, where First Gen Corp. has a 60% stake, has also ventured into hydroelectricity production after acquiring 60% of sister firm First Gen Hydro Power Corp. for $105 million. — BusinessWorld