PNOC unit needs P18B to finance geothermal projects next year

The PNOC-Energy Corp. (EDC) is planning to borrow some P18 billion next year to fund its geothermal development projects.

EDC chairman and president Sergio Apostol said the borrowings will depend on the outcome of the studies being conducted on the proposed line-up of projects in 2003.

"We intend to raise funds if our projects prove to be commercially viable," Apostol said.

Apostol said they intend to tap Japan Bank for International Cooperation (JBIC) for a $120-million loan for the steam and power project in Southern Leyte. The project involves the putting up of a 60-MW geothermal power plant in Kabalian, Southern Leyte.

Of the $120-million funding requirement, EDC will provide a counterpart fund equivalent to 10 percent of the project. If JBIC will approve the loan in the first quarter of 2003, the loan may be released by middle of the year.

Some $200 million will also be borrowed from German financial institution, KFW (Kreditstanstalt fur Widerauf bau), for geothermal development of the Mt. Lobi in Buraen, Leyte.

The Mt. Lobi project is expected to have an installed capacity of 500 MW and will start operations anytime from 2008 to 2010.

Another P1 billion is being worked out by EDC with the Development Bank of the Phils. (DBP) for the expansion of the 192.5-MW Palinpinon geothermal power plant by 20 MW.

Apostol said they are now currently arranging the documents for the DBP borrowing and will be available to EDC early next year.

EDC is the Philippines’ premier geothermal company with 1,149.4 MW installed capacity spread over geothermal steamfields in Leyte, Negros Oriental, Bicol, and North Cotabato. This represents 60 percent of the country’s total geothermal capacity.