Lopez firm bags geothermal plant package for $220 million

MANILA, Philippines - Green Core Geothermal Inc., a wholly-owned unit of Lopez-controlled Energy Development Corp. (EDC), won yesterday’s auction for the Palinpinon-Tongonan geothermal power plant package, the Power Sector Assets and Liabilities Management Corp. (PSALM) said.

The EDC subsidiary submitted a bid of $220 million, besting the $200-million offer of Thermal Power Visayas Inc. of the Aboitiz group.

PSALM said both bids met the reserve price set by the asset manager for the 192.5-megawatt (MW) Palinpinon and 112.5-MW Tongonan power facilities.

Green Core is a wholly-owned subsidiary of First Luzon Geothermal Energy Corp., which, in turn is 100 percent owned by EDC.

The bidding procedures require PSALM to verify the accuracy, authenticity and completeness of the bid documents submitted before the company can be formally declared the winning bidder for the packaged sale of the Palinpinon-Tongonan power facilities.

Located in Valencia, Negros Oriental, the Palinpinon geothermal power plant consists of two power stations — Palinpinon I and II — which are approximately five kilometers apart.

Commissioned in 1983, Palinpinon I comprises three 37.5–MW steam turbines for a total rated capacity of 112.5 MW.

Palinpinon II, on the other hand, consists of three modular power plants: Nasuji, Okoy 5 and Sogongon.

The 20-MW Nasuji was commissioned in 1993, while the 20-MW Okoy 5 went onstream in 1994. Started in 1995, Sogongon consists of the 20-MW Sogongon 1 and 20-MW Sogongon 2.

Situated in Sitio Sambaloran, Barangay Lim-Ao, Kananga, Leyte province in Eastern Visayas, the Tongonan geothermal power plant consists of three 37.5-MW units which went into commercial operations in 1983.

Both plants use steam supplied by EDC.