MANILA, Philippines - Bacman Geothermal Inc. (BGI), a wholly-owned subsidiary of Energy Development Corp. (EDC), has paid in full its P1.28-billion bid for the 150-megawatt Bacman geothermal power plant, effectively closing, the purchase of the asset from the Power Sector Assets and Liabilities Management Corp. (PSALM).
EDC president and COO Richard Tantoco said the turnover followed BGI’s submission of the highest offer price for the Bacman plants in a competitive bid last May 5 and its successful completion of the conditions precedent required in the asset purchase agreement (APA).
“Our main focus now is to rehabilitate these plants and restore capacity and reliability factors to 100 percent to add clean, reliable and much-needed power to the Luzon grid,” Tantoco said.
Located in the towns of Bacon, Sorsogon and Manito, Albay in the Bicol region, the Bacman plant package consists of two steam plant complexes.
The Bacman I geothermal facility comprises two 55-MW turbines, which were both commissioned in 1993. Bacman II, on the other hand, consists of two 20-MW units namely, Cawayan located in Brgy. Basud and Botong in Osiao, Sorsogon City. The Cawayan unit was commissioned in 1994 and the Botong unit in 1998. EDC supplies the steam fuelling these plants.
“The acquisition of National Power Corp.’s geothermal power plants is one of our major platforms for future growth. With the turnover of the Bacman power plant, we are now fully integrated across the geothermal value chain. This vertical integration will result in a seamless and more efficient operation,” Tantoco added.
The Bacman plants boost EDC’s current portfolio of geothermal power generation assets to 1,199 MW. EDC also acquired the 112.5-MW Tongonan and 192.5-MW Palinpinon geothermal plants auctioned by PSALM last year.
EDC’s other geothermal power generating assets are the Unified Leyte plants consisting of the 125-MW Upper Mahiao, 232.5-MW Malitbog, 180-MW Mahanagdong and 51-MW Optimization plants, the 106 MW Mindanao 1 and 2 plants in Kidapawan, Cotabato and the 49-MW Northern Negros geothermal plant in Negros Occidental.
EDC is the largest producer of geothermal energy in the Philippines to date, accounting for 62 percent of the total installed capacity.
It also owns and operates the 122-MW Pantabangan-Masiway hydro electric plants and has investments in wind energy projects in Ilocos and other provinces.