PNOC-EDC seeks P6-B loan from ADB, KfW to finance expansion program

The PNOC-Energy Development Corp., the geothermal arm of the state-owned Philippine National Oil Co. (PNOC), is finalizing a $120-million (P6 billion) loan intended to finance the expansion of its geothermal steam field operations in Negros Oriental and Sorsogon.

EDC president and chief executive officer Sergio Apostol said they are getting a loan of $40 million to put up an additional 20 megawatts (MW) in Nasuji, Palinpinon (III) steam field in Valencia, Negros Oriental.

He said they are tapping the Development Bank of the Philippines and the KfW-(Kreditanstalt Fur Wiederaufdau) of Germany to finance this particular project.

EDC has an existing geothermal steam field in Palinpinon with a total installed capacity of 192 MW.

"We are just waiting for the feasibility study to be finished by next week. We will be informing the financing banks of the result of the study. Then negotiations will start after that," Apostol said.

He said EDC will also be expanding its existing production field in Tanawon, Sorsogon Bacon-Manito (Bacman III) by 40 MW. Bacman has existing capacity of 150 MW.

The EDC chief said they would also be tapping KfW to finance the expansion of the Tanawon project which is estimated to cost $80 million.

To fulfill its vision to develop more geothermal areas in the country, he said EDC is continuously conducting exploration works in other potential areas.

"By the end of 2002, we will complete exploration works in Dauin, Southern Negros, and in Northeast Mt. Apo, Mindanao," he said.

He said they have completed surface exploration of Central and Southern Leyte while exploration drilling is scheduled for the last quarter of this year.

In the next five years, he said EDC will be expanding and re-evaluating potential areas. "These include the areas within the vicinity of the existing production fields such as the Manito Lowlands in Bacon-Manito, and Southeastern Mt. Apo in Mindanao, as well as the frontier areas, such as Misamis and Bukidnon in Mindanao, and Kalinga-Apayao in Luzon," he added.

He said they also intend to apply modern technologies in re-evaluating areas that have been previously explored and drilled. "These include the application of deep-penetrating geophysical techniques in Compostela in Mindanao, Biliran in Visayas and Mt. Natib in Luzon.