IFC willing to raise its stake in EDC

MANILA, Philippines - The International Finance Corp. (IFC) is willing to increase its stake in the Lopez-controlled Energy Development Corp. (EDC) if needed.

IFC resident representative to the Philippines Jesse Ang said they are willing to give support if EDC would tap them for additional fund.

“We will continue to support them as they need. So will we increase our investments in EDC? Yeah, we probably would. We did the equity in the beginning because it was a key investment and now it’s a fully privatized company and so I think it was a good thing to do,” he said.

Asked as to how much they are willing to invest in EDC, Ang said “it depends if I get invited. Like I said, my business is not programming. I can program all I want but I have to get invited.”

IFC bought $50 million worth of EDC shares during the company’s initial public offering (IPO) in 2006.

IFC recognized that the privatization of state-owned power sector assets is a key element of the Philippine government’s reform program for the sector.

The global public offering of up to 40 percent of PNOC-EDC’s shares provides the reform agenda with renewed impetus, helping restore investor confidence and increasing private sector participation in the power sector.

EDC is majority owned by First Gen Corp. IFC had been a partner of EDC in raising funds for its various projects.

Earlier, EDC tapped the IFC, the private lending arm of the World Bank group, for a $75 million loan.

The IFC, it was learned, is looking at the possibility of mobilizing for EDC another $75 million from bilateral sources.

Proceeds of the loans will be used to partially finance the company’s medium term capital expenditure plan.

At present, EDC is the largest producer of geothermal energy in the Philippines to date, accounting for 62 percent of the total country installed geothermal capacity.

EDC owns and operates the 122-MW Pantabangan-Masiway hydro electric plants and has investments in wind energy projects in Ilocos and other provinces.