MANILA, Philippines - Energy Development Corp. (EDC) plans to resume the operations of Unit 1 of its Bacon-Manito (BacMan) geothermal plant in Albay before the May 13 elections to help ensure a steady supply of power during the polls.
EDC shut down on Thursday the 55-megawatt BacMan 1 for inspection and hopes to restart operations as soon as possible if the inspection yields positive results.
In an interview with reporters yesterday, EDC president Richard Tantoco said Energy Secretary Carlos Jericho Petilla wants all power plants ready three days before the elections.
He said EDC intends to abide by this for BacMan Unit 1 if there would be no negative findings after the inspection.
“We’re here to support that. We will restart definitely before the elections, subject to findings. We are doing tests now,†Tantoco said.
However, Tantoco said it would take time for EDC to resume operations of Bacman 2 because of the problematic parts that had to be replaced.
“Unit 2 is still down…We are firming up parts that broken plates and diaphragm. We’re firming up quotes to order those parts, but we will only get those that will guarantee performance and warranty,†Tantoco said.
The company is also working on resuming the operations of BacMan 3.
In all, the cost of resuming the operations of all three units would amount to roughly $100 million, Tantoco said.
Last March 27, the 55-megawatt BacMan Unit 1 was started up and on April 4, Unit 1 was loaded to 28 MW (50 percent). It was put on shutdown on April 5 for final check prior to running the unit up to 55 MW (100 percent). EDC shut down Unit 1 again on Thursday for inspection.
EDC also earlier shut down Unit 2 of the plant because of a damaged turbine blade.
In February, EDC commenced commercial operations of the BacMan plants after successfully rehabilitating the facility, which had been shut down since 2009.
Located in the towns of Bacon, Sorsogon province and Manito in Albay province, BacMan consists of two plants. BacMan I comprises two 55-mw turbines and BacMan 2, which has two 20-MW geothermal facilities.
In May 2010, EDC acquired the plant from the government with a winning bid of $28.25 million in an auction conducted by the Power Sector Assets and Liabilities Management Corp. (PSALM), the agency tasked to handle the privatization of state-owned National Power Corp. (Napocor).
EDC expects P4 to P4.2 billion in yearly revenues from BacMan. Foregone revenues amount to P160 million for 55 MW.
Barring problems after inspection, BacMan 1 could start commercial operations by July, Tantoco also said.
This developed as EDC successfully listed P7 billion worth of 2020 and 2023 bonds at the Philippine Dealing & Exchange Corp. yesterday at an interest rate per annum of 4.1583 percent for the 2020 bonds and 4.7312 percent for the 2023 bonds.
Proceeds of the fund-raising activity would be used to fund its P32-billion capital expenditures program for the year.