MANILA, Philippines - Lopez-owned geothermal firm Energy Development Corp. (EDC) has signed a $90-million bridge financing facility to complete the second phase of its Burgos wind project in Ilocos Norte.
“The company signed a bridge finan-cing facility amounting to $90 million with Australia and New Zealand Banking Group Ltd. and Mizuho Bank Ltd. acting as mandated lead arrangers and bookrunners for the transaction. The proceeds of the facility completes the bridge financing for the 63 megawatt Phase 2 of Burgos wind project,†EDC said in a disclosure to the stock exchange.
The wind farm covers a 686-hectare area within the municipality of Burgos in Ilocos Norte.
With the financing in place, EDC said it is on track to complete the construction of the 87-MW Phase 1 by the fourth quarter of the year and the second phase of the project consisting of 63 MW by the first quarter of next year.
“The project will reinforce EDC’s position as the country’s premier renewable energy company, adding 150 MW of wind capacity to its existing 1,150 MW geothermal and 132 MW hydropower assets,†EDC said in its disclosure.
The 150-MW Burgos wind project will be the largest operating wind farm in the Philippines, generating approximately 365 gigawatt-hours annually to supply the electricity requirements of over a million households, the company said.
The expansion raises the total project investment cost to $450 million from $300 million originally.
Furthermore, the firm said the wind farm project is expected to help address the power supply situation in the Luzon grid, which needs an additional 4,200 MW in the next 10 years due to the projected 4.5 percent annual increase in electricity demand.
EDC broke ground for the project in April last year after signing a contract with Vestas, the world’s leading wind turbine manufacturer.
A listed company, EDC is the world’s largest geothermal producer and one of the leading renewable energy companies in the Philippines.