MANILA, Philippines - Lopez-led Energy Development Corp. (EDC) has installed a permanent fix for Unit 1 of its Bacon-Manito (BacMan) geothermal power plants in Bicol.
In a disclosure to the Philippine Stock Exchange (PSE) EDC said it has completed the installation of a brand-new steam turbine and diaphragms on Unit 1.
“Bac-Man Geothermal Inc., a wholly owned subsidiary of EDC that owns and operates the BacMan power plants, had already completed the installation of the brand new Toshiba steam turbine rotor unit and diaphragms (referred to as ‘permanent fix’) for its Unit 1,” EDC told the stock exchange.
The power plant is currently operating at its rated load of 55 megawatts after conducting all commissioning works and tests on completion.
EDC added that the unit also started its 30-day reliability run.
“With the completion of a three -day capability run at 60 MW, the unit has now started its 30-day reliability run,” EDC said.
The BacMan plant consists of Unit 1 (55 MW), Unit 2 (55 MW) and Unit 3 (20 MW), according to data from EDC.
The plants are now operational after more than a year of delay due to breach of contract on the part of its contractors tapped to rehabilitate the facility.
EDC earlier filed an arbitration case against its contractors before the International Court of Arbitration of the International Chamber of Commerce but decided later on to discontinue the arbitration following the settlement of the claims.
On Nov. 28 last year, BGI commenced an arbitration administered by the International Court of Arbitration of the International Chamber of Commerce in relation to its dispute with TurboCare, Inc., now known as EthosEnergy TC Inc. and Siemens Inc., the contractors for the project.
BGI tapped the contractors in 2010 to carry out the rehabilitation of the BacMan Units 1 to 3 but disputes arose in relation to the carrying out the rehabilitation.
In May 2010, EDC acquired the BacMan 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 billion to P4.2 billion in yearly revenues from BacMan.