Energy Development Corp. (the privatized PNOC-EDC) acquired a P4.1-billion loan from the World Bank’s International Finance Corp (IFC). EDC president and chief executive officer Paul Aquino said that the loan would be used to fund their renewable energy projects in the country. More specifically in the geothermal sector.
According to the terms of the deal, it will be a 15-year tenor with three year’s grace period. The loan was signed yesterday by EDC’s Aquino and IFC country head Jesse Ang.
EDC operates 60% of the Philippines Geothermal power plant’s and recently ventured into the Hydro Electric power plants with the acquisition of the Pantabangan-Masiway hydroelectric power complex from sister company First Gen Hydro Power Corp. (FGHPC). They also have wind power projects in the Philippines.
EDC, along with the Aboitiz group have been aggressively pursuing alternative energy projects in the Philippines.
I like the similarity of thinking between the Aboitiz and Lopez family (EDC owners) to go for alternative energy projects which will be profitable in the long run because of the stability of it’s resource. This is in comparison to fossil fuel based power plants which as of this decade, has been subjected to such volatile pricing.
I don’t find the two family’s strategies surprising either, considering that they have long been in the business of supplying power to the Philippines (Aboitizes own’s electricity distribution rights in the Visayas and Mindanao, while the Lopez’s own Metro Manila distribution rights), they sure do know their business.
[source]
Category: Geothermal, EDC, Financing
