PNOC-EDC still to settle P2.9-B BOT obligations
Thursday, March 09, 2006
By Myrna M. Velasco
With the first power plant due for turnover under its charge starting June this year, Philippine National Oil Company-Energy Development Corporation (PNOC-EDC) still has to brace for payment of remaining P2.9-billion worth of obligations under its build-operate-transfer (BOT) contracts.
The settlement of its BOT dues has been programmed as part of the company’s total funding requirements of P7 billion until 2009.
PNOC-EDC president Paul A. Aquino bared that while additional borrowings is an option, they are putting bet on raising their cash requirements via the planned public offering of about 25 to 35 percent of the company’s shares.
Aside from BOT payments, the three-year pipelined financing will also be utilized for exploration of new geothermal wells and for the construction of its Nasulo geothermal power project.
PNOC-EDC accounting manager Elvira L. Punsalan noted that P2.4 billion will be allotted for the drilling of five wells that is expected to bring in 270 megawatts of additional generation portfolio for the company; while P766 million will be earmarked for the Nasulo project.
The state-run energy firm is also lining up the purchase of a modern rig and the rehabilitation of existing units in 2007; and this was given an allotment of P950 million.
Of the company’s total funding needs, P3.3 billion will be spent this year; P1.8 billion in 2007; P1.8 billion in 2008 and P700 million in 2009.
Meanwhile, Aquino noted the company is now preparing for the assumption of operation of the 125-megawatt Upper Mahiao generating unit, a component of the Leyte geothermal asset; that will be turned over to it by US firm CalEnergy this June.
The 10-year contractual arrangement between PNOC-EDC and CalEnergy is due to lapse for the first unit; while the rest will be by next year.
Primed as an energy conversion agreement, CalEnergy generates the electricity from the geothermal steam supplied by PNOC-EDC; and which output is sold forward to the National Power Corporation.
A transition team, it was noted, is currently in place to prepare PNOCEDC in the technical aspect of operating the power plant.
PNOC-EDC’s last BOT deal to expire would be for the 50-MW Mt. Apo 1 geothermal project in Mindanao in May 2009 and is under contract with the consortium of Oxbow Power and Marubeni Corporation.
With bigger responsibility put in its shoulder to be a key player in ensuring energy security for the country, Aquino stressed that "PNOC-EDC had to stay resilient against the daunting and numerous economic as well as political challenges."
For the past years, officials have noted of the company’s fine-tuning strategies to better manage their financial resources, so they can optimize the value in undertaking various projects.
posted by philpower @ 5:11 PM,
