EDC eyes part in 220-MW Indonesia geothermal project

May 26, 2014 - Philippine renewable energy company Energy Development Corp (PSE:EDC) is negotiating its possible participation in a 220-MW geothermal project in Indonesia.

Francis Giles Puno, the CFO of First Philippine Holdings Corp (PSE:FPH) whose chairman Federico Lopez controls EDC, told reporters today the latter is considering becoming the owner of a 25% stake in the entity holding the concession for the USD-1-billion (EUR 733m) geothermal scheme. The finance head noted that he expects the deal to be sealed by the second half of 2014.

The name of the other party was not disclosed at this point.

EDC is anticipated to have management control despite holding just a minority stake, Puno added. BusinessMirros quoted him as saying that at a later stage the Philippine form will boost its investment in the project in order to secure a majority stake.

The Philippine company already runs 11 geothermal power stations along with two hydropower plants (HPPs) with an aggregate capacity of 1,262 MW.

(USD 1.0 = EUR 0.733)

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