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PIA Press Release

PNOC EDC takes over remaining BOT plants in Leyte

Tacloban City (September 18) -- The Philippine Oil Company Energy Development Corportation (PNOC-EDC) is scheduled to assume operations of the remaining four geothermal power plants in Leyte under a Build-Operate-Transfer (BOT) agreement on September 25, 2007.

Mr. Dave Davilles, public information officer of the PNOC-EDC said that the said four geothermal power plants are currently owned by Ormat Leyte Co. Ltd. The four optimization plants consist of Mahanagdong A and B Topping Cycle Plants, Tongonan Topping Cycle Plant, and Malitbog Bottoming Cycle Plant with a total installed capacity of 51 MW.

He said that the optimization plants utilize the existing geothermal energy resources in PNOC EDC's Leyte Geothermal Production Field (LGPF). Geothermal fluids are conveyed to the optimization plants either before they are directed to the main power plants (called "topping") or after they have been directed to the main power plants (called "bottoming") for additional electrical output.

These are incorporated in Tongonan 1, Malitbog and Mahanagdong A and B. These plants provide power to the National Power Corporation (NPC) for distribution to Cebu, through the Leyte-Cebu transmission interconnection project, and to Luzon through the Leyte-Luzon interconnection project.

In July this year, PNOC EDC took over operation of the 232.5 MW Malitbog and 180 MW Mahanagdong geothermal power plants from CalEnergy International Ltd. after the completion of the 10-year cooperation period as per the respective Energy Conversion Agreements (ECAs).

Last year, PNOC EDC also took over operations of the 132-MW Upper Mahiao powerplant from CalEnergy International Ltd.

The Leyte Optimization Plants, together with the 125 MW Upper Mahiao, 232.5 MW Malitbog and 180 MW Mahanagdong are the geothermal power plants utilizing the steam supplied by LGPF. LGPF also supplies steam to the 112.5-MW Tongonan 1 geothermal powerplant, currently owned by NPC. LGPF is PNOC EDC's biggest steamfield accounting for close to 60% of the company's total installed capacity. Aside from LGPF, PNOC EDC operates geothermal production fields in Southern Negros, Northern Negros, Bicol and North Cotabato.

The publicly-listed Company remains the country's largest producer of geothermal energy. At 1,198 MW, PNOC EDC presently controls 60% of the Philippines' total installed geothermal generating capacity. Even as this accounts for only about 7.3% of the country's total installed power generating capacity, it is able to contribute close to 12% of the total electricity production for 2006. (PIA 8) [top]

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