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PIA Press Release

PGMA witnesses turnover to PNOC-EDC of remaining BOT geothermal plants in Leyte

Tacloban City (September 24) -- President Gloria Macapagal Arroyo is scheduled to go to Ormoc City in the province of Leyte on September 25 in order to witness the turn-over to the Philippine National Oil Company Energy Development Corporation (PNOC-EDC) of the remaining four geothermal power plants in Leyte under a Build Operate Transfer (BOT) agreement.

This was learned during the Coordination Meeting held on September 23 at the PNOC-EDC Office at Barangay Milagrosa in Ormoc City, attended by the representatives of the Presidential Management Staff, Protocol, PSG, PNP, PNOC, LGU and PIA.

President Arroyo is scheduled to witness the signing by PNOC President and CEO Paul Aquino and Ormat Leyte Co., Ltd. President Ditas Broinchi, of the turn-over of the successful BOT projects.

Energy Secretary Angelo Reyes is expected to join the President in the signing of the hand-over documents.

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.

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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