October 15, 2008

Energy Development Corporation

38th Floor, One Corporate Centre Building, Julia Vargas corner Meralco Avenue

Ortigas Center, Pasig 1605, Philippines

Trunklines: +63 (2) 667-7332 (PLDT) / +63 (2) 755-2332 (Globe)

September 15, 2015

JANET A. ENCARNACION

HEAD, Disclosures Department

The Philippine Stock Exchange, Inc. Philippine Stock Exchange Plaza

Ayala Triangle, Ayala Avenue, Makati City

Dear Ms. Encarnacion:

Energy Development Corporation (EDC) advises the exchange that it has entered into a design and equipment supply contract with Hyundai Engineering Co., Ltd. (HEC) and a construction services contract with Galing Power & Energy Construction Co. Inc. (Galing), both dated September 15, 2015 for the engineering, procurement and construction of the 31 MW Bac-Man 3 geothermal power plant in Sorsogon City, Sorsogon Province under Geothermal Renewable Energy Service Contract No. 2009-10-

003 of the Department of Energy. HEC is an experienced international EPC contractor based in South Korea. Galing is an affiliate of HEC. The Bac-Man 3 project further solidifies EDC's leadership in the Philippine geothermal industry and contributes to EDC's diverse renewable energy portfolio.

Please see attached statement released to the press today.


Press Release

September 15, 2015

Energy Development Corporation

38th Floor, One Corporate Centre Building, Julia Vargas corner Meralco Avenue

Ortigas Center, Pasig 1605, Philippines

Trunklines: +63 (2) 667-7332 (PLDT) / +63 (2) 755-2332

EDC signs EPC contract for Power Plant of Bac-Man 3 Project

Lopez-led Energy Development Corporation (EDC) has signed a design and equipment supply contract with Hyundai Engineering Co., Ltd. (HEC) and a construction services contract with Galing Power & Energy Construction Co. Inc., both dated September 15, 2015 for the engineering, procurement and construction of its 31-MW Bac-Man 3 geothermal power plant in Barangays Capuy, Bucalbucan, Rizal and Bulabog, Sorsogon City, Sorsogon Province.
The Bac-Man 3 project has an estimated project cost of Php7.6 Billion and is targeted to be completed and operational by the last quarter of 2017.
"Given its specifications, the Bac-Man 3 power plant is expected to withstand harsh weather conditions and improve plant reliability. Once operational, Bac-Man 3 project will augment the power generating capacity of the Luzon grid and address the projected demand growth in the region with clean and affordable power," EDC Business Development Vice President Vincent Villegas said.
"This project is meaningful to HEC since we will be focusing largely on renewables as one of our strategic businesses in the future," HEC Power and Energy Head Park Jun Sung said.
The Bac-Man 3 project will reduce greenhouse gas emissions by about 270 kilotons of CO2 annually if a similar capacity of fossil-fired power plant were to be built.
The addition of Bac-Man 3 project to EDC's geothermal portfolio solidifies its leadership in the Philippine geothermal industry. EDC owns and operates 1,169MW of integrated geothermal projects in Leyte, Negros Islands, Bicol and North Cotabato. It also successfully commissioned the 150 MW Burgos Wind Project, the largest in Southeast Asia. Aside from geothermal and wind, EDC also operates hydropower and solar energy plants.

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