ENERGY DEVELOPMENT CORP 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)
February 19, 2015
HEAD, Disclosures Department
The Philippine Stock Exchange, Inc. Philippine Stock Exchange Plaza
Ayala Triangle, Ayala Avenue, Makati City
Dear Ms. Encarnacion:
In compliance with the disclosure requirements of the PSE, we submit the attached press release entitled "ERC grants Certificate of Compliance to EDC's Burgos wind project".
Thank you.
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)
Press ReleaseFebruary 19, 2015
ERC grants Certificate of Compliance to EDC's Burgos wind project
The Energy Regulatory Commission (ERC) approved the application of the 150-MW Burgos Wind Project (BWP) for a Certificate of Compliance (COC) on February 9, 2015. The BWP is a project of Lopez-led Energy Development Corporation (EDC).
The project was earlier granted the Provisional Authority to Operate by the ERC on December 18, 2014 after obtaining the Certificate of Endorsement (COE) for Feed-in-Tariff (FiT) Eligibility from the Department of Energy (DOE). The COE for FiT Eligibility was issued by the DOE after validation of the project's successful commissioning on November 5, 2014.
"The transparent and predictable regulatory regime we have in the Philippines should encourage more players to pursue much needed Renewable Energy investments in the country. Few people know that our country is built on an island-arc setting characterized by volcanism, and in such settings we will not have large reserves of oil, natural gas and coal. We badly need RE to help us become less reliant on volatile imports," EDC President and Chief Operating Officer Richard Tantoco said.
The BWP is the largest wind farm in the Philippines consisting of 50 units of the Vestas V90 wind turbine generators (WTG) which has a rated capacity of 3 MW each. It could generate about 370 GWh every year and avoid an estimated 200,000 tons of carbon emissions
"We are also happy to help boost the Luzon grid with 150 MW of clean, reliable power and address the looming power shortage in Luzon and Visayas," Tantoco added.
The project is EDC's first foray into the wind energy business and single largest investment to date. A total of US$450 million was invested by EDC in BWP including the US$315 million in project financing with leading international and local banks led by EKF, Denmark's export credit agency.
It was awarded the Asia Pacific Renewables Deal of the Year by Project Finance International (PFI). PFI cited BWP as a ground breaking project for being the first wind farm project financing in the Philippines to reach financial close. The PFI awards is widely considered to be the most prestigious award in the global project finance industry given to projects that achieved innovative deal structuring and execution for the year.
Aside from the PFI award, the BWP has also been recognized as "deal of the year" by three international finance magazines, confirming the international banking community's vote of confidence for the project.
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