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EDC forms geothermal unit in Peru

Energy Development Corp., a unit of First Gen Corp. of the Lopez Group, said  Thursday it formed Geotermica Quellaapacheta Peru S.A.C. that will develop  geothermal projects in Peru. EDC disclosed to the Philippine Stock Exchange the creation of the company following the terms of the joint venture agreements it signed with Hot Rock Ltd. last year. The agreements require Hot Rock Peru S.A. to transfer the Quellaapacheta explorations contracts to the new company. “As a result and as stated in the project agreements, EDC has paid HRL an initial $400,000 which is refundable in the event that EDC withdraws from the project within six months from the transfer date,” EDC said. It said it would make a final payment of $600,000 15 months from the transfer date if the project was pursued. EDC and Hot Rock earlier signed a joint venture agreement to co-develop the Quellaapacheta and Chocopata projects in Peru, with EDC obtaining a 70 percent interest in each of the projects. EDC dropped the Chocopata project but pursued opportunities in Quellaapacheta. “Yes, we are still looking at Quellaapacheta and working hard to build up the portfolio of concession areas,” EDC president Richard Tantoco said earlier. EDC said in a separate disclosure its application to list its 7-year and 10-year bonds due on 2020 and 2023, respectively, for trading on the Philippine Dealing and Exchange Corp. was approved for listing effective May 3. The company plans to use the proceeds from the issuance to support business expansion plans, finance capital expenditures and fund general corporate expenses. EDC set a capital expenditure of P32 billion this year from P22 billion last year. EDC is the world’s largest integrated geothermal producer and one of the leading renewable energy companies in the Philippines with a portfolio of 1,130 MW of geothermal and 132 MW of hydroelectric plants.
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