39842
ENERGY DEVELOPMENT CORPORATION
Jan 2, 2018
Philippines
East Asia and the Pacific
Jun 27, 2026
B - Limited
Completed
Approved : Mar 7, 2018
Signed : Mar 22, 2018
Invested : Jun 22, 2018
Geothernal - Renewable Energy Generation
Infrastructure
Regional Industry - INF Asia & Pac
EDC is an integrated geothermal steam and electric power producer with its core activities being the exploration, development, and production of geothermal energy. The company operates 1,169 MW of geothermal, 150 MW of wind, 132 MW of hydroelectric power, and 6.8 MW of solar — delivering a total of 1,457.8 MW (gross) of clean and renewable energy. EDC owns over 60% of the country's total installed geothermal capacity of 1.9 GW.
The company is an existing IFC client and is seeking financing to support EDC's 2018 capital requirements and other general corporate purposes for existing geothermal operations. The proposed IFC investment will be A loan of Philippine Peso equivalent to $90 million.
EDC has over three decades of experience developing and operating geothermal plants and most of its existing facilities have been in operation since the eighties. Ongoing operation of the geothermal plants involve regular exploration and drilling activities and laying of pipelines in existing steam fields.
EDC organizes its geothermal operations in four Business Units (BU): Leyte Geothermal BU (LGBU), in Leyte Island; Mt. Apo Geothermal BU (MAGBU), in Mindanao Island; BacMan Geothermal BU (BGBU), in Luzon Island; and Negros Island Geothermal BU (NIGBU). Each BU includes, among others, the following facilities: access roads, steam fields, well pads, pipelines, and power generation plants. The company also operates the following non-geothermal renewable energy assets in Luzon Island: Burgos 150 MW windfarm (55 wind turbines) and 6.8 MW solar park, commissioned in 2015 and 2016, under the Wind Ilocos Norte BU (WINBU) and a 132 MW hydropower scheme, commissioned in 1977, under the FG Hydro BU (FGHBU).
The scope of review of EDC's compliance with IFC's Performance Standards (PSs) included assessment of EDC's corporate and BU-level environmental, social, health and safety management systems (ESMS) and performance, focusing mainly on existing geothermal operations given the proposed use of proceeds of IFC’s loan. There are no plans to develop new power generation projects under this financing. Even though the use of proceeds is for the geothermal operations, IFC also reviewed key environmental and social aspects of the Burgos windfarm given that is the most recent facility developed by the company.
The review relied on assessment of EDC’s policies, procedures, assessments, monitoring and audit reports, public corporate reports, including EDC’s 2016 Sustainability Report ( https://www.energy.com.ph/sustainability ), and other relevant documentation. IFC also assessed information available in local and international news outlets and other media regarding EDC’s environmental and social performance.
The IFC team visited the following EDC geothermal power generation and steam field facilities and their environs: BacMan Geothermal BU (BGBU), located in Sorsogon, South Luzon Island (June 2017) and Negros Island Geothermal BU (NIGBU), located near Dumaguete in Negros Island (June and November 2017).
IFC conducted interviews with key management personnel including EDC's operational, financial, human resources, legal, environmental, social, health and safety managers and staff at the corporate and BU level. Interviews were also conducted on November 2017 with 30 community members located in NIGBU’s area of influence.
This is IFC's fourth operation with EDC. Findings from appraisal and supervision activities related to previous IFC investments were also considered during this review. Links to IFC’s Environmental and Social Review Summary (ESRS) for each previous project are available at:
PNOC-EDC #25389 (October 30, 2006);
PNOC-EDC Loan #26529 (June 03, 2008); and
Energy Dev II #29404 (May 19, 2010).