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Energy Development Corp. (EDC) has signed an agreement with Australian partner Hot Rock Ltd. (HRL) that gives the former control over the joint venture's geothermal projects in South America.
Under the deal inked by the two parties, EDC will hold 70 percent of the outstanding capital stock of each of the project companies it will set up with HRL, which in turn will take the remaining 30 percent.
The joint venture plans to put up project companies for the geothermal concessions in Longavi in Chile and Chocopata and Quellaapacheta in Peru to allow them to commence with exploration activities at each of the sites.
The projects are EDC's first foreign geothermal ventures after over 35 years of operations in the country. Worldwide, the company is the second largest geothermal company.
The company acquired the contract to co-develop the South American geothermal prospects with HRL after signing a joint venture deal with the latter last Febuary.
HRL is an Australian based international renewable energy company holding 23 geothermal tenements across Chile, Peru and Australia.
EDC and HRL are also looking at the possibility of expanding the scope of their partnership by including other geothermal contract areas held by the latter in their joint venture deals.
Besides these projects, EDC had also been awarded the contract to exclusively develop the Newen, San Rafael and Batea geothermal exploration concession in Chile.
Meanwhile, EDC told the local bourse that it has been asked to allocate a portion of the power generation of the company's geothermal plants in Mt. Apo for the exclusive use of Kidapawan City.
Erudito S. Recio, EDC investors relations manager, said in a regulatory filing that they have received the civil case filed by Kidapawan City vice mayor Joseph A. Evangelista "in his capacity as a taxpayer and end-user of electricity" filed before the local regional trial court.
The petition seeks to compel the company into prioritizing the electricity needs of Cotabato Electric Cooperative, Inc.'s (Cotelco) service area, which is host to EDC's geothermal plants.
The local government official, in particular, wants the company "to effect the prioritization of load dispatch which is up to 25 percent of the total capacity of the geothermal plants of EDC in Mt. Apt" for the utility's requirements.
The petition was lodged in view of the recurring power outages in parts of Mindanao that had spread also to Kidapawan City, which is under the coverage area of Cotelco.
EDC, however, said that the company does not have control over the distribution and allocation of the Mt. Apo geothermal plants' output.
"Under the existing power purchase agreement between National Power Corp. (Napocor) and EDC, EDC is merely obligated to deliver the electric power generated by the Mindanao I and II geothermal power plants to Napocor," it said.
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