Local energy giants First Gen Corp. and the Aboitiz Group are leading a highly-diverse field of 24 potential bidders for the government’s remaining stake in geothermal producer shares Philippine National Oil Co. Energy Development Corp. (PNOC-EDC).

In yesterday’s pre-bid conference, others that have signified interest to acquire 60 percent or a controlling interest in the country’s largest producer of geothermal energy are ABN-AMRO Bank, Africa Israel Group — Asia Pacific, Alsons Consolidated Resources Inc., American Orient Capital Partners (Phils) Inc., Ashmore Energy, ATN Holdings Inc., Belo Gozon Elma Parel Asuncion & Lucilla, Basic Energy Corp., Geysir Green Energy c/o Sycip Salazar, International Power Plc, Kanematsu Corp., Latham & Watkins LLP, Marubeni Phils. Corp., One Energy Ltd., Orix Corp., PCCI Securities Brokers Corp., Reykjavik Energy Invest, Rosalie A. Dimaano, Suez Energy Asia Co. Ltd., Sumitomo Corp., Sycip Salazar Hernandez & Gatmaitan Law Offices and Triratua Holdings, a local consortium of top business tycoons led by Ramon Ang of San Miguel Corp. with retail taipan Henry Sy and Joselito Compos of the Unilab Group. At current market prices, the stake would be worth nearly $1.3 billion.

PNOC-EDC controls over 60 percent of the Philippines’ installed geothermal capacity. Thus, whoever gains control of the company will have exclusive exploration and development rights over key geothermal areas throughout the Philippines through long-term contracts with the government.

“The Philippines is currently the second largest geothermal producer in the world, with PNOC-EDC accounting for the majority of the geothermal power produced. The country may even overtake the world geothermal leader, the United States, in a few years time,” PNOC president Antonio M. Cailao said.

Cailao said investors are aware that PNOC-EDC is only one of a handful companies in the world that has the expertise to explore and develop geothermal power.

“Our expertise is now tapped by countries as far as Papua New Guinea and the Middle East. What does this mean? This means that knowledgeable investors recognize that PNOC-EDC, being a geothermal world leader that is up for grabs, is an opportunity that cannot be ignored.”

The prospective bidders shall submit to the Privatization Committee on or before Oct. 5 the initial prequalification requirements in order to be considered for qualification. The committee will announce the list of prequalified bidders on Oct. 10.

Financial advisors for the PNOC-EDC privatization are the Development Bank of the Philippines (DBP) and ING Bank.

Source: http://www.philstar.com/business/16167/first-gen-aboitiz-among-bidders-pnoc-edc-stake