FIRST GEN Corp. said it signed a two-year contract with a Batangas-based medical center to supply power for its operations.
In a statement over the weekend, the Lopez-led firm said together with its subsidiary Energy Development Corp. (EDC) it signed the deal with Mary Mediatrix Medical Center (MMMC) to supply one megawatt (MW) of geothermal power from its Bacon-Manito (Bacman) geothermal power plant in Bicol.
“This contract symbolizes our commitment not only to our partnership but also to our environment. It is a good opportunity that First Gen-EDC offered us this alternative energy solution,” MMMC President and Chief Executive Officer Robert M. Magsino was quoted in the statement as saying.
“Not only will we be able to generate substantial savings through this initiative, but we will still be able to deliver high quality healthcare services to our patients without compromise,” he added.
First Gen’s EDC is one of the largest geothermal producers across the globe and the leading renewable energy company in the country with an installed capacity of 1,475 MW.
MMMC is a hospital in Southern Luzon that started operations in 1994 and has been awarded an ISO 9001:2008 in 2013, or a certification on quality management system.
“Geothermal power provides clean, renewable and reliable energy source that allows us to reduce our operation’s negative impact to the environment by reducing our carbon footprint. With this in mind, we look forward to mutually beneficial and strong partnership with First Gen-EDC,” Mr. Magsino said.
First Gen earlier said it is setting aside up to $250 million for this year’s capital expenditure, most of which will be used by EDC.
“For consolidated [capex], it’s about $220 to $230 [million], bulk of that will be with EDC, it’s about $150 [million], then the rest would be with gas,” Emmanuel P. Singson, First Gen Corp. senior vice-president and chief financial officer, said.
However, EDC President and Chief Operating Officer Richard B. Tantoco said the consolidated amount could reach $250 million to include additional budget for a geothermal-related project.
“Some of it will be for projects, and then some of it will be for things that we’ll do in the power plant like cooling tower upgrades,” he said. “So it’s investments that will optimize the assets’ flexibility.”
First Gen posted an attributable net income of $41.4 million in the first quarter, up 104.4% than in the same period last year due to higher contributions from its subsidiaries. — Denise A. Valdez