LEYTE LUZON GEOTHERMAL

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The objectives of the Leyte-Luzon Geothermal project are to: 1) meet the rapidly increasing demand for power in Luzon; 2) strengthen the energy sector; 3) support the large ongoing private sector participation in power generation; 4) strengthen the National Power Corporation's (NPC) capabilities in environmental and social impact analyses; 5) introduce Expanded Cofinancing Operation in the Philippines; and 6) ensure the financial viability of NPC and Philippine National Oil Company (PNOC) for undertaking a long-overdue investment program. The project includes the following components: a) PNOC and Energy Development Corporation Subsidiary of PNOC will develop a 440 Megawatt (MW) geothermal energy field to expand Leyte geothermal capacity from 200 MW to 640 MW; b) PNOC-EDC will also enter into Build-Operate-Transfer contracts with private sector companies to construct and operate 440 MW geothermal power plants; and c) NPC will: i) contract two high voltage monopole converter stations; ii) construct overhead transmission lines in Leyte; iii) install a submarine cable; iv) construct a twin circuit overhead transmission line from Ormoc to Matnog cable terminal and from Cabacungan to Naga; v) recruit two advisers for strengthening its environmental and social engineering departments; and vi) recruit consultants to support the project.