EDC PR 2016 (FS section)

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Financial Statement 36. BGI Power Supply Agreements As of December 31, 2016, BGI’s outstanding PSAs are as follows: Customers Contract Start Contract Expiration First Philippine Industrial Corp. December 26, 2012 December 26, 2018 Camarines Sur II Electric Cooperative, Inc. January 26, 2013 December 26, 2018 ULGEI August 26, 2015 December 25, 2025 FG Hydro February 26, 2016 August 25, 2018 First GES June 26, 2016 December 25, 2021 IMAK - INEC December 26, 2016 July 25, 2018 On December 13, 2012, the PSA between GCGI and Philippine Associated Smelting and Refining Corporation was assigned to BGI effective December 26, 2012. The assigned PSA expired on December 25, 2015. Also, two (2) PSAs with First Gen Hydro expired on June 25, 2015 and December 25, 2015. Total revenue from the sale of electricity amounted to ₱3,145.8 million, ₱4,224.1 million and ₱3,641.3 million in 2016, 2015 and 2014, respectively. The costs of purchases of electricity from WESM were offset against revenue from sale of electricity. Any excess revenue from or excess cost of sale of electricity is presented as revenue from sale of electricity or cost of sale of electricity, respectively. 37. Wind Energy Service Contracts and Solar Energy Service Contract Wind Energy Service Contracts On September 14, 2009, the Parent Company entered into WESC 2009-09-004 with the DOE granting the Parent Company the right to explore and develop the Burgos Wind Project for a period of 25 years from the effective date. The pre-development stage under the WESC shall be two years extendible for another year if the Parent Company has not been in default in its exploration or work commitments and has provided a work program for the extension period upon confirmation by the DOE. Within the pre-development stage, the Parent Company shall undertake exploration, assessment and other studies of wind resources in the contract area. Upon declaration of commerciality, as confirmed by the DOE, the WESC shall remain in force for the balance of the 25-year period for the development/commercial stage. The DOE shall approve the extension of the WESC for another 25 years under the same terms and conditions, provided the Parent Company is not in default of any material obligations under the contract and has submitted a written notice to the DOE for the extension of the contract not later than one year prior to the expiration of the original 25-year period. Further, the WESC provides that all materials, equipment, plant and other installations erected or placed on the contract area by the Parent Company shall remain the property of the Parent Company throughout the term of the contract and after its termination. On May 26, 2010, the BOD of EDC approved the assignment and transfer to EBWPC of all the contracts, assets, permits and licenses relating to the establishment and operation of the Burgos Wind Power Project under DOE Certificate of Registration No. WESC 2009-09-004. On May 16, 2013, EBWPC was granted a Certificate of Confirmation of Commerciality by the DOE. 289
As of December 31, 2016, the Company holds eleven (11) WESCs with the DOE with a 25 year contract period. The WESCs cover the following: Projects DOE Certificates of Registration 1) 150 MW wind project in Burgos, Ilocos Norte WESC 2009-09-004 (expiring in 2034) 2) 84 MW wind project in Pagudpud, Ilocos Norte WESC 2010-02-040 (expiring in 2035) 3) Burgos 1 wind project in Burgos, Ilocos Norte WESC 2013-12-063 (expiring in 2038) 4) Burgos 2 wind project in Burgos, Ilocos Norte WESC 2013-12-064 (expiring in 2038) 5) Matnog 1 wind project in Matnog & Magdalena, WESC 2014-07-075 (expiring in 2039) Sorsogon 6) Matnog 2 wind project in Matnog, Sorsogon WESC 2014-07-076 ( expiring in 2039) 7) Matnog 3 wind project in Matnog, Sorsogon WESC 2014-07-077 (expiring in 2039) 8) Iloilo 1 wind project in Batad & San Dionisio, WESC 2014-07-078 (expiring in 2039) Iloilo 9) Negros wind project in Manapla & Cadiz City, WESC 2014-07-080 (expiring in 2039) Negros Occidental* 10) Burgos 3 Wind Project in Burgos and Pasuquin, WESC 2015-09-085 (expiring in 2040) Ilocos Norte 11) Burgos 4 Wind Project in Burgos, Ilocos Norte WESC 2015-09-086 (expiring in 2040) *Cancellation letter has been submitted with the DOE dated August 2016, awaiting confirmation reply. Solar Energy Service Contract As of December 31, 2016, the Parent Company holds six (6) SESCs with the DOE with a 25 year contract period. The SESCs cover the following: Projects DOE Certificates of Registration 1) 6.82 MW Burgos Solar Project in SESC No. 2014-07-088 (expiring 2039) Burgos, Ilocos Norte 2) Murcia Solar Project in Murcia, Negros SESC No. 2015-03-113 (expiring 2040) Occidental 3) President Roxas Solar Project in SESC No. 2015-03-114 (expiring 2040) President Roxas, North Cotabato* 4) Matalam Solar Project in Matalam, North SESC No. 2015-03-119 (expiring 2040 and Cotabato* renewable for another 25 years) 5) Bogo Solar Project in Bogo, Cebu SESC No. 2015-06-234 (expiring 2040 and renewable for another 25 years) 6) Iloilo Solar Project in Iloilo City SESC No. 2016-06-306 (expiring 2041 and renewable for another 25 years) *Cancellation letter has been submitted with DOE dated March 2016, awaiting confirmation reply. 38. FG Hydro’s Contracts and Agreements PSCs FG Hydro had contracts which were transferred by NPC to FG Hydro as part of the acquisition of the PAHEP/MAHEP for the supply of electric energy with several customers within the vicinity of Nueva Ecija. All of these contracts had expired as of December 31, 2010. Upon renegotiation with the customers and due process as stipulated by the ERC, the expired contracts were renewed except for the contract with Pantabangan Municipal Electric Services (PAMES). 290 I Energy Development Corporation Performance Report 2016
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2016 Audited Consolidated Financial
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Compliance • We have monitored th
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156 I Energy Development Corporatio
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We have fulfilled the responsibilit
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Those charged with governance are r
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ENERGY DEVELOPMENT CORPORATION (A S
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Preferred Stock (Note 19) Common St
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Years Ended December 31 2016 2015 2
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Southern Negros, Valencia, Negros O
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EDC Drillco EDC Drillco is a compan
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Geotermica Chile SPA also incorpora
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Authorization for Issuance of the C
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These amendments are applied prospe
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Applicability of IFRIC 12, Service
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In August 2013, EDC Geotermica SpA
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Fair Value Measurement of Financial
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In 2011, EDC recognized full impair
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The factors that the Company consid
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Recognition of Deferred Income Tax
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Current versus Non-current Classifi
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In 2015, the functional currency of
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Construction in progress represents
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would have been determined, net of
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Classified under loans and receivab
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Derivative financial instruments ar
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the allowance account. Any subseque
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maturity or expected disposal date
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has expired, as well as the Parent
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Proceeds from Insurance Claims Proc
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Future Changes in Accounting Polici
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The Company is currently assessing
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oader review of the research projec
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LGBU NIGBU BGBU MAGBU Pantabangan/
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7. Trade and Other Receivables 2016
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The movements of the net accumulate
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12. Property, Plant and Equipment L
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Total borrowing costs capitalized t
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Bac-Man 3 Engineering Procurement a
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13. Goodwill and Intangible Assets
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Carrying amount of exploration and
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2015 Long term receivables Input VA
Page 87 and 88: The long-term debts are presented n
Page 89 and 90: The Parent Company capitalized in i
Page 91 and 92: ₱8.5 billion GCGI Term Loan On Ma
Page 93 and 94: 19. Equity Capital Stock As require
Page 95 and 96: On March 6, 2015, the BOD approved
Page 97 and 98: US$14.0 million thereafter up to 20
Page 99 and 100: Transactions for the years ended De
Page 101 and 102: Remuneration of Key Management Pers
Page 103 and 104: Net retirement and other post-emplo
Page 105 and 106: The following tables summarize the
Page 107 and 108: The Company expects to contribute
Page 109 and 110: Beginning of Year Charged to Income
Page 111 and 112: f. g. h. i. j. k. On June 29, 2011,
Page 113 and 114: Stock awards granted by the Committ
Page 115 and 116: Foreign Currency Risk Foreign curre
Page 117 and 118: US$ Japanese yen (JP¥) Sweden kron
Page 119 and 120: 2015 Foreign Currency Appreciates (
Page 121 and 122: The following tables demonstrate th
Page 123 and 124: Financial Assets and Financial Liab
Page 125 and 126: The Company classifies its financia
Page 127 and 128: The table below shows the derivativ
Page 129 and 130: Pertinent details of the IRS are as
Page 131 and 132: The Company monitors capital using
Page 133 and 134: Legal Claims The Company is conting
Page 135 and 136: EDC also holds geothermal resource
Page 137: As of December 31, 2016, the Compan
Page 141 and 142: Ancillary Services Procurement Agre
Page 143 and 144: 41. ULGEI Power Supply Agreements A
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EDC PR 2016 (FS section)

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