2014 Financial Statement

EDC 2014 Performance Report
WESM Transactions
FG Hydro, as a direct WESM member, sells/buys electricity in the WESM.
39.
Vestas Operation and Maintenance Agreement (O&M Agreement)
In 2013, EBWPC entered in an agreement with Vestas Wind Systems (Vestas) for the construction
of Phase 1 (87 MW). The project comprises three components: (i) the establishment of a wind
farm facility; (ii) a 115kV transmission line; and (iii) a substation adjacent to the wind farm.
In April 2014, EBWPC and Vestas agreed for the installation of additional 63 MW (Phase 2).
EBWPC will operate and maintain the wind farm under a ten-year operations and maintenance
agreement with Vestas. The Vestas O&M contract is a service and energy-based availability
agreement based on Vestas’ AOM 5000 product. The agreement is a full-scope maintenance
contract covering both scheduled and unscheduled maintenance with an energy-based availability
on the wind turbines. The agreement covers the wind turbines, wind farm electrical balance-ofplant
systems, the wind turbine yaw back-up generators, and the Burgos Substation.
As opposed to a traditional O&M contract that provides a guarantee that the turbines in a wind
power plant are operational for a defined period of time on an annual basis (referred to as timebased
availability), the AOM 5000 model provides an energy-based guarantee, which encourages
the Contractor to ensure that the turbines are fully-operational when the wind is blowing.
40.
Events After the Financial Reporting Date
On March 6, 2015, EDC declared cash dividends amounting to ₱1.9 billion to its common
shareholders and ₱7.5 million to its preferred shareholder of record as of March 20, 2015 payable
on or before April 16, 2015.
On January 8, 2015, FG Hydro declared cash dividends amounting to ₱320 million to its common
stockholders of record as of January 15, 2015 payable on or before January 23, 2015.
On March 6, 2015, the Company was authorized to undertake a 2-year share buy-back program,
authorizing Management to buy at its discretion from the market the Corporation’s shares up to
an aggregate value of Pesos Four Billion (₱4,000,000,000.00) worth of the company’s common
shares. This is part of the continuing commitment to utilize some of its cash, from time to time, for
the benefit of its shareholders/ employees. The program will be executed through the open market
by means of the trading facilities of the Philippine Stock Exchange and implemented by the
VP/Treasurer/CFO.
At today’s price of ₱8.86 per share, the ₱4.0 Billion is equivalent to approximately 2.4 % of the
company’s total outstanding common shares. The period will commence on March 15, 2015 and
conclude on March 14, 2017.
On March 6, 2015, GCGI completed the execution of separate loan agreements with Asia United
Bank Corporation, Bank of Philippine Islands, BDO Unibank, Inc., Development Bank of the
Philippines, Land Bank of the Philippines, Rizal Commercial Banking Corporation, Robinsons
Bank Corporation and Union Bank of the Philippines for the total amount of ₱8.5 billion.
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