2014 Financial Statement
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EDC <strong>2014</strong> Performance Report<br />
Subsequent to acquisition of Hot Rock companies, the Company has changed the names of these<br />
entities as follows:<br />
Previous Name<br />
Hot Rock Chile Ltd BVI<br />
Hot Rock Peru Ltd BVI<br />
Hot Rock Chile<br />
Hemisferio Sur SpA<br />
Hot Rock Peru<br />
New Name<br />
EDC Soluciones Sostenibles Ltd<br />
EDC Desarollo Sostenible Ltd<br />
EDC Energia Verde Chile SpA<br />
EDC Energia de la Tierra SpA<br />
EDC Energia Verde Peru SAC<br />
GCGI<br />
On September 2, 2009, GCGI acquired the 192.5 MW Palinpinon (in Negros Oriental) and<br />
112.5 MW Tongonan 1 (in Leyte) geothermal power plants in an auction conducted by PSALM<br />
where GCGI submitted the highest complying financial bid of US$220.0 million. This financial<br />
bid was subsequently reduced by US$6.7 million as PSALM agreed that the Company will<br />
directly assume the obligations to procure the equipment/services indicated in the Purchase<br />
Requisitions being processed by NPC under Schedule R-Purchase Orders in the Asset Purchase<br />
Agreement (APA). The total acquisition cost incurred by the Company amounted to<br />
₱10.7 billion resulting to goodwill of ₱2,241.7 million.<br />
FG Hydro<br />
On September 8, 2006, FG Hydro participated and won the bid for the 112 MW PAHEP/MAHEP<br />
facility conducted by PSALM in connection with the privatization of NPC assets. FG Hydro paid<br />
a total consideration of US$129.0 million (₱6.5 billion) and recognized goodwill amounting to<br />
₱293.3 million.<br />
Details of the impairment review for goodwill are shown in Note 3.<br />
Water rights<br />
Water rights pertain to FG Hydro’s right to use water from the Pantabangan reservoir to generate<br />
electricity. NPC through a certification issued to FG Hydro dated July 27, 2006, gave its consent<br />
to the transfer to FG Hydro, as the winning bidder of the PAHEP/MAHEP, of the water permit for<br />
Pantabangan river issued by the National Water Resources Council on March 15, 1997.<br />
Water rights are amortized using the straight-line method over 25 years, which is the term of the<br />
Agreement with National Irrigation Administration (NIA). The remaining amortization period of<br />
water rights is 16.9 years as of December 31, <strong>2014</strong>.<br />
Other intangible assets<br />
Other intangible assets pertain to the Parent Company’s wind energy project development costs<br />
and computer software and licenses.<br />
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