20 MW Palinpinon II Geothermal Optimization Project

The Activity will prepare a proposed geothermal power project in Negros Island, Philippines for possible granting of carbon emission reduction credits. The project, sponsored by the Philippine National Oil Company Energy Development Corporation (PNOC-EDC), would drill an additional production well at the Palimpinon geothermal site in the southern part of Negros Island, build a fluid collection and reinjection system to transport the steam and hot water to a 20 MW turbo-generator, and deliver the electricity generated to the Visayas grid. Using an indigenous and renewable energy resource, the proposed $34 million project will obviate the need for equivalent capacity of barge-mounted diesels that are being used to temporarily alleviate power shortages in the area, thus mitigating greenhouse gas emissions. No World Bank Group investment financing is sought. Following guidelines used in Bank projects, the Activity will conduct due diligence on environmental, social and legal aspects and, to a more limited extent, on technical and financial aspects of the proposed project.