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Envent to Increase Profitability With New Contract with Philippine Authorities

Manila, Philippines, February 3, 2010 ─ Envent Holding Philippines Inc. (Envent), a major geothermal developer in the Philippines, announced that the contractual base for its Biliran geothermal project has been substantially enhanced with the conversion of its Geothermal Service Contract to a Renewable Energy Service Contract with the Philippine Department of Energy (DOE) under the new “Renewable Energy Act of 2008”.

With the new contract, Biliran Geothermal Incorporated (BGI), the project company executing the project in Biliran, will take advantage of the ground-breaking Renewable Energy legislation that was passed on December 16, 2008. Advantages include various fiscal incentives such as Income Tax Holiday (ITH) for the first seven years of its commercial operations and Special Realty Tax Rates on Equipment and Machinery.

Envent is a geothermal developer active in Indonesia and the Philippines. Envent´s most advanced project is its Biliran island project. Additionally Envent has multiple applications for new geothermal working areas pending consideration by the Philippine DOE and is preparing applications for geothermal working areas in Indonesia.

Envent recently announced the signing of Power Purchase Agreements worth more than USD 350 million for the Biliran geothermal project. Biliran Unit 1 is scheduled to come online in 2012 with a capacity of 50 MW. Biliran is located in the Eastern Visayas region of the Philippines and has an existing connection to the national power grid. The island lies just a few kilometers north of the island of Leyte.

Comments:

Sec. Angelo T. Reyes, Philippines Department of Energy:

“The significance of this is, corporations like Envent is expressing confidence in investing in the Renewable Energy sector; firstly because we have the RE Law that was passed one year ago that afforded fiscal and non-fiscal incentives to Renewable Energy. Now we are seeing the fruit of the effort of our RE Law which is becoming a model for other countries.”


Asst. Secretary Mario Marasigan, Philippines Department of Energy:

“The Philippine Department of Energy has in the past months signed 161 Renewable Energy Contracts; some of them have been conversion of existing contracts, like the one for Biliran and others for totally new renewable energy projects. We are happy with the progress that has been made with the project in Biliran over the past couple of years. We look forward to have power from the project feed as soon as possible to the electricity grid in Leyte reducing the unmeet electricity need in the region”


Mr Gudmundur F. Sigurjonsson, Chief Executive Officer, Envent:

“The signing of this agreement with the DOE, allows the Biliran project to take advantage of the multiple advantages that the recent ground-breaking Philippine renewable energy legislation offers. With the renewable energy legislation the Philippines has taken a leadership position in Asia, in terms of enabling private renewable energy companies to utilize renewable energy resources in a clear and well defined manner. The Renewable Energy legislation in the Philippines is clear, well defined and favorable.”