Service contract for Montelago geothermal power project in the Philippines terminated
Lake Naujan, Soccoro, Oriental Mindoro (source: Orlan Rovira Frane, CC BY-SA 4.0 
Carlo Cariaga
16 Oct 2025
The service contract for the Montelago geothermal power project in Mindoro, Philippines has been officially revoked, citing non-compliance with the work plan.
The Department of Energy (DOE) of the Philippines has issued a final and irrevocable termination of the service contract held by Mindoro Geothermal Power Corp. (MGPC) for the Montelago geothermal power project. The announcement was made via a disclosure to the Philippine Stock Exchange by Nickel Asia Corp. (NAC), the parent company of MGPC.
According to the statement, the termination was due to MGPC’s failure to comply with developmental commitment as indicated in the project’s five-year work program. Back in 2015, Emerging Power Inc., (EPI) the renewable energy arm of NAC, estimated a potential installed capacity of 40 MW for the Montelago project based on an exploration drilling campaign.
MGPC stated that the company had already received a termination letter from the DOE last year, but that the company had requested reconsideration and submitted additional documents. The re-evaluation done by the company indicated that the project may not be economically viable due to low mass flow, thus limiting potential for power generation.
The termination also stipulates that MGPC will need to pay a USD 120,000 financial obligation within 30 days. NAC however assures that it has fully provided for the impairment of the investment, and that the required payment will not significantly impact its financial standing.
The Montelago geothermal project, located in Naujan, Oriental Mindoro, had originally been under a service contract awarded to Constellation Energy Corp. This was then transferred to EPI in 2014. The project had received funding support and positive community reception through its years of development.
Aside from exploration drilling, the project had not progressed significantly in the following five years. In 2019, the local council of the community rescinded its endorsement of the project.
Source: Manila Bulletin and BusinessWorld
