State-run Power Sector Assets and Liabilities Management Corp. (PSALM) and the National Irrigation Administration (NIA) have transferred ownership and operation of the Casecnan Hydroelectric Power Plant to Fresh River Lakes Corp. (FRLC).
In a statement, First Gen Corp. announced on Monday, Feb. 26, that its subsidiary has taken control of the 165-megawatt (MW) power plant, which was auctioned off by PSALM last year as part of the government's privatization program.
Lopez-led First Gen, through FRLC, topped the auction with a $526-million offer, which was way above government’s minimum bid price.
“PSALM and NIA personnel formally handed over the operations of the Casecnan hydro facilities in Pantabangan, Nueva Ecija to First Gen after the latter secured all regulatory permits and remitted payment for the purchase of the power plant,” the company said.
Dennis Gonzales, First Gen Hydro Group, senior vice president and head, said constructing a similar hydroelectric plant from the ground up would have been more costly and time-consuming for the company.
Gonzales explained that the process would have entailed a lengthy preparation period of up to seven years or more for planning, designing, obtaining permits, and actual construction.
“Our winning offer, therefore, helped the company save on cost and precious time to construct a similar hydro project,” Gonzales said.
The transfer of the Casecnan power plant to First Gen, the largest privatization of a state-owned power asset under the Marcos administration, underwent rigorous evaluation and review by various government agencies.
All necessary approvals were granted by January 2024 to facilitate the seamless transition of ownership and operation of the power plant.
In addition to acquiring the plant itself, First Gen obtained other power-related assets from the government, including the switchyard, administration complex, guest house, and certain roads.
Meanwhile, ownership of the non-power assets of Casecnan, such as the irrigation facilities, weir, and tunnel, remains under the control of the government through NIA and PSALM.
The utilization of these non-power facilities is governed by distinct operations and maintenance agreements between FRLC and NIA, as well as between FRLC and PSALM.
Other hydro facilities owned by First Gen include the 132-MW Pantabangan-Masiway Hydro- Electric Power Plant (PHEPP), a storage hydropower plant with a dam and reservoir located close to Casecnan.
It is also constructing the 120-MW Aya pumped storage hydro project, also in Pantabangan, on top of other run-of-river hydro projects in Mindanao.