30 May 2023
After undergoing a thorough post-qualification process, the Power Sector Assets and Liabilities Management Corporation (PSALM) has issued the Notice of Award (NOA) to Fresh River Lakes Corporation (FRLC), a subsidiary of the Lopez Group's First Gen Corporation. The NOA declares FRLC as the winning bidder for the 165-megawatt Casecnan Hydroelectric Power Plant (CHEPP), situated in Pantabangan, Nueva Ecija.
The NOA was approved by the PSALM Board, chaired by the Department of Finance with the Department of Energy as Vice-Chairman. Its members include the Department of Budget and Management, National Economic and Development Authority, Department of Justice, Department of Trade and Industry and PSALM.
FRLC emerged as the highest bidder, offering a substantial amount of USD526 million, during the public bidding conducted by PSALM for the sale of the power plant on 16 May 2023.
"Based on our thorough evaluation, we have determined that FRLC has met all the necessary requirements, including submitting the highest or most favorable bid," PSALM President and Chief Executive Officer, Dennis Edward A. Dela Serna, stated. He expressed confidence in FRLC's technical and financial capabilities to successfully proceed with the contract.
Both parties are required to comply with subsequent activities as per the bidding schedules before the transaction reaches its closing. PSALM, in particular, must secure approval for the contract terms from the Philippine Competition Commission.
The CHEPP is a run-of-the-river type of power facility with limited impounding. It was transferred to the government after the conclusion of the Build-Operate-Transfer agreement between the California Energy Casecnan Water and Energy Co. Inc. and the National Irrigation Administration on 11 December 2021.
Currently, the ownership of the power plant is shared by PSALM and NIA in a 60 percent and 40 percent arrangement, respectively.
Strategic Communications and Partnership Division |