27 Feb 2024
Effective 26 February 2024 at 00:00 hours, FRLC, a subsidiary of First Gen Corporation, is the official owner and operator of the 165-megawatt Casecnan HEPP.
The Power Sector Assets and Liabilities Management Corporation (PSALM) and the National Irrigation Administration (NIA), as co-owners of Casecnan HEPP, formally turned over the possession of the Casecnan HEPP to FRLC on 25 February 2024. A meter reading was conducted by the representatives from PSALM, Soosan ENS - the contracted operator for Casecnan HEPP, and FLRC at 24:00 hours on 25 February 2024 to officially record the plant’s consumption and delivery of power before FRLC’s takeover.
PSALM’s President and Chief Executive Officer Dennis Edward A. Dela Serna and NIA’s Atty. Rizza A. Ibañez, Head of the Office of Legal Services, issued to FRLC their Closing Deliveries under the Asset Purchase Agreement for the sale of the power plant on 23 February 2024. On the same day, PSALM received from FRLC the full purchase price of Casecnan HEPP in the amount of USD526,000,000.00. Correspondingly, the Joint Certificate of Turnover was executed by PSALM, NIA and FRLC to transfer the rights and obligations of the government over Casecnan HEPP to FRLC.
“This milestone is actualized by PSALM’s steadfast commitment to its mandate under the Electric Power Industry Reform Act. This is just another endeavor geared in ensuring the continuity and development of these crucial facilities through meaningful engagements with the private sector. This investment hopes to boost the operational and economic efficiency of these facilities for the benefit of the general consumers,” PSALM President and CEO Dennis Edward A. Dela Serna said.
On the part of FRLC, its winning offer helped the company save on cost and time. “From the perspective of FRLC, building a similar hydro plant from scratch would have been more expensive and would have required lengthy preparations for planning, designing, permitting, and construction,” First Gen Corporation Senior Vice President and Head of Hydro Group Dennis Michael P. Gonzales said.
On 30 January 2024, PSALM received the certification from the Philippine Competition Commission (PCC) for its clearance on the sale of the power plant by PSALM and NIA to FRLC. Following PCC’s clearance, PSALM issued its Certificate of Effectivity to FRLC on 31 January 2024 evidencing that the Casecnan Final Transaction Documents have become effective and binding among the Parties composed of PSALM, NIA and FRLC.
On 16 May 2023, FRLC was declared the highest bidder with its offer of USD526 million during the public bidding conducted by PSALM for the sale of Casecnan HEPP.
Casecnan HEPP is a run-of-river type of power plant with limited impounding located in Barangay Villarica, Pantabangan, Nueva Ecija. The build-operate-transfer agreement between the California Energy (CE) Casecnan Water and Energy Co. Inc., and NIA concluded on 11 December 2021 and the management of Casecnan HEPP was transferred to the government prior to its successful privatization in 2023.
Strategic Communications and Partnership Division |