The net revenue to the country from the project was estimated at P143 billion throughout its 50-year project life period.
Appearing before the Senate blue ribbon committee, David A. Baldwin, CE Casecnan president, testified that the project underwent extensive deliberations and negotiations before finally securing the go-ahead from the Philippine government.
CalEnergy submitted in 1993 an unsolicited bid to construct the innovative water tunneling system. Project construction started in 1995 after discussions with various government agencies were completed leading to the finalization of the country’s first built-operate-transfer irrigation project contract.
Built at a cost $700 million, the project channels water from the Casecnan and Taan rivers in Nueva Vizcaya and transports it to the Pantabangan reservoir through a 26-kilometer underground tunnel running through the Caraballo Mountains.
CalEnergy’s project company, CE Casecnan Water and Energy Co. Inc. was established to manage and operate the whole project.
In December of 2001, the project was fully operational.
CE Casecnan will manage the project for 20 years, after which it will be turned over to the government, to be used productively for another 30 to 80 more years.