First Gen to acquire more assets

MANILA, Philippines - First Gen Corp., the power generation arm of the Lopez Group, is actively scouring the market for opportunities in line with its bid to become a global geothermal powerhouse.

In a chance interview, First Gen chief finance officer Giles Puno said the company is considering a bid for the 1,200-megawatt (MW) Ilijan gas-fired power plant in Batangas as well as the 246-MW Angat hydropower plant in Bulacan and the 150-MW Bacon-Manito geothermal units in Albay.

Puno said the company may also bid for the government’s 60 percent stake in PNOC-Energy Corp. (PNOC-EC), the oil and gas exploration arm of state-run Philippine National Oil Co.

The Ilijan power plant, with a life of 25 years, was principally designed to operate as a base-load unit using natural gas from the Malampaya gas field in Palawan, with diesel as back-up. It is being operated by the Korea Electric Power Corp. through Kepco Ilijan Corp.

Bidders for the Ilijan plant have until Jan. 29 to submit letters of interest while the pre-bid conference is scheduled on Feb. 11.

Puno said the company is also looking for geothermal opportunities overseas, which include Africa and Latin America.

First Gen reported a net income of $7 million during the first nine months of last year, 85 percent lower than the $45.8 million recorded in the same period in 2008.

The company attributed the decline to a one-time, non-cash writedown of the deferred tax assets of unit Energy Development Corp. EDC, following the implementation of the Renewable Energy Act in January 2009.

First Gen is the biggest privately-owned power generator in the Philippines with an installed capacity of 2,582 MW accounting for about 17 percent of the country’s total capacity.