14 firms eye Casecnan hydro plant

MANILA, Philippines — Semirara Mining and Power Corp. of the Consunji family, EEI Power Corp. of the Yuchengco Group, and GigaAce 11 Inc. of Ayala’s ACEN Corp. are among the companies that have expressed interest in the 165-megawatt Casecnan Hydroelectric Power Plant (CHEPP), according to the Power Sector Assets and Liabilities Management Corp. (PSALM).

PSALM said the three firms were among the 14 which have shown interest in bidding for the CHEPP.

The others are Fresh River Lakes Corp., Neptune Hydro Inc., Sta. Clara International Corp., Pan Pacific Renewable Power Phils. Corp., Global Hydro Power Corp., Belgrove Power Corp., Axia Power Holdings Philippines Corp., Panasia Energy Inc., Hansan Solar Corp., San Roque Power Corp., and Peakpoint Inc.

PSALM has set the deadline for submission of bids for the CHEPP on March 28.

It held its second and third pre-bid conferences on Jan. 25 and 27, respectively, to serve as convenient venues for the interested bidders to inquire and clarify on the terms and conditions of the sale.

“We envision that the sale of the Casecnan plant will be successful, efficient and judicious for PSALM and the winning bidder who will take over its management,” PSALM president and CEO Dennis Edward Dela Serna said.

“This pre-bid conference paves the way for a good return on investment for the winning bidder, starting with a more market-responsive price and on an as-is, where-is and cash basis sale for the Casecnan plant,” he said.

PSALM said among the key concerns and issues discussed during the pre-bid conferences include tax laws and regulations that could impact the successor company, role of the winning bidder to lead the crafting of the special use agreement in protected areas with the Department of Environment and Natural Resources, water permits for power generation and irrigation, and other permits currently enforced or to be secured by the winning bidder.

Also discussed were the observance of indigenous peoples rights when the new owner takes over the management of the plant, as well as safety considerations prior to inspecting the plant.

The 165-megawatt CHEPP is a combined irrigation and power generation project in Pantabangan, Nueva Ecija.

It was turned over to the government in 2021 after the 20-year build-operate-transfer scheme between the CE Casecnan Water and Energy Co. Inc. and the National Irrigation Administration (NIA) officially ceased on Dec. 11.

It was placed under the co-ownership of PSALM and NIA, which represent the government’s interest at 60 percent and 40 percent, respectively.

The power asset is a run-of-river type of plant with limited impounding area.

Based on PSALM’s indicative schedule, public bidding as well as asset turnover to the winning bidder for the CHEPP is targeted within the first semester.