First Gen Corp. subsidiary Fresh River Lakes Corp. (FRLC) officially took over the ownership and operation of the Casecnan hydroelectric power plant from the Power Sector Assets and Liabilities Management Corp. (PSALM) and the National Irrigation Administration (NIA) yesterday.
FRLC said the move followed after securing all regulatory permits and remitted payment for the purchase of the 165 megawatts (MW) power plant in Pantabangan, Nueva Ecija.
Last year, PSALM auctioned off the power plant as part of the government’s privatization program wherein First Gen through FRLC, topped the auction with a $526-million offer.
“From the perspective of First Gen, building a similar hydro plant from scratch would have been more expensive and would have required a lengthy preparation time of up to seven, if not more years for planning, designing, permitting and construction,” said Dennis Gonzales, First Gen senior vice president and head of hydro group.
“Our winning offer, therefore, helped the company save on cost and precious time to construct a similar hydro project,” Gonzales added.
Aside from the plant itself, other power components that First Gen acquired from the government include the switchyard, the administration complex, guest house and some roads.
Meanwhile, ownership of the non-power components of Casecnan, such as the irrigation facilities, the weir and the tunnel, remained with the government, through NIA and PSALM.
The use of these facilities is governed by separate operations and maintenance agreements.
Other hydro facilities owned by First Gen include the 132 MW Pantabangan-Masiway hydroelectric power plant, a storage hydropower plant with a dam and reservoir located close to Casecnan.
The company is also constructing the 120 MW Aya pumped storage hydro project, also in Pantabangan, on top of other run-of-river hydro projects in Mindanao. – Jed Macapagal
