First Gen assumes Casecnan ownership

PSALM and NIA personnel formally handed over the operations of the Casecnan hydro facilities in Pantabangan, Nueva Ecija to First Gen after the latter secured permits and remitted payment for the purchase of the power plant

The government, through the Power Sector Assets and Liabilities Management Corp., or PSALM, and the National Irrigation Administration, or NIA, has turned over the ownership and operation of the Casecnan Hydroelectric Power Plant to the Lopez group’s First Gen Corp. unit Fresh River Lakes Corp.

The sale of the Casecnan power plant to First Gen is considered the largest privatization of a state power asset so far under the Marcos administration, underwent stringent evaluation and review from various government agencies, all of which gave their respective approvals by January 2024 to facilitate the smooth turnover of the power plant.

PSALM and NIA personnel formally handed over the operations of the Casecnan hydro facilities in Pantabangan, Nueva Ecija to First Gen after the latter secured permits and remitted payment for the purchase of the power plant.

The turnover completed the sale of the 165-megawatt. or MW, Casecnan power plant, which PSALM auctioned off last year as part of the government’s privatization program.

FRLC topped the auction with a $526-million offer, which was way above the minimum bid price.

“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,” Dennis Gonzales, senior vice president and head of the Hydro Group of First Gen, said.

“Our winning offer, therefore, helped the company save on cost and precious time to construct a similar hydro project.”

Aside from the plant itself, the power components that First Gen acquired from the government include the switchyard, the administration complex, guest house and some roads.