Lopez power firm eyes IPO

First Generation Holdings Corp. (First Gen) is planning to undertake an initial public offering (IPO) as one of three options in raising funds for its energy-related activities.

First Philippine Holdings Corp. (FPHC) managing director for energy Peter D. Garrucho Jr. said the other two options are: to form a strategic partnership with a local or foreign investors in the same line of business, to enter into a financial partnership with investment and financial institutions.

"As of now, we have put on hold (the sale of 40 percent of First Gen) as we are still assessing and reviewing," Garrucho said in a press briefing Tuesday afternoon.

Among the items still under review is whether to form a strategic partnership at the holding company level or form a partnership on a per-project basis.

First Gen is the holding company under the FPHC for all energy generating projects. The generation projects are the 1,000-MW Sta. Rita gas-fired power plant, the 500-MW San Lorenzo power plant, the 200-MW Bauang power project, and a co-generation project in the industrial park market.

The San Lorenzo project is handled by FGP Corp., a joint undertaking between British Gas Energy Holdings Ltd. and FPHC. Another subsidiary, First Gas Phils. Corp., is the operating entity of the Sta. Rita power plant.

Garrucho was reacting to inquiries bout reports the FPHC has postponed the sale of 40 percent of FGHC until the Sta. Rita and the San Lorenzo power plants are both commercially operational. Sta. Rita is expected to be onstream by June this year while San Lorenzo is expected to be operational by 2002.

Analysts said the move is made to enhance its financial value in the market.

Another reason for the delay is that the Lopez group is looking closely at the developments regarding the Comprehensive Electricity Reform Bill, which among others will privatize the National Power Corp. (Napocor) and all its generation assets spread throughout the country. --