$650-M irrigation project completed this month

A $650-million irrigation and power project initiated by CE Casecnan Water and Energy Co. is due for completion later this month.

The Philippine government has proposed expenditures amounting to $368 million under the country’s Agriculture and Fisheries Modernization Act to be used for irrigation, post-harvest facilities, infrastructure and agricultural research. The government hopes the increase in funding will enable the Philippines to increase rice production by one million metric tons and corn production by 100,000 metric tons.

MidAmerican Energy Holdings Co., the parent company of CE Casecnan, said the impending completion of the Casecnan Multipurpose Irrigation and Power Project shows the dynamic public and private sector cooperation in the country. The Philippine government’s National Irrigation Administration (NIA) is CE Casecnan’s co-proponent for the project.

"The synergy between the Philippine government’s agricultural modernization thrusts and the increased private sector participation will fuel the expected rebound of the Philippine economy," said David Sokol, MidAmerican chairman and chief executive officer.

Sokol stressed that the leadership of President Arroyo and her focus on foreign investments to spur the Philippine economy have helped buoy investor confidence in the Philippines.

"President Arroyo is taking the issues very seriously, and I think she recognizes the need to maintain a very consistent economic climate for future investment," Sokol said.

The Casecnan project is a build-operate-and-transfer project initiated in 1995. Ownership will be passed on to the Philippines after 20 years at no additional cost to the Philippine government and NIA is envisioned to run the facility for at least another 30 years.

The project construction is complete, and commissioning is underway.