CE Casecnan debunks raps vs project

CE Casecnan Water and Energy Co. Inc. (CE Casecnan) demonstrated to the Senate yesterday that the Casecnan project contract is not onerous and disadvantageous to the Philippines as has been alleged.

CE Casecnan president David Baldwin emphasized that the project contract underwent extensive deliberations and negotiations, and was duly authorized and approved by the Philippine government through its relevant agencies. Negotiations were undertaken for almost two years from 1993 to 1995.

Turning to the cost of Casecnan’s electricity, Baldwin stated: "Properly calculated, the output of the plant costs P1.8 per kilowatt hour, making it one of the cheapest sources of power in the Philippines. Combined with the project’s irrigation benefits, the value of the Casecnan projects is clear."

The Casecnan project, which diverts water from two rivers through a 26-kilometer tunnel to a generating plant, then on to the Pantabangan Reservoir, was completed in 2001. It will significantly contribute to enhancing the irrigation of approximately 102,000 hectares and newly irrigating some 35,000 hectares for rice fields in Central Luzon. The project also has a capacity of 150 MW of electricity, and provides water to two existing nearby hydroelectric plants, allowing these plants to increase their output.

Achievement of commercial operations in 2001 began a 20-year cooperation period outlined in the project agreement. At the end of the 20-year period, CE Casecnan will turn over the project to the government at no cost, after which it is expected to continue commercial operations for an additional 30 years.