Raymond E. Cunningham, CalEnergy’s business development officer, said they are specifically targeting hydroelectric and geo-thermal power plants.
"We want to participate in the privatization of the gencos. Our experience in the Philippines spans more than a decade in hydroelectric and geothermal ventures. We’re interested in those," Cunningham said.
He said they would probably look at three assets, namely, the Tiwi-Makban geothermal power plants and the Pantabangan/Masiway hydro power facilities.
Cunningham said they had been waiting for the government to field out the bidding documents for these power facilities.
"We’ve been waiting for six months or even for the invitation for the bidding of the MakBan and Pantabangan-Masiway," he said.
The Pantabangan/Masiway’s sale notice came out recently.Despite the noted delay in the privatization of the gencos, he said they are optimistic the government’s efforts would continue.
"There are many challenges PSALM (Power Sector Assets and Liabilities Management Corp.) has faced, and it’s not a very simple thing to do. They’re doing the very best they can and we’re hopeful that it will be a big success for the Philippines. It’ll be to criticize, but in all fairness - there have been reasons why the program has been delayed and we respect that," Cunningham said.
"I think now that some of these challenges have been met, they’ve brought and have invited more bids with respect to the Magat, Masiway, Pantabangan, Tiwi-MakBan – if it wasn’t for the privatization of the PNOC-EDC, I suspect some of the other geothermals will have been issued by now. And that may have caught up in the privatization, so that’s a good cause to defend it," he added.
CalEnergy is an international leader in the development and production of energy from diversified fuel sources including geothermal, natural gas and hydroelectric.
Originally based in California, CalEnergy was founded in 1971 to provide consulting and development services for geothermal power production facilities in North America. During the late 1970s, the company recognized the many opportunities presented by emerging industry deregulation in the United States, and began the transition from a service provider to an independent power producer.
Throughout the 1980s, CalEnergy acquired the assets of several US geothermal facilities and explored opportunities in energy markets around the world. The company relocated to Omaha in 1991 and began to develop geothermal energy projects in the Philippines. In 1994, CalEnergy acquired the assets of Magma Power Co. a US-based geothermal power producer.
CalEnergy is aggressively seeking opportunities in other international locations in both power production and retail markets.
CalEnergy currently has operations in the United States and the Philippines. Its facilities generate more than 2,029 megawatts of electric power and steam-producing facilities.
Worldwide, CalEnergy focuses on growth through acquisition and fuel source diversification. Its experience and expertise in geothermal, gas and hydroelectric fuel sources, as well as other technologies, has positioned it well to compete successfully.
The company is operating the Casecnan project, a combined irrigation and hydroelectric power project in the northern part of Luzon. It began operation on Dec. 11, 2001, and collects water from the Casecnan and Taan Rivers and transports it through a 26-kilometer transbasin tunnel to the existing Pantabangan Reservoir.
Its power component provides approximately 150 megawatts of hydroelectric capacity to the important Luzon grid. The project also irrigates 35,000 hectares of agricultural lands and stabilizes the water supply to 102,000 hectares of existing irrigated areas. The project is helping the Philippines attain self-sufficiency in rice production.
The Casecnan project is the first multi-purpose build-operate-and transfer (BOT) project in the Philippines.
An agreement provides for CE Casecnan Water and Energy Co. Inc., an affiliate of CalEnergy International, to own and operate the project for a period of 20 years, after which ownership will be transferred to the Philippine government at no cost.