First Gen still keen on Angat Hydroelectric Power Plant

MANILA, Philippines - Lopez-led First Gen Corp., through a joint venture with the Ayala and Pangilinan conglomerates, is still keen on owning and developing the Angat Hydroelectric Power Plant (HEPP) in Bulacan.

The power generation firm is waiting for the high court’s decision on the bidding of the state asset, an official said.

“That is still unresolved. Right now, we are still the second highest bidder,” said First Gen president and chief operating officer Francis Giles B. Puno.

“We hope that there is a resolution and we could be in a situation where it could also be awarded to our consortium,” Puno said.

First Gen, Ayala Corp. and Metro Pacific Investments Corp., through First Gen Northern Energy Corp., offered $365 million for the privatization of the 218-megawatt Angat HEPP.

In April 2010, Korea Water Resources Development Corp. (KWater) of South Korea submitted a $440.88-million bid, edging out five other bidders. The other bidders were DMCI Power Corp. ($188.89 million), First Gen Northern, San Miguel Corp. ($312.50 million), SN-Aboitiz Power Pangasinan Inc. ($256 million) and Trans-Asia Oil & Energy Development Corp. ($237 million).

But in May 2010, the Supreme Court stopped the government from privatizing the power plant after cause-oriented groups like the Freedom from Debt Coalition claimed that the bidding was conducted in secrecy and in disregard of the people’s right to information.

Concerns were also raised given the nationality of KWater.

Should the Angat HEPP be awarded to First Gen Northern, the joint venture partners are ready to develop the project.

Puno said concessionaires Ayala-led Manila Water Co. Inc. and Pangilinan-led Maynilad Water Services Inc. will bring in their experience in water distribution.

The Angat Dam supplies more than 90 percent of the water requirements of Metro Manila and neighboring provinces.

Puno said First Gen, for its part, would bring its expertise in power generation to the project.

“We could optimize that asset to increase the sources of generating capacity available in the Luzon grid,” Puno said.

To date, First Gen and its units have a gross generating capacity of 2,763 MW, of which 1,500 MW is natural gas, 1,129 MW is geothermal and 134 MW is hydropower. It accounts for 18 percent of the country’s total installed power generation capacity.

First Gen posted a 171 percent jump in profits to $52.1 million in the first quarter from $19.2 million a year ago.

The company is targeting to triple its earnings this year from $35 million last year.