of Plant :
||140 MW Casecnan Multipurpose Project and Manablon Powerhouse
|Name of IPP :
Administration through BOT with California Energy-Casecnan Water and Energy
Company, Inc. (CEWEC)
|Contract Type :
Purchase Agreement (PPA)/Unsolicited Project
|Status of Plant :
|Cooperation Period :
||20 years (April 5, 2002 - April 5, 2022)
|Nature of Issue
cost (levelized, PhP/KWh) is the highest among IPP contracts.
Reasons can be:
1) Short payback period
2) Subsidizing added revenues to Pantabangan and Masiway
|PSALM to work out
arrangement for lower fees
contract places the minimum water off-take of Casecnan at 801.9 million cubic
meters of water per year. During ICC review the Secretariat had reservations
about the ability Of Casecnan to deliver 801.9 million cubic meters of water.
||DPWH and NEDA in
consultation with technical hydrology experts must to conduct further studies
to ascertain a just guaranteed Capacity for water delivery.
this provision, NIA has to pay Casecnan the equivalent of 801.9 million cubic
meters of water whether or not the Casecnan and Denip Rivers can provide such
|High tax payable
||In a related contract, Casecnan's complex tax structure results
in a tax payable of approximately $850 million for NIA.
||Currently, a Cabinet Committee is looking into the issue.