First Gen taps P15 billion credit facility for Casecnan plant

BATANGAS, Philippines — Lopez-led First Gen Corp. has secured a P15-billion loan from three local banks to fund the acquisition of the 165-megawatt (MW) Casecnan hydropower plant in Nueva Ecija.

First Gen, through Fresh River Lakes Corp. (FRLC), signed separate loan agreements with BDO Unibank Inc., Bank of the Philippine Islands and Rizal Commercial Banking Corp.

“We need to cover the operation of Casecnan, and the way we funded that is from First Gen… That’s there to finance the original acquisition so we can pay back to the parent,” First Gen president and COO Francis Giles Puno said in an interview yesterday.

In February last year, FRLC assumed ownership of the Casecnan plant after topping the auction with a $526-million offer, which was way above the government’s minimum bid price.

“At First Gen, we believe that hydroelectric power plays a major role in delivering reliable and compelling clean energy solutions to our customers. It is vital for the country’s energy security and decarbonization goals,” First Gen chief finance officer Emmanuel Singson said.

First Gen officials, led by Puno, were present here yesterday in Santo Tomas City for the signing of the energy firm’s landmark retail aggregation program (RAP) deal with sister company, First Philippines Industrial Park (FPIP).

The agreement involves First Gen unit First Gen Energy Solutions (FGES) supplying clean power to 21 facilities of FPIP and its two subsidiaries within the 600-hectare ecozone in Batangas.

“What we want to do is to demonstrate that it is possible to provide a stable and steady RE supply while securing cost-efficient energy,” said Puno, who also serves as FPIP president.

Launched by the Energy Regulatory Commission (ERC), RAP allows multiple customers within the same franchise area to consolidate their energy demand to meet the 500-kilowatt threshold required to choose their energy supplier.

To qualify for this scheme, FPIP and its subsidiaries, FPIP Property Developers & Management Corp. and FPIP Utilities Inc., aggregated their power requirements, totaling 1.27 MW.

FPIP then tapped FGES for the electricity supply coming from the Casecnan plant and the 132-MW Pantabangan-Masiway hydropower facility in Nueva Ecija, also owned by First Gen.

“Each RAP switch is a story of success for both energy stakeholders and consumers. That’s because one switch means we are one step closer to the future we dream of: one where every Filipino enjoys the power of choice,” outgoing ERC chairperson and CEO Monalisa Dimalanta said.