First Gen unit secures P15-B loan for Casecnan

FRESH RIVER LAKES CORP. (FRLC), the operator of the 165-megawatt (MW) Casecnan hydroelectric power plant (HEPP), has secured a P15-billion loan from major banks to support its operations and financial obligations, Lopez-led First Gen Corp. announced on Monday.

In a regulatory filing, First Gen said that FRLC signed loan agreements with BDO Unibank, Inc., Bank of the Philippine Islands, and Rizal Commercial Banking Corp. for the company’s general corporate requirements.

“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 Chief Operating Officer Francis Giles B. Puno said on the sidelines of an event in Batangas.

The Casecnan hydroelectric power plant was transferred to FRLC in 2024 after it won the auction conducted by the Power Sector Assets and Liabilities Management Corp. with the top bid of $526 million.

The asset is a run-of-river type of power facility that generates energy by diverting water from the Casecnan and Taan Rivers through a 26-kilometer-long tunnel.

“At First Gen, we believe that hydroelectric power plays a major role in delivering reliable and compelling clean energy solutions to our customers,” said First Gen Chief Financial Officer Emmanuel P. Singson.

“It is vital for the country’s energy security and decarbonization goals. This latest financing will further strengthen our ability to continue delivering a competitive and dependable portfolio of clean energy to the nation,” he added.

In May, BDO also extended P10 billion in financing to First Gen for the purchase of the hydroelectric facility.

At present, First Gen has a total of 3,668 MW of combined capacity across its portfolio of plants that run on geothermal, wind, hydropower, solar energy, and natural gas. — Sheldeen Joy Talavera