NIA transfers 60% of CMIPP ownership to PSALM

December 23, 2021, 9:12 AM
 

NIA Central Office – The National Irrigation Administration (NIA), represented by Administrator Ricardo R. Visaya, and Power Sector Assets and Liabilities Management Corporation (PSALM), represented by President and Chief Executive Officer (CEO) Atty. Irene Joy Besido-Garcia, signed the Memorandum of Agreement (MOA) for the transfer of the 60% ownership share over the P33.75-billion Casecnan Multipurpose Irrigation and Power Project (CMIPP) to the latter on December 14, 2021 at NIA Administrator’s Conference Room, 2nd Floor, Building A. NIA Deputy Administrator for Administrative and Finance Sector Engr. Freddie M. Toquero and Central Office Department Managers were present during the MOA Signing.

The memorandum is pursuant to the Economic Development Cluster (EDC) Resolution No. 02, series of 2021, providing the resolution that NIA shall implement the transfer of its 60% ownership share over CMIPP to PSALM. Under the memorandum, NIA agreed that PSALM shall procure the Operation and Maintenance (O&M) Service Contract under Republic Act No. 9184 (Government Procurement Reform Act) to operate, manage, and maintain CMIPP’s power generation facilities and non-power generation facilities, such as weather stations and access roads from December 11, 2021 until its eventual privatization.

In addition, NIA and PSALM shall work together to ensure that CMIPP’s irrigation function and power generation are preserved and maintained. In terms of electrical energy trading, PSALM will continue to be the registered marketing participant in the Wholesale Electricity Spot Market’s (WESM) database and be responsible for selling, trading, and/or allocating to its customers/WESM the net electrical energy generated by CMIPP’s power generation facilities until the project’s privatization is completed. In terms of sharing in net revenue and expenses, the parties agreed to share all net revenues and expenses, accruing from the project beginning December 11, 2021, following their 60%-40% ownership ratio (60% for PSALM and 40% for NIA).

For cost-sharing and billing arrangement, NIA and PSALM shall proportionately share in the net income or loss from the project’s monthly operations. The Parties shall discuss the protocols in the implementation of sharing and billing arrangements, including the accounting procedures for the same. It was agreed upon that PSALM will pursue the privatization of CMIPP, with the understanding that NIA and PSALM will share in the net proceeds in accordance with their 40%-60% ownership interest.

CMIPP was successfully undertaken through a Build, Operate, and Transfer (BOT) Agreement between NIA and Cal Energy Casecnan Water and Energy Company, Inc. (CECWEC) on November 13, 1994. The project has a total cost of USD 675 million (P33.75 billion). It involves the construction of a 26.27-kilometer, 6.50-meter diameter transbasin tunnel traversing Caraballo Mountains with a capacity of 80 cubic meter per second (cms) capable of diverting at least 800 million cms of water per year to the Pantabangan Reservoir. It also involves the construction of two diversion weirs in Casecnan and Taan Rivers in Nueva Vizcaya, including 80.46-kilometer access roads that connect to local municipal and provincial road networks. Two generator sets were also installed generating a combined power of 150 MW and a 230kV Switchyard wherein the National Power Corporation’s (NPC) transmission lines were connected. The power produced in the plant is supplied to the Luzon Grid.

On December 10, 2021, CECWEC conducted the Turnover Ceremony of the Casecnan Hydroelectric Power Plant to NIA and PSALM. NIA Administrator Visaya, NIA Acting Senior Deputy Administrator Romeo M. Lopez, NIA Acting Deputy Administrator for Administrative and Finance Sector (DAAFS) Engr. Freddie M. Toquero, Ph.D., NIA UPRIIS Department Manager Rosalinda B. Bote, CECWEC President Trinity S. Gatuz, PSALM Vice President for Privatization and Asset Management Arnold C. Francisco, and other officials and employees NIA, CECWEC, and PSALM attended the event.

Prior to the said turnover ceremony was the Turnover of Pantabangan View Deck from CECWEC to NIA and Pantabangan LGU on December 9, 2021 in the Municipality of Pantabangan, Nueva Ecija. NIA Administrator Visaya, Acting DAAFS Toquero, CECWEC President Gatuz, and local government officials attended the ceremony.

As the lead agency mandated to develop all possible sources of water primarily for irrigation and secondarily in power generation, NIA remains resilient in providing efficient, reliable, and sustainable irrigation service to the Filipino farmers amidst pandemic.

1st Row (from left to right) – NIA Administrator Ricardo R. Visaya and PSALM President and Chief Executive Officer (CEO) Atty. Irene Joy Besido-Garcia

2nd Row (from left to right) – NIA Public Affairs and Information Staff (PAIS) Department Manager Eden Victoria C. Selva, Corporate Planning Services Department Manager Rogelia C. Dela Torre, Engineering Department Manager Lydia S. Esguerra, Legal Services Department Manager Atty. Marty P. Cachapero, Deputy Administrator for Engineering and Operations Sector C'zar M. Sulaik, PSALM Vice President for Privatization and Asset Management Arnold C. Francisco, and other PSALM executives during the MOA Signing for the transfer of NIA’s 60% ownership share over the CMIPP to PSALM

NIA Administrator Ricardo R. Visaya and PSALM President and Chief Executive Officer (CEO) Atty. Irene Joy Besido-Garcia signs the MOA.

From left to right: NIA Administrator Ricardo R. Visaya, Pantabangan Municipal Mayor Roberto T. Agdipa, and CECWEC President Trinity S. Gatuz during the Ribbon Cutting and Turnover Ceremony of the Pantabangan View Deck from CECWEC to Pantabangan LGU on December 9, 2021

Unveiling of the Marker

Turnover of the Symbolic Key for the Pantabangan View Deck from CECWEC to Pantabangan LGU

Administrator Visaya delivers his Acceptance Message during the Turnover of the Pantabangan View Deck.

NIA Top Management Officials, headed by Administrator Ricardo R. Visaya (5th from left), together with CECWEC President Trinity S. Gatuz (4th from right), PSALM Vice President for Privatization and Asset Management Arnold C. Francisco (2nd from left), and other officials and employees NIA, CECWEC, and PSALM during the Symbolic Turnover of the Casecnan Multipurpose Irrigation and Power Project

Administrator Visaya delivers his Acceptance Message during the Turnover of the Casecnan Multipurpose Irrigation and Power Project.

The Bugkalot Tribe of Pantabangan, Nueva Ecija renders a tribal dance during the Turnover of the Casecnan Multipurpose Irrigation and Power Project as a form of gratitude to the government’s efforts in uplifting the lives of the Filipino farmers.

 

**For questions and/or clarifications, you may contact:

EDEN VICTORIA C. SELVA
Department Manager
NIA Public Affairs and Information Staff
E-mail: evcselva2000@yahoo.com Landline: (02) 8921-3741