Republic of the Philippines

Public-Private Partnership Center

Bauang La Union Diesel Power Plant

Project Brief
Implementing Agency

National Power Corporation (NPC)

Project Description

FPPC/BPPC was contracted to finance, build and operate a 215- megawatt base load generating plant under a Fast-track Build Operate Transfer (BOT) arrangement with the government. BPPC will operate and maintain the power plant complex for a period of 15 years up to July 2010. Under the BOT Agreement, NPC shall supply the fuel for energy conversion and purchase all electricity generated there from. For the duration of the 15-year cooperation period, BPPC is entitled to payment of fixed capacity and operations and maintenance fees based on the nominated capacity, as well as energy fees based on kwh generated/delivered. Upon expiration of the 15-year period, BPPC shall transfer to NPC all its rights, titles and interest in the power plant complex, free of liens created by BPPC and without any compensation.

The project was undertaken in line with the fast-track program of the government to address the power crises of the 1990’s.

Estimated Project Cost During Approval

USD 200.00 Million

Procurement Mode


Contractual Scheme

Build-Operate-Transfer (BOT

Contract Term

15 Years

Implementation Mode






Private Proponent

First Private Power Corporation (FPPC); Bauang Private Power Corporation (BPPC)