There are two new power projects in Luzon. The CE Casecnan Water and Energy Company (a subsidiary of California Energy International) is constructing a multipurpose irrigation and 150-MW hydroelectric facility.  Also, the 350-MW San Roque multipurpose hydro project began commercial operation in May 2003.   
Mirant is the Philippines largest IPP, operating five power plants in the country. Mirants Coal-fired Sual plant began commercial operation in late 1999. The 1,218-MW plant is located about 130 miles north of Manila, and is the nations largest and lowest-cost electricity producer. Napocor is the sole purchaser of power from Sual.
Several power-generating facilities also are under extensive rehabilitation. The 100-MW Binga hydroelectric plant has been under renovation since 1993 following damage from a 1990 earthquake. After years of delays, Binga resumed operation in July 2002. A larger project is the $470 million contract with Argentine firm IMPSA (IndustriasMetalurgicasPescarmonaSociedadAnonima ) to rehabilitate and operate the 750-MW Caliray-Botocan-Kalayaan (CBK) power complex in Laguna, south of Manila. The CBK complex is the grid regulator in Luzon, and as such is able to transmit power to other plants on the grid in the event of breakdowns. IMPSA, in conjunction with new partner Edison Mission Energy of the United States, was able to get a performance undertaking guarantee despite Napocors and some government officials objections, facilitating long-delayed financing of the project.
The Philippines, due to its geography, has problems linking all of its larger islands together into one grid and ensuring availability of electric power in rural areas. The government has set a target date of 2006 for full electrification, and also is taking steps to link together the countrys three major power grids (Luzon, Visayas, and Mindanao). Where it is not economical to link small islands grids into the national grid, separate local systems are being established around small generating plants.