SECURITIES AND EXCHANGE COMMISSION

                              WASHINGTON D.C. 20549
                             ----------------------

                                    FORM 10-Q

               Quarterly Report Pursuant to Section 13 or 15(d) of

                       the Securities Exchange Act of 1934

                         For the quarterly period ended

                                 March 31, 2000

                           COMMISSION FILE NO. 333-608

                   CE CASECNAN WATER AND ENERGY COMPANY, INC.

             (Exact name of registrant as specified in its charter)

                     PHILIPPINES                          Not Applicable
        -----------------------------------            -----------------
        (State or other jurisdiction of                (I.R.S. Employer
         incorporation or organization)                 Identification No.)

        24th Floor 6750 Building, Ayala Avenue

        Makati, Manila, Philippines                       Not Applicable
        ---------------------------                    -----------------
    (Address of principal executive offices)               (Zip Code)

        Registrant's telephone number, including area code (632) 892-0276
                                                           --------------

Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  Registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days.

                           Yes    X                     No
                              ---------                   -----------

Former  name,  former  address and former  fiscal  year,  if changed  since last
report. Not Applicable
        --------------

767,162  shares of Common Stock,  $0.038 par value were  outstanding as of March
31, 2000.


<PAGE>



                   CE CASECNAN WATER AND ENERGY COMPANY, INC.

                                    Form 10-Q

                                 March 31, 2000

                                  -------------

                                 C O N T E N T S

PART I:  FINANCIAL INFORMATION                                              Page
------------------------------

Item 1.           Financial Statements

Report of Independent Public Accountants                                       3

Balance Sheets, March 31, 2000 and December 31, 1999                           4

Statements of Operations  for the Three Months Ended March 31, 2000
and 1999 and for the period from inception

(September 21, 1994) to March 31, 2000                                         5

Statements of Cash Flows for the Three Months Ended March 31, 2000 and 1999
  and for the period from inception (September 21, 1994) to March 31, 2000     6

Notes to Financial Statements                                                  7

Item 2.   Management's Discussion and Analysis of Financial Condition and

          Results of Operations                                                8

PART II:  OTHER INFORMATION

Item 1.   Legal Proceedings                                                   10
-------
Item 2.   Changes in Securities                                               10
-------
Item 3.   Defaults on Senior Securities                                       10
-------
Item 4.   Submission of Matters to a Vote of Security Holders                 10
-------
Item 5.   Other Information                                                   10
-------
Item 6.   Exhibits and Reports on Form 8-K                                    10
-------

Signatures                                                                    11

Exhibit 27                                                                    12


<PAGE>


REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS

The Stockholders and the Board of Directors
CE Casecnan Water and Energy Company, Inc.


We have reviewed the accompanying balance sheets of CE Casecnan Water and Energy
Company, Inc. (a company in the development stage) as of March 31, 2000, and the
related statements of operations and cash flows for the three months ended March
31, 2000 and 1999 and the period from the date of inception (September 21, 1994)
to March 31, 2000.  These  financial  statements are the  responsibility  of the
Company's management.

A review of interim  financial  information  consists  principally  of  applying
analytical  procedures  to  financial  data  and  making  inquiries  of  persons
responsible for financial and accounting  matters.  It is substantially  less in
scope than an audit  conducted in accordance with auditing  standards  generally
accepted  in the  United  States  of  America,  the  objective  of  which is the
expression of an opinion  regarding the financial  statements  taken as a whole.
Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material  modifications that should
be  made  to the  financial  statements  referred  to  above  for  them to be in
conformity with accounting principles generally accepted in the United States of
America.

We have audited in accordance with auditing standards  generally accepted in the
United  States of  America,  the balance  sheet of CE Casecnan  Water and Energy
Company,  Inc. as of December 31, 1999, and the related statements of operations
and changes in  stockholders'  equity for the period from the date of  inception
(September  21,  1994) to  December  31,  1999 and cash flows for the year ended
December 31, 1999, and for the period from the date of inception  (September 21,
1994) to December 31, 1999 (not presented  separately herein) and, in our report
dated January 25, 2000, we expressed an unqualified  opinion on those  financial
statements.

SYCIP GORRES VELAYO & CO.
An Arthur Andersen Member Firm

Makati City, Philippines
May 10, 2000


<PAGE>

<TABLE>

                   CE CASECNAN WATER AND ENERGY COMPANY, INC.

                                 BALANCE SHEETS

          (in thousands, except number of shares and per share amount)
                        --------------------------------
<CAPTION>

                                                                          March 31,               December 31,
                                                                             2000
                                                                                               1999
                                                                     ---------------------     ---------------------
                                                                     ---------------------     ---------------------
                                                                         (unaudited)
ASSETS
<S>                                                                  <C>                        <C>
Cash and cash equivalents                                            $              2,334       $             2,318
Restricted cash and short-term investments                                         28,616                    42,064
Accrued interest and other receivables                                              1,655                     1,750
Restricted investments                                                            122,409                   122,175
Bond issue costs - net                                                              8,644                     9,010
Development and construction costs                                                359,160                   337,983
Deferred income tax                                                                 6,751                     7,098
                                                                     ---------------------     ---------------------
                                                                     ---------------------     ---------------------

   Total assets                                                      $            529,569      $            522,398
                                                                     =====================     =====================
                                                                     =====================     =====================



LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:
Accounts payable and accrued expenses                                $             45,933      $             41,633
Advances from affiliates                                                           11,692                    10,024
Notes and bonds payable                                                           371,500                   371,500
                                                                     ---------------------     ---------------------
                                                                     ---------------------     ---------------------

   Total liabilities                                                              429,125                   423,157
                                                                     ---------------------     ---------------------
                                                                     ---------------------     ---------------------


Stockholders' equity:
Common stock - par value $0.038 per share,
Additional paid-in capital                                                        123,807                   123,807
Deficit                                                                          (23,392)                  (24,595)
                                                                     ---------------------     ---------------------
                                                                     ---------------------     ---------------------
Total stockholders' equity                                                        100,444                    99,241
                                                                     ---------------------     ---------------------
                                                                     ---------------------     ---------------------

   Total liabilities and stockholders' equity                        $            529,569      $            522,398
                                                                     =====================     =====================
                                                                     =====================     =====================
</TABLE>

   The accompanying notes are an integral part of these financial statements.


<PAGE>


                   CE CASECNAN WATER AND ENERGY COMPANY, INC.
                       UNAUDITED STATEMENTS OF OPERATIONS

          (in thousands, except number of shares and per share amounts)
                        --------------------------------
<TABLE>
<CAPTION>

                                                                Three Months Ended                       From the date of Inception
                                                                     March 31                               (September 21, 1994)
                                                         2000                        1999                     to March 31, 2000
                                               -------------------------    ------------------------     --------------------------

     Revenues:

<S>                                            <C>                          <C>                         <C>
     Interest income                                       $      2,314                $      3,302                  $      81,393
                                               -------------------------    ------------------------     --------------------------
     Total revenues                                               2,314                       3,302                         81,393
                                               -------------------------    ------------------------     --------------------------
     Costs and expenses:
     Interest expense                                            12,127                      11,350                        202,747
     Less capitalized interest                                  (11,363)                     (8,210)                       (91,211)
                                               -------------------------    ------------------------     --------------------------
     Total costs and expenses                                       764                       3,140                        111,536
                                               -------------------------    ------------------------     --------------------------
     Net income (loss) before income tax                          1,550                         162                        (30,143)
     Benefit from (provision for)
     deferred income tax                                           (347)                        (48)                         6,751
                                               -------------------------    ------------------------     --------------------------
     Net income (loss)                                     $      1,203                 $       114      $                 (23,392)
                                               =========================    ========================     ==========================
     Net income (loss) per share                           $       1.57                 $      0.15      $                  (32.42)
                                               =========================    ========================     ==========================
     Average number shares outstanding                          767,162                     767,162                        721,544
                                               =========================    ========================     ==========================
</TABLE>

   The accompanying notes are an integral part of these financial statements.


<PAGE>
<TABLE>
                   CE CASECNAN WATER AND ENERGY COMPANY, INC.

                       UNAUDITED STATEMENTS OF CASH FLOWS

                                 (in thousands)
                        --------------------------------
<CAPTION>
                                                                                                                From the Date of
                                                                        Three Months Ended                          Inception
                                                                             March 31                          (September 21, 1994)
                                                                   2000                    1999                  to March 31, 2000
                                                            ....................    ...................    ........................
Cash flows from operating activities:

<S>                                                                 <C>                      <C>                   <C>
Net income (loss)                                                   $     1,203              $     114             $      (23,392)
Adjustments to reconcile net income (loss) to net
Provision for (benefit from) deferred income tax                            347                     48                     (6,751)
Amortization of bond issue costs                                            366                    331                       4,946
Decrease (increase) in accrued interest and other
  receivables                                                                95                    448                     (1,655)
Increase (decrease) in accounts payable and accrued
expenses                                                                   (18)                  9,322                       8,632
                                                            ....................    ...................    ........................
Net cash provided by (used in) operating activities                       1,993                 10,263                    (18,220)
                                                            --------------------    -------------------    ------------------------
Cash flows from investing activities:

Additions to development and construction costs                         (21,177)               (18,184)                   (359,160)
Decrease (increase) in restricted cash and
Increase in restricted investments                                         (234)                  (442)                   (122,409)
Increase (decrease) in accounts payable and
  accrued expenses related to development  and
  construction activities                                                 4,318                 (2,847)                     37,301
                                                            ....................    ...................    ........................
Net cash used in investing activities                                    (3,645)               (11,815)                   (472,884)
                                                            ....................    ...................    ........................
Cash flows from financing activities:

Increase in advances from an affiliate                                    1,668                  1,699                      11,692
Issuance of bonds payable                                                     -                      -                     371,500
Proceeds from issuance of capital stock                                       -                      -                     123,836
Bond issue costs                                                              -                      -                     (13,590)
                                                            ....................    ...................    ........................
Net cash provided by financing activities                                 1,668                  1,699                     493,438
                                                            ....................    ...................    ........................
Net increase in cash and cash
  equivalents                                                                16                    147                       2,334
Cash and cash equivalents at beginning of period                          2,318                  1,996                           -
                                                            ....................    ...................    ........................
Cash and cash equivalents at end of period                          $     2,334            $     2,143               $       2,334
                                                            ====================    ===================    ========================
Supplemental disclosure:
Interest paid (net of amount capitalized)                           $    (9,533)           $    (6,512)              $      92,740
                                                            ====================    ===================    ========================
</TABLE>

   The accompanying notes are an integral part of these financial statements.

<PAGE>


                   CE CASECNAN WATER AND ENERGY COMPANY, INC.

                          NOTES TO FINANCIAL STATEMENTS

                    (in thousands, except per share amounts)
                        --------------------------------

1.   General:
     -------

In the opinion of management of CE Casecnan Water and Energy Company,  Inc. ("CE
Casecnan" or the "Company"),  the accompanying  unaudited  financial  statements
contain all adjustments (consisting only of normal recurring accruals) necessary
to present fairly the financial position as of March 31, 2000 and the results of
operations and cash flows for the three months ended March 31, 2000 and 1999 and
the period from the date of inception (September 21, 1994) to March 31, 2000.

The results of operations for the three months ended March 31, 2000 and 1999 are
not necessarily indicative of the results to be expected for the full year.

2.   Other Footnote Information:
     --------------------------

Reference  is  made  to  the  Company's  December  31,  1999  audited  financial
statements included in Form 10-K that included  information  necessary or useful
to  the  understanding  of  the  Company's  business  and  financial   statement
presentations.  In particular, the Company's significant accounting policies and
practices were presented as Note 2 to the financial  statements included in that
report.


<PAGE>


                   CE CASECNAN WATER AND ENERGY COMPANY, INC.

                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF

                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

                                 (in thousands)
                        --------------------------------

Results of Operations:
---------------------

The  Company  is in the  development  stage and has not yet  started  commercial
operations.  Revenue  consists of  interest  income on cash  received  from bond
proceeds  and  equity  contributions.  Interest  income  decreased  in the first
quarter  of 2000 to  $2,314  from  $3,302 in the same  period  in 1999,  a 29.9%
decrease.  This  decrease is primarily due to lower cash balances due to the use
of existing cash to support the ongoing construction activities.

Interest  expense  increased in the first quarter of 2000 to $11,761 compared to
$11,019 for the same period in 1999.  Capitalized  interest in the first quarter
2000  increased  to $11,363  from  $8,210 for the same  period in 1999,  a 38.4%
increase.  The increase in capitalized  interest results from higher  cumulative
development  and  construction  costs.  Amortization of bond issue costs for the
three-month period ended March 31, 2000 was $366,  compared to $331 for the same
period in 1999. Interest expense,  capitalized interest and amortization of bond
issue costs relate to the notes and bonds  payable  issued by the Company in the
fourth quarter of 1996.

Liquidity and Capital Resources:
-------------------------------

CE Casecnan  financed a portion of the costs of the Casecnan Project through the
issuance of $125,000 of its 11.45%  Senior  Secured  Series A Notes due 2005 and
$171,500 of its 11.95% Senior Secured Series B Bonds due 2010 and $75,000 of its
Secured  Floating  Rate Notes due 2002 (the  "Securities"),  pursuant to a Trust
Indenture dated as of November 27, 1995, as amended to date.

The  Securities  are senior debt of the Company and are secured by an assignment
of all revenues  that will be received from the Casecnan  Project,  a collateral
assignment  of all  material  contracts,  a lien on any  accounts  and  funds on
deposit  under a Deposit  and  Disbursement  Agreement,  a pledge of 100% of the
capital  stock  of the  Company  and a lien on all  other  material  assets  and
property  interest of the Company.  The Securities rank pari passu with and will
share the collateral on a pro rata basis with other senior secured debt, if any.

The Securities are subject to certain optional and mandatory  redemption schemes
as provided for in the Trust Indenture.  The Securities contain customary events
of default and restrictive covenants.


<PAGE>



                   CE CASECNAN WATER AND ENERGY COMPANY, INC.

                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF

                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

                                 (in thousands)
                        --------------------------------

Liquidity and Capital Resources (continued):
-------------------------------------------

The  Casecnan   Project  is  being   constructed   pursuant  to  a  fixed-price,
date-certain,  turnkey  engineering,  procurement and  construction  contract to
complete the construction of the Casecnan Project (the "EPC Contract"). The work
under  the EPC  Contract  is  being  conducted  by a  consortium  consisting  of
Cooperativa  Muratori  Cementisti CMC di Ravenna and Impresa Pizzarotti & C. Spa
working  together  with  Siemens  A.G.,  Sulzer  Hydro Ltd.,  Black & Veatch and
Colenco Power Engineering Ltd. (collectively, the "Contractor").

In November 20, 1999,  the EPC  Contract,  was amended to extend the  Guaranteed
Substantial  Completion  Date  for the  Casecnan  Project  to  March  31,  2001.
Accordingly,  the Casecnan Project is now expected to become  operational by the
second quarter of 2001.

Certain information included in this report contains forward-looking  statements
made pursuant to the Private  Securities  Litigation Reform Act of 1995 ("Reform
Act"). Such statements are based on current expectations and involve a number of
known and unknown risks and  uncertainties  that could cause the actual  results
and  performance of the Company to differ  materially  from any expected  future
results or performance, expressed or implied, by the forward-looking statements.
In connection with the safe harbor provisions of the Reform Act, the Company has
identified   important  factors  that  could  cause  actual  results  to  differ
materially from such expectations,  including development uncertainty, operating
uncertainty,  acquisition uncertainty,  uncertainties relating to doing business
outside  of  the  United   States,   uncertainties   relating  to  domestic  and
international economic and political conditions and uncertainties  regarding the
impact of regulations,  changes in government policy,  industry deregulation and
competition. Reference is made to all of the Company's SEC filings, incorporated
herein by reference,  for a description of such factors.  The Company assumes no
responsibility to update forward-looking information contained herein.


<PAGE>


CE CASECNAN WATER AND ENERGY COMPANY, INC.

PART II - OTHER INFORMATION

Item 1 - Legal proceedings.

         Not applicable.

Item 2 - Changes in Securities.
------

         Not applicable.

Item 3 - Defaults on Senior Securities.
------

         Not applicable.

Item 4 - Submission of Matters to a Vote of Security Holders.

         Not applicable.

Item 5 - Other Information.
------

         Not applicable.

Item 6 - Exhibits and Reports on Form 8-K.

     (a) Exhibits:

         Exhibit 27 - Financial Data Schedule

     (b) Reports on Form 8-K:

         Not applicable.

<PAGE>


SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

                                     CE CASECNAN WATER AND ENERGY COMPANY, INC.


Date:  May 12, 2000                      /s/  Patrick J. Goodman
                                          -----------------------
                                              Patrick J. Goodman
                                              Senior Vice President &
                                              Chief Financial Officer