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

                               SEPTEMBER 30, 2001

                           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, Metro 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 November
13, 2001.


<PAGE>


                   CE CASECNAN WATER AND ENERGY COMPANY, INC.

                                    Form 10-Q

                               September 30, 2001
                                  _____________

                                 C O N T E N T S

PART I:  FINANCIAL INFORMATION                                            Page

Item 1.           Financial Statements

Report of Independent Accountants                                             3

Balance Sheets, September 30, 2001 and December 31, 2000                      4

Statements of Operations for the Three and Nine Months Ended
September 30, 2001 and 2000 and for the period from the date of inception
(September 21, 1994) to September 30, 2001                                    5

Statements of Cash Flows for the Nine Months Ended
September 30, 2001 and 2000 and for the period from the
date of inception (September 21, 1994) to September 30, 2001                  6

Notes to Financial Statements                                                 7

Item 2.         Management's Discussion and Analysis of Financial Condition
                and Results of Operations                                 11-14

PART II:  OTHER INFORMATION

Item 1.         Legal Proceedings                                            15
Item 2.         Changes in Securities                                        15
Item 3.         Defaults on Senior Securities                                15
Item 4.         Submission of Matters to a Vote of Security Holders          15
Item 5.         Other Information                                            15
Item 6.         Exhibits and Reports on Form 8-K                             15

Signatures                                                                   16

<PAGE>


Report of Independent Accountants

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




We have reviewed the accompanying  balance sheet of CE Casecnan Water and Energy
Company, Inc. (a company in the development stage) as of September 30, 2001, and
the  related  statements  of  operations  for the  three and nine  months  ended
September  30, 2001 and of cash flows for the nine months  ended  September  30,
2001.  These  financial  statements  are  the  responsibility  of the  Company's
management.

A review of interim financial  information  consists principally of obtaining an
understanding   of  the  system  for  the   preparation  of  interim   financial
information,  applying  analytical  review  procedures to the financial data and
making inquiries of persons responsible for financial and accounting matters. It
is  substantially  less in scope than an audit made in accordance with generally
accepted  auditing  standards 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.


JOAQUIN CUNANAN & CO.
A PricewaterhouseCoopers Member Firm

Makati City, Philippines
October 16, 2001


<PAGE>


                   CE CASECNAN WATER AND ENERGY COMPANY, INC.

                                 BALANCE SHEETS
                       (Amounts in thousands U.S. Dollars,
                 except number of shares and per share amounts)

<TABLE>
<CAPTION>
==================================================================================== =================== =================
                                                                                       September 30,       December 31,
                                                                                            2001               2000
                                                                                        (Unaudited)         (Audited)
--------------------------------------------------------------------------------------------------------------------------

                                                       A S S E T S

<S>                                                                                      <C>                 <C>
Cash                                                                                     $       382         $       703
Restricted cash and short-term investments                                                         -                   1
Accrued interest and other receivables                                                            48                 573
Restricted investments                                                                             -              47,922
Bond issue costs, net                                                                          7,112               8,315
Development and construction costs                                                           476,444             419,163
Deferred income tax asset                                                                      5,648               5,696
------------------------------------------------------------------------------------ ------------------- -----------------
                                                                                         $   489,634         $   482,373
==================================================================================== =================== =================

                                          LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts payable and accrued expenses                                                    $    20,116         $     6,525
Payable to affiliates                                                                         27,128              19,000
Notes and bonds payable                                                                      338,125             352,750
------------------------------------------------------------------------------------ ------------------- -----------------
                                                                                             385,369             378,275
------------------------------------------------------------------------------------ ------------------- -----------------
Commitments and contingencies (Note 2)
Capital stock
     Authorized - 2,148,000 shares at $0.038 par value per share
     Issued and outstanding - 767,162 shares                                                      29                  29
Additional paid-in capital                                                                   123,807             123,807
Accumulated deficit                                                                          (19,571)            (19,738)
------------------------------------------------------------------------------------ ------------------- -----------------
                                                                                             104,265             104,098
------------------------------------------------------------------------------------ ------------------- -----------------
                                                                                         $   489,634         $   482,373
==================================================================================== =================== =================
</TABLE>

   (The accompanying notes are an integral part of these financial statements)

<PAGE>

                   CE CASECNAN WATER AND ENERGY COMPANY, INC.

                            STATEMENTS OF OPERATIONS
                       (Amounts in thousands U.S. Dollars,
                 except number of shares and per share amounts)

<TABLE>
<CAPTION>
  =========================================== ================================ ============================== ===================
                                                                                                                From the date
                                                                                                                 of inception
                                                    Three months ended               Nine months ended            (September
                                                       September 30                    September 30              21,1994) to
                                              ---------------- --------------- --------------- --------------   September 30,
                                                   2001             2000            2001           2000              2001
                                                (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)      (Unaudited)
  ------------------------------------------- ---------------- --------------- --------------- -------------- -------------------
  OTHER INCOME
<S>                                            <C>               <C>            <C>              <C>                <C>
       Interest                                $        89       $    1,858     $       958      $   6,367          $   87,642
  ------------------------------------------- ---------------- --------------- --------------- -------------- -------------------
                                                        89            1,858             958          6,367              87,642
  ------------------------------------------- ---------------- --------------- --------------- -------------- -------------------
  COST AND EXPENSES
       Interest                                     10,312           11,612          32,162         34,709             264,281
       Amortization of bond issue costs                401              366           1,203          1,099               8,053
       Capitalized interest and bond
          issue costs                              (10,713)         (11,978)        (33,365)       (34,915)           (160,667)
       Miscellaneous                                   312              212             743            212               1,194
  ------------------------------------------- ---------------- --------------- --------------- -------------- -------------------
                                                       312              212             743          1,105             112,861
  ------------------------------------------- ---------------- --------------- --------------- -------------- -------------------
  INCOME (LOSS) BEFORE
     INCOME  TAX                                      (223)           1,646             215          5,262             (25,219)
  BENEFIT FROM
     (PROVISION FOR)
     DEFERRED INCOME TAX                                50             (369)            (48)        (1,179)              5,648
  ------------------------------------------- ---------------- --------------- --------------- -------------- -------------------
  NET INCOME (LOSS)                            $      (173)      $    1,277     $      (167)     $   4,083          $  (19,571)
  =========================================== ================ =============== =============== ============== ===================
  NET INCOME (LOSS) PER SHARE                  $     (0.23)      $     1.66     $     (0.22)     $    5.32          $   (26.76)
  =========================================== ================ =============== =============== ============== ===================
  AVERAGE NUMBER OF SHARES
     OUTSTANDING                                   767,162          767,162         767,162        767,162             731,334
  =========================================== ================ =============== =============== ============== ===================
</TABLE>

   (The accompanying notes are an integral part of these financial statements)

<PAGE>

                   CE CASECNAN WATER AND ENERGY COMPANY, INC.

                            STATEMENTS OF CASH FLOWS
                       (Amounts in thousands U.S. Dollars)
<TABLE>
<CAPTION>
======================================================================== ================================ ====================
                                                                                                             From the date
                                                                                                             of inception
                                                                                Nine months ended           (September 21,
                                                                                  September 30,                1994) to
                                                                         --------------- ----------------    September 30,
                                                                              2001            2000               2001
                                                                          (Unaudited)      (Unaudited)        (Unaudited)
------------------------------------------------------------------------ --------------- ---------------- --------------------
CASH FLOWS FROM OPERATING ACTIVITIES
<S>                                                                        <C>              <C>                <C>
     Net income (loss)                                                     $      167       $   4,083          $  (19,571)
     Adjustments to reconcile net income (loss)
        to net cash  provided by (used in) operating
        activities:
     Provision for (benefit from) deferred income tax                              48           1,179              (5,648)
     Amortization of bond issue costs                                           1,203           1,099               8,053
     Decrease (increase) in accrued interest
        and other receivables                                                     525           1,233                 (48)
     Increase (decrease) in accounts payable
        and accrued expenses                                                      (96)             63                 214
------------------------------------------------------------------------ --------------- ---------------- --------------------
     Net cash provided by (used in) operating activities                        1,847           7,657             (17,000)
------------------------------------------------------------------------ --------------- ---------------- --------------------
CASH FLOWS FROM INVESTING ACTIVITIES
     Additions to development and construction costs                          (57,281)        (56,447)           (476,444)
     Decrease in restricted cash and short-term investments                         1          42,064                   -
     Decrease in restricted investments                                        47,922          23,994                   -
     Increase (decrease) in accounts payable
        and accrued expenses related to development
        and  construction activities                                           13,687         (22,361)             19,902
------------------------------------------------------------------------ --------------- ---------------- --------------------
     Net cash provided by (used in) investing activities                        4,329         (12,750)           (456,542)
------------------------------------------------------------------------ --------------- ---------------- --------------------
CASH FLOWS FROM FINANCING ACTIVITIES
     Increase in advances from affiliates                                       8,128           5,610              27,128
     Issuance of bonds payable                                                      -               -             371,500
     Repayment of bonds payable                                               (14,625)              -             (33,375)
     Proceeds from issuance of capital stock                                        -               -             123,836
     Bond issue costs                                                               -               -             (15,165)
------------------------------------------------------------------------ --------------- ---------------- --------------------
     Net cash provided by (used in) financing activities                       (6,497)          5,610             473,924
------------------------------------------------------------------------ --------------- ---------------- --------------------
NET INCREASE (DECREASE) IN CASH AND CASH
      EQUIVALENTS                                                                (321)            517                 382
CASH AND CASH EQUIVALENTS AT BEGINNING
     OF PERIOD                                                                    703           2,318                   -
------------------------------------------------------------------------ --------------- ---------------- --------------------
CASH AND CASH EQUIVALENTS AT END OF
     PERIOD                                                                $      382       $   2,835          $      382
======================================================================== =============== ================ ====================
SUPPLEMENTAL DISCLOSURE OF CASH
   FLOWS INFORMATION:
     INTEREST PAID (NET OF AMOUNT
        CAPITALIZED)                                                       $  (10,518)      $  (9,981)         $   88,732
======================================================================== =============== ================ ====================
</TABLE>

   (The accompanying notes are an integral part of these financial statements)

<PAGE>

CE CASECNAN WATER AND ENERGY COMPANY, INC.

NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
(Amounts in thousands U.S. dollars)


Note 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 of the Company as of September 30, 2001
and the results of its operations for the three and nine months ended  September
30, 2001 and 2000 and for the period from the date of inception  (September  21,
1994) to  September  30,  2001,  and its cash  flows for the nine  months  ended
September  30,  2001  and  2000 and for the  period  from the date of  inception
(September 21, 1994) to September 30, 2001.

The results of operations for the three and nine months ended September 30, 2001
and 2000 are not  necessarily  indicative  of the results to be expected for the
full year.

Note 2 - Commitments and Contingencies

In November 1995, the Company closed the financing and commenced construction of
the Casecnan Project, a combined irrigation and 150 megawatt hydroelectric power
generation  project  located in the  central  part of the island of Luzon in the
Republic of the Philippines.

The Casecnan Project was initially being constructed  pursuant to a fixed-price,
date-certain,  turnkey  construction  contract (the "Hanbo Contract") on a joint
and several  basis by Hanbo  Corporation  ("Hanbo")  and Hanbo  Engineering  and
Construction Co., Ltd. ("HECC"), both of which are South Korean corporations. As
of May 7, 1997,  the Company  terminated  the Hanbo  Contract due to defaults by
Hanbo and HECC including the insolvency of each such company.  On the same date,
the Company entered into a new fixed-price,  date certain,  turnkey engineering,
procurement  and  construction  contract to  complete  the  construction  of the
Casecnan Project (the  "Replacement  Contract").  The work under the Replacement
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").


<PAGE>

After a series of litigations between the contracting parties in connection with
the termination of the Hanbo Contract, the Company received $90,000 as an out of
court settlement.  The amount received was shown as accounts payable and accrued
expenses in the balance  sheets and was  released  periodically  to offset costs
that were incurred over the  construction  period.  The amounts  offset  against
construction  costs for 2000,  1999 and 1998 were $30,000,  $44,000 and $16,000,
respectively.

On  November  20,  1999,  the  Replacement  Contract  was  amended to extend the
Guaranteed  Substantial  Completion  Date for the Casecnan  Project to March 31,
2001. This amendment was approved by the lenders' independent engineer under the
Casecnan  Indenture.  In January 2001, the Company  received a working  schedule
from the  Contractor  that showed a completion  date of August 31, 2001. In July
2001, the Company  received new schedule  information  from the Contractor which
extends the expected  Substantial  Completion Date for the Casecnan Project from
August 31, 2001 to September 30, 2001.  As a result of delays in  commissioning,
the  Contractor  currently  expects  to  reach  Substantial  Completion  in late
December 2001.

The Contractor is still  contractually  obligated either to complete the Project
by March 31, 2001 or to pay delay liquidated damages. As a result of the current
expected Substantial Completion Date in late December,  however, the Company has
sought and  obtained  approval  from the  lenders'  independent  engineer  for a
revised construction  schedule under the Casecnan Indenture.  In connection with
the current  schedule,  the ultimate  parent  company of CE Casecnan  previously
agreed to make  available  up to  $11,600  of  additional  funds  under  certain
conditions pursuant to a Shareholder Support Letter dated February 8, 2001 ( the
"Shareholder  Support  Letter") to cover  additional  costs  resulting  from the
Contractor's delay. Due to the additional delay in completion of the project, CE
Casecnan will not receive expected  operating revenues from the Casecnan Project
prior to November 15, 2001. As a result,  CE Casecnan  will not have  sufficient
funds available to it for purposes of making the principal and interest payments
which will become due on November 15, 2001 on the debt  securities  issued by CE
Casecnan in November  1995 (the "Debt  Securities")  unless its ultimate  parent
agrees to fund the expected shortfall amount which is currently  estimated to be
approximately  $33,000.  CE Casecnan  expects that its ultimate  parent,  or its
affiliates,  will make the necessary funds available to it to meet the principal
and interest  payments due on November 15, 2001.  Assuming such funding is made,
CE Casecnan  believes that the funds available to it are reasonably  expected to
be sufficient to fund the costs of reaching completion of the Casecnan Project.

On February 12, 2001, the Contractor  filed a Request for  Arbitration  with the
International  Chamber  of  Commerce  seeking  an  extension  of the  Guaranteed
Substantial  Completion Date by up to 153 days through August 31, 2001 resulting
from various alleged force majeure  events,  including the collapse of the surge
shaft. In a March 20, 2001 Supplement to Request for Arbitration, the Contractor
also seeks compensation for alleged additional costs of approximately  $4,000 it

<PAGE>

incurred  from the claimed  force  majeure  events to the extent it is unable to
recover from its  insurer.  On April 20, 2001,  the  Contractor  filed a further
supplement  seeking an  additional  approximately  $62,000  in  damages  for the
alleged force majeure event (and geologic conditions) related to the collapse of
the surge shaft.  CE Casecnan  believes such  allegations and claims are without
merit and is vigorously  defending the Contractor's  claims.  The arbitration is
being  conducted  applying  New  York  law  and  pursuant  to the  rules  of the
International Chamber of Commerce with venue in London, England.

On June 25, 2001, the arbitration tribunal temporarily enjoined CE Casecnan from
making  calls on the demand  guaranty  posted by Banca di Roma in support of the
Contractor's  obligations to CE Casecnan for delay liquidated damages.  Hearings
on the force  majeure  claims were held in London from July 2 to 14,  2001,  and
hearings on the Contractor's  April 20, 2001 supplement were held in London from
September 24 to October 3, 2001. The tribunal is currently  deliberating  on the
matters and reviewing the injunction. The tribunal is currently required to rule
by February 28, 2002.

Under the Project Agreement,  the Company is liable to pay NIA $13.5 per day for
each day of delay in completion of the Casecnan  Project  beyond the date NIA is
able to accept  delivery of water and  electrical  energy from the Project.  The
transmission line has been completed and NIA has recently completed installation
and testing of the Project's  metering  equipment.  Accordingly,  NIA may assert
liquidated damages accrue from the date such testing was completed.

The  Company's  ability  to make  payments  on any of its  existing  and  future
obligations  is  dependent  on  NIA's  and  the  Republic  of  the  Philippines'
performance of their obligations under the Project Agreement and the Performance
Undertaking,  respectively.  Except to the extent expressly  provided for in the
Shareholder  Support  Letter,  no  shareholders,  partners or  affiliates of the
Company, including MidAmerican,  and no directors,  officers or employees of the
Company  will  guarantee  or be in any way liable for  payment of the  Company's
obligations.  As a result, payment of the Company's obligations depends upon the
availability  of  sufficient  revenues  from the  Company's  business  after the
payment of operating expenses.

NIA's payments of obligations  under the Project Agreement will be substantially
denominated  in United States  dollars and are expected to be the Company's sole
source of operating  revenues.  Because of the Company's  dependence on NIA, any
material failure of NIA to fulfill its obligations  under the Project  Agreement
and any  material  failure of the  Republic  of the  Philippines  to fulfill its
obligations  under the Performance  Undertaking would  significantly  impair the
ability of the Company to meet its existing and future obligations.

<PAGE>

The Philippine  Congress  recently passed the Electric Power Industry Reform Act
which  is aimed at  restructuring  the  electric  industry,  privatizing  of the
National Power  Corporation  and introducing a competitive  electricity  market,
among others. The passage of the bill may have an impact on the Company's future
operations  and  the  industry  as a  whole,  the  effect  of  which  is not yet
determinable and estimable.

Note 3 - Other footnote information

Reference  is  made  to  the  Company's  December  31,  2000  audited  financial
statements included in Form 10-K that provides  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 the
report.


<PAGE>

CE CASECNAN WATER AND ENERGY COMPANY, INC.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Amounts in thousands U.S. Dollars)

Results of Operations

The  Company is in the  construction  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 third
quarter of 2001 to $89 from $1,858 in the same period in 2000, a 95.2% decrease.
For the nine months ended September 30, 2001,  interest income decreased to $958
from $6,367 in the same period in 2000, an 85.0%  decrease.  These decreases are
primarily due to lower cash and restricted  investments  balances as a result of
the use of  existing  cash and  restricted  investments  to support  the ongoing
development and construction activities.

Interest  expense  inclusive  of  amortization  of bond issue costs in the third
quarter of 2001 was $10,713 compared to $11,978 for the same period in 2000. For
the nine months ended September 30, 2001 and 2000, interest expense inclusive of
amortization  of bond issue  costs was $33,365 and  $35,808,  respectively.  The
decrease  of $2,443 is mainly due to the decline in the bonds  payable  balance.
Amortization  of bond issue  costs for the three and  nine-month  periods  ended
September  30,  2001 were $401 and  $1,203,  respectively,  compared to $366 and
$1,099 for the same period in 2000. Capitalized interest in the third quarter of
2001  decreased  to $10,713  from  $11,978 for the same period in 2000,  a 10.6%
decrease.  For the nine months ended  September 30, 2001,  capitalized  interest
decreased to $33,365 from $34,915 for the same period in 2000, a 4.4%  decrease.
The decrease in  capitalized  interest  resulted  from lower  interest  expense.
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 1995.

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,
$171,500 of its 11.95% Senior Secured Series B Bonds due 2010 and $75,000 of its
Senior Secured Floating Rate Notes due 2002 (the  "Securities"),  pursuant to an
indenture (the "Indenture") dated as of November 27, 1995, as amended to date.

<PAGE>

The  Securities  are senior debt of the Company and are secured by a  collateral
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. 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
provisions as defined in the Indenture.  The Securities contain customary events
of default and restrictive covenants.

The Casecnan Project was initially being constructed  pursuant to a fixed-price,
date-certain,  turnkey  construction  contract (the "Hanbo Contract") on a joint
and several  basis by Hanbo  Corporation  ("Hanbo")  and Hanbo  Engineering  and
Construction Co., Ltd. ("HECC"), both of which are South Korean corporations. As
of May 7, 1997,  the Company  terminated  the Hanbo  Contract due to defaults by
Hanbo and HECC including the insolvency of each such company.  On the same date,
the Company entered into a new fixed-price,  date certain,  turnkey engineering,
procurement  and  construction  contract to  complete  the  construction  of the
Casecnan Project (the  "Replacement  Contract").  The work under the Replacement
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").

After a series of litigations between the contracting parties in connection with
the termination of the Hanbo Contract, the Company received $90,000 as an out of
court settlement.  The amount received was shown as accounts payable and accrued
expenses in the balance  sheets and was  released  periodically  to offset costs
which were incurred over the  construction  period.  The amounts  offset against
construction  costs for 2000,  1999 and 1998 were $30,000,  $44,000 and $16,000,
respectively.

On  November  20,  1999,  the  Replacement  Contract  was  amended to extend the
Guaranteed  Substantial  Completion  Date for the Casecnan  Project to March 31,
2001. This amendment was approved by the lenders' independent engineer under the
Casecnan  Indenture.  In January 2001, the Company  received a working  schedule
from the  Contractor  that showed a completion  date of August 31, 2001. In July
2001, the Company  received new schedule  information  from the Contractor which
extends the expected  Substantial  Completion Date for the Casecnan Project from
August 31, 2001 to September 30, 2001.  As a result of delays in  commissioning,
the  Contractor  currently  expects  to  reach  Substantial  Completion  in late
December 2001.


<PAGE>

The Contractor is still  contractually  obligated either to complete the Project
by March 31, 2001 or to pay delay liquidated damages. As a result of the current
expected Substantial Completion Date in late December,  however, the Company has
sought and  obtained  approval  from the  lenders'  independent  engineer  for a
revised construction  schedule under the Casecnan Indenture.  In connection with
the current  schedule,  the ultimate  parent  company of CE Casecnan  previously
agreed to make  available  up to  $11,600  of  additional  funds  under  certain
conditions  pursuant to a Shareholder Support Letter dated February 8, 2001 (the
"Shareholder  Support  Letter") to cover  additional  costs  resulting  from the
Contractor's delay. Due to the additional delay in completion of the project, CE
Casecnan will not receive expected  operating revenues from the Casecnan Project
prior to November 15, 2001. As a result,  CE Casecnan  will not have  sufficient
funds available to it for purposes of making the principal and interest payments
which will become due on November 15, 2001 on the debt  securities  issued by CE
Casecnan in November  1995 (the "Debt  Securities")  unless its ultimate  parent
agrees to fund the expected shortfall amount which is currently  estimated to be
approximately  $33,000.  CE Casecnan  expects that its ultimate  parent,  or its
affiliates,  will make the necessary funds available to it to meet the principal
and interest  payments due on November 15, 2001.  Assuming such funding is made,
CE Casecnan  believes that the funds available to it are reasonably  expected to
be sufficient to fund the costs of reaching completion of the Casecnan Project.

On February 12, 2001, the Contractor  filed a Request for  Arbitration  with the
International  Chamber  of  Commerce  seeking  an  extension  of the  Guaranteed
Substantial  Completion Date by up to 153 days through August 31, 2001 resulting
from various alleged force majeure  events,  including the collapse of the surge
shaft. In a March 20, 2001 Supplement to Request for Arbitration, the Contractor
also seeks compensation for alleged additional costs of approximately  $4,000 it
incurred  from the claimed  force  majeure  events to the extent it is unable to
recover from its  insurer.  On April 20, 2001,  the  Contractor  filed a further
supplement  seeking an  additional  approximately  $62,000  in  damages  for the
alleged force majeure event (and geologic conditions) related to the collapse of
the surge shaft.  CE Casecnan  believes such  allegations and claims are without
merit and is vigorously  defending the Contractor's  claims.  The arbitration is
being  conducted  applying  New  York  law  and  pursuant  to the  rules  of the
International Chamber of Commerce with venue in London, England.

On June 25, 2001, the arbitration tribunal temporarily enjoined CE Casecnan from
making  calls on the demand  guaranty  posted by Banca di Roma in support of the
Contractor's  obligations to CE Casecnan for delay liquidated damages.  Hearings
on the force  majeure  claims were held in London from July 2 to 14,  2001,  and
hearings on the Contractor's  April 20, 2001 supplement were held in London from
September 24 to October 3, 2001. The tribunal is currently  deliberating  on the
matters and reviewing the injunction. The tribunal is currently required to rule
by February 28, 2002.

<PAGE>

Under the Project Agreement,  the Company is liable to pay NIA $13.5 per day for
each day of delay in completion of the Casecnan  Project  beyond the date NIA is
able to accept  delivery of water and  electrical  energy from the Project.  The
transmission line has been completed and NIA has recently completed installation
and testing of the Project's  metering  equipment.  Accordingly,  NIA may assert
liquidated damages accrue from the date such testing was completed.

The  Company's  ability  to make  payments  on any of its  existing  and  future
obligations  is  dependent  on  NIA's  and  the  Republic  of  the  Philippines'
performance of their obligations under the Project Agreement and the Performance
Undertaking,  respectively.  Except to the extent expressly  provided for in the
Shareholder  Support  Letter,  no  shareholders,  partners or  affiliates of the
Company, including MidAmerican,  and no directors,  officers or employees of the
Company  will  guarantee  or be in any way liable for  payment of the  Company's
obligations.  As a result, payment of the Company's obligations depends upon the
availability  of  sufficient  revenues  from the  Company's  business  after the
payment of operating expenses.

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:

         None.

     (b) Reports on Form 8-K:

          The  Company  issued a Current  report on Form 8-K dated July 10, 2001
          announcing  that  it  had  received  new  schedule  information  which
          extended the expected Substantial Completion Date from August 31, 2001
          to September 30, 2001.


<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: November 13, 2001         /s/  Patrick J. Goodman
                                Patrick J. Goodman
                                Senior Vice President & Chief Financial Officer