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

                                  JUNE 30, 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, 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 June 30,
2000.


<PAGE>

                   CE CASECNAN WATER AND ENERGY COMPANY, INC.

                                    Form 10-Q

                                  June 30, 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, June 30, 2000 and December 31, 1999                            4

Statements  of  Operations  for the Three and Six Months Ended
June 30, 2000 and 1999 and for the period from the date of inception
(September 21, 1994) to June 30, 2000                                          5

Statements of Cash Flows for the Six Months Ended
June 30, 2000 and 1999 and for the period from the
date of inception (September 21, 1994) to June 30, 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 sheet of CE Casecnan Water and Energy
Company,  Inc. (a company in the development stage) as of June 30, 2000, and the
related  statements  of  operations  for the three and six months ended June 30,
2000 and 1999 and the period from the date of inception  (September 21, 1994) to
June 30,  2000,  and cash flows for the six months  ended June 30, 2000 and 1999
and the period from the date of inception (September 21, 1994) to June 30, 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
for the year  ended  December  31,  1999,  and for the  period  from the date of
inception  (September 21, 1994) to December 31, 1999,  changes in  stockholders'
equity for the period from 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
July 10, 2000


<PAGE>


                   CE CASECNAN WATER AND ENERGY COMPANY, INC.

                                 BALANCE SHEETS

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

                                                                           June 30,                    December 31,
                                                                             2000                          1999
                                                                     ---------------------        ---------------------
                                                                         (unaudited)
ASSETS
<S>                                                                  <C>
Cash and cash equivalents                                            $                                  $     2,318
Restricted cash and investments                                                   111,946                   164,239
Accrued interest and other receivables                                                804                     1,750
Bond issue costs - net                                                              8,277                     9,010
Development and construction costs                                                373,003                   337,983
Deferred income tax                                                                 6,288                     7,098
                                                                     ---------------------     ---------------------

   Total assets                                                               $   503,197               $   522,398
                                                                     =====================     =====================

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:
Accounts payable and accrued expenses                                         $    15,409            $ 41,633
Advances from affiliates                                                           14,241                    10,024
Notes and bonds payable                                                           371,500                   371,500
                                                                     ---------------------     ---------------------

   Total liabilities                                                              401,150                   423,157
                                                                     ---------------------     ---------------------
Stockholders' equity:
Common stock - par value $0.038 per share
Additional paid-in capital                                                        123,807                   123,807
Deficit                                                                          (21,789)                  (24,595)
                                                                     ---------------------     ---------------------
Total stockholders' equity                                                        102,047                    99,241
                                                                     ---------------------     ---------------------

   Total liabilities and stockholders' equity                                 $   503,197      $           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>
                                                                                                         From the Date
                                             Three Months Ended                   Six Months Ended        of Inception
                                                   June 30                             June 30         (September 21,1994)
                                             2000           1999           2000          1999            to June 30,2000
                                       -------------   -------------  --------------  -------------  --------------------

Revenues:

<S>                                        <C>             <C>        <C>             <C>            <C>
Interest income                            $  2,195        $  2,991   $       4,509   $     6,293     $           83,588
                                       -------------   -------------  --------------  ------------   --------------------

Total revenues                                2,195           2,991           4,509         6,293                 83,588
                                       -------------   -------------  --------------  ------------   --------------------

Costs and expenses:
Interest expense                             11,703          11,717          23,830        23,067                214,450
Less capitalized interest                   (11,574)         (9,133)        (22,937)      (17,343)              (102,785)
                                       -------------   -------------  --------------  ------------   --------------------

Total costs and expenses                        129           2,584             893         5,724                111,665
                                       -------------   -------------  --------------  ------------   --------------------

Income (loss) before income tax
                                              2,066             407           3,616           569                (28,077)

Benefit from (provision for) deferred
income tax                                     (463)            (79)           (810)         (127)                 6,288
                                       -------------   -------------  --------------  ------------   --------------------

Net income (loss)                          $  1,603          $  328   $       2,806   $       442    $           (21,789)
                                       =============   =============  ==============  ============   ====================

Net income (loss) per share                $   2.09         $  0.43   $        3.66   $      0.58    $            (30.11)
                                       =============   =============  ==============  ============   ====================

Average number shares outstanding           767,162         767,162         767,162       767,162                723,601
                                       =============   =============  ==============  ============   ====================
</TABLE>

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


<PAGE>


                   CE CASECNAN WATER AND ENERGY COMPANY, INC.

                       UNAUDITED STATEMENTS OF CASH FLOWS

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

<TABLE>
<CAPTION>
                                                                                                               From the Date of
                                                                         Six Months Ended                          Inception
                                                                             June 30                         (September 21, 1994)
                                                                   2000                    1999                to June 30, 2000
                                                             --------------------    -----------------       -------------------
Cash flows from operating activities:

<S>                                                          <C>                     <C>                     <C>
Net income (loss)                                            $             2,806     $            442        $            (21,789)
Adjustments to reconcile net income (loss) to net
Provision for (benefit from) deferred income tax                                                  127                      (6,288)
Amortization of bond issue costs                                             733                  662                       5,313
Decrease (increase) in accrued interest and other
Increase (decrease) in accounts payable and accrued
expenses                                                                     328                 (165)                      8,978
                                                             --------------------    -----------------       ---------------------
Net cash provided by (used in) operating activities                        5,623                1,952                     (14,590)
                                                             --------------------    -----------------       ---------------------

Cash flows from investing activities:

Additions to development and construction costs                          (35,020)             (33,146)                   (373,003)
Decrease (increase) in restricted cash and investments
Increase (decrease) in accounts payable and
  accrued expenses related to development  and
  construction activities                                                (26,552)             (16,785)                      6,431
                                                             --------------------    -----------------       ---------------------
Net cash used in investing activities                                     (9,279)              (5,093)                   (478,518)
                                                             --------------------    -----------------       ---------------------

Cash flows from financing activities:

Increase in advances from an affiliate                                     4,217                3,291                      14,241
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                                  4,217                3,291                     495,987
                                                             --------------------    -----------------       ---------------------
Net increase in cash and cash
  equivalents                                                                561                  150                       2,879
Cash and cash equivalents at beginning of period                           2,318                1,996                           -
                                                             --------------------    -----------------      ----------------------
Cash and cash equivalents at end of period                   $             2,879     $          2,146        $              2,879
                                                             ====================    =================       =====================
Supplemental disclosure:
Interest paid (net of amount capitalized)                    $                34     $          5,228        $            100,543
                                                             ====================    =================       =====================
</TABLE>

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

                   CE CASECNAN WATER AND ENERGY COMPANY, INC.

                          NOTES TO FINANCIAL STATEMENTS

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

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 June 30, 2000 and the results of
operations  for the three and six months  ended  June 30,  2000 and 1999 and the
period from the date of inception  (September  21,  1994) to June 30, 2000,  and
cash flows for the six months  ended June 30,  2000 and 1999 and the period from
the date of inception (September 21, 1994) to June 30, 2000.

The results of  operations  for the three and six months ended June 30, 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  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 second
quarter  of 2000 to  $2,195  from  $2,991 in the same  period  in 1999,  a 26.6%
decrease.  For the six months ended June 30, 2000,  interest income decreased to
$4,509 from $6,293 in the same period in 1999, a 28.3% decrease. These decreases
are primarily due to lower cash balances as a result of the use of existing cash
to support the ongoing development and construction activities.

Interest expense inclusive of bond issue costs in the second quarter of 2000 was
$11,703  compared  to $11,717  for the same  period in 1999.  For the six months
ended  June 30,  2000 and  1999,  interest  expense  was  $23,830  and  $23,067,
respectively.  Amortization  of bond  issue  costs  for the  three and six month
periods  ended June 30, 2000 was $366 and $733,  respectively,  compared to $331
and $662 for the same period in 1999. Capitalized interest in the second quarter
of 2000  increased  to $11,574  from $9,133 for the same period in 1999, a 26.7%
increase. For the six months ended June 30, 2000, capitalized interest increased
to $22,937  from  $17,343 for the same  period in 1999,  a 32.3%  increase.  The
increases in capitalized  interest resulted from higher  cumulative  development
and construction costs 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,
$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.

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.


<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").

On 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: _________, 2000             /s/  Patrick J. Goodman
                                       -----------------------
                                       Patrick J. Goodman

                                       Senior Vice President &
                                       Chief Financial Officer