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, 1999

                   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.)

       6750 Ayala Avenue, 24th Floor
       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, 1999.
<PAGE>
           CE CASECNAN WATER AND ENERGY COMPANY, INC.

                            Form 10-Q

                          June 30, 1999
                          _____________

                         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, 1999 and December 31, 1998                         4

Statements of Operations for the Three and Six Months Ended
June 30, 1999 and 1998 and for the period from inception
(September 21, 1994) to June 30, 1999                                       5

Statements of Cash Flows for the Six Months Ended June  30,  1999
and 1998 and for the period from inception (September 21, 1994) to June
30, 1999                                                                    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                                                   11
Item 2. Changes in Securities                                               11
Item 3. Defaults on Senior Securities                                       11
Item 4. Submission of Matters to a Vote of Security Holders                 11
Item 5. Other Information                                                   11
Item 6. Exhibits and Reports on Form 8-K                                    11

Signatures                                                                  12

Exhibit 27                                                                  13

<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,  1999, and the  related  statements  of
operations for the three and six months ended June 30,  1999  and
1998  and the period from inception (September 21, 1994) to  June
30,  1999, and cash flows for the six months ended June 30,  1999
and  1998  and the period from inception (September 21, 1994)  to
June  30, 1999. 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, 1998,
and the related statements of operations for the year ended December
31, 1998, and for the period from the date of inception (September
21, 1994) to December 31, 1998, changes in stockholders' equity for
the period from date of inception (September 21, 1994) to December
31, 1998 and cash flows for the year ended December 31, 1998, and
for the period from the date of inception (September 21, 1994) to
December 31, 1998 (not presented separately herein) and, in our
report dated January 20, 1999, we expressed an unqualified opinion
on those financial statements.

SYCIP GORRES VELAYO & CO.
An Arthur Andersen Member Firm


Makati City, Philippines
July 28, 1999
<PAGE>
           CE CASECNAN WATER AND ENERGY COMPANY, INC.

                         BALANCE SHEETS
        (in thousands, except share and per share amounts)
                ________________________________

                                              June 30,          December 31,
                                                1999                1998
ASSETS                                      (unaudited)
Cash                                       $   2,146             $  1,996
Restricted cash and short-term investments   100,581              145,958
Accrued interest and other receivables         2,128                3,014
Restricted investments                       122,880              122,341
Bond issue costs - net                         9,672               10,334
Development and construction costs           294,709              261,563
Deferred income tax                            8,100                8,227

   Total assets                            $ 540,216            $ 553,433


LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:
Accounts payable and accrued expenses      $  65,685            $  82,635
Advances from an affiliate                     4,047                  756
Notes and bonds payable                      371,500              371,500

 Total liabilities                           441,232              454,891

Stockholders' equity:
Common  stock  - par value  $0.038  per
share, authorized  2,148,000 shares,
issued and  outstanding 767,162 shares            29                   29
Additional paid-in capital                   123,807              123,807
Accumulated deficit                          (24,852)             (25,294)
Total stockholders' equity                    98,984               98,542

  Total  liabilities and  stockholders'
equity                                     $ 540,216            $ 553,433


  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 share and per share amounts)
                    ________________________________

                                                                 From Inception
                           Three Months Ended  Six Months Ended (Sept. 21, 1994)
                               June 30,            June 30,            to
                           1999      1998      1999      1998     June 30, 1999
Revenues:

Interest and other income $  2,991  $  4,960  $  6,293  $ 10,044     $ 73,716

Total revenues               2,991     4,960     6,293    10,044       73,716

Costs and expenses:
Interest expense  -  net
of interest capitalized      2,253     4,966     5,062    10,932      102,750
Amortization of bond
issue costs                    331       295       662       589        3,918

Total costs and expenses     2,584     5,261     5,724    11,521      106,668

Net income (loss) before
income tax                     407      (301)      569    (1,477)     (32,952)

Benefit  from (provision
for) deferred income tax       (79)       68      (127)      331        8,100

Net  income  (loss)   to
common stockholders        $   328    $ (233)   $  442  $ (1,146)   $ (24,852)

Net loss per share         $  0.43    $(0.30)   $ 0.58  $  (1.49)   $  (34.79)

Average number of common
shares outstanding         767,162   767,162   767,162   767,162      714,345

          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)
                  ________________________________

                                     Six Months Ended          From Inception
                                         June 30,          (September 21, 1994)
                                      1999       1998         to June 30, 1999
Cash flows from operating activities:
Net income (loss)                   $   442    $ (1,146)          $   (24,852)
Adjustments  to  reconcile  net
income (loss) to net cash provided
by (used in) operating activities:
Provision for (Benefit from)
 deferred income tax                    127        (331)               (8,100)
Amortization of bond issue costs        662         589                 3,918
Decrease (increase) in  accrued
interest and other receivables          886      (1,175)               (2,128)
Increase (decrease) in accounts
payable and accrued expenses           (165)        231                 8,485

Net  cash provided by (used in)
operating activities                   1,952     (1,832)              (22,677)

Cash flows from investing activities:
Additions to development and
construction costs                  (33,146)    (63,511)             (294,709)
Decrease (increase) in restricted
 cash and short-term investments     45,377      65,924               (99,001)
Decrease (increase) in
 restricted investments                (539)      3,434              (122,880)
Increase (decrease) in accounts
payable and accrued expenses
 related to development and
 construction activities            (16,785)      1,694                57,200
Net  cash provided by (used in)
investing activities                 (5,093)      7,541              (459,390)

Cash   flows   from   financing
activities:
Increase (decrease) in advances
 from an affiliate                    3,291      (3,729)                4,047
Issuance of bonds payable                 -           -               371,500
Proceeds from issuance of
 capital stock                            -           -                    29
Additional paid-in capital                -           -               123,807
Bond issue costs                          -           -               (13,590)

Net  cash provided by (used in)
financing activities                   3,291     (3,729)              485,793
Net increase in cash and cash
 equivalents                             150      1,980                 3,726
Cash at beginning of period            1,996        547                     -
Cash at end of period                $ 2,146    $ 2,527              $  3,726
Supplemental disclosure:
Interest paid (net of amount
capitalized)                         $ 5,228    $10,701              $ 97,072

   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 June 30,  1999  and  the
results  of  operations for the three and six months ended  June  30,
1999  and  1998  and the period from inception (September  21,  1994)
to  June  30,  1999,  and cash flows for the six  months  ended  June
30,  1999  and  1998  and  the period from inception  (September  21,
1994) to June 30, 1999.

The  results  of operations for the three and six months  ended  June
30,  1999  and  1998 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,  1998  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, except per share amounts)
                ________________________________

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  1999  to  $2,991
from  $4,960  in  the  same period in 1998, a  39.7%  decrease.   For
the  six  months  ended June 30, 1999, interest income  decreased  to
$6,293  from  $10,044 in the same period in 1998, a  37.4%  decrease.
These  decreases  are  primarily due to lower cash  balances  due  to
the  use  of  existing  cash  to  support  the  ongoing  construction
activities.

Interest   expense  in  the  second  quarter  of  1999  was   $11,386
compared  to  $11,500  for the same period  in  1998.   For  the  six
months  ended  June 30, 1999 and 1998, interest expense  was  $22,405
and  $23,044,  respectively.   Capitalized  interest  in  the  second
quarter  1999  increased to $9,133 from $6,534 for  the  same  period
in  1998,  a  39.8%  increase.  For the six  months  ended  June  30,
1999,  capitalized  interest increased to $17,343  from  $12,112  for
the  same  period  in  1998,  a  43.2% increase.   The  increases  in
capitalized   interest  result  from  higher  cumulative  development
and  construction costs.  Amortization of bond issue  costs  for  the
three  and  six  month  periods ended June 30,  1999  were  $331  and
$662,  respectively, compared to $295 and $589 for  the  same  period
in  1998.  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  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  received   from   the
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  schemes  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, except per share amounts)
                ________________________________

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").   Construction  of  the  Casecnan
Project is expected to be completed in 2000.

What  is  generally  known as the year 2000  ("Y2K")  computer  issue
arose   because   many  existing  computer  programs   and   embedded
systems   use  only  the  last  two  digits  to  refer  to  a   year.
Therefore,  those  computer  programs  do  not  properly  distinguish
between  a  year  that  begins with "20"  instead  of  "19".  If  not
corrected,   many  computer  applications  could   fail   or   create
erroneous  results.   The  failure to correct  a  material  Y2K  item
could  result  in  an  interruption in,  or  a  failure  of,  certain
normal    business   activities   or   operations    including    the
generation,   distribution   and   supply   of   electricity.    Such
failures   could  materially  and  adversely  affect  the   Company's
results of operations, liquidity and financial condition.

The  Y2K  issue  creates uncertainty for the Company  from  potential
issues  with  its  own computer systems and from third  parties  with
whom  the  Company  deals  on transactions worldwide.  The  Company's
operations   utilize  systems  and  equipment   provided   by   other
organizations.   As   a   result,  Y2K  readiness   of   contractors,
suppliers,  vendors,  service providers  or  customers  could  impact
the  Company's  operations. The Company is  assessing  the  readiness
of  such  constituent  entities and the  impacts  on  those  entities
that  rely  upon  the Company's services. The Company  is  unable  to
determine  at  this  time whether the consequences  of  Y2K  failures
of  third  parties  will  have a material  impact  on  the  Company's
results of operations, liquidity, or financial condition.

The  Company  has  commenced, for all of its information  systems,  a
Y2K   date   conversion  project  to  address  all   necessary   code
changes,  testing  and implementation in order  to  resolve  the  Y2K
issue.   The  Company has identified and assessed  substantially  all
of  its  IT  and  non-IT systems and is currently in the  process  of
repairing  or  replacing  those systems which  it  believes  are  not
year  2000  compliant.  As the Casecnan Project  is  expected  to  be
in  construction  through the second quarter of the  year  2000,  the
Y2K  problem in regard to Casecnan's operational assets  can  not  be
tested   by  the  Company  until  construction  is  complete.    This
compliance  is  the  obligation of the  contractor  until  completion
of construction.

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

             MANAGEMENT'S DISCUSSION AND ANALYSIS OF
          FINANCIAL CONDITION AND RESULTS OF OPERATIONS
            (in thousands, except per share amounts)
                ________________________________

Liquidity and Capital Resources (continued):

Total  Y2K  expenditures,  for  both  repairing  or  replacing   non-
compliant  systems, are expected to be immaterial.   The  Company  is
not  aware  of  any additional material costs needed to  be  incurred
to  bring  all of its systems into compliance; however, there  is  no
assurance that additional costs will not be incurred.

A  contingency  plan  identifying credible  worst-case  scenarios  is
being   developed.   The  contingency  plan  is  comprised  of   both
mitigation  and  recovery aspects.  Mitigation  entails  planning  to
reduce  the  impact  of unresolved year 2000 problems,  and  recovery
entails  planning  to restore services in the event  that  year  2000
problems  occur.  It is expected that the contingency  plan  will  be
finalized in the third quarter of 1999.

Although   management  believes  that  the  Y2K   project   will   be
substantially  complete  before  January  1,  2000,  any   unforeseen
failures  of  the  Company's and/or third parties'  computer  systems
could  have  a  material impact on the Company's ability  to  conduct
its business.

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: August 12, 1999     /s/  Patrick J. Goodman
                               Patrick J. Goodman
                               Senior Vice President & Chief Financial Officer