THE government expects to complete the rehabilitation of the Agus-Pulangi hydroelectric power plant (HEPP) complex in Mindanao before the government steps down, according to the Department of Finance (DoF).
“It’s moving forward,” Finance Secretary Ralph G. Recto said on the sidelines of a forum on Monday organized by the Economic Journalists Association of the Philippines.
Mr. Recto, was speaking in his capacity as chairman of the Power Sector Assets and Liabilities Management Corp. (PSALM), the entity set up to manage and in some cases privatize the government’s portfolio of power facilities.
The complex, with a rehabilitation cost estimated at $350 million, consists of seven run-of-river HEPPs in southern and central Mindanao, with a rated capacity of about 1,000 megawatts (MW).
However, only 600-700 MW is currently operational due to aging equipment and infrastructure issues, according to a 2024 World Bank report.
PSALM was created under the Republic Act No. 9136, or the Electric Power Industry Reform Act (EPIRA) of 2001.
Its corporate term was originally due to expire in June 2026, or 25 years after the effectivity of EPIRA. It was granted a 10-year extension.
PSALM recently completed the privatization of the 796.64-MW Caliraya-Botocan-Kalayaan (CBK) HEPP to the Aboitiz-led Thunder Consortium.
Thunder Consortium consists of Aboitiz Renewables, Inc., Sumitomo Corp., and Electric Power Development Co.
The group offered P36.266 billion, outbidding the FGKW Consortium — composed of First Gen Prime Energy Corp. and Korea Water Resources Corp. — which submitted a P19.62-billion offer.
The winning bid exceeded PSALM’s reserve price of P32.6 billion.
“It will generate something like P35 billion which is good as it represents additional revenue for the government,” Mr. Recto said.
The CBK complex consists of the 39.37-MW Caliraya HEPP in Lumban; the 22.91-MW Botocan HEPP in Majayjay, and the 366-MW Kalayaan I and 368.36-MW Kalayaan II pumped-storage power plants, all in Laguna. — Sheldeen Joy Talavera