Government eyes P101 billion from sale of big-ticket hydropower plants

MANILA, Philippines — The Marcos administration aims to raise P101.5 billion from privatization next year, primarily from the sale of the Caliraya-Botocan-Kalayaan (CBK) hydroelectric power complex and the rehabilitation of the Agus-Pulangi hydropower assets, according to the Department of Finance.

DOF Undersecretary and chief privatization officer Michael Peter Alejandro said these are the big-ticket assets considered for next year, with a privatization target of P101.5 billion, up from an earlier goal of P1.5 billion.

“CBK will come in next year. So the proceeds for that will come in. We’re targeting Agus-Pulangi also for next year,” he told reporters.

The 797-megawatt CBK hydroelectric power complex in Laguna and Quezon, which was turned over to the Thunder Consortium in February, is expected to raise P36 billion.

Alejandro noted that the CBK transaction had already been completed, but the proceeds will come in 2027 due to accounting considerations, which also prompted the revision of this year’s target.

In addition, the Agus-Pulangi complex in Mindanao, consisting of seven hydropower plants with a total installed capacity of at least 1,000 megawatts, is up for rehabilitation under a PPP framework. A private partner is expected to be named next year.

The rehabilitation is targeted to begin next year, with completion expected in phases from 2028 to 2032.

“Right now, we’re exploring PPP, I believe. We’ll have to check with PSALM (Power Sector Assets and Liabilities Management Corp). I’m not too familiar with what their actual option is now. But I know that it’s in the pipeline for next year,” Alejandro said.

The STAR reached out to the PSALM for comment but has not received a response yet.

For this year, the government slashed its privatization revenue target to P38.1 billion, 62.5 percent lower than the earlier target of P101 billion.

Alejandro said the government plans to pursue the sale of three big-ticket assets this year, including the Food Terminal Inc. (FTI) and Mile Long properties, after it completed the sale of Atrium of Makati.

“This year, we’re already at P1.9 billion in the first six months. We’re looking forward to FTI and Mile Long,” he said.

Asked about demand for the Mile Long property, Alejandro said developers and pension funds have expressed interest.