State-run Power Sector Assets and Liabilities Management Corp. is looking at P50 billion to P100 billion in proceeds from the privatization of the Caliraya-Botocan-Kalayaan (CBK) hydro power plants in Lumban, Majayjay and Kalayaan, Laguna.
PSALM chairman and Finance Secretary Ralph Recto said they were planning to conduct the privatization for the CBK hydro plants in the “next few months” and awarding by next year.
“We had a meeting earlier on that on the Caliraya, that’s CBK. It’s up for bidding. We could probably generate anywhere from P50 billion to P100 billion. That will help plug our deficit for next year,” Recto said at the sidelines of the Economic Journalists Association of the Philippines board induction on Friday.
About 28 companies composed of local and international firms earlier expressed interest to participate in the CBK sale during the Feb. 1, 2024 deadline.
PSALM issued the invitation for interested parties to participate in the selection and appointment of the independent power producer administrator (IPPA) for the contracted capacity and the CBK privatization in December last year.
The CBK power plant consists of three separate facilities with a contracted capacity of 796.64 megawatts and plays a central role in the Luzon power system. It is one of the few remaining big ticket power assets that are up for privatization.
PSALM tapped the Asian Development Bank as the transaction advisor contract to monetize the CBK hydro power plants.
ADB’s advisory services through its Office of Markets Development and Public–Private Partnerships will support the transfer of the facilities to the private sector at an optimal value for the government, while ensuring the government’s overall objectives of energy security and grid stability are met.
The CBK power plant is run by independent power producer CBK Power Co. Ltd. under a 25-year build–rehabilitate–operate–transfer (BROT) contract which will expire in 2026.
