The government has awarded the Asian Development Bank (ADB) the contract as transaction advisor to the Philippines Power Sector Assets and Liabilities Management Corp. (PSALM) to privatize the Caliraya–Botocan–Kalayaan (CBK) hydroelectric power plant complex in Laguna.
Dennis Edward Dela Serna, PSALM president and chief executive officer, said in a message to reporters that as transaction advisor, the ADB will review all existing studies, reports, designs regarding CBK preparatory to eventual privatization.
Dela Serna said the Manila-based multilateral lender will also help the PSALM in the bidding, evaluation and execution of the bidding process and in the post-bidding and awarding process.
The CBK has a contracted capacity of 796.64 megawatts currently run by independent power producer CBK Power Co. Ltd. under a 25-year build–rehabilitate–operate–transfer contract that expires in 2026.
“Privatizing the Caliraya–Botocan–Kalayaan hydroelectric power plant complex will bring private sector funds, expertise and efficiency to the important task of generating stable power to meet the growing needs of people and businesses,” said Cleo Kawawaki, head of ADB’s Office of Markets Development and Public–Private Partnerships, in a statement.
“Sustainable energy is more important than ever on a warming planet. Private sector-led innovation can enhance sustainable energy production at the CBK complex, creating significant benefits for business, consumers and the environment,” Kawawaki added.
PSALM is mandated to privatize power-related assets owned by the government to pay for outstanding financial obligations inherited from the National Power Corp.
The state-run firm has thus far privatized 82 percent of its generating plants, independent power producer contracts and decommissioned plants.
