Finance Secretary Ralph Recto said the Power Sector Assets and Liabilities Management Corp. (PSALM) is selling the Caliraya–Botocan–Kalayaan (CBK) hydroelectric power plant complex in Laguna to help bridge next year’s budgetary shortfall.
Recto, in ceremonies inducting this year’s officers of the Economic Journalists Association of the Philippines (EJAP) on Friday in Manila, said bidding preparations have started for the sale to happen “in the next few months.”
CBK is a complex of hydro facilities with a contracted capacity of 796.64 megawatts (MW) run by independent power producer CBK Power Co. Ltd. under a 25-year build–rehabilitate–operate–transfer contract expiring in 2026.
“We had a meeting earlier on CBK. That is up for bidding. We could probably generate anywhere from P50 billion to P100 billion.That will help plug our deficit next year,” Recto, who chairs the PSALM, said.
While the actual bidding could happen this year, awarding the property could take place next year, Recto said.
The PSALM is mandated to sell power-related government assets but its corporate life expires in 2026, which is why its corporate life may be extended another 25 years, Rector said.
Recto also said the Agus and Pulangi hydro power plants in Mindanao are to be sold as well. The complex has a nameplate capacity of 982 MW although the National Power Corp. rated the facility with only 700 MW due to its age.
