The Power Sector Assets and Liabilities Management Corp. (PSALM) held a pre-proposal conference on Tuesday for the upcoming sale of the Caliraya-Botocan-Kalayaan (CBK) hydroelectric power plants, marking a significant step in the ongoing privatization of state-owned energy assets.
PSALM, in a statement, outlined the event as an opportunity to provide potential bidders with a comprehensive overview of the project, the bidding process, and related agreements. The conference serves as a forum for answering questions from interested parties, helping to streamline the formal proposal submission.
“The goal is to equip companies with all necessary information and documentary requirements, ensuring that they are well-prepared to participate in the bidding process,” said Arnold Francisco, PSALM vice president for privatization and asset management. “This conference is also an open platform for bidders to clarify any remaining concerns regarding the privatization of the CBK plants.”
Located across the municipalities of Lumban, Majayjay, and Kalayaan in Laguna, the CBK hydroelectric plants generate a total contracted capacity of 796.56 megawatts (MW). Under a 25-year build-rehabilitate-operate-transfer agreement, CBK Power Co. Ltd. has managed the plants since 2001. The contract is set to expire in February 2026, opening the door for PSALM to proceed with its privatization.
This development aligns with the government’s strategy to privatize key power assets, with the Department of Finance (DOF) estimating the sale could generate between P50 billion and P100 billion. The DOF, under Secretary Ralph Recto who also serves as PSALM’s board chairman, is keen to unlock the financial potential of these assets for further reinvestment into national development projects.
For consumers, the privatization of the CBK plants could have significant implications, potentially leading to improved operational efficiency, increased competition, and a more dynamic energy market. With the bidding process scheduled for completion by 16 June 2025, the sale is poised to play a crucial role in shaping the future landscape of the Philippine power sector.
