The Power Sector Assets and Liabilities Management Corp. (PSALM) confirmed Thursday that a consortium led by San Miguel Corp. has submitted an unsolicited proposal to rehabilitate the Agus-Pulangi hydroelectric complex in Mindanao, marking a major milestone in the government’s long-running effort to modernize and privatize one of the country’s largest remaining state-owned power assets. PSALM president and CEO Dennis Edward Dela Serna announced the development, noting the consortium has been granted original proponent status under the public-private partnership (PPP) framework, while emphasizing the process remains subject to a comparative challenge period and final approval from the Economic and Development Authority before any formal award is made.
The complex, with an installed capacity of 1,000 megawatts, currently operates at roughly 600 MW, underscoring the urgent need for upgrades that could restore full output and bolster Mindanao’s energy security. Under government policy, privatization of the asset is conditional on the winning proponent completing full rehabilitation first—a requirement embedded in this proposal. PSALM targets finalization of the privatization process within 2026, with rehabilitation works scheduled to run through 2027 and 2028. The transaction forms a key part of PSALM’s core mandate: divesting state-held power assets to settle outstanding liabilities inherited from the National Power Corp. (NPC).
Restoration efforts began as early as June by NPC’s Mindanao Generation group, part of broader preparedness measures to sustain optimal power supply amid the El Niño weather pattern expected to persist into early 2027. For San Miguel Corp., the bid expands its growing footprint in the Philippine energy sector, positioning the conglomerate to lead a critical infrastructure overhaul that combines operational improvements, long-term revenue potential, and a central role in the government’s asset monetization and energy transition agenda.
