The Power Sector Assets and Liabilities Management Corp. (PSALM) has announced plans to engage a transactional adviser to explore strategies for privatizing the Agus-Pulangi hydro power plant complex.
The initiative aims to address stakeholder concerns while ensuring that electricity prices remain competitive.
During a Senate budget hearing, PSALM president and CEO Dennis Edward Dela Serna emphasized the importance of this step, saying, “We are in the process of hiring a transactional adviser. We are also coming up with a feasibility study to address various concerns we receive from stakeholders, particularly regarding contract assignments and their viability based on our current rates.”
The Agus-Pulangi complex in Mindanao boasts of a rated capacity of approximately 1,000 megawatts (MW), although it currently delivers around 450 MW due to hydrological factors and other challenges. Dela Serna gave assurance that any privatization would prioritize maintaining low power rates. “We can enter into long-term or short-term contracts and attach them to the concession agreement if we proceed with privatization,” he said.
The Agus-Pulangi complex provides power at less than P2 per kilowatt hour (kWh), significantly lower than the average regulated rate of P2.80 per kWh in Mindanao.
The PSALM is tasked with privatizing government-owned power assets to settle the P277 billion in financial obligations inherited from the National Power Corp. as of June 2024.
