Energy Secretary Raphael Lotilla —Jordeene B. Lagare
The Power Sector Assets and Liabilities Management Corp. (Psalm) has decided on a full privatization of the 796.64-megawatt Caliraya-Botocan-Kalayaan (CBK) hydroelectric power plant complex in Laguna on the auction block in an effort to optimize the asset’s value.
The state-run firm said the rebidding process aims, which was previously intended for a new administrator, is intended “to give maximum value to its stakeholders.”
Article continues after this advertisement“There is the term for an Ippa (Independent Power Purchase Agreement) with asset sale,” Psalm president and CEO Dennis Edward dela Serna said on Wednesday.
FEATURED STORIES BUSINESS BIZ BUZZ: Salcedo Auctions vs. Martel trademark war BUSINESS DoubleDragon offers 7.77% rate for 7-year bonds BUSINESS Laguna hydro power plants up for outright sale“But Given the term of the IPPA is short, we decided to go for a straight asset sale,” he added.
READ: CBK hydropower race pushed back to April
Article continues after this advertisementThe CBK plant complex is covered by a build-rehabilitate-operate-transfer and power purchase agreement between the National Power Corp. and CBK Power Company Ltd. which would last until February 2026.
heart of vegasArticle continues after this advertisementSituated in Lumban, Majayjay and Kalayaan in Laguna, the hydroelectric power complex is one of the power assets being sold by Psalm to settle all the liabilities and obligations it assumed from Napocor.
Article continues after this advertisement DelaysEarlier, the Department of Energy said that the bidding for the privatization of the CBK facility was originally scheduled for April. However, it was postponed because of the delays in conducting the third round of the green energy auction (GEA-3).
Energy Secretary Raphael Lotilla said the delays in releasing the price determination methodology for the GEA-3 were caused by the preventive suspension imposed by the Office of the Ombudsman on Energy Regulatory Commission Chair Monalisa Dimalanta last year.
Article continues after this advertisementThe GEA-3 bidding, which was initially set in November 2024 but was rescheduled for Feb. 5 this year, would focus on geothermal, impounding hydro and pumped-storage hydro.
“Psalm (Power Sector Assets and Liabilities Management Corp.) would have been able to privatize that even without GEA-3 but the concern of the Department of Finance was to enhance the privatization value of CBK and that’s why it got delayed,” Lotilla had said.
After Dimalanta’s reinstatement, Energy Undersecretary Rowena Cristina Guevara had said bid prices were already released, which could affect the value of the CBK power complex along with new pumped-storage hydro plants coming in.
Subscribe to our daily newsletter
Disney said Monday it will name Bob Iger’s successor as chief executive in early 2026 as it tapped former Morgan Stanley CEO James Gorman as chairman of the entertainment giant.
Psalm chair and Finance chief Ralph Recto previously said the state-led firm was expecting to generate P50 billion to P100 billion from selling the CBK power facility.ph dream
READ NEXT Converge sets data center switch-on in March More biz groups oppose bill on P200 daily wage hike EDITORS' PICK VP Sara Duterte impeachment complaint reaches Senate PBA: Scottie Thompson leads Ginebra past Meralco and closer to semis INQUIRER.net launches VotePH2025 special site Anna Mae Lamentillo recognized as finalist for She Shapes AI Awards Tolentino: Virology institute will boost PH’s animal disease response Enzo Pineda, Romnick Samenta win best actor plums at Emirates Film Festival MOST READ Experts refute Marcoleta: ‘West Philippine Sea is real’ Metro Manila, nearby areas to have power interruptions Feb 6 to 9 Vlogger calls out colleagues for not showing up at House hearing House impeaches VP Sara Duterte, fast-tracking transmittal to Senate Follow @FMangosingINQ on Twitter --> View comments