The Power Sector Assets and Liabilities Management Corp. (PSALM) is set to privatize the Caliraya—Botocan—Kalayaan (CBK) hydroelectric power plant complex in Laguna this year, according to Secretary Ralph Recto of the Department of Finance.
Recto, who chairman of the board of PSALM, said,bidding for CBK is expected “in the next few months.”
“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 for next year,” Recto told reporters on the sidelines of the induction ceremony of the Economic Journalists Association of the Philippines officers in Manila last Thursday.
CBK is comprised of three separate hydro facilities with a contracted capacity of 796.64 megawatts (MW) which is currently run by independent power producer CBK Power Co. Ltd. under a 25-year build—rehabilitate—operate—transfer contract which will expire in 2026.
“There will be a bidding in the next few months. Its bidding will be this year but awarding could be next year,” Recto added.
Recto said PSALM’s corporate life should be extended for “probably another 25 years” as the state-run firm still has debts to settle and assets to privatize.
Recto added the possible privatization of the Agus and Pulangi hydro power plants in Mindanao is also in the drawing board.
