Sate-run Power Sector Assets and Liabilities Management Corp. said it issued an invitation for interested parties to participate in the privatization of the Caliraya-Botocan-Kalayaan hydro power plants in Lumban, Majayjay and Kalayaan, Laguna.
“An interested party must submit to the committee a letter of interest,” PSALM said. It set the deadline at 5 p.m. on Feb. 1, 2024.
PSALM president Dennis dela Serna said the CBK privatization would have a slightly different process. “Invitation to participate and prequalification process. After that, PSALM determines who qualify, then bidding process. So far, I think the LOI [letter of interest] and pre-qualify deadlines have been published. To follow bidding details after,” he said.
The CBK hydroelectric power plant complex, which comprises three separate facilities with a contracted capacity of 796.64 megawatts and plays a central role in the Luzon power system, is one of the few remaining big-ticket power assets that are up for privatization.
It is run by independent power producer CBK Power Co. Ltd. under a 25-year build–rehabilitate–operate–transfer (BROT) contract which will expire in 2026.
Among those that expressed interest in the CBK assets are SN Aboitiz Power Corp. and First Gen Corp.
PSALM’s privatization bids and awards committee set the clarification request deadline on Feb. 8 and the documentary deliverables deadline on Feb. 29 (5 p.m.). The hardcopy documentary deliverables deadline was set on March 21, 2024 (5 p.m.).
PSALM earlier tapped the Asian Development Bank (ADB) as the transaction advisor to monetize the CBK hydro power plants. The ADB will review existing studies, reports and designs on CBK to prepare for its privatization.
The multilateral bank will also prepare and conduct market consultation and assist PSALM in the structuring of the privatization of CBK. It will also prepare the financial valuation report, assist PSALM in the bidding, evaluation and execution of the bidding process and help in the post bidding and awarding process.
