The Philippine government has successfully privatized the 733.95-megawatt (MW) Caliraya-Botocan-Kalayaan (CBK) hydroelectric power complex for P36.27 billion, a move aimed at boosting energy supply and preventing power disruptions in Luzon.
Finance Secretary and Power Sector Assets and Liabilities Management (PSALM) Corp. chair Ralph Recto said the privatization aligns with President Ferdinand Marcos, Jr.’s directive to build a resilient and future-ready energy sector.
“The successful privatization of the CBK power plants is a huge win for everyone,” Recto said. “It means more reliable and affordable electricity for every home, business, and factory. It is a major milestone for the nation’s energy security and economic stability.”
The CBK complex includes the 39.52-MW Caliraya hydroelectric power plant (HEPP), the 23.10-MW Botocan HEPP and the 366-MW Kalayaan I and 367.95-MW Kalayaan II pumped-storage power plants, all located in Laguna province. The Kalayaan plants operate similarly to a large battery system, supporting Luzon’s power needs and strengthening the energy grid by providing ancillary services and reserve capacity.
The privatization, PSALM’s largest project this year, was awarded on July 18, 2025, to the Thunder Consortium. The consortium comprises Aboitiz Renewables Inc. (ARI), Sumitomo Corp. and Electric Power Development Co. (J-Power).
Their winning bid of P36.27 billion surpassed the P19.62 billion offered by the First Gen Prime Energy Corp. and Korea Water Resources (FGKW) Consortium and also exceeded PSALM’s reference price.
The Department of Finance’s Privatization and Partnerships Group (PPG) was instrumental in navigating regulatory challenges and ensuring a competitive and transparent process.
The CBK complex is under a 25-year build-rehabilitate-operate-transfer contract and power purchase agreement between CBK Power Co. Ltd. and the National Power Corp., which expires in February 2026. The government expects to transfer the plant to the Thunder Consortium at that time.
