The state-run Power Sector Assets and Liabilities Management Corp. (PSALM) has received two unsolicited proposals to rehabilitate the Agus-Pulangi Hydropower Plant Complex (APHPC) in Mindanao, according to president Dennis dela Serna.
The government entity is focused on the APHPC rehabilitation program next year and hopes to proceed with a concession-type agreement to restore the power plants to their rated capacity.
Dela Serna said the unsolicited proposals came from a consortium and another company, with the second proposal clearing the public-private partnership (PPP) process just recently. The official expects the rehabilitation to begin in 2027 or 2028.
“It’s an asset rehabilitation. Hopefully with a concession type of agreement to rehabilitate and restore the capacity of those power plants to its rated capacity,” dela Serna said.
He said the power plants are currently “operating at less than ideal capacity.”
“Well, what’s for them and for the national government is the rehabilitation of the power plant. Currently, they are operating at less than ideal capacity. Hopefully, the winning concessionaire or bidder or proponent brings it back to capacity and they’re able to sell that electricity,” he said.
Following the PPP code timelines, dela Serna expects the 10-day period for acceptance or rejection, 90 days for evaluation and 90 to 150 days for negotiation to be completed in 2026. PSALM will evaluate the feasibility studies on the rehabilitation.
The Agus-Pulangi complex includes seven hydroelectric projects in Mindanao: the 260-megawatt (MW) Agus 1 and 2 in Lanao del Sur, the 213-MW Agus 4 and 5 in Lanao del Norte, the 273-MW Agus 6 and 7 in Lanao del Norte, and the 255-MW Pulangi 4 in Bukidnon.
Dela Serna said the facility would not be privatized, citing a request from Congress and existing limitations in the Electric Power Industry Reform Act (EPIRA) on the direct sale or privatization of the asset.
In 2022, the Department of Finance (DOF) estimated a budget of P16.71 billion for the APHPC rehabilitation projects.
