State-run Power Sector Assets and Liabilities Management Corp. (PSALM) said Tuesday its Privatization Bids and Awards Committee (PBAC) determined the minimum bid price (MBP) for the sale of the Caliraya-Botocan-Kalayaan (CBK) Hydroelectric Power Plants.
PSALM said, however, it would not publicly disclose the MBP. It said this is part of its ongoing efforts to implement its privatization program, in line with the government’s policy to encourage private sector participation and optimize asset value.
“The setting of the MBP follows a comprehensive financial valuation process and consultation with relevant government agencies, ensuring that the bid terms are aligned with prevailing market conditions,” PSALM said.
“This valuation will serve as a benchmark for evaluating the financial offers of qualified bidders,” it said.
The CBK Hydroelectric Power Plants, located in the municipalities of Lumban, Majayjay and Kalayaan in Laguna province, are being privatized on an “as is, where is” basis.
PSALM said interested parties are invited to participate in the public bidding process, with the submission of proposals scheduled for June 30, 2025.
Nine companies earlier expressed interest in the CBK privatization, according to PSALM. These firms attended a pre-proposal conference where the agency presented an overview of the project, the bidding process, and the project agreements for the sale of the CBK hydro plants.
The interested firms include Thunder Consortium (Aboitiz Group, J-POWER, Sumitomo Corp.), ACEN Corp.’s GIGA ACE 11, Inc., First Gen Prime Energy Corp. of the Lopez Group, Semirara Mining & Power Corp. of the Consunji Group, Hexa Philippines Holdings Inc. (part of HEXA Renewables), Marubeni Corp. of Japan, Korea Water Resources Corp., businessman Enrique Razon’s Prime Infrastructure Capital Inc. and San Miguel Global Power Holdings Corp.
Representatives from the Department of Finance and National Power Corp. attended the pre-proposal conference as observers.
The CBK hydro power plants play a central role in the Luzon power system and are among the few remaining large power assets being privatized by the government.
The CBK plant was contracted to CBK Power Company Ltd. under a 25-year Build-Rehabilitate-Operate-Transfer Agreement, which began in February 2001 and will expire in February 2026.
PSALM tapped the Asian Development Bank as the transaction advisor to monetize the CBK hydro power plants. The Department of Finance is hoping to raise 50 billion to 100 billion pesos from the CBK privatization.