State-run Power Sector Assets and Liabilities Management Corp. (PSALM) awarded the Asian Development Bank the transaction advisor contract to monetize the Caliraya–Botocan–Kalayaan (CBK) hydroelectric power plant complex.
PSALM president Dennis Dela Serna said Tuesday that as technical advisor, ADB would review all existing studies, reports and designs on CBK to prepare for its privatization in June or July 2024.
He said ADB would also prepare and conduct market consultation and assist PSALM in the structuring of the privatization of CBK.
Dela Serna said PSALM would prepare the draft documents for qualification and bidding and asset sale agreements.
ADB will also prepare the financial valuation report, assist PSALM in the bidding, evaluation and execution of the bidding process and assist in the post bidding and awarding process.
The hydroelectric power plant complex consists of hree separate facilities with a contracted capacity of 796.64 megawatts and plays a central role in the Luzon power system.
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.
ADB’s advisory services through its Office of Markets Development and Public–Private Partnerships will support the transfer of the facilities to the private sector at an optimal value for the government, while ensuring the government’s overall objectives of energy security and grid stability are met.
“Privatizing the Caliraya–Botocan–Kalayaan hydroelectric power plant complex will bring private sector funds, expertise, and efficiency to the important task of generating stable power to meet the growing needs of people and businesses,” said ADB office of markets and development and public–private partnerships head Cleo Kawawaki.
“Sustainable energy is more important than ever on a warming planet. Private sector-led innovation can enhance sustainable energy production at the CBK complex, creating significant benefits for business, consumers and the environment,” he said.
PSALM, established under the Electric Power Industry Reform Act of 2001, provides a framework for deregulating the power industry including the privatization of the assets transferred by the National Power Corp.(NPC) to PSALM.
PSALM privatized almost 82 percent of its own generating plants, independent power producer contracts and decommissioned plants.