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Manila Bulletin devider Business devider The Economy devider Over ₱36-billion government windfall as Aboitiz beats FGen to take over CBK hydropower plants

Over ₱36-billion government windfall as Aboitiz beats FGen to take over CBK hydropower plants

Published Jul 4, 2025 03:47 pm
Danel C. Aboitiz
Danel C. Aboitiz
The consortium led by the Aboitiz conglomerate emerged victorious on Friday, July 4, as it won the right to take over the 797-megawatt (MW) Caliraya-Botocan-Kalayaan (CBK) hydroelectric power plants in Laguna—a prime Luzon energy asset—from the state-run Power Sector Asset and Liabilities Management Corp. (PSALM).
Thunder Consortium—comprised of Aboitiz Renewables Inc. (ARI), J-Power, and Sumitomo Corp.—tendered a financial bid of ₱36.266 billion.
It exceeded the ₱19.616-billion bid from FGKW Consortium, composed of Lopez-led First Gen Corp. (FGen) and K-Water Resources Corp.
Thunder’s winning bid exceeded PSALM’s reference price of ₱32.632 billion.
These consortia spearheaded by the two energy industry giants were the only entities that submitted their technical and financial bids during the June 30 deadline.
PSALM’s privatization bids and awards committee (PBAC), through its technical working group (TWG), later revealed that the technical bids of both consortia have been rated as qualified, leading to Friday’s opening of their financial bids.
Asked when the privatization proceeds would be remitted to the national treasury, PSALM President and Chief Executive Officer (CEO) Dennis Edward A. Dela Serna told Manila Bulletin: “The remittance to national government is in accordance with the Dividend Law.”
“The amount will be determined in coordination with the DOF [Department of Finance] and the BTr [Bureau of the Treasury], and final approval by the PSALM board of directors,” Dela Serna said.
Proceeds from the privatization of CBK had earlier been estimated by the DOF to reach up to ₱100 billion, with Finance Secretary Ralph G. Recto having described the asset sale as the “biggest” disposition activity for the year. The DOF Secretary chairs the PSALM board.
The DOF expects these additional revenues to flow in next year.
Under the Electric Power Industry Reform Act (EPIRA), proceeds from the privatization of power assets are intended to pay off the remaining debts of state-run National Power Corp. (NPC).
To recall, all NPC debts have been transferred to PSALM, as mandated by EPIRA.
Based on the latest information available on PSALM’s website, the state-run firm has a total of ₱249.1 billion in debts.
In February, PSALM canceled the independent power producer administrator (IPPA) privatization for CBK, as it changed the disposition mode into a direct asset sale due to the expiring IPP contract early next year.
Prior to the June 30 submission of bids, the bidding for the hydropower plants had been postponed due to setbacks related to the price determination methodology (PDM).
PDM sets the electricity rates for the plants’ power generation, and has previously faced delays, according to former Energy Secretary Raphael P.M. Lotilla.

Related Tags

Aboitiz Group First Gen Corp. (FGen) Caliraya-Botocan-Kalayaan (CBK) hydropower plants Power Sector Assets and Liabilities Management Corp. (PSALM) Dennis Edward A. Dela Serna Ralph G. Recto
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