MANILA, PHILIPPINES (9 October 2023) — The Asian Development Bank (ADB) has been awarded a contract as transaction advisor to help the Philippines Power Sector Assets and Liabilities Management Corporation (PSALM) to monetize the Caliraya–Botocan–Kalayaan (CBK) hydroelectric power plant complex and enhance energy security in the country’s main island of Luzon.

The hydroelectric power plant complex comprises three 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 Head of ADB’s Office of Markets Development and Public–Private Partnerships 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.”

PSALM was established under the Electric Power Industry Reform Act of 2001 which provides a framework for deregulating the power industry including the privatization of the assets transferred by the National Power Corporation (NPC) to PSALM. It has privatized almost 82% of its owned generating plants, independent power producer contracts, and decommissioned plants.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

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