PSALM sets minimum bid price for CBK hydro plants but withholds amount
STATE-RUN Power Sector Assets and Liabilities Management Corp. (PSALM) has set the minimum bid price for the sale of the Caliraya-Botocan-Kalayaan (CBK) hydroelectric power complex but opted not to disclose the amount.
“This development is part of PSALM’s continuing efforts to implement its privatization program in accordance with the government’s policy to encourage private sector participation and optimize asset value,” PSALM said in a statement on Tuesday.
The company said the minimum bid price, which will serve as the benchmark for evaluating offers, was determined through “a comprehensive financial valuation process and consultation with relevant government agencies,” ensuring alignment with prevailing market conditions.
“We are not disclosing the minimum bid price,” PSALM President and Chief Executive Officer Edward A. Dela Serna told BusinessWorld.
Mr. Dela Serna said that protecting the integrity of the bidding process is among the reasons for withholding the amount.
The 796.64-megawatt (MW) hydroelectric power complex is currently under a 25-year build-rehabilitate-operate-transfer agreement between independent power producer CBK Power Co. Ltd. and the National Power Corp., which will expire in 2026.
The complex consists of the 39.37-MW Caliraya hydroelectric power plant (HEPP) in Lumban, the 22.91-MW Botocan HEPP in Majayjay, and the 366-MW Kalayaan I and 368.36-MW Kalayaan II pumped-storage power plants in Laguna.
In its latest invitation, PSALM said the asset will be privatized on an “as is, where is” basis. The deadline for proposal submission is set for June 30.
Among the firms seeking to participate in the bidding are Thunder Consortium (composed of Aboitiz Renewables, Inc., J-POWER, and Sumitomo Corp.); Giga ACE 11, Inc. of Ayala-led ACEN Corp.; First Gen Prime Energy Corp. of Lopez-led First Gen Corp.; Marubeni Corp. of Japan; and Semirara Mining and Power Corp. of the Consunji Group.
Other interested parties include Hexa Philippines, the local renewable energy platform of global infrastructure manager I Squared Capital; Razon-led Prime Infrastructure Capital, Inc.; San Miguel Global Power Holdings Corp.; and Korea Water Resources Corp. — Sheldeen Joy Talavera
