TWO ENERGY COMPANIES have submitted unsolicited proposals to rehabilitate the Agus-Pulangi hydropower complex in Mindanao, a decades-old asset that supplies a significant share of the region’s electricity but is running below capacity, according to the Power Sector Assets and Liabilities Management Corp. (PSALM).
“One’s a consortium, one’s not,” PSALM President and Chief Executive Officers Dennis Edward A. Dela Serna told reporters on Tuesday, noting both proponents are established industry players. He did not identify the groups.
The Agus-Pulangi facility consists of seven run-of-river hydro plants with about 1,000 megawatts (MW) in installed capacity, though only 600–700 MW are available because of aging equipment and deferred maintenance.
The government wants the next operator to restore full output and improve reliability in Mindanao’s grid.
The project follows PSALM’s work on the privatization of the Caliraya-Botocan-Kalayaan (CBK) hydro complex in Laguna.
Rehabilitation of Agus-Pulangi will be pursued through a concession arrangement aligned with the Public-Private Partnership (PPP) Code, which gives implementing agencies 90 days to evaluate unsolicited proposals once all requirements are deemed complete.
Mr. Dela Serna said a second proposal recently cleared the initial completeness check, allowing PSALM to move forward with evaluation.
If accepted, negotiations with the selected proponent would begin before the project is subjected to a competitive challenge.
Implementation of the concession is expected to start in 2027, after which the government may opt to privatize the asset outright. The project could generate as much as P90 billion in revenue once completed, he said.
First Gen Corp. earlier expressed interest in joining the rehabilitation effort. Last month, Vice-President Jay Joel Soriano said the company is open to participating in the tender once PSALM finalizes the process.
Agus-Pulangi is expected to become PSALM’s next major project after the turnover of the CBK complex to Thunder Consortium next year.
The CBK assets include the 39.37-MW Caliraya plant in Lumban, the 22.91-MW Botocan facility in Majayjay and the 366-MW Kalayaan I and 368.36-MW Kalayaan II pumped-storage units.
Aboitiz Power Corp. earlier secured Philippine Competition Commission approval for the acquisition. — S.J. Talavera