CBK Hydroelectric Plant Privatization Set for April After Regulatory Delays

CBK Hydroelectric Plant Privatization Set for April After Regulatory Delays | Daily Tribune

With all major roadblocks now cleared, the privatization of the 796.64-megawatt (MW) Caliraya-Botocan-Kalayaan (CBK) hydroelectric power plant complex in Laguna is set to move forward by the second quarter.

At a recent press briefing, Energy Secretary Raphael Perpetuo Lotilla confirmed that the process is now scheduled to proceed in April after resolving a series of setbacks caused by the suspension of the Energy Regulatory Commission (ERC) chairperson.

Lotilla pointed out that the primary obstacle in finalizing the privatization was the delay in determining the Price Determination Methodology (PDM) for the third round of the Green Energy Auction (GEA-3), which was supposed to be addressed in October last year.

“The only reason why it has been delayed is that the PDM was supposed to be acted upon by the ERC in October, but Chairman Dimalanta was suspended by the Ombudsman, and that cascaded in all the delays,” Lotilla said.

The upcoming GEA-3 next month is crucial in shaping the future of CBK, as it provides clarity on valuation—particularly regarding new pumped-storage hydro projects.

Now that the ERC has resolved the pricing, the path has been cleared for the next steps.

“The concern that had to be addressed was how to maximize the value of CBK. PSALM (Power Sector Assets and Liabilities Management Corp.) would have been able to privatize that even without GEA-3, but the concern of the Department of Finance was to enhance the privatization value of CBK,” the Secretary explained.

The Finance Department has previously stated that the government hopes to raise between P50 billion and P100 billion from the privatization of the facility.

The CBK plant complex operates under a 25-year build-rehabilitate-operate-transfer and power purchase agreement between CBK Power Company Limited and the National Power Corporation, which will expire in February 2026.

Last year, PSALM closed the sale of the 165-MW Casecnan hydroelectric power plant in Nueva Ecija to Fresh River Lakes Corp., a subsidiary of the Lopez Group’s First Gen Corp., for $526 million.