Aboitiz Power Corp. said its wholly owned unit, Aboitiz Renewables, Inc. (ARI), has signed project agreements for the sale and privatization of the 796.64-megawatt (MW) Caliraya-Botocan-Kalayaan (CBK) hydroelectric power plant.

In a stock exchange disclosure on Friday, AboitizPower said it signed agreements on 14 August through its project company, Cleanergy 9 Power Inc., with the Power Sector Assets and Liabilities Management Corp. (PSALM) and the National Power Corp.

ARI, along with Sumitomo Corp. and Electric Power Development Co., Ltd., formed the Thunder Consortium, which won the CBK bidding for P36.3 billion. The notice of award was given to the group on 18 July.

The transaction is subject to “customary closing conditions, including securing the necessary regulatory approvals, such as from the Philippine Competition Commission.”

Energy Secretary Sharon Garin earlier said the privatization of CBK assets will help ease the government’s financial burden and improve grid reliability, especially during peak demand and emergencies.

Garin said the CBK plant will support the growth of solar and wind by providing large-scale storage and a stable power supply.

The CBK plant operates under a 25-year build-rehabilitate-operate-transfer and power purchase agreement with National Power Corp., expiring in February 2026.

PSALM, which manages state power assets under the Electric Power Industry Reform Act of 2001, previously sold the 165-MW Casecnan hydro plant to First Gen’s Fresh River Lakes Corp. for $526 million.

It is also assessing the $350-million rehabilitation of the Agus-Pulangi hydro complex and planning to privatize other assets, including the 200-MW Mindanao coal plant and 72 hectares of real estate.

In 2021, Congress approved a bill extending PSALM’s corporate life.