PSALM awards CBK complex to Aboitiz-led consortium

MANILA, Philippines — State-run Power Sector Assets and Liabilities Management Corp. (PSALM) has issued the notice of award to Aboitiz-led Thunder Consortium for the 797-megawatt hydropower complex in Laguna.

This comes after the consortium, consisting of Aboitiz Renewables Inc., Japan’s Sumitomo Corp. and Electric Power Development Co., offered a P36.3-billion bid for the Caliraya-Botocan-Kalayaan hydroelectric power plants (CBK HEPP).

This was higher than the P19.62-billion offer made by rival FGKW Consortium of Lopez-led First Gen Prime Energy Corp. and Korea Water Resources Corp.

The Thunder Consortium has been given seven days from the official receipt of the award notice to accept, sign and submit it to PSALM.

“This milestone marks a significant step in PSALM’s privatization program, contributing to the government’s broader energy sector reform agenda,” the state-run firm said.

“The successful sale of the CBK HEPP is expected to enhance operational efficiency and support the country’s renewable energy goals,” it said.

The notice was issued following the post-qualification endorsement by the Privatization Bids and Awards Committee and approval by the PSALM’s board of directors.

A post-qualification activity was conducted to verify the accuracy, authenticity and completeness of Thunder Consortium’s submitted documents.

The CBK complex consists of hydropower plants in Lumban, Majayjay and Kalayaan in Laguna.

The Kalayaan plant, built in 1982, is the country’s only operating pumped storage hydropower facility.

Energy Secretary Sharon Garin has said the asset sale marks a significant step toward achieving a “smarter, greener and more resilient energy system.”

“The CBK plant will play a crucial role in enhancing grid flexibility, especially in supporting variable renewable energy resources such as solar and wind by enabling large-scale storage and reliable power dispatch,” Garin said.