SAN MIGUEL Global Power Holdings Corp. (SMGP), Prime Infrastructure Capital, Inc. (Prime Infra), and Hexa Philippines Holdings, Inc. are seeking to participate in the rebidding of the Caliraya-Botocan-Kalayaan (CBK) hydroelectric power plant (HEPP) complex in Laguna.
State-run Power Sector Assets and Liabilities Management (PSALM) Corp., which is tasked to lead the privatization of the asset, held a pre-proposal conference on Tuesday to present the overview of the project, the bidding process, and the project agreements for the sale of CBK facility.
“We aim to inform interested companies ahead of time of the documentary requirements to successfully participate in the bidding process for the CBK power plants. This conference is also an opportunity for parties to inquire on any lingering issue regarding the bidding for CBK,” PSALM Vice-President for Privatization and Asset Management Arnold C. Francisco was quoted as saying in a statement on Tuesday.
SMGP is the power generation arm of the San Miguel Group, while Prime Infra serves as the infrastructure arm of the Razon Group. Hexa Philippines, meanwhile, is the country’s renewable energy platform under global infrastructure manager I Squared Capital.
Other power companies in attendance, all of which had previously expressed interest, included Thunder Consortium — comprising Aboitiz Renewables, Inc., Electric Power Development Co., and Sumitomo Corp. — as well as Giga ACE 11, Inc. of Ayala-led ACEN Corp.; First Gen Prime Energy Corp. of Lopez-led First Gen Corp.; Marubeni Corp.; Semirara Mining and Power Corp.; and Korea Water Resources Corp.
Last month, PSALM announced that it would initiate a rebidding process “to optimize the assets to be privatized and provide maximum value to its stakeholders.”
PSALM President and Chief Executive Officer Dennis Edward A. Dela Serna earlier said that given the short term of the independent power producer administrator agreement, the state-run firm decided to proceed with a direct sale.
The 796.64-megawatt (MW) hydroelectric power plant complex is currently under a 25-year build-rehabilitate-operate-transfer between independent power producer CBK Power Co. Ltd. and National Power Corp., which will expire in 2026.
The complex is composed of the 39.37-MW Caliraya HEPP in Lumban, 22.91-MW Botocan HEPP in Majayjay, and 366-MW Kalayaan I and 368.36-MW Kalayaan II pump storage power plants in Laguna.
In an invitation to bid, PSALM said that the project is being privatized on an “as is, where is” basis. Proposal submission date is set for June 16.
Finance Secretary Ralph G. Recto said last year that CBK’s privatization would likely generate between P50 billion and P100 billion. — Sheldeen Joy Talavera
