PSALM asks investors to bid for CBK plants

By Alena Mae S. Flores – November 23, 2023, 8:50 pm
from manilastandard.net

State-run Power Sector Assets and Liabilities Management Corp. (PSALM) is wooing investors to join the privatization of the Caliraya–Botocan–Kalayaan (CBK) hydroelectric power plant complex in Southern Luzon.

PSALM scheduled an investors forum on Dec. 1, 2023 at the Multi-Function Hall 2- and 3 of the Asian Development Bank in Mandaluyong City to discuss the concerns of interested investors.

PSALM earlier tapped ADB as the transaction advisor to monetize the CBK hydro power plant complex which consists of separate facilities with a contracted capacity of 796.64 megawatts. It is run by independent power producer CBK Power Co. Ltd. under a 25-year build–rehabilitate–operate–transfer (BROT) contract which will expire in 2026.

The forum also aims to generate investors interest in the rehabilitation and asset management plan for the Agus-Pulangi hydroelectric power plants with a private partner.

“We are thrilled to conduct this one-day event that will convene a wide variety of investors to discuss PSALM’s privatization and disposal process,” said PSALM president Dennis Dela Serna in a statement.

“This is an opportunity for PSALM to provide participants with first-hand information regarding our privatization and disposal procedure. At the same time, we eagerly anticipate their inquiries and recommendations, as they could potentially aid in the improvement of our business process,” he said.

The forum is conducted annually by PSALM to strengthen investor relations and facilitate the interchange of information to further improve the privatization procedure for its remaining assets.

Dela Serna earlier said that as technical advisor, ADB would review all existing studies, reports and designs regarding CBK to prepare for its privatization slated in June or July 2024.

He said ADB shall also prepare and conduct market consultation and assist PSALM in the structuring of the privatization of CBK.

Dela Serna said PSALM would also prepare for the draft documents for qualification and bidding and asset sale agreements.

“Privatizing the Caliraya–Botocan–Kalayaan hydroelectric power plant complex will bring private sector funds, expertise and efficiency to the important task of generating stable power to meet the growing needs of people and businesses,” said ADB’s office of markets and development and public–private partnerships head Cleo Kawawaki.

“Sustainable energy is more important than ever on a warming planet. Private sector-led innovation can enhance sustainable energy production at the CBK complex, creating significant benefits for business, consumers and the environment,” he said.