ASIAN DEVELOPMENT BANK TO ADVISE ON PRIVATIZATION OF CALIRAYA–BOTOCAN–KALAYAAN HYDROELECTRIC POWER PLANT COMPLEX IN THE PHILIPPINES

The Asian Development Bank (ADB) has secured a contract as a transaction advisor to assist the Philippines Power Sector Assets and Liabilities Management Corporation (PSALM) in the monetization of the Caliraya–Botocan–Kalayaan (CBK) hydroelectric power plant complex. The move is aimed at enhancing energy security in Luzon, the country’s main island.

The CBK hydroelectric power plant complex, managed by independent power producer CBK Power Co. Ltd., comprises three separate facilities with a contracted capacity of 796.64 megawatts. Operated under a 25-year build–rehabilitate–operate–transfer (BROT) contract, set to expire in 2026, the complex plays a pivotal role in the Luzon power system.

ADB’s advisory services, facilitated through its Office of Markets Development and Public–Private Partnerships, will support the private sector transfer of the facilities, ensuring an optimal value for the government. Simultaneously, the advisory services will align with the government’s broader objectives of ensuring energy security and grid stability.

Head of ADB’s Office of Markets Development and Public–Private Partnerships, Cleo Kawawaki, emphasized the potential benefits of privatization, stating, “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. 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.”

PSALM, established under the Electric Power Industry Reform Act of 2001, plays a crucial role in the deregulation of the power industry, including the privatization of assets transferred by the National Power Corporation (NPC) to PSALM. To date, PSALM has successfully privatized almost 82% of its owned generating plants, independent power producer contracts, and decommissioned plants.

ADB remains dedicated to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, working towards the eradication of extreme poverty. Established in 1966, ADB is owned by 68 members, with 49 from the region.