First Gen, AboitizPower consortiums keen on CBK power plants – BusinessWorld Online
STATE-RUN Power Sector Assets and Liabilities Management Corp. (PSALM) has received bids from consortiums led by First Gen Corp. and Aboitiz Power Corp. (AboitizPower) for the privatization of the Caliraya-Botocan-Kalayaan (CBK) hydroelectric power plant (HEPP) complex in Laguna.
In a notice to qualified bidders, the privatization bids and awards committee (PBAC) has identified two qualified bidders following the opening of qualification documents.
PSALM said that the two qualified bidders are FWKG Consortium, composed of First Gen Prime Energy Corp. and Korea Water Resources; and Thunder Consortium, composed of Aboitiz Renewables, Inc., Sumitomo Corp., and Electric Power Development Co.
The opening of financial documents is set to take place “at a date, time, and venue to be determined by the PSALM PBAC.”
PSALM set the minimum bid price last month, which was determined through “a comprehensive financial valuation process and consultation with relevant government agencies,” ensuring alignment with prevailing market conditions.
The 796.64-megawatt (MW) hydroelectric power complex is currently under a 25-year build-rehabilitate-operate-transfer agreement between CBK Power Co. Ltd. and the National Power Corp., which ends in 2026.
The complex includes the 39.37-MW Caliraya HEPP in Lumban, the 22.91-MW Botocan HEPP in Majayjay, and the 366-MW Kalayaan I and 368.36-MW Kalayaan II pumped-storage power plants in Laguna.
Among the other energy players are Giga ACE 11, Inc., a subsidiary of Ayala-led ACEN Corp.; Japan’s Marubeni Corp.; Semirara Mining and Power Corp. of the Consunji Group; Hexa Philippines, the local renewable energy platform of global infrastructure manager I Squared Capital; Razon-led Prime Infrastructure Capital, Inc.; and San Miguel Global Power Holdings Corp.
The Finance department is looking to generate at least $200 million from the CBK privatization. — Sheldeen Joy Talavera