Manila: Finance Secretary Ralph Recto announced that the privatization of the 733.95-megawatt (MW) Caliraya-Botocan-Kalayaan (CBK) hydroelectric power complex in Laguna and Quezon is set to enhance energy supply and mitigate power disruptions in Luzon.
According to Philippines News Agency, the government, through the Department of Finance (DOF) and the Power Sector Assets and Liabilities Management (PSALM) Corporation, has awarded the CBK project to Thunder Consortium. This consortium is composed of Aboitiz Renewables, Inc. (ARI), Sumitomo Corp., and Electric Power Development Co. (J-Power). The Aboitiz-led group secured the project with a bid of PHP36.27 billion, surpassing the offer of PHP19.62 billion submitted by the competing First Gen Prime Energy Corporation and Korea Water Resources (FGKW) Consortium.
Finance Secretary and PSALM Corporation chairperson Ralph Recto expressed optimism about the project's impact, stating, "The successful privatization of the CBK power plants is a huge win for everyone," emphasizing that it will lead to "reliable and more affordable electricity for every home, business, and factory." He further highlighted its significance as a "major milestone for the nation's energy security and economic stability."
The CBK complex includes the 39.52-MW Caliraya hydroelectric power plant (HEPP) in Lumban, the 23.10-MW Botocan HEPP in Majayjay, and the 366-MW Kalayaan I and 367.95-MW Kalayaan II pumped-storage power plants, all situated in Laguna. Notably, the Kalayaan I and II plants function like a large battery system, capable of supporting Luzon's extensive power requirements.
The project plays a crucial role in strengthening Luzon's energy grid by providing ancillary services and reserve capacity, while also possessing the flexibility to engage in long-term power supply agreements. PSALM has highlighted this as its largest project of the year.
The CBK hydroelectric power complex is currently under a 25-year build-rehabilitate-operate-transfer contract and power purchase agreement between CBK Power Co. Ltd. and the National Power Corp., which is set to expire in February 2026. The government plans to hand over the plant to the Thunder Consortium upon the contract's conclusion.
