The race for one of the Philippines' most valuable energy assets is heating up. Three major players have officially thrown their hats into the ring to acquire the 74.8-megawatt Bakun Hydroelectric Power Plant.
State-owned Power Sector Assets and Liabilities Management Corp. confirmed that Emerging Power, Aboitiz Renewables, and FDC Utilities all attended a high-stakes pre-bid conference on May 4. Each company has already submitted its letter of interest, signaling serious intent to own this critical piece of infrastructure.
Nestled in the mountains of Alilem, Ilocos Sur, the Bakun plant has been quietly generating power for decades under a build-operate-transfer deal that expired in February. Now, its ownership has shifted to the government, and the clock is ticking toward a September 16 auction deadline.
Construction of this hydropower giant began in 1997, with commercial operations firing up in 2000. For 25 years, it supplied 70 megawatts of contracted capacity to National Power Corp. under a landmark agreement that shaped the country's energy landscape.
Only those who submitted letters of interest and received official bidding documents can participate in the auction. The bid opening and evaluation will kick off on the same day—September 16—adding a layer of intensity to the process.
In a parallel move, PSALM is also seeking third-party financial valuation services for the plant, with an approved budget of P8 billion. This valuation will help determine the true worth of an asset that has already attracted keen competition.
Created under the Electric Power Industry Reform Act of 2001, PSALM's mission is clear: sell off government-owned power assets and use the proceeds to slash the massive debt left by National Power Corp. Last year alone, the agency trimmed its financial obligations by P13.4 billion, bringing the remaining burden down to P260.6 billion.
The Bakun plant is more than concrete and turbines—it's a symbol of the country's energy transition and a crucial piece in the puzzle of dismantling old debt. The auction this September could mark a turning point for both the power sector and the national treasury.
