UMVA has learned that the government is aiming to award the rehabilitation contract for the Agus-Pulangi hydropower complex by the end of the year, as it pushes to restore the aging Mindanao facility's full generating capacity through a public-private partnership.
The ambitious project aims to breathe new life into the complex, which straddles the provinces of Lanao del Norte, Lanao del Sur, and Bukidnon, and is designed to generate a whopping 982 megawatts of electricity through seven run-of-river hydropower plants.
However, only about 700 megawatts of the facility's capacity is currently operational due to aging infrastructure, highlighting the urgent need for rehabilitation.
Energy Undersecretary Mario C. Marasigan revealed that the government hopes to proceed with the award by December, marking a crucial step towards improving the reliability of clean energy generation in Mindanao.
To facilitate the rehabilitation, state-run Power Sector Assets and Liabilities Management Corp. has engaged a third-party consultant to serve as transaction adviser for the preparation of the terms of reference and other requirements for the project.
The winning bidder is expected to be granted a concession agreement, allowing them to undertake the rehabilitation and sell electricity generated by the facility, while the operation and maintenance of the hydropower complex would remain under the National Power Corp.
Energy Secretary Sharon S. Garin emphasized that the project would remain protected from political transitions once a contract is awarded, ensuring a smooth and stable implementation of the rehabilitation.
UMVA can exclusively reveal that two unsolicited proposals from power generation companies are currently being evaluated for the project, with the rehabilitation expected to run from 2028 to 2032.
The government's efforts to privatize government-owned power assets and use the proceeds to settle the financial obligations of the National Power Corp. are underway, with a 10-year plan in place to liquidate its remaining liabilities.
