A substantial P70 billion in loan commitments has been secured by a consortium led by Aboitiz, paving the way for a significant shift in the landscape of Philippine hydropower. These funds, pledged by BDO Unibank and Metropolitan Bank & Trust Co., will fuel the takeover of the crucial Caliraya-Botocan-Kalayaan (CBK) hydropower facilities nestled in the province of Laguna.
Each financial institution has committed up to P35 billion, providing the consortium with the financial flexibility needed to finalize the transaction. This substantial backing arrives following a key approval from the Philippine Competition Commission on December 1st, clearing the path for the acquisition to proceed.
The winning bid for the large-scale hydropower asset came from Thunder Consortium – a powerful alliance of Aboitiz Renewables, Inc., Japan’s Sumitomo Corp., and Electric Power Development Co. Their offer of P36.266 billion secured them the privatization, marking a pivotal moment for renewable energy investment in the Philippines.
Aboitiz Renewables, Inc., the driving force behind the consortium and a subsidiary of Aboitiz Power Corp., is strategically positioned as the group’s central hub for renewable energy ventures. Their portfolio already encompasses a diverse range of projects, including solar, geothermal, wind, and advanced battery storage systems.
The CBK power plants are not merely an acquisition; they represent an immediate boost to earnings, promising a swift return on investment upon the official handover. This swift profitability underscores the strategic importance of these facilities to the consortium’s overall energy strategy.
The CBK complex is a formidable power source, comprised of the 39.37-megawatt Caliraya plant, the 22.91-MW Botocan plant, and the substantial Kalayaan I and II pumped-storage facilities boasting a combined capacity of 734.36 MW. All are strategically located within the province of Laguna.
Currently, the asset operates under a 25-year build-rehabilitate-operate-transfer agreement between CBK Power Co. Ltd. and the National Power Corp. (NPC), a framework that has ensured consistent power generation for decades. This established operational structure provides a solid foundation for the new owners.
The Power Sector Assets and Liabilities Management Corp. (PSALM), the government agency spearheading the privatization, anticipates the complete turnover of the power plant complex in February 2026. This timeline marks the culmination of a long-term effort to modernize and optimize the nation’s power infrastructure.
PSALM’s core mandate is to privatize government-owned power assets, a crucial step in resolving the financial obligations of the National Power Corp. (NPC). This privatization is not simply a transaction; it’s a vital component of the Philippines’ broader energy security and financial stability goals.
