A lifeline for Mindanao’s power grid is stirring, as four major energy companies have stepped forward with proposals to revitalize the Agus-Pulangi hydroelectric power complex. This aging network, crucial to the southern Philippine island, currently struggles to deliver its full potential.
The complex, comprised of seven hydroelectric plants, boasts an impressive installed capacity of 1,000 megawatts. However, decades of wear and tear have limited operational output to around 700 megawatts, leaving a significant gap in the region’s energy needs.
State-run Power Sector Assets and Liabilities Management Corp. (PSALM) is now meticulously evaluating these unsolicited proposals, endorsed by the Public-Private Partnership (PPP) Center. While the identities of the companies remain undisclosed, officials confirm they are well-established players in the energy sector.
This renewed focus on Agus-Pulangi follows a recent success: the handover of the Caliraya-Botocan-Kalayaan (CBK) hydroelectric plants in Laguna to a consortium led by the Aboitiz group, secured with a substantial bid of P36.27 billion. This transfer demonstrates a growing momentum towards modernizing the nation’s hydroelectric infrastructure.
PSALM is leaning towards a concession-type agreement for Agus-Pulangi, aligning with the framework of the PPP Code. The anticipated implementation date is set for 2027, potentially paving the way for full privatization afterward.
The potential economic impact is substantial. Once fully rehabilitated, the Agus-Pulangi complex is projected to generate a remarkable P90 billion in revenue, injecting vital funds into the region and bolstering the national economy.
PSALM was established under the Electric Power Industry Reform Act of 2001 with a clear mandate: to privatize government-owned power assets and utilize the proceeds to address the financial burdens of the National Power Corp. This ongoing effort is critical to the nation’s financial stability.
Significant progress has already been made. Last year alone, PSALM successfully eliminated P13.4 billion in financial obligations, reducing its remaining debt to P260.6 billion. A comprehensive ten-year plan is in place to fully liquidate these liabilities through strategic measures.
The rehabilitation of Agus-Pulangi represents more than just an infrastructure project; it’s a commitment to energy security and economic growth for Mindanao, and a crucial step in modernizing the Philippines’ power landscape.
