The Asian Development Bank (ADB) has been awarded a contract as transaction advisor to help the Power Sector Assets and Liabilities Management Corp. (PSALM) to monetize the Caliraya—Botocan—Kalayaan (CBK) hydroelectric power plant complex in Laguna and enhance energy security in the Luzon grid.
ADB’s advisory services through its Office of Markets Development and Public—Private Partnerships will support the transfer of the facilities to the private sector at an optimal value for the government, while ensuring the government’s overall objectives of energy security and grid stability are met.
Dennis Edward Dela Serna, PSALM president and chief executive officer, said in a message to reporters that as transaction advisor, ADB will review all existing studies, reports, designs regarding CBK to prepare for the privatization.
Dela Serna added ADB will also prepare and conduct market consultation; assist PSALM in the structuring of the privatization of CBK; prepare for draft documents for qualification and bidding and asset sale agreements; and prepare the financial valuation report.
The international bank will also assist PSALM in the bidding, evaluation and execution of the bidding process as well as in the post-bidding and awarding process.
CBK is comprised of three separate hydro facilities with a contracted capacity of 796.64 megawatts which is currently run by independent power producer CBK Power Co. Ltd. under a 25-year build—rehabilitate—operate—transfer contract which will expire in 2026.
“Privatizing the Caliraya—Botocan—Kalayaan hydroelectric power plant complex will bring private sector funds, expertise and efficiency to the important task of generating stable power to meet the growing needs of people and businesses,” said Cleo Kawawaki, head of ADB’s Office of Markets Development and Public—Private Partnerships, in a statement.
