Aboitiz-led group bags CBK hydro complex
MANILA, Philippines – A consortium led by the Aboitiz Group has won the bid to acquire the massive hydroelectric power plant complex in Laguna province.
State-led Power Sector Assets and Liabilities Management (Psalm) Corp. confirmed on Friday that Thunder Consortium—composed of Aboitiz Renewables, Inc., Sumitomo Corp. and Electric Power Development Co. handed in the highest offer for the 796.64-megawatt Caliraya-Botocan-Kalayaan (CBK) hydroelectric power plants.
READ: Aboitiz Power sees at least new 400-MW capacity by end-2026
“The winning bid is P36.266 billion by the Aboitiz Consortium,” Psalm president and CEO Dennis Edward dela Serna said in a message.
The bid was 84.87-percent higher than the P19.616 billion offer of sole rival FWKG Consortium, comprised of First Gen Prime Energy Corp. and Korea Water Resources Corp.
Likewise, the winning consortium’s offer surpassed the almost P33 billion minimum bid price set by the state-led firm.
Psalm previously explained that the lowest bid amount would serve as a benchmark for evaluating the financial offers of qualified bidders.
Psalm announced the highest bid following the opening on Friday of the financial proposals for the key power plant complex.
“The Thunder Consortium will undergo a rigorous post-qualification process to verify the accuracy and authenticity of the eligibility documents submitted,” Psalm said in a statement on Friday.
Psalm auctioned off the hydroelectric power complex in the municipalities of Lumban, Majayjay and Kalayaan in Laguna on an “as is, where is” basis.
Lapsing contract
The hydroelectric power complex is currently covered by a build-rehabilitate-operate-transfer and power purchase agreement between CBK Power Co. Ltd. and the National Power Corp. for 25 years, which will lapse in February next year.
The CBK hydroelectric power facility is one of the power assets being sold by Psalm to settle all the liabilities and obligations it assumed from Napocor.
Psalm’s financial obligations have significantly declined to P262.61 billion as of end-March from the peak level of P1.24 trillion recorded in 2003.
Psalm, whose corporate term was extended for another 10 years in April, recently remitted a record-high dividend of P8.96 billion to the National Treasury, reflecting its “strong financial performance” for fiscal year 2024.
