Agus-Pulangi rehab contract seen awarded by December

MANILA, Philippines – The Philippine government is targeting to award by December the contract for the rehabilitation of the aging Agus-Pulangi hydropower complex.

The facility, which consists of seven run-of-river hydroelectric power plants, has a combined capacity of about 1,000 megawatts (MW).

READ: Psalm enters talks for Agus-Pulangi rehabilitation

Energy Undersecretary Mario Marasigan said there was already an approval to proceed with the negotiation with a potential partner from the private sector.

The project, which attracted at least four bids, would be under a public-private partnership.

“We hope to proceed by December, with the project expected to be awarded by then,” he told reporters.

The official did not disclose the contenders, but a top official from the Power Sector Assets and Liabilities Management Corp. (Psalm) said there was a consortium.

In 2025, Lopez-led First Gen Corp. expressed interest in participating in the rehabilitation of the hydro facility, as it moved to expand its renewables portfolio.

Six of the hydropower complex’s plants are located along the Agus River that flows for 36.5 kilometers from Lake Lanao to Iligan Bay, encompassing Lanao del Sur and Lanao del Norte. The seventh is located along the Pulangi River in Bukidnon.

However, only 600 to 700 MW is operational due to the aging infrastructure.

READ: Rehab of Mindanao hydros seen to boost power supply

Dennis Edward dela Serna, president and CEO of Psalm, said last April that a feasibility study would be conducted to update the rehabilitation budget, which was earlier estimated at $350 million.

Meanwhile, National Power Corp. (Napocor) president Jericho Nograles said operations and maintenance would still be handled by the agency.

“Operations and maintenance is [will remain a responsibility of] Napocor because it is not a privatization, it’s rehabilitation,” Nograles said.

The investor could then recover or gain from the deal through selling power generated by the facility, with profits to be shared with Psalm.

The rehabilitation, which will be done in phases, is eyed for completion by 2028 to 2032.

Energy Secretary Sharon Garin has expressed confidence that the project would not be derailed even if it takes longer than the term of President Marcos, which ends in 2028.

“Once there is an award, they will do the rehabilitation, there’s a contract … There’s a contractual obligation. That’s the basic rule,” Garin said. INQ