Finance Secretary Ralph Recto said the privatization of the 733.95-megawatt (MW) Caliraya-Botocan-Kalayaan (CBK) hydroelectric power complex in Laguna and Quezon will boost energy supply and prevent power disruptions in Luzon.

The government, through the Department of Finance (DOF) and the Power Sector Assets and Liabilities Management (PSALM) Corporation, recently awarded the CBK project to the winning bidder, Thunder Consortium, composed of Aboitiz Renewables, Inc. (ARI), Sumitomo Corp., and Electric Power Development Co. (J-Power).

The Aboitiz-led group offered PHP36.27 billion, outbidding the First Gen Prime Energy Corporation and Korea Water Resources (FGKW) Consortium, which submitted a bid of P19.62 billion.

“The successful privatization of the CBK power plants is a huge win for everyone. Ibig sabihin po nito ay mas maaasahan at abot-kayang kuryente para sa bawat bahay, negosyo, at pabrika. (This means reliable and more affordable electricity for every home, business, and factory)," Finance Secretary and PSALM Corporation chairperson Ralph Recto said.

"It is a major milestone for the nation’s energy security and economic stability,” he added.

The CBK complex consists of the 39.52-MW Caliraya hydroelectric power plant (HEPP) in Lumban; the 23.10-MW Botocan HEPP in Majayjay; and the 366-MW Kalayaan I and 367.95-MW Kalayaan II pumped-storage power plants, all located in Laguna.

The CBK power plants, specifically Kalayaan I and Kalayaan II, operate similarly to a huge battery system that can support Luzon’s massive power needs.

It strengthens Luzon’s energy grid by providing ancillary services and reserve capacity, while having the flexibility to enter into long-term power supply agreements.

The privatization of the CBK hydroelectric power complex is PSALM’s biggest project this year.

The project is currently under a 25-year build-rehabilitate-operate-transfer contract and power purchase agreement between CBK Power Co. Ltd. and the National Power Corp., which will expire in February 2026.

The government is expected to turn over the plant to the Thunder Consortium by then.