ADB to serve as advisor for Philippine hydropower complex privatisation
The Caliraya–Botocan–Kalayaan hydro plant has a 796.64 MW capacity.
Asian Development Bank (ADB) has been granted a contract as transaction advisor for the Philippines Power Sector Assets and Liabilities Management Corporation (PSALM) on the privatisation of the Caliraya–Botocan–Kalayaan (CBK) hydroelectric power plant complex.
In a statement, ADB said the contract calls for monetisation of CBK and an increase of energy security throughout Luzon.
As the advisor, ADB will help expedite the optimisation of its value to the private sector, alongside the maintenance of its quality through energy security and grid stability.
The 796.64-megawatt CBK power plant includes three facilities and is critical to the Luzon power grids. The entire hydroelectric complex is operated by independent producer CBK Power Co. Ltd. under a 25-year build–rehabilitate–operate–transfer contract which will expire by 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,” Cleo Kawawaki, Head of ADB’s Office of Markets Development and Public–Private Partnerships said.