“This privatization reflects investors’ confidence in the direction of our country’s energy sector.”
That is what President Ferdinand Marcos, Jr. said on Monday as he led the turnover of the Caliraya-Botocan-Kalayaan Hydroelectric Power Plants (CBK HEPP) in Kalayaan, Laguna to the Thunder Consortium of Aboitiz Renewables Inc.; Japan-based Sumitomo Corporation; and J-Power.
“We, in government, continue to strengthen the systems in our energy sector—by improving policies, processes, and partnerships to ensure that energy reliability and affordability are sustained in the long-term,” Marcos also stated.
He added, “Building on the strength of both the public and private sectors, we encourage collaborations that safeguard the public interest while promoting transparency and accountability.”
The Chief Executive also noted how this demonstrates the ability of strategic public–private collaboration to transform investment in essential infrastructure into “reliable, everyday services that people can trust.”
The privatization of the CBK HEPP was completed through the successful bid of over PHP36 billion, with the President expressing his optimism that this help deliver more secure and stable power connection to Filipinos.
“In doing so, the government can invest where it matters most— in our people. Particularly, these resources can be directed towards the immediate needs of the public, such as for classrooms, for roads, and for hospitals,” the President noted on how the public-private partnership unlocks funds for the government to use in other services.
The CBK HEPP is one of the largest hydropower complexes in Luzon and had an overall capacity of 797 megawatts. The Caliraya power plant is an impounded water system; the Botocan plant operates as a run-of-river system; while the Kalayaan plan is a pumped-storage facility.
According to PBBM, the CBK facilities pump water to an upper reservoir using excess power during off-peak hours, and release water to generate electricity when the demand is high, allowing cleaner energy to work reliably at scale.
These then form a system designed both to generate power and balance the supply and demand across the power system.