Home Top News First Gen keen on Laguna CBK hydro power plant complex

First Gen keen on Laguna CBK hydro power plant complex

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FIRST GEN Corp. said it is eyeing to participate in a bidding process for the 796.64-megawatt (MW) Caliraya-Botocan-Kalayaan (CBK) hydroelectric power plant (HEPP) complex in Laguna.

“We’re interested in that, kasi, of course, katatapos lang namin ng Casecnan, ’di ba? (because, of course, we just bagged Casecnan, right?) So, to the extent, we can increase our hydro facilities,” First Gen President and Chief Operating Officer Francis Giles B. Puno told reporters last week.

“CBK, obviously, is a pump storage. It will enable more renewable energy to come online,” he added.

The CBK hydro facilities are currently under a 25-year build-rehabilitate-operate-transfer and power purchase agreement between independent power producer CBK Power Co. Ltd. and National Power Corp., which will expire in 2026.

These facilities are composed of the 39.37-MW Caliraya HEPP in Lumban, 22.91-MW Botocan HEPP in Majayjay, and 366-MW Kalayaan I and 368.36-MW Kalayaan II pump storage power plants in Laguna.

In February, the Power Sector Assets and Liabilities Management Corp. (PSALM) and the National Irrigation Administration turned over the ownership and operations of the 165-MW Casecnan hydroelectric power plant to First Gen’s subsidiary Fresh River Lakes Corp. (FRLC).

PSALM secured the highest bid from FRLC with a price of $526 million, higher than the minimum bid price of $227.27 million.

The Casecnan hydro is a run-of-river type of power facility that generates energy by diverting water from the Casecnan and Taan rivers through a 26-kilometer-long tunnel.

Finance Secretary Ralph G. Recto anticipates the CBK privatization to generate up to P100 billion.

Mr. Puno underscored the need for increased investment in clean and renewable energy in the Philippines, aligning with government targets of 35% renewable energy by 2030 and 50% by 2040.

At the local bourse on Tuesday, shares in the company rose by 1.02% to close at P17.80 apiece. — Sheldeen Joy Talavera

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