Manila eyes P101.5 billion from hydropower plant sales in 2027

Abi Sarabia M., Philippine Canadian Inquirer
August 19, 2026

Photo courtesy: Philippine News Agency

MANILA, Philippines — The Philippine government is targeting P101.5 billion in privatization revenue next year, driven largely by the sale of the Caliraya-Botocan-Kalayaan (CBK) hydroelectric power complex and the planned rehabilitation of the Agus-Pulangi hydropower system in Mindanao, the Department of Finance (DOF) said.

DOF Undersecretary and chief privatization officer Michael Peter Alejandro said the figure marks a sharp increase from the department’s earlier target of P1.5 billion for next year, with the CBK and Agus-Pulangi transactions accounting for most of the projected proceeds.

“CBK will come in next year. So the proceeds for that will come in. We’re targeting Agus-Pulangi also for next year,” Alejandro told reporters.

CBK sale already completed

The 797-megawatt CBK hydroelectric complex, which spans Laguna and Quezon provinces, was turned over to the Thunder Consortium in February and is expected to generate P36 billion in proceeds. Alejandro said the transaction itself has already been completed, but the government will only recognize the proceeds in 2027 because of accounting considerations, a factor that also led the DOF to revise this year’s privatization target downward.

Agus-Pulangi rehabilitation under PPP framework

Separately, the government is preparing to rehabilitate the Agus-Pulangi hydropower complex, a set of seven power plants in Mindanao with a combined installed capacity of at least 1,000 megawatts. The project is being structured under a public-private partnership (PPP) framework, with a private partner expected to be named next year.

“Right now, we’re exploring PPP, I believe. We’ll have to check with PSALM (Power Sector Assets and Liabilities Management Corp). I’m not too familiar with what their actual option is now. But I know that it’s in the pipeline for next year,” Alejandro said.

Rehabilitation work is expected to begin next year, with completion targeted in phases between 2028 and 2032.

This year’s target cut by more than half

For the current year, the DOF has lowered its privatization revenue target to P38.1 billion, down 62.5 percent from an earlier goal of P101 billion. Alejandro said this year’s privatization efforts have so far focused on three major assets — the Food Terminal Inc. (FTI) property, the Mile Long property, and the Atrium of Makati, the sale of which has already been completed.

“This year, we’re already at P1.9 billion in the first six months. We’re looking forward to FTI and Mile Long,” Alejandro said.

On investor interest, Alejandro said both property developers and pension funds have expressed interest in the Mile Long property, though he did not provide further details on the scale or nature of that interest.

The privatization program forms part of the Marcos administration’s broader effort to generate non-tax revenue and reduce the state’s holdings in non-core assets, including power generation facilities inherited from state-run utilities.