MANILA, Oct. 9 (Xinhua) -- The Asian Development Bank (ADB) said Monday it has been awarded a contract as transaction advisor to help the Philippines Power Sector Assets and Liabilities Management Corporation (PSALM) to monetize the Caliraya-Botocan-Kalayaan (CBK) hydroelectric power plant complex and enhance energy security in the country's main island of Luzon.
The Manila-based bank said the hydroelectric power plant complex comprises three separate facilities with a contracted capacity of 796.64 megawatts and plays a central role in the Luzon power system. It is run by independent power producer CBK Power Co. Ltd. under a 25-year build-rehabilitate-operate-transfer contract, which will expire in 2026.
The ADB's advisory services through its Office of Markets Development and Public-Private Partnerships will support the transfer of the facilities to the private sector at an optimal value for the government, while ensuring that the government's overall objectives of energy security and grid stability are met.
Privatizing the CBK 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," said Head of ADB's Office of Markets Development and Public-Private Partnerships Cleo Kawawaki.
The PSALM was established under the Electric Power Industry Reform Act of 2001, which provides a framework for deregulating the power industry, including privatizing the assets transferred by the National Power Corporation to the PSALM, said the ADB. ■