Two unsolicited proposals are now under evaluation for the rehabilitation of the aging 1,000-megawatt Agus-Pulangi Hydropower Complex (APHC), with an award unlikely before 2027 due to required timelines under the public-private partnership framework, according to the Power Sector Assets and Liabilities Management Corporation (PSALM).

PSALM President and CEO Dennis Dela Serna said the state firm initially received three unsolicited submissions for the Mindanao hydro complex, but one proposal has already been rejected.

“We have received three unsolicited proposals for the rehabilitation of APHC, but we have already rejected one,” Dela Serna said. “We are still going through the evaluation process, so that’s why I’m saying approval might be next year because there’s a period for evaluation and a period for negotiation.”

Dela Serna made the remarks on the sidelines of the turnover of the Caliraya–Botocan–Kalayaan Hydropower Complex to the Thunder Consortium, a transaction cited as a benchmark for transparency and process discipline in large-scale hydro privatization.

Aging assets, declining output

The Agus-Pulangi complex, located around Lake Lanao, consists of seven hydropower plants with a combined installed capacity of more than 1,000 MW. However, only about 600 to 700 MW remain operational due to aging equipment and facilities.

The government aims to restore the full capacity of the complex within three years once rehabilitation begins. APHC is considered one of Mindanao’s most critical generation assets, supplying flexible and dispatchable power to the island grid.

PSALM has previously explored alternative rehabilitation options, including World Bank-backed funding and Chinese financing. These proposals were eventually shelved, reopening the project to private sector participation.

CBK privatization renews investor interest

Interest in the Agus-Pulangi rehabilitation picked up following the successful privatization of the CBK hydroelectric complex, which was recently turned over to the Thunder Consortium, led by Aboitiz Renewables in partnership with Sumitomo and J-Power.

Among the companies that have publicly expressed interest in hydro assets is First Gen Corporation, which has been actively evaluating large hydropower opportunities in recent years.

First Gen Vice President and Head of Strategy and Planning Jay Joel L. Soriano in November 2025 said hydro power plays a key role in balancing the country’s growing share of variable renewable energy.

“If you look at what we’ve been doing—Casecnan came up, we looked into it. CBK came up, we looked into it,” Soriano said in an earlier interview. “Because hydro is a nice complement to geothermal, solar, and wind.”

Strategic role in Mindanao grid

The Agus-Pulangi Hydropower Complex remains central to Mindanao’s energy security, particularly as more solar and wind capacity comes online. Its ability to provide peaking and balancing services is seen as critical to maintaining grid stability.

Once rehabilitated, the complex is expected to extend its operational life while supporting the country’s broader push toward a cleaner and more flexible power mix.

For PSALM, the project represents one of the most significant remaining generation assets under state control—one that could shape Mindanao’s power supply for decades to come.

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