The government is eyeing the completion of rehabilitation works for the 1,001-megawatt (MW) Agus-Pulangi hydropower complex within the next three years, with the project likely to proceed through a public-private partnership (PPP).

Finance Secretary Ralph Recto told reporters on the sidelines of the EJAP Economic Forum 2025 that the rehabilitation is “moving forward” and should be completed “within the term of [this] administration, hopefully.”

The Agus-Pulangi complex, composed of seven power plants owned by the Power Sector Assets and Liabilities Management Corp. (PSALM), has been in operation for 25 to 50 years. Aging infrastructure has reduced its current output to 600–700 MW from its installed capacity.

PSALM president Dennis Dela Serna earlier confirmed that the project will be implemented through a PPP once a commercial transaction advisor is in place, Manila Bulletin reports.

Previous financing options included a World Bank-backed rehabilitation plan under the Duterte administration, and a proposal for Chinese funding, which was later dropped by the current administration.

The renewed push for Agus-Pulangi’s rehabilitation comes after the recent privatization bidding for the Caliraya-Botocan-Kalayaan (CBK) hydroelectric power plants. Recto said the CBK deal “will generate something like PHP 35 billion, which is good. Additional revenue for the government.”

What’s your take on completing the Agus-Pulangi rehab via PPP within the Marcos administration’s term?

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Photo credit: Malaya Business Insight