The sale of the Caliraya–Botocan–Kalayaan Hydroelectric Power Plants (CBK HEPP) has been formally completed, with the Power Sector Assets and Liabilities Management Corporation (PSALM) confirming the closing of the transaction days after the deal’s financing was disclosed.

In a statement, PSALM said the closing transactions were carried out on December 19 at its office in Quezon City, marking the official transfer of the hydroelectric complex to the Thunder Consortium led by Aboitiz Renewables Inc.

PSALM said the transaction represents a milestone under the Electric Power Industry Reform Act (EPIRA), framing the sale as part of the government’s broader power sector reform and privatization program rather than a purely commercial deal.

The Thunder Consortium—composed of Aboitiz Renewables, Sumitomo Corporation, and Electric Power Development Co. Ltd.—submitted the highest bid of PHP 36.266 billion during the opening of financial proposals in July 2025, leading to the award of the CBK HEPP.

Energy Secretary Sharon Garin said the completed transaction reflects the government’s direction for the power sector. “The successful transaction is a clear affirmation of the privatization initiatives of the Electric Power Industry Reform Act,” she said, adding that it spotlights the government’s commitment to transparency and genuine competition.

PSALM President and CEO Dennis Edward A. Dela Serna said the closing signals investor confidence in both the Philippine power sector and the government’s reform agenda. “This transaction supports our mandate to optimize asset value while ensuring the long-term reliability and sustainability of the country’s power supply,” he said.

PSALM also clarified that proceeds from the sale will be used in accordance with EPIRA, primarily to help settle its financial obligations, which it said would ultimately benefit electricity consumers through the reduction of stranded costs and support long-term sector stability.

Following the ownership transfer, PSALM said it will continue coordinating with relevant stakeholders to ensure a smooth transition and uninterrupted operation of the CBK facilities, which are considered critical to the Luzon grid.

With the CBK sale now formally completed, how will the use of privatization proceeds and transition safeguards shape public confidence in future power sector asset sales?

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