State-owned Power Sector Assets and Liabilities Management Corp. (PSALM) is seeking a buyout option for potential independent power producers administrators (IPPAs) for the 728-megawatt (MW) Caliraya-Botocan-Kalayaan (CBK) hydroelectric power plant and the 140-MW Casecnan multi-purpose project.
“We are awaiting [an]opinion, if [a]buyout could be an option. If it’s alright on the legal side, then we’ll proceed to the sale of the asset,” PSALM president and chief executive officer Lourdes Alzona told reporters.
She noted that an IPPA operator was allowed to proceed to a buyout agreement, under the IPPA contract, but within a specific date.
Malacanang and the Department of Finance (DOF), she noted, have called for a review on the legality of the buyout option.
The results of the review will be released later this year.
The CBK power plant’s capacity is currently operated by CBK Power Co. Ltd., under a build-rehabilitate-operate-transfer scheme, with its cooperation agreement to last until February 7, 2026.
Casecnan, on the other hand, is currently operated by California Energy Casecnan Water and Energy Co. Inc., through a build-operate-transfer agreement. Its cooperation agreement will end on April 5, 2022.