October 28, 2025 | 12:00am
MANILA, Philippines — State-run Power Sector Assets and Liabilities Management Corp. (PSALM) is expecting to raise up to P90 billion from the overhaul of the Agus-Pulangi hydropower complex in Mindanao.
PSALM president and CEO Dennis Edward dela Serna said the rehabilitation could generate around P40 billion to P90 billion in revenues through a concession agreement with a private sector partner.
This would enable PSALM to slash its financial obligations, bringing them close to zero well before its extended corporate life ends in 2036, he said.
“The mode that we’re looking at is through a concession. And the concession entails that somebody will rehabilitate it and fix the power plants over a certain period of time,” dela Serna said.
In particular, he noted that the rehabilitation would be carried out through a public-private partnership (PPP), ensuring its timely completion within President Marcos’ administration.
Asked about the rehabilitation budget, Dela Serna indicated that costs could exceed the initial 2019 estimate of $350 million.
“PSALM’s plan is to conduct competitive bidding. However, we are also allowed to entertain unsolicited proposals. When an unsolicited proposal is submitted, then we will evaluate based on that following the PPP Code,” he said.
Situated around Lake Lanao, the Agus-Pulangi complex consists of seven hydropower plants with a total installed capacity of at least 1,000 megawatts. Due to aging facilities, however, only around 600 to 700 MW remain operational.
In August, Finance Secretary Ralph Recto, who chairs PSALM, said the rehabilitation plan was “moving forward” and stayed on track to be finished by 2028.
