Aboitiz-led consortium takes over CBK hydro complex

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February 9, 2026 | 12:00am

MANILA, Philippines — The government is handing over the massive hydropower complex in Laguna to the Aboitiz-led group today, sealing a P36.3-billion deal expected to bring lasting gains for the Philippine energy sector.

This marks Thunder Consortium’s official acquisition of the 797-megawatt Caliraya-Botocan-Kalayaan (CBK) complex from state-run Power Sector Assets and Liabilities Management Corp. (PSALM).

AboitizPower, through Aboitiz Renewables Inc., holds a controlling 64 percent stake in the consortium, which also includes Japan’s Sumitomo Corp. and Electric Power Development Co. Ltd. (J-Power).

CBK, comprising hydropower plants in Lumban, Majayjay and Kalayaan in Laguna, was a major privatization project of PSALM and regarded as a priority source of the government’s non-tax revenues.

Notably, the Kalayaan plant is the country’s first and only operational pumped storage hydro facility.

This functions like a big rechargeable battery that draws power to pump water for storage during periods of excess renewable supply and releases water to generate electricity during high demand.

With the CBK acquisition, AboitizPower expects to strengthen its renewable energy portfolio, further solidifying its position as the country’s leading power generation company.

Market watchers, however, believe AboitizPower and its partners have a challenging road ahead with the old CBK complex, which must compete against newer plants.

“This is going to be a long-term play for the consortium,” an analyst told The STAR.