Government award of Agus-Pulangi rehab deal eyed in December

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June 15, 2026 | 12:00am

MANILA, Philippines — The private partner for the multibillion-peso revamp of Mindanao’s aging Agus-Pulangi hydropower complex is expected to be named later this year, according to the Department of Energy.

DOE Undersecretary Mario Marasigan said the concession is targeted for award in December, paving the way for the long-awaited rehabilitation of the hydro assets.

He said the government’s third-party consultant has already submitted the final terms of reference, which were later cleared by Power Sector Assets and Liabilities Management Corp. (PSALM) board.

“So the board already approved to proceed with the negotiation,” Marasigan said in an interview.

The project will next be submitted to the Investment Coordination Committee for review before being endorsed to the Public-Private Partnership (PPP) Center, he added.

Unlike the Caliraya-Botocan-Kalayaan hydro assets in Laguna, which raised over P36 billion from privatization, Agus-Pulangi will undergo a revamp under a PPP framework, with the government retaining ownership of the asset.

The complex, situated around Lake Lanao, consists of seven hydropower plants with a total installed capacity of at least 1,000 megawatts. Due to aging facilities, however, only about 600 to 700 MW remains operational.

Rehabilitation is targeted to begin next year, with completion expected in phases from 2028 to 2032. The government aims to restore the complex to full capacity once the upgrades are completed.

Energy Secretary Sharon Garin expressed confidence  the rehabilitation would stay on track despite a change in administration in 2028.

“It’s not like the government is doing the project. It will be the private (partner) that will lead the rehabilitation. There’s a contractual obligation. I think that should be steady,” she said.

As DOE chief, Garin currently serves as vice chairperson of the PSALM board, which is chaired by Finance Secretary Frederick Go.

Other members include the heads of PSALM, the Department of Trade and Industry, the Department of Justice, the Department of Budget and Management and the Department of Economy, Planning and Development.

Asked about the rehabilitation cost, Garin said the process remains ongoing, with the project still under evaluation.

Earlier, PSALM president and CEO Dennis Edward dela Serna said the government was awaiting the results of the Asian Development Bank’s feasibility study.

He noted, however, that the project could generate between P40 billion and P90 billion in revenues for the government.

According to the DOE, the winning bidder for the rehabilitation will have the right to sell electricity generated by the hydro assets under a profit-sharing scheme with PSALM.

Operations and maintenance, meanwhile, will remain with National Power Corp.