The Power Sector Assets and Liabilities Management Corp. (PSALM) is seeking a buyout option for the potential independent power producers administrators (Ippas), which will operate the capacity of the 728-megawatt (MW) Caliraya-Botocan-Kalayaan (CBK) hydroelectric power plant and the 140-MW Casecnan multipurpose project.
“We are awaiting opinion, if buyout could be an option. If it’s alright on the legal side, then we’ll proceed with the sale of the asset,” PSALM President and CEO Lourdes Alzona told reporters.
She noted that an Ippa operator is allowed to proceed to a buyout agreement under the Ippa contract, but within a specific date.
However, the PSALM head said that Malacañang and the Department of Finance called for a review on the legality of the buyout option.
Alzona bared the review will be released 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.