Group Led by Aboitiz Submits Highest $642 Million Offer for Government-Controlled Hydroelectric Power Station in the Philippines
In a significant move towards renewable energy expansion, Aboitiz Equity Ventures (AEV), a prominent Filipino conglomerate, has emerged as the highest bidder for a government-owned hydro power facility. The Caliraya-Botocan-Kalayaan hydroelectric plant, one of the country's oldest power facilities, located in Laguna province, south of Manila, was the subject of the bidding process.
The winning bid of 36.3 billion pesos was submitted by Aboitiz Equity, which is controlled by Sabin Aboitiz and his family. This acquisition aligns with AEV's commitment to increasing renewable energy capacity, supporting sustainable development, and contributing to the Philippines' energy security.
Sabin Aboitiz, CEO of Aboitiz Equity, has been instrumental in leading or overseeing the transaction. His role includes strategic leadership, negotiations and deal structuring, integration planning, and public representation. Aboitiz Equity aims to source half of its electricity output from renewable sources by 2030 through the construction of geothermal, solar, wind, and hydro power stations.
The Power Sector Assets & Liabilities Management Corp. (PSALM), a government agency in charge of divesting assets of state-owned National Power Corp., announced two qualified bidders for the 728-megawatt power facility. The other qualified bidder is the Thunder Consortium, which includes Japanese companies Sumitomo Corp. and Electric Power Development. The Thunder Consortium's bid of 36.3 billion pesos was higher than the bid of First Gen Prime Energy and Korea Water Resources Corp. (19.6 billion pesos).
The Caliraya-Botocan-Kalayaan hydroelectric plant is currently operated by CBK Power Company under a build, rehabilitate, operate and transfer contract with the government that expires in February 2026. Sabin Aboitiz, with an estimated net worth of $2.2 billion (August 2024), ranks No. 10 in the Forbes Asia list of the Philippines' 50 Richest.
As part of Aboitiz Equity's strategic expansion in the power sector, the company plans to spend 190 billion pesos this decade on renewable energy, aiming to more than double its installed electricity generation capacity to 9.2 gigawatts by 2030.
The Thunder Consortium will undergo a rigorous post-qualification process to verify the accuracy and authenticity of the eligibility documents submitted. The successful completion of this process will pave the way for the transfer of ownership of the Caliraya-Botocan-Kalayaan hydroelectric plant to the winning bidder.
- Aboitiz Equity Ventures (AEV), in line with their commitment to the renewable-energy industry, submitted a bid of 36.3 billion pesos to acquire the Calirayan-Botocan-Kalayaan hydroelectric plant for further energy development.
- The investment in the hydroelectric plant by Aboitiz Equity aligns with their business strategy, aiming to secure half of their electricity output from renewable sources by 2030.
- The Thunder Consortium, consisting of Sumitomo Corp. and other partners, also entered the race for the Caliraya-Botocan-Kalayaan facility, demonstrating a collective interest in investing in the renewable-energy sector's finance and business opportunities.
