By Benjamin Cuaresma
MANILA — The government is aiming to finalize and award the long-awaited rehabilitation contract for the Agus-Pulangi hydropower complex before the end of 2026, marking a major step toward restoring one of Mindanao’s most critical renewable energy assets.
Energy Undersecretary Mario Marasigan said negotiations with a prospective private-sector partner have been authorized to move forward, with officials targeting December for the project’s formal award.
The Agus-Pulangi complex, composed of seven run-of-river hydroelectric facilities, has an installed capacity of approximately 1,000 megawatts. However, aging infrastructure has reduced actual output to only around 600 to 700 megawatts, limiting its contribution to the Mindanao power grid.
The rehabilitation project is being pursued under a public-private partnership arrangement and has reportedly attracted at least four interested bidders. Government officials have not publicly identified the contenders, although executives from the Power Sector Assets and Liabilities Management Corp. (Psalm) confirmed that one bid came from a consortium.
The initiative is expected to breathe new life into facilities that have been operating for decades and are in need of extensive modernization to improve efficiency and reliability.
Interest from major energy players has also emerged. In 2025, First Gen Corp., led by the Lopez Group, signaled its intention to participate in the rehabilitation effort as part of its strategy to expand renewable energy investments.
Six of the hydroelectric plants are situated along the Agus River, which stretches from Lake Lanao to Iligan Bay and traverses the provinces of Lanao del Sur and Lanao del Norte. The seventh facility, Pulangi IV, is located along the Pulangi River in Bukidnon.
Psalm President and Chief Executive Officer Dennis Edward dela Serna earlier disclosed that a new feasibility study would be conducted to update project costs, which were previously estimated at around $350 million.
Despite private-sector participation, officials stressed that the rehabilitation program does not involve privatization of the assets. National Power Corp. President Jericho Nograles said Napocor would continue to oversee operations and maintenance even after rehabilitation works begin.
Under the proposed arrangement, the private investor is expected to recover its investment through revenues generated from electricity sales, with profits to be shared with Psalm.
The modernization program will be implemented in phases and is targeted for completion between 2028 and 2032.
Energy Secretary Sharon Garin expressed confidence that the project will proceed regardless of political transitions, noting that contractual commitments would ensure continuity beyond the current administration.
“Once the contract is awarded, the rehabilitation becomes a binding obligation for the winning party,” Garin said, emphasizing that the project’s long-term implementation would be protected by the terms of the agreement.
The rehabilitation of the Agus-Pulangi complex is widely viewed as a key component of efforts to strengthen Mindanao’s energy security, increase renewable power generation, and support the region’s growing electricity demand in the coming years.
ia/xf
