Psalm enters talks for Agus-Pulangi rehabilitation

One of the renewable energy infrastructures in the Agus-Pulangi Hydropower Complex along Agus River in Mindanao in this undated photo. Power Sector Assets and Liabilities Management Corp. President Dennis Dela Serna told journalists on Monday (Feb. 9, 2026) that they have received three unsolicited proposals for the rehabilitation of APHC but have already rejected one. —Photo courtesy of Metro CDO de Misamis

Negotiations are underway between the Power Sector Assets and Liabilities Management Corp. (Psalm) and an energy group for the possible multimillion-dollar rehabilitation of the aging Agus-Pulangi hydropower complex, a top official said.

More investors are vying to lead the rehabilitation of the state-owned power asset, with Psalm getting four bids.

“We have four that submitted, but we are currently negotiating with one of them,” Psalm president and CEO Dennis Edward Dela Serna told Inquirer over the weekend.

He said that the negotiation stage is provided under the Public-Private Partnership Code, a measure meant to strengthen collaboration between the government and businesses.

Consortium

Dela Serna did not disclose the identification of the entities, but he earlier noted that one was a consortium. The consortium and another bidder were also known players in the power sector.

Late last year, First Gen Corp. also said it was keen on participating in the rehabilitation of the hydro facility, which could be a “nice complement” to its growing renewables portfolio.

Meanwhile, the Psalm executive said that they are targeting to make major progress on pushing for the rehabilitation this year and in 2027.

The completion of rehabilitation works is eyed by 2028.

A feasibility study would also be conducted to update the rehabilitation budget, which was earlier pegged at $350 million.

1,000 megawatts

The complex, which consists of seven run-of-river hydroelectric power plants, has a combined capacity of about 1,000 megawatts (MW).

Six of the hydropower plants are located on the Agus River that flows for 36.5 kilometers from Lake Lanao to Iligan Bay, crossing Lanao del Sur and Lanao del Norte. The seventh is located on the Pulangi River of Bukidnon.

However, only 600 to 700 MW can be generated due to the aging infrastructure.

Once the rehabilitation is realized, Dela Serna previously said Psalm, which is tasked to privatize some crucial power assets, can book around P40 billion to P90 billion in revenues through a concession agreement with a private sector partner.