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The Economy and Development Council (ED Council) has approved the ₱29.98-billion rehabilitation of Mindanao’s Agus-Pulangi Hydropower Complex, a project expected to restore generating capacity to nearly 1,002 megawatts and increase annual electricity production to strengthen the region’s power supply.
The Department of Economy, Planning, and Development (DEPDev) said the Agus-Pulangi Hydroelectric Power Plants Rehabilitation and Asset Management Project would modernize the complex’s seven power plants, improve operational reliability and address environmental concerns.
The rehabilitation is expected to raise the complex’s generating capacity to 1,001.96 megawatts from existing levels and increase annual power output to 4,305 gigawatt-hours from 3,746 GWh, according to the Presidential Communications Office (PCO).
The government said the improvements would help provide a more reliable electricity supply for households and businesses while supporting Mindanao’s economic development.
“Reliable and affordable energy is essential for Mindanao to realize its growth potential,” Economy Secretary and ED Council Vice-Chair Arsenio M. Balisacan said.
“The rehabilitation of the Agus-Pulangi hydropower complex will help power productivity, investment, and jobs across the region,” he added.
Private Sector Partnership
The project is proposed to be implemented through a 25-year partnership between the Power Sector Assets and Liabilities Management Corp. (PSALM) and a consortium composed of San Miguel Global Power Holdings Corp. and Sta. Clara International Corp.
The partnership could be extended for another 25 years, subject to government approval. The proposed electricity tariff would be capped at ₱4 per kilowatt-hour, pending approval by the Energy Regulatory Commission (ERC).
PSALM has received three unsolicited proposals for the rehabilitation, two of which remain under evaluation. The government is targeting to select a private sector partner by December, with rehabilitation works expected to begin in 2027.
The proposed arrangement is intended to bring in private sector participation to modernize the aging facilities while improving their long-term operational performance.
Other Infrastructure Projects
Aside from the hydropower rehabilitation, the ED Council approved adjustments to the Samal Island-Davao City Connector Project, including changes to its design, an increase in project cost, and an extension of its implementation period.
The project’s cost will rise to ₱26.78 billion from the previously approved ₱23.04 billion, while its implementation period will be extended until Nov. 30, 2029.
The 3.98-kilometer, four-lane cable-stayed bridge will connect Davao City with the Island Garden City of Samal, providing an alternative transport link between the mainland and the island.
DEPDev said the project is expected to improve access to tourism destinations and markets while expanding residents’ access to employment, education and other essential services.
President Ferdinand R. Marcos, Jr. also directed the Department of Public Works and Highways to address funding and implementation issues affecting the project.
The council also endorsed a proposed executive order to clarify the respective roles of local government units and national agencies in land use planning, including procedures for agricultural land reclassification and conversion.
It also adopted DEPDev’s Social Protection Floor Prioritization Matrix, which will guide the prioritization of social protection spending proposals under the National Expenditure Program.
Balisacan said coordinated public investments in energy, human development, infrastructure, and social protection were necessary to sustain economic growth and improve opportunities for Filipinos.
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