The Department of Energy (DOE) announced that it is moving forward with the planned rehabilitation of the Agus-Pulangi Hydropower Complex (APHC) in Mindanao, given the potential extension of the corporate lifespan of the Power Sector Assets and Liabilities Management Corp. (PSALM), which owns the facility.
Crucial to the region’s energy supply, the APHC currently consists of seven run-of-river hydroelectric plants with a combined installed capacity of at least 1,000 megawatts (MW).
However, because of outdated equipment and infrastructure issues, only around 600 to 700 MW is operational, according to a 2024 report by the World Bank. The report also identified additional problems, such as cooling system failures, turbine-generator shaft vibrations, and obsolete auxiliary equipment and control systems. Based on previous estimates by the World Bank, rehabilitating the AHPC will cost around $350 million.
(Also read: A Closer Look at Mindanao’s Hydro-Rich Resources)
A critical boost for the Mindanao grid
“If we finish the rehabilitation of the Agus-Pulangi plants, this will restore an additional 400 MW of hydropower in Mindanao, which is very significant,” Energy Secretary Raphael Lotilla said.
In addition to overhauling the hydropower complex, the government is also exploring constructing a third hydropower plant, Agus III. The new facility could add up to 225 MW, further enhancing the region’s renewable energy supply. This would be part of a broader effort to improve the overall reliability and efficiency of the Agus-Pulangi complex.
“So let’s hope that we will be able to realize these future projects, which will be down to the market of not only Mindanao but also the country,” Lotilla said.
(Also read: DOE Mindanao in need of more energy sources for energy security)
PSALM corporate life extension welcomed
Created in 2001 under Republic Act No. 9136, or the Electric Power Industry Reform Act (EPIRA) of 2001, PSALM was tasked to form and execute a privatization plan for the government’s energy assets previously held by the National Power Corporation (NPC).
The corporate life of PSALM was scheduled to expire in June 2026, but lawmakers recently passed a bill extending PSALM’s corporate lifespan for five years from its original expiration date.
“What I welcome very much is the approval by both houses of Congress… What has eluded us for more than a decade now is the rehabilitation of Agus-Pulangi because there is no counterparty. So that’s good news,” Secretary Lotilla said.
Sources:
https://www.philstar.com/business/2025/02/10/2420383/agus-pulangi-hydro-complex-rehab-moving-forward
https://businessweekmindanao.com/3rd-hydro-plant-eyed-as-agus-undergoes-rehab/
https://web.senate.gov.ph/press_release/2025/0120_prib1.asp
