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)
The Power Sector Assets and Liabilities Management Corp. (PSALM) is inching closer to a pivotal decision on the long-delayed rehabilitation of the Agus-Pulangi Hydropower Complex (APHC), with a potential approval targeted for 2027.
PSALM President Dennis Dela Serna confirmed that the agency is currently evaluating two remaining unsolicited proposals from major local firms after rejecting a third bid. While he declined to disclose the identities of the proponents or the projected rehabilitation cost, he emphasized that the review process is firmly guided by the timelines set under the Public-Private Partnership (PPP) Code.
“There’s a timeline under the PPP Code, so we definitely will follow the PPP Code timelines,” Dela Serna said on the sidelines of the turnover ceremony of the Caliraya–Botocan–Kalayaan hydroelectric facilities to a private consortium on Monday.
The rehabilitation of the APHC is seen as critical to restoring much-needed capacity to the Mindanao grid. The complex, composed of seven run-of-river hydropower plants, has an installed capacity of about 1,000 megawatts (MW). However, only 600 to 700 MW are currently operational, as several facilities are either aging or undergoing limited maintenance.
Bringing the complex back to full capacity would significantly strengthen supply reliability in Mindanao, particularly as demand continues to rise and the region pursues a broader energy transition strategy. The Agus-Pulangi system has long been a backbone of Mindanao’s power mix, providing baseload renewable energy at competitive rates.
With negotiations and technical evaluations still underway, PSALM officials signaled that approval this year is unlikely. The structured PPP process, which includes detailed comparative assessments and possible Swiss challenge procedures, will determine the final proponent and rehabilitation framework.
Industry observers say the outcome could mark one of the most consequential hydropower revivals in recent years, not only for energy security in Mindanao but also for investor confidence in large-scale renewable asset rehabilitation under the country’s evolving PPP regime.