Philippines: Mindanao hydropower comeback in the works for Agus-Pulangi complex (Maria Cristina falls)

Manila: Mindanao’s biggest hydropower superhero is getting ready for a much-needed makeover— and it’s about time.

The Agus-Pulangi Hydropower Complex, made up of seven plants nestled around the scenic Lake Lanao, is currently chugging along at only 600 to 700 megawatts (MW) of power output — a far cry from its mighty installed capacity of 1,000 MW.

The culprit? Aging infrastructure.

And then, there's also lack of re-investment, or misplaced priorities.

Yet, there's more than enough naturally-flowing water from the 340-sq km (Lake Lanao) to bump up the complex's power generating capacity.

The facility first became online in 1953, under the watch of President Elpidio Quirino. It has been upgraded over the years, but even cars need periodic maintenance.

So a serious tune-up is badly needed.

PSALM's role

Here’s the exciting part: a multimillion-dollar rehab plan is officially on the table, and it’s looking more doable than ever thanks to the possible 10-year extension of PSALM Corp.’s corporate life.

That’s the Power Sector Assets and Liabilities Management Corporation, a.k.a. the team in charge of making sure government energy assets don’t just sit there gathering dust.

In an interview that sparked fresh hope, Philippine Energy Secretary Raphael Lotilla dropped some serious optimism vibes:

“We will move forward,” he said, referring to the long-overdue overhaul of the Agus-Pulangi facilities. “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.”

Mindanao power

That’s nearly half the power that Mindanao’s been missing out on — all from clean, flowing water.

Lotilla also gave props to lawmakers for backing the bill that would keep PSALM in action for another decade beyond its current expiration date in June 2026:

“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.”

Yep, red tape and the lack of a legal partner had this project in limbo for years.

But now, with the extension in sight, it’s full speed ahead.

Privatisation

PSALM isn’t just twiddling its thumbs — it was created under the Electric Power Industry Reform Act (EPIRA) to handle the privatisation and asset management of government-owned power facilities.

That includes the upcoming auction of the 42-year-old Caliraya-Botocan-Kalayaan CBK pumped-storage hydroelection power plant (797-MW generating capacity, straddling the provinces of Quezon and Laguna) also due in 2026, which could potentially earn about $2 billion for the government.

So PSALM does have a big role in this energy reboot.

There’s more: Lotilla teased the possible development of a brand-new hydropower plant — Agus-3, which could pump out an addition 225 MW of extra power for the grid.

“Let’s hope that we will be able to realise these future projects, which will be down to the market of not only Mindanao but also the country,” he added.

So, in the near future, Mindanao could go from power struggles to power surplus — all thanks to water, willpower, and some well-timed government moves.

Earlier, Maharlika Investment Corp. (MIC) president and CEO Rafael Jose Consing Jr. has outlined four investment pillars for the sovereign wealth fund, naming energy as a key focus.

He cited the rehabilitation of the Agus-Pulangi and Caliraya-Botocan-Kalayaan hydropower projects as priority initiatives.

Consing said the $10-billion (MIC) could serve as a catalyst to accelerate these infrastructure flagships, positioning the fund to play a strategic role in security the country's energy resources.

The country's hydropower renaissance is just getting started.