Former Bayan Muna representative Atty. Carlos Zarate strongly condemned the Marcos Jr regime for its plan to privatize the Caliraya-Botocan-Kalayaan (CBK) hydroelectric power plant complex in Laguna. He said this would only raise electricity rates, further burdening those who rely on the service.

The 796.64 megawatt (MW) CBK plant complex operates under a 25-year build-rehabilitate-operate-transfer and power purchase agreement between CBK Company Limited and the National Power Corporation. This is the remaining Philippine-owned operational pumped-storage hydroelectric facility. The BOT contract will end in February 2026.

According to the Finance Department, privatizing the facility would earn the government between ₱50 billion and ₱100 billion.

“This decision does not serve the people’s interests. Privatization will not solve the problem of high electricity rates. We should instead build more government-owned power stations to control electricity prices,” Zarate said.

Zarate said the privatization of public utilities like power plants has historically resulted only in higher electricity rates, reduced government control over essential services, and limited accountability.

Last year, the Power Sector Assets and Liabilities Management Corp. (PSALM) sold the 165 MW Casecnan hydroelectric power plant in Nueva Ecija to Fresh River Lakes Corp., a subsidiary of Lopez Group’s First Gen Corp., for $526 million.

“Privatization under EPIRA almost depleted government power assets since 2001, but as of April 30, 2024, the National Power Corporation (Napocor) still has a ₱292.5 billion debt. This extended PSALM’s term by another ten years until 2036. Privatization is clearly a major failure.”

“The government remains deep in debt, but power oligarchs have already profited greatly from privatized power assets. Now, with the CBK privatization, who among [President] Marcos Jr’s power oligarch or crony will benefit–again at the expense of the people?” Zarate added.

Zarate said the CBK, under effective government management, could become a deterrent against profit-greedy power oligarchs.

“The government must control essential services like electricity. The CBK should not be sold but should be a model of renewable energy that will lower electricity rates for everyone,” Zarate added.

Zarate called on the public to oppose the privatization of CBK and other government-owned assets, saying such a policy would only worsen the country’s electricity and economic crisis. He also urged congress to investigate the impact of past privatization efforts on electricity prices and to propose alternative solutions that advance the national interest.

“The fight for affordable electricity is every Filipino’s fight. We must defend the national interest against this kind of exploitation,” Zarate concluded.