[et_pb_section fb_built=”1″ admin_label=”section” _builder_version=”4.16″ global_colors_info=”{}”][et_pb_row admin_label=”row” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Text” _builder_version=”4.27.5″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” custom_margin=”25px||||false|false” hover_enabled=”0″ custom_css_main_element=”||” global_colors_info=”{}” sticky_enabled=”0″]Karuna Shankar Upadhyay, Senior Associate at Synergy Consulting, Inc., shares insights on the “From Dams to Deals: Insights from Advising a Public Owner on Pumped Storage Power Plant Privatization.”<\/p>\n
Privatizing one of the country\u2019s most critical hydropower assets is never just a transaction\u2014it is a test of policy, market confidence, and technical credibility. Being part of the financial advisory team supporting the Transaction Advisor on the sale of the Caliraya-Botocan-Kalayaan (CBK) Hydroelectric Power Plant Complex in the Philippines was exactly that: a front-row seat to how strategic infrastructure shifts from public ownership to a competitive, transparent market process.<\/p>\n
CBK is not a typical hydropower portfolio. It combines reservoir-based hydro with the Kalayaan pumped-storage facility, a key asset for Luzon\u2019s grid stability. This meant our work had to go far deeper than standard valuation. We built a financial framework that captured merchant exposure under WESM, ancillary service opportunities, hydrological uncertainty, and the operating realities of a mature asset. The goal was simple: create a market-credible view of long-term performance while ensuring the government\u2019s interest was fully protected.<\/p>\n
One of the biggest challenges lay in balancing commercial attractiveness with operational truth. The asset\u2019s technical condition, rehabilitation needs, and future CapEx requirements had major implications for investor appetite. Aligning engineering inputs with financial structuring required constant coordination\u2014every change in assumed plant availability, water regime, or reservoir protocol had the power to shift valuation outcomes. Ensuring internal consistency across technical, regulatory, legal, and financial workstreams became a defining part of the job.<\/p>\n
Stakeholder alignment added another layer of complexity. As a legacy asset embedded in the Philippines\u2019 energy system, CBK carries expectations far beyond its MW capacity. The transaction needed to preserve reliability while enabling private-sector efficiency. Crafting clear, bankable bid rules and qualification criteria was essential\u2014tight enough to ensure capable operators, but broad enough to sustain competitive tension. Engaging with investors revealed diverse strategies: utilities seeking portfolio integration, regional players eyeing market expansion, and funds evaluating CBK as a long-term infrastructure anchor.<\/p>\n
The successful sale\u2014around USD 600 million\u2014was more than a financial milestone. It signaled strong market confidence in the Philippines\u2019 privatization program and demonstrated how well-structured processes can unlock value even in complex, technical assets.<\/p>\n
For me, this transaction was a powerful reminder that infrastructure advisory sits at the intersection of engineering realities, regulatory nuance, and financial strategy. Guiding a government through such a landmark divestment remains one of the most instructive and rewarding experiences of my career.[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"
Karuna Shankar Upadhyay, Senior Associate at Synergy Consulting, Inc., shares insights on the “From Dams to Deals: Insights from Advising a Public Owner on Pumped Storage Power Plant Privatization.” Privatizing one of the country\u2019s most critical hydropower assets is never just a transaction\u2014it is a test of policy, market confidence, and technical credibility. Being part […]<\/p>\n","protected":false},"author":10,"featured_media":8709,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[45],"tags":[],"class_list":["post-8710","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry-knowledge"],"acf":[],"yoast_head":"\n