Rehabilitation of the ageing Agus-Pulangi hydropower complex in Mindanao, a key source of renewable baseload power for the southern Philippines, is set to begin in the fourth quarter of 2027, a government executive said on September 2.

The complex, operated by state-owned National Power Corp., consists of several run-of-river hydro plants along the Agus River and the Pulangi River that have supplied Mindanao with cheap electricity for decades. The facility is designed for about 1 GW, but currently generates only 600–700 MW. Years of underinvestment and deferred maintenance have reduced the output, prompting the government to pursue private-sector rehabilitation.

The award and contract execution are targeted for April 2027, with the competition watchdog clearing the transaction by June, according to Dennis Edward Dela Serna, president and CEO of the state-run Power Sector Assets and Liabilities Management Corp.

Approval from the Economy and Development Council and Investment Coordination Committee is expected by November, marking the first major step in implementation. The comparative challenge is expected to run from November 2026 to February 2027, he added.

Restoration work is set to run five years, from the fourth quarter of 2027 to the second quarter of 2032. The needed investment was earlier pegged at $350 million, though updated cost figures were not immediately available. National Power Corp. will continue to handle operations and maintenance during the rehabilitation.

The timeline is slightly later than the December target indicated by the Department of Energy in June. The Agus-Pulangi complex is considered critical infrastructure for Mindanao's grid, which has faced supply constraints and recurring alerts in recent months.