[Report] Angat Dam Operated by Korea in the Philippines... "We Revived a Dying Machine"

Angat Dam Supplying 98% of Manila's Tap Water
40% Stake in Angat Dam Operation Held by Korea Water Resources Corporation
Upgrading Aging Facilities and Eliminating Waste Discharge to Increase Profitability

Challenging Water and Sewage Projects Based on Angat Dam Success
Participating in Bidding for New Philippine City 'New Clark City'
"Using AI to Locate Water Sources and Build Underground Storage Dams"

Angat Dam in Norzagaray City, Bulacan Province, Philippines. The dam is located about 60 km northeast of the capital, Manila, and supplies 98% of the tap water for the metropolitan area. Korea Water Resources Corporation currently holds a 40% stake in the operation rights of Angat Dam. Photo by Song Seungseop

On the 26th of last month, I boarded a vehicle heading towards the ‘Angat Dam,’ located about 60 km northeast of Manila, the capital of the Philippines. After enduring severe traffic congestion in downtown Manila and driving for over two hours on bumpy unpaved roads, a narrow and steep mountain road appeared through dense foliage. Along the mountain road, shanties made of wooden poles and slate roofs were visible. Only after continuously ascending for about an hour did we arrive at the Angat Dam power plant, guarded by high iron fences and security personnel armed with firearms.

K-water Secures Stake in Angat Dam, Boosts Profitability through Facility Modernization

Angat Dam supplies water and electricity to ‘Metro Manila,’ which includes Manila and its surrounding metropolitan area. It is considered the most important infrastructure in the Philippines. It releases about 50 tons of water per second, with a daily water supply volume reaching 5 million tons. It is responsible for 98% of Manila’s tap water supply. At the same time, it also supplies electricity. The hydroelectric power capacity is 218 megawatts (MW), surpassing Korea’s Soyanggang Dam’s capacity of 200 MW. This amount of power can supply approximately 700,000 Manila residents at once.

Korea Water Resources Corporation (K-water) has been involved in operating Angat Dam since 2014. This is the first domestic case of acquiring operational rights for an overseas hydroelectric power plant. Originally, Angat Dam was completed in 1967 by Japan. After the Japanese government’s operational contract ended, the Philippine government sought a new manager, and Philippine beer company San Miguel and K-water jointly acquired the management rights of Angat Dam. According to current laws that prohibit foreign companies from becoming majority shareholders in national infrastructure, San Miguel currently holds 60% of the shares, while K-water holds 40%.

Since acquiring Angat Dam, K-water has been implementing a ‘Dam Stabilization Project’ for ten years. The project aimed to repair aging facilities and maximize power generation. A representative project is the generator replacement work that began in 2021. K-water was promised a maximum operational period of 50 years for Angat Dam. Since the dam is already over 55 years old, replacing the generators was urgent. Accordingly, K-water borrowed funds needed for modernizing the power generation facilities from banks through project financing (PF).

Philippine workers dismantling old generators at the Angat Dam power plant. Photo by Song Seung-seop

On that day, the generator replacement work was in full swing at the Angat Dam power plant. Wearing a safety helmet and entering the facility housing the generators, four hydroelectric generators were revealed. Two of them had already been modernized, and dismantling work was underway on one of the remaining two old generators. Next to the generator, a workshop was constructing a new generator to be installed after completely dismantling the old one. By the end of next year, a total of seven generators, including three others located elsewhere, will be replaced with modernized equipment.

The generator replacement has also brought significant changes to the operation method of Angat Dam. The operation support room controlling the old generators had dozens of button-operated machines lined up nearly 10 meters long. To operate the generators, personnel had to physically approach the machines and press the desired buttons. In contrast, the office responsible for the new generators was equipped with about ten computers replacing manual controls. Necessary machines and equipment were arranged separately in a different space.

K-water also solved the chronic ‘ineffective water discharge’ problem at Angat Dam. Ineffective discharge refers to water released without passing through the generators. In 2012, a fire damaged some generators, rendering them nonfunctional. Approximately 24 tons per second, equivalent to about 20 billion KRW annually, of water resources were effectively wasted. K-water began replacing the fire-damaged generators with new machines, and the project is now nearing completion, with profits expected soon.

Nameplate attached to Anggatdam Hydroelectric Power Plant. Photo by Song Seungseop

The acquisition of Angat Dam has become a lucrative source of income for K-water. The cost used by K-water for acquisition and replacement is approximately 100 billion KRW. Current sales are about 40 billion KRW, but after all generator replacements are completed, it is expected to increase to 60 billion KRW. Although detailed break-even points are confidential and not disclosed, officials explain that the break-even point will be reached soon.

K-water emphasizes that the enhanced credibility gained from operating overseas dams is also a significant benefit. Kang Dong-hyung, Chief Technology Manager responsible for technical aspects at the Angat Dam operation office in the Philippines, said, “The money earned from Angat Dam is not everything. K-water has revived nearly defunct machines and contributed to a nation’s water security.” He added, “There are many aging power plants worldwide, and K-water has built the capacity to capture this market.”

Based on the know-how accumulated at Angat Dam, K-water plans to participate in other dam projects in the Philippines. Currently, the Philippine government is receiving project proposals for 135 aging multipurpose dams. Companies that propose effective remodeling or operational methods first will be evaluated by the Philippine government, which will then grant project approval. K-water is working with the Ministry of Environment to hire local consultants to shortlist dams with good business potential.

Challenging Water Supply and Sewage Projects Based on Angat Dam Success

The road to New Clark City. The Philippine government plans to develop a green new town in the Pampanga province, about 100 km north of the capital Manila, where 1.2 million residents will live. Photo by Song Seungseop

Beyond dam projects, K-water has also challenged water supply and sewage projects. The target is the ‘New Clark City’ project, currently under construction by the Philippine government overseas. New Clark City is a new city being built about 100 km north of Manila in Pampanga Province to solve traffic congestion and natural disaster problems in Manila since 2016. The city covers approximately 9,450 hectares (ha), about six times the size of Bundang New Town. It is a large-scale project aimed at creating a green city with 1.2 million residents and 800,000 workers. The New Clark City project, scheduled to end in 2055, is estimated to cost well over 1 trillion KRW.

If selected as the project operator, K-water expects high profitability as it will be able to operate the water supply and sewage systems in the area for 50 years. The presence of an international airport and highways nearby, and the completion of a railway in 2026, which will improve accessibility, are also positive factors. About 70% of the area has already been sold.

K-water’s participation in overseas bidding comes about seven years after the ‘Karian Metropolitan Water Supply’ project supplying water to Jakarta, Indonesia. The shortlist of participating companies will be announced next year, and construction is expected to begin in 2026.

K-water cites its excellent technology as Korea’s greatest strength. A local K-water official said, “Considering the initial population of New Clark City, we will first drill wells and use artificial intelligence (AI) to locate water sources for the next ten years.” He added, “As the population naturally increases, we will create underground dams or use nearby dams to draw water.” He also noted, “The Philippine government has shown great interest in Korea’s underground storage dam technology.”

Jericho Bon-dok, Strategic Project Officer at the Bases Conversion and Development Authority (BCDA), is explaining the New Clark City project. Photo by Song Seung-seop

The Philippine government also shows a positive response. Jericho, Strategic Project Officer of the Bases Conversion and Development Authority (BCDA), which oversees the project, met with our reporter at the New Clark City construction site and said, “K-water is a leader in the water sector and has secured a lot of specialized technology, so there is no doubt about producing high-quality water,” and “Based on technical competitiveness, they already have an advantage in the bidding.”

Meanwhile, the relationship between Korea and the Philippines is becoming increasingly close. On the 7th, President Yoon Suk-yeol held a summit with President Ferdinand Marcos at the Malaca?ang Palace in Manila and agreed to establish a ‘strategic partnership.’