Infrastructure & PPPs in Philippines - Q1 2025 Update
- YOG INFRA
- 6 days ago
- 14 min read
PHILIPPINES has showcased a strong government support for clean energy projects, through recent approvals for a number of renewable energy projects along with dedicatd transmission lines for some of these projects. We also see good activity in development of both solicited and unsolicited proposals for renewable energy as well as EV/ transport mobility projects, which are being implemented via JVs between local and international players.
Read more about key developments in Infrastructure and PPPs in Philippines in our country insight.
JANUARY 2025
MASDAR TO DEVELOP 1 GW RENEWABLE ENERGY PROJECTS IN PHILIPPINES BY 2030
Masdar, the UAE’s clean energy leader, has announced its entry into the Philippines market, signing agreements with the government of the Philippines to develop 1 gigawatt (GW) of clean energy projects to strengthen its growing portfolio in Southeast Asia. The Implementation Agreement with the Department of Energy and the Memorandum of Understanding (MoU) with the Board of Investments of the Republic of the Philippines covers the development of solar, wind and battery energy storage systems (BESS) with a total capacity of up to 1GW by 2030.
The agreement, which will support the Philippines Energy Transition Program to achieve 35% renewable energy in power generation by 2030 and 50 % by 2040, operationalizes the MoU on Energy Transition Cooperation signed in November 2024 between the Philippines and the UAE.
PHILIPPINES’ MAPALLA FERRY PPP COULD SECURE APPROVAL BY MID-2025
The Philippines aims to secure approval for the Manila Bay-Pasig River-Laguna Lake (MAPALLA) Ferry System by mid-2025 as it moves to address Metro Manila’s chronic traffic woes with a sustainable water-based transit network. The project seeks to provide commuters with an additional and efficient transit system by using the arterial rivers of Pasig and Marikina, as well as Manila and Laguna Bay. It will use high-capacity, high-frequency and low carbon commuter vessels through several electric ferries.
Once approved, the project’s first phase will cover a 30-kilometer stretch of the Marikina River and Pasig River and the construction of at least 32 ferry stations. It will be plied by 40 electric ferries that can accommodate 100 to 150 passengers in a single trip. The project will be patterned after the Chao Phraya River Ferry System in Bangkok, Thailand, and the New York Ferry System in the United States. The system will integrate with existing mass transit networks and active mobility options to enhance intermodal connectivity. The Department of Transportation (DOTr) collaborating with the Public-Private Partnership Center (PPP) to finalize the project, which is positioned as a greener alternative to ease the capital region’s transportation challenges while leveraging its natural waterways.
QC GOVERNMENT ROLLS OUT ELECTRIC BUSES TO MINIMIZE CARBON EMISSION
The Government of Quezon City has introduced electric QCity Buses in the Philippines. These buses, which will soon be part of the city’s fleet of approximately 100 vehicles, will provide free transportation to residents. The electric buses are running in Route 1 of the QCity Bus Service, which travels from Quezon City Hall to Cubao and vice versa.
The electric buses have a 41-seating capacity with ample space to accommodate standing passengers and to ensure their safety and convenience. The units are also equipped with wheelchair ramps to accommodate persons with disabilities. Each unit contains handrails, fire suppression and emergency equipment, CCTV cameras, and smart televisions. The local government fielded traffic personnel to ensure the orderly deployment of the new electric buses.
The introduction of electric buses further aligns with the city's sustainability goals while maintaining its focus on public welfare. The buses were procured late last year and will be added to the 90 buses plying different routes in Quezon City. The electrification of the city’s service vehicles aims to reduce dependence on internal combustion engines. The procurement of the electric buses is also in compliance with the Electric Vehicle Industry Development Act or EVIDA Law, which mandates that at least 5% of government fleets should be comprised of electric vehicles.
FIRST GEN CLEARED TO OPERATE BATANGAS LNG TERMINAL FOR 25 YEARS
The Philippines Department of Energy (DOE) has granted FGEN LNG, a subsidiary of First Gen, a 25-year permit to operate and maintain the Batangas LNG terminal. The project’s initial phase includes converting the existing jetty into a multi-purpose jetty and constructing an adjunct onshore gas receiving facility.
The terminal is, thus, considered a key factor in ensuring the country’s energy security as it fuels First Gen’s four natural gas-fired power plants with a combined capacity of 2,017 megawatts. It was declared an energy project of national significance by the Energy Investment Coordination Council through the DOE. The current administration is targeting to increase the share of renewables in the energy mix to 35% by 2030 from 22% at present.
DOTR BEGINS WORK ON ACTIVE TRANSPORT STRATEGIC MASTER PLAN
The Department of Transportation (DOTr) has started formulating the Active Transport Strategic Master Plan (ATSMP) that will serve as the core framework for the development of high-quality active transportation systems in the Philippines. The Department of Transportation (DOTr) has started formulating the Active Transport Strategic Master Plan (ATSMP) that will serve as the core framework for the development of high-quality active transportation systems in the Philippines.
The ATSMP will cover the pilot areas of the National Capital Region (NCR), Puerto Princesa, Iloilo City, Zamboanga City, Surigao City, and City of Mati (Davao Oriental). The study area may also encompass other municipalities’ areas adjacent to the identified urban areas to define coherent geographic clusters in terms of mobility. Key objectives of the ATSMP include, the development of an integrated active transport network, and establishing walking, cycling, and other active transport modes as mainstream travel options.
The formulation of the master plan is pursuant to the Philippine Development Plan 2023-2028, which calls for implementation of several strategies, including the development of active transport infrastructure, such as segregated lanes, bike-only roads, shade trees, showers, widened sidewalks, and at-grade pedestrian crossings.
YANSON GROUP UNIT EXPANDS TRANSPORT INFRASTRUCTURE IN MINDANAO
Mindanao Star Bus Transit Incorporation (MSBTI), a subsidiary of the Yanson Group, has announced plans to enhance transport infrastructure in Central Mindanao, Philippines. The expansion aims to improve passenger mobility and support the efficient movement of agricultural goods, a critical economic driver in the region.
Central Mindanao, also known as SOCCSARGEN (Region XII), comprises South Cotabato, Sultan Kudarat, Cotabato, and Sarangani provinces, along with General Santos City. The region plays a crucial role in the country’s economy as the Philippines’ top tuna producer, contributing 80 % of the national output. The company plans to expand operations in both Mindanao and the Visayas, particularly Cebu, to support local agriculture, tourism, and daily commuting needs. The group provides direct employment to over 18,000 workers across the country and operates a vast network of buses across Luzon, Visayas, and Mindanao.
PH EXPEDITES RENEWABLE ENERGY PROJECTS WORTH OVER USD 70 BN IN 2024
The Philippines has granted green lane access to a total of 176 projects, of which 141 projects worth PHP 4.13 Trn (USD 70 Bn) are renewable energy facilities. The six projects were approved in December which includes the PHP 12.72 Bn (USD 217.21 Mn) Laguna Wind Project in Calabarzon.
Also granted green lane access was Buhawind Energy Philippines, a joint venture between PetroGreen Energy Corp. and Denmark’s Copenhagen Energy. This will have three offshore wind power projects in Northern Luzon, Northern Mindoro, and East Panay with a total capacity of 4,000 gigawatts and a PHP 694 Bn (USD 11.85 Bn) investment.
FEBRUARY 2025
IFC TO ADVISE ON BUSWAY PPP PROJECT
The Philippine government is set to sign a transaction advisory services agreement with the International Finance Corp (IFC) for the National Capital Region (NCR) EDSA Busway Project that will be auctioned to the private sector in 2025. Under the agreement, the IFC will provide the Department of Transportation (DOTr) assistance in reviewing key deliverables for the feasibility and tendering of the PHP 39.2 Bn (USD 668 Mn) busway project until contract awarding.
The DoTr has decided to privatize the NCR EDSA Busway Project through a solicited bidding process. The auction is set to be launched later by 2025, but the detailed timetable is yet to be announced as the DOTr is still finalizing the terms of reference of the project. There are several buyers that have already signalled their interest. The NCR EDSA Busway Project, the concession period for which is also yet to be announced, involves the financing, design and construction of bus stations.
It also involves the development of operations control centers and parking depots, and the purchase, operations and maintenance of a high-capacity busway plying the Epifanio Delos Santos Avenue (EDSA)—Manila’s main thoroughfare—and other major and feeder roads.
GURĪN ENERGY COMPLETES 75 MW SOLAR PROJECT IN THE PHILIPPINES
Gurīn Energy, a Singapore-headquartered renewable energy developer, owner and operator announced the completion of its 75 megawatt (MW) solar plant in the Philippines, its first operational project in the country. Located in the municipality of Palauig, Zambales Province, the 80-hectare Palauig Solar Power Plant has installed 136,363 of the latest ground-mounted, energy-efficient solar photovoltaic panels. The solar farm will produce enough clean and zero-emission electricity to avoid 53,100 metric tons of climate-changing emissions annually – or the equivalent of taking 11,500 combustion-engine cars off the road per year. The project is owned by Shizen Inc, a fully owned subsidiary of Gurīn Energy.
The company signed a partnership with AboitizPower’s retail electricity units Adventenergy Inc and Adventpower Inc for the offtake of the solar farm, ensuring a reliable and sustainable supply of clean energy to the latter’s commercial and industrial customers.
BOI APPROVES PHP 3.62 BN IN SOLAR ENERGY PROJECTS
The Board of Investments (BOI) has granted green-lane certification to upgarde Energy Philippines Incorporation (UGEP) for two solar projects worth PHP 3.62 Bn (USD 63 Mn). The certification, mandated under Executive Order 18, the provision of green-lane services for high-impact projects, especially those in renewable energy, to secure faster approvals via streamlined inter-agency coordination and local government endorsements. The projects include the 56.771-megawatt (MW) Cabangan Solar Project in Zambales, and the 47.001 MW Pontevedra Solar Project in Capiz.
These are projected to provide 331 temporary and permanent direct jobs in construction and commissioning, with long-term employment in operations and maintenance over their 25-year lifespan. With these approvals, the number of green-lane projects endorsed by the One Stop Action Center for Strategic Investments reached 184, with renewable energy projects comprising the majority at PHP 4.211 Trn (USD 73 Bn).
PHILIPPINES’ DOE APPROVES 4,500 MW IN NEW ENERGY PROJECTS
The Department of Energy (DOE) has approved system impact studies (SIS) for 11 energy projects with a total capacity of 4,500 MW across the country, paving the way for their assessment and potential integration into the power grid. The projects, primarily renewable energy (RE) initiatives, will undergo evaluations to determine the grid’s capacity for new connections and identify necessary upgrades in transmission lines, transformers, and substations.
The approved projects include three pumped-storage hydropower facilities, one hydropower plant, five wind farms, one battery energy storage system (BESS), and one coal power plant, all of which have been endorsed to the National Grid Corporation of the Philippines (NGCP) for assessment in early 2025.
Largest Approved Projects:
The Maton pumped-storage hydroelectric power project in Apayao - 2000 MW
San Roque Lower East pumped-hydro project - 1000 MW
San Roque West pumped-hydro project - 1000 MW
Wind Energy Developments:
Real offshore wind farm – 200 MW
Silang Maragondon wind farm – 100 MW
Pandan Labayat wind farm – 40 MW
Gemini wind power project – 304 MW
Misor wind project – 200 MW
Other Renewable and Fossil Fuel Projects
Mat-i 1 hydroelectric power plant in Misamis Oriental – 5.8 MW
Panitan BESS project in Capiz – 20 MW or 40 megawatt-hours (MWh)
TPC 1B circulating fluidized bed coal power plant in Quezon – 82 MW
The DOE also recently opened bidding for the third Green Energy Auction (GEA-3), offering opportunities for impounding hydropower, pumped-storage hydropower, and geothermal technologies. The total bid capacity reached 7,530.887 MW, surpassing the planned installation capacity of 4,560 MW.
DOTR TO FAST-TRACK MRT-3 EDSA BUSWAY PRIVATIZATION
The Department of Transportation (DOTr) will push forward with the privatisation of the Metro Rail Transit Line 3 (MRT-3) and the EDSA Busway in the Philippines. The government of the Philippines aims to continue the privatization efforts to improve efficiency in public transport services. The agency is working with the Public-Private Partnership (PPP) Center and the Asian Development Bank to evaluate options for MRT-3, whose concession with the Metro Rail Transit Corporation expires this year in 2025. Private firms, including Metro Pacific Investments Corporation, have submitted unsolicited proposals to operate the railway.
For the EDSA Busway, the DOTr plans to award a concession by 2026. Additionally, the government also cited the privatisation of the Ninoy Aquino International Airport (NAIA) under Bautista as a successful model, with its rehabilitation now managed by the New NAIA Infrastructure Corporation.
MARCH 2025
GREEN ENERGY AUCTION PROGRAM TARGETS 8 GW TO BOOST RE GROWTH IN THE PHILIPPINES
The fourth round of the Green Energy Auction Program (GEA-4) in the Philippines is set to add 8 GW of renewable energy capacity between 2026 and 2029. This initiative supports the country’s goal of achieving 50% renewable energy in the power mix by 2040. The auction process ensures transparency and competitiveness under the Green Energy Tariff Program (GETP), with measures in place to guarantee financial and technical credibility for participating projects.
The GEA-4 auction structure involves a series of steps, including bidder qualification, offer evaluation, and the issuance of awards. The Department of Energy (DOE) has allocated capacity across different regions, with Luzon receiving the largest share. Ground-mounted solar remains the priority, with 3.9 GW planned in the next few years while floating solar targets might be revised upwards due to increasing project interest. The auction also includes allocations for onshore wind and solar-plus-storage systems.
WORLD BANK APPROVES 2 PROJECTS TO BOOST TRANSPORT AND HEALTH SERVICES IN PHILIPPINES
The World Bank has approved two projects to improve transport connectivity and boost health services in mostly the southern Philippines’ Mindanao region. According to the bank, at least 19 million Filipinos are expected to benefit from the two projects:
The first project is a USD 454.94 Mn Mindanao Transport Connectivity Improvement Project that will provide access to the Mindanao region’s cities of Cagayan de Oro, Davao, and General Santos.The project will finance rehabilitating and upgrading the 428.2-km main road corridor linking the three cities hosting key ports and airports in Mindanao.
The second project is a USD 495.6 Mn Philippines Health System Resilience Project that will enhance climate-resilient healthcare networks, improve workforce and governance, and promote high-quality health services at the provincial level.
WARDWIZARD EXPANDS EV PARTNERSHIP WITH BEULAH IN THE PHILIPPINES
Wardwizard Innovations & Mobility Limited (WIML), one of India’s leading electric vehicle manufacturers under the brands 'Joy e-bike' and 'Joy e-rik,' has taken another significant step in its USD 1.29 Bn partnership with Beulah International Development Corporation. The company has successfully dispatched four additional customized electric three-wheelers to the Philippines for testing, ensuring their suitability for the local market.
This follows the initial shipment of the e-Trike (Driver + 10) in the Q3 of FY 24-25, reinforcing WardWizard’s commitment to transforming public transportation in the Philippines with sustainable mobility solutions. The company has dispatched electric three-wheelers which have been designed to meet the specific needs of public and commercial transport in the Philippines.
Model 1 (Light Version) with a Driver + 2 +3 seating for urban commutes.
Model 2 (Heavy Version) with Driver + 3+3 seating for higher passenger capacity
Model 3 with a Driver + 6 (3+3 facing) configurations for shared mobility.
Additionally, a three-wheeler Cargo/Loader has been sent to support sustainable logistics. These vehicles will undergo comprehensive testing to ensure compliance with local transportation standards and regulations set by the Philippine Government, assessing their suitability for the local market.
ACCIONA ENERGÍA LAUNCHES THE CONSTRUCTION OF THE DAANBANTAYAN SOLAR PLANT IN THE PHILIPPINES
ACCIONA Energía has started the construction of the Daanbantayan solar plant on the island of Cebu in the Philippines. The project, which will involve an investment of around EUR 120 Mn (USD 131 Mn), is due to begin operations at the end of 2026. The production at the solar plant will reach 280GWh a year, the equivalent to the energy consumption of more than 300,000 people.
The project will include the installation of a battery energy storage system (BESS). This will enable part of the energy generated by the plant to be stored, allowing it to be released at peak demand to provide stability to the grid. For the distribution of electricity, Acciona and the provincial government of Cebu have signed the country’s first public-private agreement (PPP) on energy.
The Daanbantayan solar project is in line with the Philippine Development Plan and reinforces the government’s objectives of increasing the renewable share to 35% of the energy mix by 2030 and to 50% by 2050. The company recently broke ground on the 100MW Kalayaan 2 wind farm in Laguna province and has announced the development of another 156MW wind farm in Pantabangan, 150 kilometres north of Manila.
PNOC, CICC PARTNER TO LAUNCH HYBRID SOLAR-WIND POWER IN THE PHILIPPINES
The Philippine National Oil Company (PNOC) and the Cybercrime Investigation and Coordinating Center (CICC) have signed an agreement to explore hybrid solar and wind energy solutions for underserved communities.
The initiative aims to provide sustainable and efficient energy sources for remote locations. The agreement aligns with PNOC’s mission to deliver energy solutions to underserved areas. This project would introduce hybrid solar and wind technology to the Philippines for the first time. The technology, already in use in India, South America, and Indonesia, offers greater capacity and reliability than standalone solar power. The CICC plans to deploy the hybrid energy solution in 10 locations nationwide as part of the agreement. This partnership underscores the government’s push for renewable energy innovation to expand access to sustainable power solutions.
ERC GREENLIGHTS TRANSMISSION FACILITIES FOR 2 SOLAR POWER PROJECTS
The Energy Regulatory Commission (ERC) has approved the construction of dedicated transmission facilities for two solar power plants, allowing them to connect directly to the national grid. San Isidro Solar Power Corp. (SISPC) secured provisional authority from the ERC to develop and own point-to-point limited transmission facilities. These will link its 280-megawatt peak (MWp) solar plant in Leyte to the Visayas grid. The project will initially connect to the existing 230-kilovolt (kV) Tabango Substation as part of an interim scheme, with a future shift to the proposed 230-kV Tugas CTS/SWS substation for permanent integration.
SISPC estimates the cost of the dedicated transmission facility at approximately PHP 1.659 Bn (USD 28.7 Mn), based on its application to the ERC. The company aims to complete the solar project by the end of 2025. The approval remains subject to revisions and instructions issued by the Commission during the deliberation process.
RASLAG Corp. also received authorization from the ERC to develop and own similar point-to-point transmission facilities for its 36.646-MWp RASLAG IV solar plant. The connection will be facilitated through the 69-kV Mexico-Clark Line 1 operated by the National Grid Corp. of the Philippines. RASLAG has already begun testing and commissioning its solar plant and projects the cost of its transmission asset to reach PHP 163.232 Mn (USD 2.84 Mn)
PGEC KICKS OFF PV PANEL INSTALLATION FOR 40MW LIMBAUAN SOLAR PROJECT
PetroGreen Energy Corporation (PGEC), through its subsidiary BKS Green Energy Corporation (BKS), has commenced the installation of photovoltaic (PV) panels for the 40 megawatts direct current (MWDC) Limbauan Solar Power Project (LSPP) in San Pablo, Isabela. Once completed, the LSPP will generate up to 59 GWh of clean energy annually, supplying power to approximately 33,000 households and reducing carbon emissions by an estimated 31,700 metric tons.
The LSPP is being developed in two phases:
A 6 MWDC Phase 1 (LSPP-1) that will connect to the Isabela Electric Cooperative-II (ISELCO-II) system and
A 34 MWDC Phase 2 (LSPP-2) that will link to the National Grid Corporation of the Philippines’ (NGCP) 69 kV Tuguegarao-Cabagan line through a 4.73 km dedicated transmission facility.
The project will utilize 52,640 solar panels supplied by Trina Solar. The LSPP received the Certificate of Energy Project of National Significance (CENPS) in November 2024, underscoring its role in enhancing grid stability and supporting national development initiatives.
AIRSTREAM RENEWABLES LEADS CLEAN ENERGY PUSH WITH 8 NEW PROJECTS
Airstream Renewables Corp., a subsidiary of NexGen Energy Corp, has taken a significant step forward in the renewable energy sector with the endorsement of eight new projects to the National Grid Corp. of the Philippines (NGCP for system impact studies. These projects form part of a broader initiative by the Department of Energy (DOE) to integrate more renewable power into the national grid.
Airstream Renewables’ projects span multiple regions and energy capacities. Among the largest developments are the 300 MW Sebaste Offshore Wind Farm located across Antique and Aklan, and several 100 MW offshore wind farms in key areas including Mercedes and Capalonga in Camarines Norte, Mauban in Quezon, Mariveles in Bataan, and Dumaguete in Negros Oriental. The company is also pursuing onshore initiatives, such as the 60 MW Sambong Onshore Wind Farm in Nasugbu, Batangas, and the 30 MW Dapdap East Wind Farm, also in Batangas.
MOBER OPENS LARGEST COMMERCIAL EV CHARGING HUB IN THE PHILIPPINES
Philippine electric vehicle (EV) logistics firm Mober has officially opened Central Charge, the largest commercial EV Charging hub in the country to date. The facility located along D. Macapagal Avenue in Pasay City covers 3,000 square meters with a 56-port capacity to serve Mober’s mixed fleet of e-vans and e-trucks. With a structured three-shift system, it has the capacity to charge up to 200 EV trucks daily, ensuring round-the-clock operational support for its logistics fleet.
Central Charge is specifically designed to meet the unique demands of logistics operations. Equipped with 50 7kW DC chargers and two 60kWh fast-charging units, Central Charge enables Mober to streamline operations and minimize vehicle downtime.
List of key transactions - Philippines Q1 2025
Source: YOG INFRA analysis, Public Information
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