Infrastructure & PPPs in Philippines - Q1 2026 Update

YOG INFRA
8 hours ago
13 min read

PHILIPPINES is advancing infrastructure and energy development, including new transport projects and USD 31.3 Mn in airport upgrades. Renewable energy expansion is accelerating with plans to add 25 GW by 2035, attracting up to USD 412 Bn in investments. PPP models support key initiatives such as the 1,000 MW hydropower rehabilitation and a USD 610 Mn reclamation project. We also see a focus on energy storage systems (upto 2,000 MWh systems) for strengthening grid reliability and supporting sustainable growth.

Read more about key developments in Infrastructure and PPPs in Philippines in our country insight.

JANUARY 2026

THREE NEW EDSA BUSWAY STATIONS PLANNED FOR CONSTRUCTION IN METRO MANILA

The Department of Transportation (DOTr) is construction on three additional stations for EDSA Busway at a cost of over PHP 264 Mn (USD 4.38 Mn) as it puts pedal to the metal on upgrading the transport system ahead of a planned private sector takeover. The new stations in Cubao, Magallanes, and Parañaque Integrated Terminal Exchange (PITX) construction in the Q1 of 2026.

DOTr, the additional stations are intended to improve commuter access and streamline bus operations along EDSA. The planned Kamuning station, one of the new facilities, is inaugurated in the Q1 of 2026. It will be equipped with elevators and escalators to improve accessibility for persons with disabilities, senior citizens, and pregnant women. A separate pedestrian footbridge, independent of Metro Rail Transit Line 3, is also planned in the Kamuning area.

IMF ESTIMATES NEED FOR LARGE-SCALE INVESTMENT IN RE SYSTEMS FOR THE PHILIPPINES

The International Monetary Fund (IMF) has called on the Philippines to significantly scale up investment in renewable energy and climate-resilient power infrastructure, warning that climate risks pose growing threats to economic stability, inflation, and long-term growth.

IMF estimates, achieving the country’s clean energy and climate goals between 2029 and 2050 will require cumulative investment of around PHP 10.7 Trn (USD 180 Bn), equivalent to roughly 2% of 2024 GDP per year over the period. The IMF framed the energy transition as both a climate imperative and an economic strategy, noting that clean and resilient power systems can help buffer the economy from extreme weather, fuel price volatility, and energy supply disruptions.

The IMF highlighted that recurring typhoons in the Philippines frequently disrupt critical sectors such as utilities, mining, construction, and transport, which form the backbone of the energy system. Because these sectors sit upstream in the economy, shocks quickly cascade into higher costs and prices across other industries, reinforcing the case for a diversified and resilient energy mix.

Climate adaptation spending in the Philippines has already been rising, averaging about 1.7% of GDP from 2022 to 2024, increasing sharply in 2025 and remaining elevated in proposed 2026 budgets. Sustainable energy development has been identified as a priority area, with the IMF estimating that new climate-resilient infrastructure, including energy assets, could cost an additional 0.6% of GDP, excluding retrofitting existing facilities.

PHILIPPINES DOTR ROLLED OUT USD 31.3 MN REGIONAL AIRPORT UPGRADES

The Philippines’ Department of Transportation (DOTr) allocated around PHP 1.75 Bn (USD 31.3 Mn) to upgrade four regional airports, covering construction works in Camiguin, Tacloban, and Virac, and consultancy services for a new airport in Dumaguete.

The largest construction package, worth PHP 455.9 Mn (USD 8.14 Mn), covers landside and airside improvements at Daniel Z. Romualdez Airport, including access and perimeter roads, shore protection, and site development for runway extension, with a 600-day completion period. DOTr has also earmarked PHP 264.6 Mn (USD 4.72 Mn) to redevelop Virac Airport, adding a new control tower, powerhouse, runway extension, and perimeter fencing over 720 days. In Camiguin, PHP 174.6 Mn (USD 3.12 Mn) will fund runway slope correction, asphalt overlay, and strip adjustments at Camiguin Airport, targeted for completion within 180 days.

VENA ENERGY SECURED LANDMARK INTERNATIONAL FINANCING FOR 300 MWP SOLAR PROJECT IN THE PHILIPPINES

Vena Energy completed a major international financing deal for its Opus Solar Energy Project in the Philippines, marking a significant milestone for the country’s renewable energy sector. The company secured the first fully international bank financing for a Philippine solar project, making it an important development in how large clean energy projects in Southeast Asia are funded. The 300 MWp solar facility, located in Ilocos Norte, is designed to supply electricity to about 445,000 homes and is expected to reduce 349,000 tonnes of carbon emissions every year once operational.

The project stands out because it is the first renewable energy development in the Philippines to be funded entirely by a group of global banks using U.S. dollar-denominated financing. Seven major international banks participated in the deal, including BNP Paribas, DBS Bank, and Standard Chartered. This level of involvement from global financial institutions shows increasing confidence in the region’s transition to clean energy and the ability of large-scale projects to attract cross-border capital.

The Opus Solar Energy Project is a ground-mounted installation with a capacity of 300 MWp. Once it begins supplying electricity, it will make a measurable contribution to the country’s clean energy goals and help reduce dependence on traditional power sources. The expected emissions reduction is also a meaningful step toward supporting national and regional climate commitments.

ACEN LAUNCHED 60 MW SAN MANUEL SOLAR PROJECT, EXPANDING RENEWABLE ENERGY PRESENCE IN NORTHERN LUZON

ACEN Corporation continues to strengthen its renewable energy footprint in Northern Luzon with the commissioning of San Manuel Solar, its first solar project in Pangasinan. The 60 MW facility is part of ACEN’s strategic expansion following its acquisition of Sinocalan Solar Power Corp. in 2022, which enabled the development of the project.

The San Manuel Solar project features 108,752 ground-mounted photovoltaic panels and is expected to generate approximately 94 GWh of electricity annually, sufficient to power around 55,000 households. The project is projected to avoid over 58,000 metric tons of carbon dioxide emissions each year, supporting the Philippines’ climate goals and enhancing energy security in Luzon. The solar farm is directly connected to the National Grid Corporation of the Philippines (NGCP) via a 1.8 km transmission line linked to the 69 kV San Manuel Substation, ensuring efficient and reliable integration of renewable energy into the national grid.

San Manuel Solar is part of ACEN’s expanding renewables portfolio in the Philippines and underscores the company’s support for the government’s target of 35% renewable energy in the country’s power generation mix by 2030. As ACEN continues to scale its clean energy investments across Northern Luzon and beyond, the company remains focused on enabling a just, inclusive, and sustainable energy transition for the Philippines.

BASIC ENERGY INVESTED USD 33.9 MN IN NEW NEGROS OCCIDENTAL SOLAR POWER PROJECT IN PHILIPPINES

Basic Energy Corporation announced a major investment of about PHP 1.9 Bn (USD 33.9 Mn) to build a new solar power facility in Negros Occidental. The company is developing a 43 MW solar plant called the Cadiz 1 Solar Power Project as part of its plan to expand its renewable energy portfolio and strengthen its position in the Philippine energy sector.

The development of the Cadiz solar plant comes as Basic Energy continues to pursue other large-scale renewable energy projects. The company earlier partnered with Japan-based Renova Inc. for a PHP 5 Bn (USD 82.48 Mn) wind farm project in Batangas. These efforts support the national goal of raising the share of renewable energy in the power mix to 35% by 2030, up from the current level of around 22%. The government has been pushing for stronger progress in clean energy development, and the timing of this project is significant, as the Department of Energy has started a strict review of existing contracts.

DIGITAL HALO SECURED USD 46.9 MN IN FINANCING FOR PHILIPPINES DATA CENTER PROJECT

Singapore-based data center developer Digital Halo secured PHP 2.78 Bn (USD 46.9 Mn) in project financing for expansion in the Philippines. The funding comes from one of the largest commercial banks in the Philippines, Rizal Commercial Banking Corporation (RCBC).

The financing will be used to fund the construction and development of Digital Halo’s inaugural MNL1 data center campus, located in the eastern corridor of Luzon in Cainta, Rizal. MNL1 is the first of three planned buildings on Digital Halo’s planned 70 MW campus. MNL1 itself will have a planned IT capacity of 6.5MW. The facility will also offer rack space collocation, hybrid infrastructure, managed IT, and business continuity products.

ACWA POWER TO DEVELOP SOLAR POWER PROJECT IN NEW CLARK CITY

Saudi-listed renewable energy company ACWA Power signed an agreement to invest around USD 200 Mn in a large-scale solar power project in the Philippines. The agreement was finalized with the state-owned Bases Conversion and Development Authority (BCDA) on the sidelines of the World Economic Forum in Davos. The solar project will be developed around 500 hectares in New Clark City, located in Tarlac province on Luzon island.

The facility will use advanced solar photovoltaic (PV) technology, with potential integration of battery energy storage systems to enhance grid stability and cost efficiency. The partnership is intended to enhance the attractiveness of New Clark City as a destination of choice for energy-intensive and sustainability-driven industries seeking access to clean, reliable and affordable power. This partnership leverages ACWA Power’s global renewables portfolio of 52 GW, equivalent to 56% of its total power capacity, and anticipated 5.6 GWh of installed BESS capacity.

FEBRUARY 2026

HOLCIM, PEAK ENERGY SIGNED 25 MWP BEHIND-THE-METER SOLAR PROJECT FOR CEMENT PLANTS IN THE PHILIPPINES

Holcim signed a long-term Power Purchase Agreement (PPA) with Peak Energy to deploy one of the Philippines’ largest behind-the-meter industrial solar projects, covering two of its cement manufacturing facilities. Under the agreement, a 25 MWp solar photovoltaic system will be installed across Holcim’s Bacnotan plant in La Union (13 MWp) and its Norzagaray plant in Bulacan (12 MWp). The installations are expected to generate around 40 GWh of electricity annually and reduce carbon dioxide emissions by approximately 28,500 tonnes per year.

The project will be delivered under a 20-year PPA, with Peak Energy responsible for design, construction, ownership, operation, and maintenance, while Holcim will purchase the electricity produced. The solar deployment forms part of Holcim Philippines’ broader decarbonisation and net-zero strategy, integrating renewable energy directly into industrial operations without upfront capital expenditure. For Peak Energy, backed by Stonepeak Infrastructure Partners, the project represents a major milestone in scaling behind-the-meter solar solutions for energy-intensive industries in Southeast Asia and demonstrates a replicable model for cost-stable, low-carbon power supply in the region.

NMDC AWARDED USD 610 MN MANILA BAY DREDGING AND RECLAMATION CONTRACT IN THE PHILIPPINES

Abu Dhabi-based NMDC Group secured a USD 610.1 Mn contract from Pasay Harbor City Corporation to undertake large-scale dredging and land reclamation works in Manila Bay, marking NMDC’s first major project in the Philippines.

The 30-month contract covers the reclamation of approximately 130 hectares to support the Harbor City development in Pasay City. NMDC’s scope of work includes sand supply, dredging and land reclamation, installation of vertical drains, vibro compaction, and rock placement.

The project forms part of Pasay City’s strategy to address land scarcity and urban congestion by expanding usable land into its municipal waters. Harbor City is planned as a mixed-use, waterfront development with seven interconnected districts designed around a 15-minute city concept, integrating residential, commercial, and recreational functions. The Harbor City development is targeted for completion by 2028.

SWEDEN, PHILIPPINES SIGNED GRANT TO DEVELOP NATIONAL BUS STANDARDS

The Department of Transportation (DOTr) of the Philippines and Swedfund, backed by Sweden, signed a grant agreement to support the development of national bus standards aimed at improving safety, quality, and inclusivity in urban public transport.

The grant will fund the preparation of normative specifications for urban buses, including minibuses, covering a unified bus classification system, standard technical parameters, and performance-based specifications for Public Utility Buses (PUBs). The initiative supports the DOTr’s Public Transport Modernization Program and aligns with Philippine national standards on safety, accessibility, and environmental performance.

The partnership builds on earlier Swedish support for the EDSA Bus Rapid Transit project, including grants for feasibility studies, system planning, and technical assistance, and reflects a broader shift by the Philippine government toward a commuter-focused, non-car-centric transport strategy.

PHILIPPINES PLANNED 25 GW RE UNDER GEA PROGRAMME BY 2035

Department of Energy Philippines announced plans to auction an additional 25 GW of renewable energy capacity by 2035 under its Green Energy Auction (GEA) programme. The announcement was made during the 2026 Renewable Energy Investment Forum, alongside details of four upcoming auction rounds scheduled for 2026–2027.

The Philippine renewable energy sector may unlock PHP 25 Trn (USD 412 Bn) worth of investments following the government’s rollout of a multi-year auction plan designed to deliver at least 25GW of capacity.

The most recent round, GEA-4, awarded 10.2 GW across solar, wind and storage projects, including 4.1 GW of ground-mounted solar and 2.2 GW of floating solar. GEA-5, focused on offshore wind, was launched in November 2025.

GEA-6 will prioritise floating solar and wind, including unsubscribed capacity from GEA-4. GEA-7 will focus on rooftop solar in Visayas and Mindanao, and solar-plus-storage in Mindanao, targeting 55 MW of rooftop solar in Visayas, 30 MW in Mindanao, and 3.2 GW of solar-plus-storage across Visayas, Mindanao and Luzon by 2028. GEA-8 will introduce specialized technologies such as solar canals, agrisolar and solar installations over fishponds, in collaboration with the Department of Agriculture and National Irrigation Administration. GEA-9, planned for 2027, will cover solar, biomass, geothermal, hydropower and onshore wind.

The Philippines aims to raise renewables share in its power mix to 35% by 2030, 50% by 2040, and more than half by 2050.

PHILIPPINES TO PRIVATISE 1,000 MW AGUS–PULANGI HYDROPOWER COMPLEX

The Government of the Philippines received three proposals to rehabilitate and operate the 1,000 MW Agus–Pulangi Hydropower Complex (APHC) in Mindanao under a long-term Public–Private Partnership (PPP) concession. The two bids remain under evaluation as authorities move to restore the ageing complex to its full installed capacity.

The Agus–Pulangi system, originally developed in the 1950s and operated by National Power Corporation (NPC), consists of a chain of run-of-river hydropower plants designed to deliver up to 1,000 MW of renewable electricity. Due to equipment deterioration, current output has declined to around 600–700 MW. Full rehabilitation is expected to extend plant life, improve grid stability in Mindanao and reduce reliance on fossil fuel generation. At full capacity, the complex could supply electricity to an estimated 3.3 million households.

The proposed concession aligns with the Electric Power Industry Reform Act (EPIRA), which mandates PSALM to privatize government-owned power assets and use proceeds to settle NPC liabilities. Momentum for the APHC offering follows the recent USD 642 Mn transfers of the Caliraya-Botocan-Kalayaan (CBK) hydropower facility to a private consortium, reinforcing investor interest in large-scale renewable energy assets in the Philippines.

MARCH 2026

PHILIPPINES MANDATES 20% ENERGY STORAGE REQUIREMENT FOR LARGE RENEWABLE PROJECTS

The Department of Energy (DOE) has issued Department Circular No. DC2026-02-0008 requires all new variable renewable energy (VRE) projects with a capacity of 10 MW or more to integrate energy storage systems (ESS). The storage capacity must be equivalent to at least 20% of the project’s installed capacity. The measure applies primarily to large-scale solar and wind projects and is intended to enhance grid stability as renewable penetration increases.

The DOE stated that the policy addresses operational challenges caused by the variability of solar and wind generation, which can result in rapid supply fluctuations. By mandating storage integration, the government aims to improve frequency control, voltage stability and overall grid reliability. The circular also promotes the adoption of grid-forming inverter technologies capable of providing virtual inertia, a function traditionally supplied by conventional thermal power plants.

In addition to project-level requirements, the DOE has directed the Transmission Network Provider and distribution utilities to incorporate energy storage into long-term planning for grid strengthening, frequency regulation and backup support during islanding scenarios. The new policy will be integrated into updates of the Philippine Energy Plan and the Transmission Development Plan to support clean energy expansion while maintaining system reliability.

ACEN TO INVEST USD 284 MN IN 2,000 MWH BATTERY STORAGE PROJECT AT SAN MARCELINO SOLAR PARK

ACEN Corporation, the renewable energy arm of Ayala Corporation, has announced plans to invest approximately PHP 15.8 Bn (USD 284 Mn) to develop a 2,000 MWh battery energy storage system (BESS) at its San Marcelino solar park in Zambales in the Philippines. The project is intended to strengthen grid reliability and improve the stability of electricity generated from the facility, which is currently the largest solar power plant in the Philippines.

The San Marcelino solar park has an installed capacity of 585 MW and supplies electricity to more than 120,000 households. Construction of the battery storage facility is expected to begin in the Q3 of 2026, subject to regulatory approvals, with completion targeted by the end of 2027 and commissioning planned for early 2028. The project forms part of ACEN’s broader renewable energy expansion strategy, with the company allocating over PHP 80 Bn (USD 1.44 Bn) in capital expenditure for 2026, most of which will be invested in domestic renewable energy projects across the Philippines.

VINENERGO PLANS 3.8 GW SOLAR PROJECTS IN THE PHILIPPINES

A global renewable energy expansion by VinEnergo, part of the same Vingroup ecosystem that owns electric vehicle (EV) manufacturer VinFast, could bring nearly 3.8 GW of new solar power capacity to the Philippines in the coming years.

The Vietnam-based energy developer announced a large-scale international strategy that includes the rollout of 10 GW of renewable energy projects worldwide, with the Philippines emerging as one of its key markets in Southeast Asia. Under agreements with local partners, VinEnergo plans to develop approximately 3.8 GW of solar power projects across Luzon, the Visayas, and Mindanao, a move that could significantly expand the country’s renewable energy supply.

Of the total, 3.8GW will be developed in the Philippines through partnerships with NKS Renewables Inc. for 1.3GW, URG Asia Corporation for 1.2GW, and 11.11 Growth Properties for another 1.3GW, focusing on large scale solar power projects in Luzon, Visayas, and Mindanao.

The remaining 6.2GW will be implemented in collaboration with GreenGo Energy Group, a Danish renewable energy developer, under a long-term portfolio in Northern Europe, with the first 2GW scheduled for development in Denmark and Sweden. VinEnergo will hold more than 80% ownership in projects within the 10GW portfolio and will take primary responsibility for financing, construction, and long-term operations. Several projects have already begun since early 2026 and are expected to come online between 2027 and 2028.

PHILIPPINES ENERGISES 250 MW SOLAR AND 450 MWH STORAGE

The Department of Energy (DOE) Philippines has announced the energisation of 250 MW of solar capacity and 450 MWh of battery energy storage developed by MTerra Solar. Pangilinan-led Meralco PowerGen Corp. (MGEN)’s PHP 200 Bn (USD 3.3 Bn USD) Luzon solar farm has started beefing up the Philippines’ power supply with an initial 250 MW of solar capacity.

In addition to the solar output, MGEN has also switched on the first tranche of its battery energy storage system (BESS), allowing the facility to inject up to 450 MWh of energy to the grid system at night.

The development comes amid ongoing volatility in global fuel markets, driven by geopolitical tensions affecting oil, gas, and coal supplies. The Philippines, which remains heavily dependent on imported energy, is increasingly prioritizing domestic renewable capacity to reduce exposure to price fluctuations and supply disruptions.

The newly operational solar and storage capacity is expected to enhance grid stability by increasing available power supply and improving flexibility. The integration of battery energy storage systems enables surplus solar energy to be stored and used during peak demand periods, supporting more reliable electricity delivery. The Department of Energy confirmed that it will continue working with stakeholders, including the National Grid Corporation of the Philippines and the Energy Regulatory Commission Philippines, to accelerate renewable deployment and strengthen grid infrastructure.

List of key Transactions - Philippines Q1 2026

Source: YOG INFRA analysis, Public Information

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