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Infrastructure & PPPs in Philippines - Q2 2024 Update

Updated: 2 days ago

PHILIPPINES has seen government initiatives to promote infrastructure developments via PPPs and private sector support - across transport, clean energy, water, urban infra and social infra sectors. The country has a very visible pipeline of planned PPP projects, both at national and at provincial levels; along with required budgetary support as needed for certain projects. Given 50+ proposals/ bids in recent tenders, we infer a continued strong interest from local and international developers to invest in such infrastructure proejcts.

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


April 2024


Citicore Renewable Energy Corporation (CREC) has reached a groundbreaking financing agreement with Rizal Commercial Banking Corporation (RCBC) to fund multiple solar power plant projects. The agreement, facilitated by RCBC Capital Corporation, marks a significant shift in project financing structure in the Philippines. The solar producer has signed an initial funding tranche which will be used for project developments in Batangas, Pampanga and Negros Occidental. Subsequent tranches will be used to finance completion of additional projects or other generating capacity from CREC’s pipeline.

The financing arrangement is set to provide up to PhP20 Bn (USD 364 Mn) in funding earmarked for the development of solar power plant projects in Batangas, Pampanga, and Negros Occidental. This financing model, a departure from the conventional per-project approach, encompasses various project portfolios.

The solar power plant projects in Batangas, Pampanga, and Negros Occidental are vital components of CREC’s strategic goal to contribute 1GW of ready-to-build/under construction solar energy capacity annually for the next five years. The first and second phases of the Negros Occidental project are expected to commence commercial operations in September 2024 and 2025, respectively. Similarly, the first and second phases of the Batangas and Pampanga projects are projected to commence operations in December 2024 and 2025, respectively.

This financing deal not only accelerates CREC’s solar energy initiatives but also sets a precedent for innovative project financing in the renewable energy sector in the Philippines. With RCBC’s support, CREC is poised to make significant strides towards a sustainable energy future.



The Department of Environment and Natural Resources (DENR) has received proposals for bulk water supply and hydroelectric projects from 88 developers from different companies, six of which are from major companies in the Philippines.

The projects aim to increase water supply while also tapping the potential of hydropower projects. These projects include the

1.       Jalaur River Multipurpose Project Phase 2

2.       Tumauini River Multipurpose Project

3.       Maringalo Dam Irrigation Project Phase 2

4.       Ilocos Norte-Ilocos Sur-Abra Irrigation Project

5.       Upper Banaong Irrigation Project

6.       Mabini Agricultural Development Project

7.       Balintingon Irrigation Project

8.       Panay River Basin Integrated Development Project.

DENR shows that about 247 water projects are available for PPP, comprising bulk water supply projects and hydropower projects with a total capacity of 500 megawatts. These eight multipurpose projects have a capacity of approximately 416 million litres per day and are designed to produce both hydropower and solar power.



The Department of Public Works and Highways (DPWH) has entrusted the Cebu Provincial Government to oversee and finish the Metro Cebu Expressway (MCE) Project.  The move to finish the Metro Cebu Expressway through the public-private partnership (PPP) will help address the delay in its completion due to budgetary challenges. The completion of the 73.7-kilometer alternate route for motorists who want to escape the congested roads in Metro Cebu is stalled due to environmental and construction challenges faced by its implementing agency, the Department of Public Works and Highways.

However, the project encountered environmental and construction challenges under the management of the Department of Public Works and Highways (DPWH)-Central Visayas. DPWH is delisting the MCE Project from the list of Priority Infrastructure Flagship Programs (IFPS) / Public Investment Program (PIP).  Despite, the project’s transfer to Cebu Province, DPWH would provide assistance and support to the Capitol throughout the process. With the removal of MCE from DPWH’s priority projects list, the allocated budget will revert to the national treasury as the Capitol explores financing options for the project.The importance of finding a better way to handle the issues with the Cebu Expressway project, which she believes that involving a private company through a PPP could make things smoother and speed up development. Once finished, the MCE will connect the cities of Naga in the south and Danao in the north, serving as an alternative highway traversing Cebu’s mountainous terrain.


The Department of Transportation (DOTr) is aiming to launch a bidding process for the NCR Epifanio De Los Santos Avenue (EDSA) Busway Project by 2025. This ambitious project seeks to significantly improve public transportation along EDSA and other major roads in Metro Manila.

To engage potential private sector partners, the DOTr and the Public-Private Partnership (PPP) Center conducted a market sounding on the project to get feedback from potential bidders which include bus operators, bus manufacturers and contractors, among others. The EDSA Busway has 21 stations for pickup and drop-off points from Monumento to the Parañaque Integrated Terminal Exchange. The project has reduced the end-to-end travel time on EDSA from three hours to one and a half hours.

The EDSA Busway Bridge with Concourse aims to provide safe, accessible, convenient and person with disability-friendly walkways for commuters and pedestrians approaching the EDSA Busway stations and crossing EDSA from one side to another.



The Philippine government, through the University of the Philippines’ Philippine General Hospital (UP-PGH), has changed the bid parameters, terms and conditions (PTC), and increased the cost of the Manila Cancer Center Project, under Public- Private Partnerships (PPP) Center.

The UP-PGH also had to adjust the project cost from PHP 6.05 Bn (USD 105.8 Mn) to PHP 9.49 Bn (USD 166 Mn). Because of these changes, UP-PGH, as the implementing agency, has to obtain new approval from the National Economic Development Authority Board (NEDA).

The project, which will be under a build-transfer-operate (BTO) arrangement, involves the financing, design, engineering, construction, operation, and maintenance of the entire 300-bed UP-PGH complex already existing in Manila. It also involves the procurement, maintenance, and periodic replacement of medical and non-medical equipment. The updated terms and conditions also addressed the concerns raised by the prospective bidders to make the project – which aims to serve the paying and charity patients – more market-friendly. According to PPP, the prospective bidders are Ayala Healthcare Holdings (AC Health), a subsidiary of Philippine conglomerate Ayala Corp [PSE:AC]; Australia-based Plenary Asia Pte Ltd; Philippine company Scheirman Construction Consolidated; and Germany's Siemens Healthcare.



The Department of Environment and Natural Resources (DENR) is expediting the bidding process for the Cavite Bulk Water Supply Project. The Environment Undersecretary has announced that they are in the process now of consolidating all the dams and then have one supplier for the whole province, that is the Cavite bulk. They have transferred the rights to Cavite and they will do the Public- Private Partnership (PPP) . The DENR has already turned over the rights for the project to the Cavite government as it is poised to conduct the competitive bidding for the project within the year.

The project aims to consolidate all 18 dams in Cavite into one bulk water supplier for the whole province of Cavite. The project serves as an augmentation measure to meet the growing supply demand in the province, the project would increase its current supply by 30%. The Cavite Bulk Water Supply project is considered a massive project as it will be a provincial-wide water supply system



The Philippines’ Public-Private Partnership (PPP) Center has ordered tariff regulators to submit guidelines for rate consultations for infrastructure projects awarded as PPPs within the next six months to protect investors and enable them to recoup their investments. The approvals of the regulatory agencies must precede PPP project approvals and approved rates must be maintained over the course of the implementation of the project.

Tariff rate adjustments should be “fair, transparent and predictable” but must ensure a reasonable return on investment for private sector partners while safeguarding public interest. Philippines-based conglomerate Metro Pacific Investment Corp. was not keen on participating in the auction of railway projects through a PPP scheme amid issues on delayed tariff increases for Light Rail Transit-Line 1 and its other infrastructure projects. Metro Pacific and its joint partners in Light Rail Manila Corp (LRMC) took over its operation and maintenance in 2015, but was only granted a fare increase in June 2023.

May 2024


The Department of Transportation (DOTr) will begin inviting bidding process or a private partner for the ferry system that will traverse Manila Bay, Pasig River, Marikina River and Laguna de Bay.  The government intends to bid out in 2025 the development of the ferry system being eyed as a public-private partnership (PPP) project. The project will involve establishing a high-capacity, high-frequency and low-carbon ferry system.

The DOTr and the Public-Private Partnership (PPP) Center are currently working on the study for the project to determine the demand and cost needed for the development of the ferry system.  The study include deployment of electric ferries in the system. It also includes integrating the ferry system into road-based transportation, such as modern public utility vehicles or modern buses, as well as active transportation.

After the study is completed, the project will need to secure approvals from the government agencies. The project is part of the initiative to enhance the Pasig River. It will also provide an alternative east-west transportation corridor in Metro Manila.



The Bases Conversion and Development Authority (BCDA) is hoping to invite bids for the Clark Integrated Public Transport System Public-Private Partnership (PPP) project by the end of 2024. The planned public-private partnership (PPP) needs to settle the division of labor on the project, including issues like who will build the infrastructure if necessary to mitigate risk for the private partner.

Spanning approximately 60 km, the bus rapid transit system will facilitate seamless travel from the airport to the city’s main gates and onward to the Clark Freeport Zone and to New Clark City. It will make use of electric vehicles and conventionally powered units compliant with the Euro 5 emissions standard. The target is to invite an operator that will provide services not just for New Clark City but also for the Clark Airport and the Clark Freeport Zone, and we will couple it with transport-oriented development.


The Philippine government is planning to set up a fund to manage risks in projects implemented through public-private partnerships (PPP). Under the PPP Code, the risk management fund will help ensure fiscal sustainability and enable the negotiation of better financing terms for PPP projects. The PPP Center met with the Bureau of the Treasury (BTr) recently to discuss the creation of the fund.

The PPP risk management fund will also be used for the payment of contingent liabilities arising from PPPs in accordance with contract terms. The plan is to convene the Technical Working Group on Contingent Liabilities composed of agencies including the Department of Budget and Management, BTr and the Department of Finance. The proposed amount will be based on guidelines to be issued by the Development Budget Coordination Committee (DBCC).

In terms of funding sources, the PPP Code identifies general appropriations, income from existing PPP projects and other sources determined by the DBCC. In terms of funding sources, the PPP Code identifies general appropriations, income from existing PPP projects and other sources determined by the DBCC. The PPP Center is tasked to manage the fund. The government is pushing for PPPs as a mode for implementing infrastructure projects.



The proposal to rehabilitate and operate the Iloilo Airport will proceed through legal processes in accordance with Republic Act 11966, also known as the Public-Private Partnership (PPP) Code of the Philippines. The Villar Group, Aboitiz Infra Capital, Inc. and Mega world also expressed their interest in rehabilitating and operating the Iloilo airport.

The procedures under the new PPP law will have to be followed. As indicated in the letter of DOTr, the whole PPP process will have been completed by the first quarter of 2025. Once the negotiations are completed, the project plan will be approved by the Civil Aviation Authority of the Philippines (CAAP) board before facing a Swiss challenge.

The DOTr targets to award the project to the private entity within the first quarter of 2025. Under the PPP Code, the implementing agency shall consider significant issues and concerns in the project implementation. These include the legal, technical, economic, financial, and commercial feasibility of the project, as well as value for money, climate resilience and sustainability; and social and environmental safeguards. The development of such a project shall commence only after the conduct of stakeholder consultations, as per the new PPP law.


International Container Terminal Services, Inc. is building a USD 800 Mn international container terminal in Bauan, Batangas. The Construction will begin in the first quarter of 2025 with the first berth scheduled for completion by the end of 2027. The new terminal will be the largest privately-funded marine terminal investment and will ultimately be the second-largest container facility after the Manila International Container Terminal (MICT). The terminal will become a catalyst for economic growth across Southern Luzon, creating jobs and accelerating regional development.

The terminal will feature up to 900 meters of quay and at least eight ship-to-shore gantry cranes. It will have an estimated capacity of over two million twenty-foot equivalent units per annum. The Bauan facility will become the premier international gateway for shippers based in the CALABARZON region (Cavite, Laguna, Batangas, Rizal, and Quezon), and the most modern container terminal in the country.

The terminal will have direct and unencumbered access to Southern Luzon’s expressways through the completion of the Bauan-San Pascual-Batangas-STAR toll way diversion road. Additional expressway projects from Cavite to Bauan by Metro Pacific Toll ways Corporation and San Miguel Corporation are expected to further enhance the new port’s connectivity, making it the most efficiently connected maritime facility in Luzon by both capacity and route access.


June 2024


Citicore Renewable Energy Corp. (CREC) have expressed interest in the privatization of the 796.64-megawatt (MW) Caliraya-Botocan-Kalayaan (CBK) hydroelectric power plant complex in Laguna, Philippines . CBK is the major privatization project of the Power Sector Assets and Liabilities Management Corp. (PSALM).

CREC is among the companies that have expressed interest in the CBK project, aiming to expand its portfolio to include hydropower and wind projects in addition to solar power. The CBK hydro facilities, currently under a 25-year concession agreement with a consortium led by Japan’s Electric Power Development Co. Ltd and Sumitomo, comprise four separate plants:

1.       39.37 MW Caliraya in Lumban

2.       22.9 MW Botocan in Majayjay

3.       36 MW Kalayaan I

4.       368.36 MW Kalayaan II.

Situated on Luzon, the country’s main island, the CBK complex serves as a reliable and clean energy source, supplying a significant portion of power to Metro Manila, the Philippines’ largest consumer.


Prime Infrastructure Capital Inc. (Prime Infra), through its wholly owned subsidiary Prime Solar Solutions Corp., inaugurated its 64-megawatt solar power plant in Tanauan, Batangas. Prime Solar’s two plants in Tanauan, Batangas, and Maragondon, Cavite, will supply up to 128 megawatts of clean energy, powering approximately 84,000 households and displacing over 100,000 tons of coal annually. Prime Solar has a 50-megawatt, 20-year power supply agreement with Meralco, with the remaining output supplied to the grid.

The Tanauan Solar Power Plant employs advanced technology, including digital twin technology, drone verification of progress, optimized string sizing, and 24/7 quality assurance/quality control monitoring both at the factory and onsite.   Prime Infra is working closely with Manila Electric Company (Meralco) to finalise the necessary details for power dispatch.

In addition to this, Prime Infra is already planning expansions, adding 10 to 12 MW to both the Tanauan and Maragondon facilities by the end of 2024. The company will also evaluate opportunities for further solar power projects in the country, underscoring its commitment to renewable energy (RE) development.



The Public-Private Partnership (PPP) Center of the Philippines and Singapore-based Infrastructure Asia (InfraAsia) recently renewed their Memorandum of Understanding (MOU) to collaborate in advancing infrastructure development in the country through capacity building, policy formulation, and project development.

The MOU renewal aims to continue existing collaborations in the development and implementation of PPP projects and expand engagements particularly on project and sector development, as well as market sounding sessions for identified priority projects in the Philippines.

Infrastructure Asia (InfraAsia) has been supporting the PPP Center in the facilitation and implementation of the PPP Program in the regions through sharing knowledge and international best practices on capacity building, policy formulation, and project development, including the development of a pipeline of projects on focus areas such as transport, healthcare, water supply, waste management, renewable energy, and green buildings, among others.



The Philippine government has close to 134 public-private partnership with an accumulated worth of PHP 3 Trn (USD 51.6 Bn) in the pipeline. Data released by the PPP Center showed that 13 unsolicited proposals were recently added to the list of 121 approved projects.

These include -

1.       Sta. Rosa City Digitalized Traffic Enforcement

2.       Municipality of Cainta Digitalized Enforcement

3.       Caloocan City Digitalized Traffic Enforcement

4.       Cauayan City Digitalized Traffic Enforcement

5.    Digital Infra for Philippine National Cancer Registry & Next-Gen Clinical Research

6.       Establishment of Hemodialysis Centers in Iloilo Provincial and District Hospitals

7.       Pampanga Bulk Water Supply Project.

Other projects recently added in the pipeline include -

1.       Biñan City Digitalized Traffic Enforcement

2.       Civil Aviation and Immigration Security Services

3.       Establishment of Bulk Water Facility in La Union

4.       La Union Integrated Terminal Exchange

5.      Establishment of Dialysis Center in La Union District Hospitals and Medical Center,

6.       Cavite Bus Rapid Transit System.



Metro Pacific Tollways (MPTC) is holding talks with the provincial government of Cavite in the Philippines regarding a potential public-private partnership for a proposed PHP 40 Bn (USD 678 Mn) expressway in Naic. The proposal would be a public-private partnership (PPP) and would depend on the completion of the Bataan-Cavite bridge. The route of the proposal will pass through Naic, Cavite, connecting General Trias through CALAX.

CALAX is a four-lane, 45-kilometer toll road connecting the westbound Manila-Cavite Toll Expressway (CAVITEX) and the eastbound Mamplasan rotunda to the South Luzon Expressway. The Bataan-Cavite Interlink Bridge is a 32.15-kilometer marine bridge connecting Central Luzon to CALABARZON, or Cavite, Laguna, Batangas, Rizal, and Quezon. The Asian Development Bank is co-financing the project.

The bridge is expected to reduce travel time from Mariveles, Bataan, to Naic, Cavite, from five hours to 1.5 hours. It is expected to be completed by 2029. MPTC is the tollways unit of Metro Pacific Investments Corp., one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc.


List of key transactions - Philippines Q2 2024

Source: YOG INFRA analysis, Public Information



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