Infrastructure & PPPs in Philippines - Q2 2025 Update
- YOG INFRA
- 6 days ago
- 15 min read
PHILIPPINES has published a pipeline of 185 projects worth PHP 2.90 Trn (USD 52.20 Bn) to be undertaken by the government and the private sector, latest data from the Public-Private Partnership (PPP) Center. There are multiple energy projects being developed, ncluding emerging technolgoies such as green hydrogen and BESS. We also see major developments in airport sector in the country, with plans to tender new international airports under long-term concessions.
Read more about key developments in Infrastructure and PPPs in Philippines in our country insight.
APRIL 2025
WORLD BANK APPROVES USD 800-MN LOAN TO STRENGTHEN THE PHILIPPINES’ RENEWABLE ENERGY TRANSITION AND CLIMATE RESILIENCE
The World Bank has approved an USD 800 Mn loan to help the Philippines accelerate its transition to clean energy, enhance climate resilience, and improve competition in the electricity market. This funding is part of the country’s broader strategy to achieve energy security, reduce reliance on imported fuels, and mitigate environmental risks.
The First Energy Transition and Climate Resilience Development Policy Loan aims to increase the share of renewable energy in the Philippines’ total installed power generation capacity from 30% in 2023 to 42% by 2027. A key focus of this initiative is the procurement of 1,000 megawatts of offshore wind capacity, alongside the implementation of energy efficiency programs and the adoption of electric vehicles in the public sector. Beyond energy sector reforms, the loan will also support policies for improved water resource management and sanitation, ensuring better coordination between national and local governments.
LS ECO ENERGY SUPPLIES CABLES TO LARGE SOLAR PROJECT IN THE PHILIPPINES
LS Eco Energy has joined the Kalayaan 2 wind farm project in the Philippines, a USD 150 Mn initiative aimed at boosting renewable energy output in the region. Through its Vietnamese subsidiary LS-VINA, the company will supply medium- and low-voltage electric cables for the 100 MW project in Laguna province, located around 100 km southeast of Manila.
The wind farm is scheduled for completion in 2026 and is expected to supply clean energy to approximately 85,000 households. As the Philippine government works towards increasing its renewable energy share to 50% by 2040, LS Eco Energy is ramping up its regional expansion. The company is also engaged in supplying cables to the STT Fairview Campus, the Philippines’ largest internet data centre, and is in talks for a cross-border energy project targeting Singapore.
GREEN ROOF ASIA BREAKS GROUND ON 22.8 MWP SOLAR PLANT IN BATAAN
Vietnamese renewable energy developer CN Green Roof Asia (CNGRA) has started construction of a 22.785-megawatt-peak (MWp) solar power project in Hermosa, Bataan. The facility, developed through special purpose vehicle Solana Solar Beta, Inc., is slated to begin commercial operations by the end of 2025.
Once operational, the solar farm is expected to generate 32.8 gigawatt-hours of clean energy annually, sufficient to supply electricity to nearly 30,000 individuals each year. The project represents a USD 15.8 Mn investment and is part of CNGRA’s broader commitment to expanding its renewable energy footprint in the Philippines.
CNGRA is exploring opportunities to develop ground-mounted solar and commercial and industrial rooftop projects throughout Luzon, Visayas, and Mindanao. The company has also partnered with local developer Solana Renewable Energy Holdings to advance its initiatives in the country. The Hermosa solar project is expected to create over 100 jobs during construction, offset approximately 14,053 tonnes of carbon emissions annually, and contribute to the Philippines’ goal of achieving 35% renewable energy in the power mix by 2030.
CONSTRUCTION OF BULACAN AIRPORT TERMINAL SET 2026
The Department of Transportation (DOTr) announced the construction of the terminal building for the New Manila International Airport or NMIA in Bulakan, Bulacan. The NMIA terminal building will rise on a 2,500-hectare site designed by San Miguel Aero City Inc. (SMAI). It includes five wings and 240 boarding gates. Behind the terminal, plans are underway for four parallel runways. Once completed, the airport can handle 35 to 100 million passengers annually, positioning it as one of Southeast Asia’s largest air transport hubs.
The remaining land development requires an additional 33 million cubic meters of sand to complete the reclamation works. Complementing the airport is a network of 21 planned access roads and expressways, including the eight-kilometer spur road from the North Luzon Expressway connecting Marilao and Balagtas, as well as the Northern Access Link Expressway, which is currently under construction.
The NMIA project is being developed under a Public-Private Partnership (PPP) scheme, wherein San Miguel Corporation (SMC) funds, constructs, and manages the facility, which will eventually revert to government ownership upon expiration of the concession period. The airport's total estimated cost is PHP 735 Bn (USD 13.01 Bn). Some PHP 536 Bn (9.52 Bn) has already been registered with the Board of Investments.
HDF ENERGY AND PHILIPPINES GOVERNMENT FORGE PARTNERSHIP TO DEVELOP HYDROGEN TECHNOLOGIES AND INFRASTRUCTURE IN THE PHILIPPINES
Hydrogène de France (HDF Energy), a leading force in large scale green hydrogen infrastructure and high-power fuel cell manufacturing, has signed a Memorandum of Understanding (MoU) with the Philippines’ Department of Transportation (DOTr). This strategic partnership aims to accelerate the deployment of HDF’s Renewstable hydrogen power plants in the country, delivering continuous, renewable electricity to public power grids and producing green hydrogen to help decarbonize heavy maritime and rail transport.
This MoU represents a major milestone in the country’s transition toward sustainable energy generation and decarbonized transportation. Under the MoU, the parties have committed to facilitating the exchange of information and collaboration necessary for the development of green hydrogen infrastructure in provinces where HDF Energy Philippines will develop, construct, and operate its hybrid Renewstable power plants, presenting a green alternative to conventional diesel fuel power plants. The distinctive feature of these plants lies in their ability to provide baseload non-intermittent renewable power, day and night, to the provinces’ electric grids, by combining an intermittent renewable energy source (solar or wind) with substantial on-site energy storage in the form of green hydrogen.
HDF Energy can produce additional green hydrogen, at an optimized marginal cost as fuel for HDF’s high-power fuels cells that could propel future hydrogen-powered maritime vessels and locomotives, supporting the Philippine’s transition to sustainable transportation.
BERDE RENEWABLES, HOLCIM PHILIPPINES EXPAND SOLAR COLLABORATION TO BOOST CLEAN ENERGY CAPACITY
Berde Renewables Inc, a distributed renewable energy firm backed by I Squared Capital, has announced a significant expansion of its clean energy partnership with cement giant Holcim Philippines. The move builds upon the success of previous rooftop solar projects and aims to enhance renewable energy deployment across Holcim’s industrial operations.
Through the expanded partnership, Berde Renewables will take on the design, construction, and management of additional solar facilities at new Holcim sites, increasing the combined capacity to 12.79 megawatt-peak (MWp). These installations are expected to generate approximately 21,263 megawatt hours of clean energy annually, which will help reduce carbon emissions by approximately 14,000 metric tons per year. This project supports Holcim’s ambitious goal of reducing Scope 2 emissions by 65 % by 2030.
PETROGREEN PLANS 98-MW SOLAR AND 20-MW BATTERY STORAGE PROJECT IN CAPIZ
PetroGreen Energy Corporation (PGEC), the renewable energy arm of PetroEnergy Resources Corporation (PERC), plans to roll out a 98-megawatt direct current (MWdc) solar power project and 20-MW battery energy storage system (BESS) in Capiz as part of its expanding renewable portfolio. The project will enhance PGEC's renewable energy capacity while addressing grid stability issues in the Visayas region.
The Capiz project is part of PGEC’s expansion across Luzon and the Visayas. The company’s 27 MW Dagohoy Solar Power Project in Bohol, which began exporting power in November 2024, will generate 36 GWh annually and reduce carbon emissions by 28,642 tons each year. Similarly, the San Jose Solar Project in Nueva Ecija, upgraded to 19.6 MW, will produce 29 million kilowatt-hours of electricity annually.
PGEC’s 40 MWdc Limbauan Solar Power Project in Isabela is under construction and expected to be completed by Q3 2025, generating 59 GWh annually. PGEC is also advancing its wind energy projects, with the Nabas Wind Project in Aklan and the Maibarara 3 Geothermal Power Plant in Batangas in the pipeline, further expanding its renewable energy footprint in the Philippines.
MAY 2025
PHILIPPINES DOTR BEGINS STUDY FOR RELOCATION OF ZAMBOANGA AIRPORT
The Department of Transportation (DOTr) is laying the bedrock for the relocation of the airport in Zamboanga, bidding out a PHP 93 Mn (USD 1.67 Mn) contract for the project’s new master plan. The airport will replace the existing facility, which is the third busiest gateway in Mindanao, linking Zamboanga peninsula to the rest of the Philippines. The New Zamboanga International Airport is expected to provide the peninsula with a larger facility for air travel. It will be located mainly in the villages of Mercedes and Talabaan in Zamboanga City, with some portions to be built in Barangay Zambowood.
The New Zamboanga International Airport is projected to facilitate 1.99 million travellers by 2030 and 5.94 million by 2040. If the DOTr is relocating an airport, it means the current facility can no longer address future demands and the existing site has no more space for expansion
ADB PLANS USD 4 BN FINANCING FOR PHILIPPINE INFRASTRUCTURE IN 2025
The Asian Development Bank (ADB) is preparing to extend around USD 4 Bn in financing to the Philippines in 2025 to support key infrastructure projects such as the Bataan-Cavite Interlink Bridge and the Laguna Lakeshore Road Network. This comes after the country received over USD 6 Bn in assistance from ADB in 2024, making it the bank’s second-largest beneficiary. The new funding aligns with the bank’s Country Partnership Strategy (2024–2029), which prioritizes infrastructure, disaster resilience, economic competitiveness, and human development.
Additional tranches are expected for the 32 km Bataan-Cavite bridge and the 37.5 km Laguna Lakeshore expressway. These are in addition to the USD 1.45 Bn loan already approved for the Malolos-Clark section of the North-South Commuter Railway. The ADB is also preparing to fund the government’s food stamp initiative, provide support for tax reform, and continue work on easing business processes.
MANILA BAY–PASIG RIVER–LAGUNA LAKE FERRY PROJECT RECEIVES NOTICE TO PROCEED
The Public-Private Partnership (PPP) Center of the Philippines has issued a Notice to Proceed for the project preparation services of the Manila Bay–Pasig River–Laguna Lake Ferry Project. This initiative aims to develop a high-capacity, high-frequency, and low-carbon ferry system that will connect Manila Bay and Laguna Lake via the Pasig River. The project's scope encompasses the financing, design, construction, procurement of low-carbon ferries, and operations and maintenance of the ferry system.
By enhancing water-based transportation, the project seeks to alleviate traffic congestion, reduce greenhouse gas emissions, and promote sustainable urban mobility in Metro Manila. The project preparation services are funded through the Project Development and Monitoring Facility (PDMF), a revolving fund managed by the PPP Center to support the development of bankable PPP projects. This development marks a significant step forward in the Philippine government's efforts to modernize its transportation infrastructure and foster public-private collaboration in delivering essential services.
DOTR BREAKS GROUND FOR BULK POWER SUBSTATION 1 OF METRO MANILA SUBWAY
The Department of Transportation attended the groundbreaking ceremony for Bulk Supply Substation 1, a key part of the Metro Manila Subway Project (MMSP). The substation will be located in Valenzuela City, and the two-storey substation will include two transformers that will connect to the switching station of the Manila Electric Company (Meralco).
The PHP 488.48 Bn (USD 8.79 Bn) MMSP was set to start partial operations back in 2021, but the DOTr assured that it is on track to begin partial operations in 2028 and be fully operational by 2030 or 2031.
PPP PROJECTS WORTH PHP 2.90 TRN IN PIPELINE IN THE PHILIPPINES
The Philippines has 185 projects worth PHP 2.90 Trn (USD 52.20 Bn) currently in the pipeline to be undertaken by the government and the private sector, latest data from the Public-Private Partnership (PPP) Center. Of the total number, 122 projects worth PHP 2.74 Trn (USD 0.49 Bn) will be implemented by the national government, while the remaining 63 projects, amounting to PHP 159 Bn (USD 2.85 Bn), will be implemented by local government units.
Majority of these projects will be located in the National Capital Region, Region III (Central Luzon), Region IV-A (Calabarzon), Region I (Ilocos Region), and Region II (Cagayan Valley).
The some of the biggest projects in the pipeline include:
The PHP 497.27 Bn (USD 8.95 Bn) North Long Haul (NCR-Ilocos Norte and Cagayan) Inter-Regional Railway Project;
The PHP 200 Bn (USD 3.6 Bn) Maynilad Water Services Inc. Revised Concession Agreement Term Extension;
PHP 171.78 (USD 3.90 Bn) North-South Commuter Railway Operations & Maintenance (O&M) Project;
The PHP 163.94 Bn (USD 2.95 Bn) Project KILO;
The PHP 150 Bn (USD 2.7 Bn) Manila Water Company Inc. Revised Concession Agreement;
The PHP 130.90 (USD 2.36 Bn) MRT-7 Airport Access-North Line Project;
PHP 122.61 Bn (USD 2.21 Bn) C5-MRT 10 Project;
The PHP 107 Bn (USD 1.93 Bn) MRT-7 Katipunan Spur Line Project; and
PHP 100.64 Bn (USD 1.81 Bn) Mindanao Railway Project Phase 3.
Other big projects in the pipeline include
The Cebu Monorail Transit Project;
MRT 11 Project; East-West Rail Project;
Metro Manila Subway Project Operations and Maintenance;
Iloilo-Santa Barbara Bus Rapid Transit;
Public-Private Partnership for School Infrastructure Project Phase 3; and
The San Mateo Railway Project.
The Department of Public Works and Highways (DPWH) plans to construct a second San Juanico Bridge amid the total rehabilitation of the 52-year-old iconic bridge that connects Samar and Leyte provinces, which will take at least two years to complete. The detailed engineering design of the proposed 2,600-meter long second San Juanico Bridge will be completed by 2026.
The load capacity of the San Juanico Bridge may be raised from three to ten tons by the end of the 2025 to avoid interruptions in the transportation of goods and essential supplies to and from Leyte and Samar. The DPWH in Eastern Visayas imposed a temporary weight limit on vehicles crossing the bridge between Samar and Leyte starting May 14 in preparation for major repairs on the 52-year-old structure. DPWH proposed a new bridge that will be built adjacent to the current one at a cost of PHP 9.17 Bn (USD 159.17 Mn).
TRINASOLAR POWERS LANDMARK 40 MW NORTHERN PHILIPPINE SOLAR PROJECT BY PETROGREEN
TrinaSolar, a global smart PV and energy storage solutions provider, has supplied 52,000 of its n-type i-TOPCon Vertex N 710-715W (NEG21C.20) modules for the Limbauan Solar Power Project (LSPP), a 40-megawatt direct current (MWdc) solar facility in San Pablo, Isabela, Philippines. Developed by BKS Green Energy Corporation (BKS), a subsidiary of Rizal Green Energy Corporation (RGEC), a joint venture between PetroGreen Energy Corporation (PGEC) and Japan's TAISEI Corporation, the project aims to bolster Luzon grid's renewable energy supply
LSPP is projected to generate approximately 59 gigawatt-hours (GWh) of clean energy annually, sufficient to power around 33,000 households and reduce carbon dioxide emissions by about 31,700 metric tons. This initiative marks a significant step towards enhancing Philippines' renewable energy infrastructure and promoting sustainable development.
The project is divided into two phases:
A 6 MWdc Phase 1 connecting to the Isabela Electric Cooperative-II (ISELCO-II) system, and
A 34 MWdc Phase 2 connecting to the National Grid Corporation of the Philippines' (NGCP) 69 kV Tuguegarao-Cabagan line via a 4.73 km dedicated transmission facility.
Beyond supplying high-efficiency and high-power modules, Trinasolar actively contributed to the project's success by providing training programs aimed at upskilling local talent. This initiative aligns with the project's goal of employing approximately 500-600 workers at the peak of construction, fostering economic growth in the Cagayan Valley region.
PASSENGER TERMINAL EXPANSION AT DAVAO AIRPORT UNDERWAY
The Civil Aviation Authority of the Philippines (CAAP) has begun expanding the passenger terminal building at the Davao International Airport. The project, which started three months ago, covers a floor area of approximately 8,000 square meters.
The construction of the PHP 700 Mn (USD 12. 07 Mn) project is expected to be completed by November 2026. Once finished, it aims to accommodate the growing number of passengers at the airport, particularly for international flights. The expansion will increase the capacity of the international pre-departure area by 700 passengers and aims to attract more foreign airline operators. The upgraded terminal will also feature additional concession areas and enhanced facilities for customs, immigration, and quarantine—essential for handling international travellers more efficiently.
JUNE 2025
NAIA TERMINAL 5 TO BE COMPLETED BY 2027
NAIA Infra Corporation (NNIC) has announced that the construction of Ninoy Aquino International Airport’s Terminal 5 is expected to finish within 30 months, i.e. by December 2027, aiming to ease congestion at Terminal 2 by handling more domestic passengers. The project is set to begin after the demolition of the abandoned Philippine Village Hotel in the Nayong Pilipino Complex, expected to be completed by September 2025.
Terminal 5, alongside Terminal 2, will have the capacity to handle up to 35 million passengers annually. Under the airport’s current operational structure, Terminal 1 will serve low-cost international carriers, while Terminal 3 is designated for full-service airlines. The San Miguel-led consortium took over NAIA operations under a PHP 122.3 Bn (USD 2.18 Bn) Public-Private Partnership (PPP) agreement, focusing on airport modernisation and congestion relief.
Additionally, the terminal will also have advanced technologies to improve the passenger experience, including plans to install face recognition-capable electronic gates by the end of 2025 to reduce long immigration queues. The Department of Transportation is currently finalising procurement plans for these modern e-gates.
DOE KICKS OFF GREEN ENERGY AUCTION FOR FIXED-BOTTOM OFFSHORE WIND
The Department of Energy (DOE) officially launches the Fifth Green Energy Auction (GEA-5), marking a significant milestone in the Philippines’ push for offshore wind energy. This round is the first to focus exclusively on fixed-bottom offshore wind technology, offering an installation target of 3,300 megawatts (MW) with a delivery commencement period from 2028 to 2030.
GEA-5 supports the Philippine Energy Plan 2025–2050 and the National Renewable Energy Program, aiming to scale up renewables. Fixed-bottom technology was chosen for its cost efficiency and maturity, while floating wind remains excluded. Selected developers will receive 20-year supply contracts across Luzon, Visayas, and Mindanao. Previous GEA rounds have awarded over 12 GW of capacity, including large-scale energy storage projects. The most recent round, GEA-3, concluded with 7,500 MW awarded, including 6,950 MW of pumped hydro storage.
ABOITIZ INFRACAPITAL TAKES OVER BOHOL AIRPORT OPERATIONS
Aboitiz InfraCapital (AIC) is now officially the operator of the Bohol-Panglao International Airport (BPIA). The Department of Transportation (DOTr) and the Civil Aviation Authority of the Philippines (CAAP) formally turned over the airport's operations to the infrastructure arm of the Aboitiz Group.
Under a PHP 4.53 Bn (USD 77.01 Mn) contract, the Public-Private Partnership (PPP) involves expanding the passenger terminal building, installing essential equipment, and modernizing airside and landside facilities within a 30-year concession period. AIC aims to increase the capacity of the Bohol gateway to 2.5 million passengers annually within the first two years of its takeover, from 2 million passengers at present. This will further increase to 3.9 million passengers yearly by 2030.
This is the third major airport that AIC will operate. The other two are the Cebu-Mactan International Airport--the second busiest airport in the Philippines--and the Laguindingan-International Airport in Misamis Oriental. The project aligns with AIC’s broader strategy to build sustainable, tech-driven infrastructure that supports inclusive growth and strengthens connectivity across the Philippines.
CLARK AIRPORT’S SECOND RUNWAY CONSTRUCTION SLATED FOR 2026
Luzon International Premiere Airport Development (LIPAD) Corporation has announced plans for the construction of a second runway at Clark International Airport is expected to begin in 2026 in the Philippines. The Bases Conversion and Development Authority (BCDA), which owns the land and is overseeing the project, is currently tendering the detailed engineering design, expected to be completed by end-2025.
The additional runway will enhance the airport’s capacity and redundancy, especially for growing express freight and passenger demand. LIPAD believes the second runway will bolster Clark’s potential as a logistics and aviation hub. Currently, the airport operates with a single runway handling up to 40 aircraft movements per hour. Passenger traffic is projected to reach 3.4 million in 2024. LIPAD is a consortium that includes Filinvest Development, JG Summit Holdings, Philippine Airport Ground Support Services, and Changi Airports Philippines.
DOTR EYES PRIVATIZATION OF 10 MORE AIRPORTS BY 2028
The Department of Transportation (DOTr) was aiming to privatize 10 more regional and tourist under Public Private Partnership (PPP) arrangements by 2028 included the airports of Iloilo, Davao, Siargao, Laoag, Busuanga, Bicol, Tacloban, Bacolod-Silay, General Santos, and Puerto Princesa. Out of the 10, the Iloilo Airport project was in the most advanced stage, with an unsolicited proposal already submitted by the Villar group and currently under review by the Development Coordination Committee.
Moreover, some airports may be offered as standalone projects, and the bundling of airport packages is considered based on recommendations from the IFC and ADB. The move follows the successful PPP transfers of Bohol-Panglao International Airport to the Aboitiz Group and Ninoy Aquino International Airport to a San Miguel Corporation-led consortium. Further, the government would continue building airstrips in remote areas for logistical and emergency use and major viable airports will be opened to private sector participation.
The DOTr and the Civil Aviation Authority of the Philippines (CAAP) formally turned over the operations of the Bohol-Panglao International Airport to the Aboitiz Group under a PHP 4.53 Bn (USD 81.09 Mn) concession deal.
SUBIC BAY LAUNCHES E-BUS FLEET IN THE PHILIPPINES
The Subic Bay Metropolitan Authority (SBMA) is set to roll out pure battery electric buses (PBEBs) within the year, aligning with its ambitious goal of making the Subic Bay Freeport the country’s first carbon-neutral economic zone. The initiative is part of the agency’s broader “Race to Carbon Neutrality” campaign.
As part of the project, fast-charging electric vehicle stations will be constructed at the SBMA Maintenance and Transportation Department motorpool. An additional charging station—donated by the Department of Energy (DOE)—will be installed along Argonaut Highway to support the PBEB fleet. To support the new transport system, SBMA is allocating PHP 10 Mn (USD 178,920 Mn) for the construction of new bus stops and the rehabilitation of existing ones, with completion targeted for December 2025. Renovation works are also underway at the Kalaklan Gate Terminal, a key entry point into the Freeport from Zambales.
The transport network will include 58 bus stops strategically located throughout the zone: eight in the Central Business District, 16 in the Cubi Area, six near theme parks, 18 in the Binictican Housing area, and 10 in Kalayaan Housing. This initiative is part of SBMA’s broader sustainability agenda, which includes the PHP 250 Mn (USD 4.31 Mn) Carbon Neutral Port project. The project features shore power systems that allow docked ships to connect to land-based electricity, significantly reducing emissions. SBMA aims to cut carbon emissions by 30 % by 2030 and reach net-zero by 2040, setting a new benchmark for eco-friendly development in Philippine economic zones.
List of key transactions - Philippines Q2 2025
Source: YOG INFRA analysis, Public Information
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