Infrastructure & PPPs in Philippines - Q2 2026 Update

YOG INFRA
12 minutes ago
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PHILIPPINES is accelerating infrastructure, renewable energy, and digital development through a combination of public investment, multilateral financing, and Public-Private Partnership (PPP) models. Transport infrastructure remains a key focus, supported by a USD 52 Bn PPP pipeline for major rail and road projects and new PPP initiatives to attract private investment. The country is also advancing its clean energy transition through the USD 3 Bn San Miguel Bay offshore wind project, the 500 MW New Clark City solar-plus-storage project, and a USD 1 Bn EV incentive strategy, alongside a USD 30 Bn AI infrastructure master plan, reinforcing its focus on sustainable infrastructure, energy security, and long-term economic competitiveness.

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

APRIL 2026

JICA COMMITS USD 1.42 BN FUNDING FOR PHILIPPINES’ TRANSPORT PROJECTS

The Japan International Cooperation Agency (JICA) has committed USD 1.42 Bn in loans to support major transport infrastructure projects in the Philippines, focusing on both road and urban rail development.

A significant portion of the funding will be used for the Central Mindanao High Standard Highway Construction Project, which includes upgrades to the Cagayan de Oro–Malaybalay corridor. It is being managed by the Department of Budget and Management. The financing will also support the Metro Manila Subway, covering consultancy services, rolling stock procurement, and electromechanical systems. The subway is a flagship project designed to improve urban mobility in Metro Manila and reduce reliance on road-based transport.

These projects are expected to be completed by 2034 and form part of broader efforts to modernize the Philippines’ transport infrastructure. The funding package complements additional financing from the Asian Development Bank and contributions from the national government.

PHILIPPINES INTRODUCES USD 1 BN EV INCENTIVE PLAN

The Government of the Philippines is shifting its automotive policy by introducing a PHP 60 Bn (USD 1 Bn) Electric Vehicle Incentive Strategy (EVIS) while discontinuing subsidies for internal combustion engine (ICE) vehicle manufacturing.

The move replaces long running programms such as the Comprehensive Automotive Resurgence Strategy (CARS) and Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) initiatives, which previously provided up to PHP 27 Bn (USD 450 Mn) in incentives for conventional vehicle production. The new strategy aims to position the Philippines within the global EV supply chain and accelerate electrification of transport.

Under EVIS, the government plans to offer a mix of fiscal and non-fiscal incentives to attract investments in EV assembly, battery manufacturing, parts production, and charging infrastructure. The initiative builds on existing policies such as the Electric Vehicle Industry Development Act, which already provides tax breaks, duty exemptions, and priority registration for EVs.

Authorities see EV adoption as a way to reduce dependence on fossil fuels and stabilize long-term energy costs. The initiative signals a decisive transition toward electrified mobility, with the government targeting long-term development of a domestic EV ecosystem spanning manufacturing, infrastructure, and public transport applications.

TOTALENERGIES AND MASDAR TO FORM USD 2.2 BN JOINT VENTURE TO ACCELERATE RE GROWTH IN ASIA

TotalEnergies, a global integrated multi‑energy company, and Abu Dhabi Future Energy Company PJSC – Masdar, a global clean energy leader, have signed a binding agreement to establish a USD 2.2 Bn joint venture (JV) that will merge their onshore renewable activities in nine countries across Asia.

As electricity demand accelerates across Asia, this partnership brings together capital and expertise to deliver renewable energy at the scale and speed required. Once the transaction is closed, the JV will act as both companies' sole vehicle for developing, building, owning and operating onshore solar, wind and battery storage projects in Azerbaijan, Indonesia, Japan, Kazakhstan, Malaysia, the Philippines, Singapore, South Korea and Uzbekistan. The JV will have a portfolio capacity of 3 GW of operational assets and 6 GW of assets in advanced development that are expected to be operational by 2030.

CITICORE RENEWABLES ENERGISES 125 MWP SOLAR PLANT IN THE PHILIPPINES

Citicore Renewable Energy Corp. energized the 125 MWp Citicore Solar Pangasinan project in Pangasinan, marking a key milestone in supporting the Philippines’s renewable energy targets.

The facility, located in Santa Barbara and Calasiao, is expected to generate around 202 GWh of clean electricity annually, enough to power 90,000–100,000 households while reducing carbon emissions by nearly 120,000 tonnes per year. The project incorporates an elevated solar panel design to improve resilience against flooding and enhance airflow and drainage, ensuring more reliable operations under local weather conditions.

In addition to energy generation, the project integrates the company’s AgroSolar initiative, enabling agricultural activities beneath and between solar panels to support local farmers and food security. The plant was awarded a long-term offtake contract under the Department of Energy’s Green Energy Auction Program Round 2 (GEAP-2).

INFRASTRUCTURE PROJECTS WORTH USD 752.75 MN APPROVED IN THE PHILIPPINES

The Department of Budget and Management Philippines has approved the release of PHP 46.22 Bn (USD 752.75 MN) to fund 1,743 infrastructure projects across the Philippines.

The funds have been allocated to the Department of Public Works and Highways Philippines and will support projects in all 17 regions, focusing on improving road connectivity, mobility, and regional economic opportunities. Key initiatives include the Davao City Bypass Construction Project, which received PHP 288.37 Mn (USD 4.78 Mn) for 2026.

The funding also covers major programmes such as asset preservation for national roads, rehabilitation and reconstruction of existing infrastructure, road widening and upgrades under the Network Development Program, and bridge rehabilitation and strengthening works.

TOTALENERGIES, NEXTNORTH COMMENCED CONSTRUCTION FOR 440 MW SOLAR PROJECT IN PHILIPPINES

TotalEnergies and Nextnorth have reached financial close and commenced construction of a 440 MWp solar power project in Ilagan, marking one of the country’s largest internationally financed solar developments.

The project, located in Isabela province, is expected to be operational in Q4 2027. Once completed, it will generate approximately 13.5 TWh of electricity over 20 years, with more than half of the output secured under long-term agreements with retail electricity suppliers for commercial and industrial users. The remaining capacity will be supplied to the national grid under the government’s Green Energy Auction Program.

With an estimated investment of around USD 300 Mn, the project is financed by international lenders including Sumitomo Mitsui Banking Corporation, ING Bank and Standard Chartered. It represents the largest international financing package for a solar project in the Philippines.

MAY 2026

PHILIPPINES APPROVES LARGEST PRDP ROAD PROJECT IN ZAMBALES

The Department of Agriculture has approved a major rural infrastructure project under the Philippine Rural Development Project (PRDP), aimed at improving connectivity and agricultural productivity in Zambales.

Valued at approximately PHP 727 Mn (USD 11.18 Mn), the 26-km farm-to-market road will link Barangay Baloganon to Sitio Coto in Barangay Taltal. The project, which includes the construction of 11 bridges, is the largest and most capital-intensive initiative under the World Bank-supported PRDP Scale-Up programme.

The road upgrade is designed to address long-standing accessibility challenges in upland farming communities, where poor infrastructure has resulted in travel times of up to two hours and limited transport options. Once completed, it is expected to directly benefit more than 1,500 farmers, primarily engaged in mango and rice production, as well as around 4,500 households.

Planned improvements include road concreting, drainage enhancements and replacement of ageing bridge structures to ensure all-weather access. The project is expected to strengthen rural mobility, improve market access for agricultural produce and support regional economic development.

PHILIPPINES’ PPP PIPELINE REACHES USD 52 BN, LED BY TRANSPORT PROJECTS

The Public-Private Partnership Center reported that the Philippines now has 252 Public-Private Partnership (PPP) projects in its pipeline, with a total value of PHP 3.16 Trn (USD 52 Bn). In these projects, 168 projects worth PHP 3.02 Trn (USD 49.07 Bn) will be implemented by the national government, while 84 projects valued at PHP 136.26 Bn (USD 2.2 Bn) will be led by local government units.

The transport sector dominates the pipeline, accounting for both the highest number of projects (94) and the largest share of investment. Railways alone represent PHP 1.97 Trn (USD 32 Bn). Other sectors include property development and information and communications technology.

ADB OFFERS USD 1.75 BN CRISIS SUPPORT PACKAGE TO THE PHILIPPINES

The Asian Development Bank (ADB) announced up to USD 1.75 Bn in additional financing support to the Philippines to help manage the economic impacts of the Middle East conflict.

The proposed support package includes additional policy-based and countercyclical lending, along with potential trade finance assistance. The financing is intended to help the Philippine government manage fiscal pressures and continue support measures under its Unified Package for Livelihoods, Industry, Food, and Transport programme. Current measures include fuel subsidies, excise tax reductions on selected oil products and financial assistance for transport workers, farmers, fishers and repatriated overseas Filipino workers. The funding is in addition to approximately USD 2 Bn in policy-based loans already being prepared for the Philippines in 2026.

ADB is also working with Philippine government agencies on long-term resilience initiatives covering domestic fertilizer security, social protection, clean energy, energy efficiency and mass transit investments aimed at reducing vulnerability to fuel-price shocks.

GREEN SM ACCELERATES PHILIPPINE EV EXPANSION WITH NEARLY 18,500 VINFAST VEHICLES

Green SM has partnered with 75 transport companies and cooperatives in the Philippines to deploy up to 18,497 electric vehicles under a series of Memoranda of Understanding and deposit agreements. The deployment will support passenger transport operations across major Philippine cities including Metro Manila, Cebu, Davao, Iloilo, Cavite, Pampanga, Bacolod, Batangas, Baguio and Cagayan de Oro.

The fleet will primarily comprise VinFast VF 5/Herio Green and Limo Green electric vehicle models designed for ride-hailing and urban mobility services. The rollout will combine direct vehicle investments and long-term leasing arrangements, with phased deployment planned throughout 2026. The initiative also builds on Green SM’s earlier partnership with Xentro Group involving the deployment of 2,500 vehicles in the country.

The expansion forms part of Green SM’s broader Southeast Asia electrification strategy focused on integrating centralized EV mobility standards with local transport operators. The Philippines is emerging as a key market for sustainable transport solutions amid rising interest in electric mobility adoption across the region. The deployment is expected to strengthen the country’s urban mobility ecosystem while supporting the transition away from conventional fuel-powered transport fleets.

ALSONS POWER CONVERTS 55 MW DIESEL PLANT INTO 98.7 MW SOLAR PROJECT IN THE PHILIPPINES

Alsons Power, the power generation arm of the Alcantara Group, is moving forward with its clean energy transition by converting its existing 55-megawatt (MW) Southern Philippines Power Corporation (SPPC) diesel power plant into a 98.7-megawatt (MW) solar power project. The facility is located in Alabel, Sarangani, in the southern Philippines. The project will be developed in two phases, begin in Q2 of 2026, and marks a major shift from diesel-based generation to renewable energy within the company’s portfolio.

The company stated that repurposing the existing diesel facility for solar energy development will help speed up the project timeline while making better use of existing infrastructure and assets. Alsons Power also believes the move will contribute to the Philippines’ national renewable energy goals and support the country’s growing demand for cleaner electricity sources.

JUNE 2026

ACWA POWER AND BCDA ADVANCE 500 MW SOLAR-PLUS-STORAGE PROJECT IN NEW CLARK CITY

Acwa Power Philippines and the Bases Conversion and Development Authority (BCDA) have signed a contract of lease for a 500-hectare site in New Clark City, paving the way for the development of a utility-scale solar photovoltaic and battery energy storage system (PV-BESS) project. The development represents a major step in the Philippines’ clean energy transition and supports the government’s efforts to attract high-value industrial investments to the country’s flagship smart city.

Under the agreement, Acwa Power Philippines will develop an integrated solar and battery storage facility with an eventual capacity of up to 500 MW, subject to final design, regulatory approvals and future expansion phases. The project will involve an initial investment of at least USD 400,000 per MW and is intended to provide reliable renewable energy for data centres, advanced manufacturing facilities, artificial intelligence-related industries and other energy-intensive operations located within New Clark City.

The project will serve as BCDA’s anchor power development within the New Clark City Special Economic Zone and is expected to strengthen the city’s position as a hub for technology-driven industries. The renewable energy facility will provide round-the-clock clean electricity through the integration of solar generation and battery storage systems, supporting both energy security and sustainability objectives. BCDA views the project as a key component of its strategy to attract global investors seeking access to dependable low-carbon power. The initiative also contributes to the Philippines’ target of increasing the share of renewable energy in the national power generation mix to 35% by 2030.

PHILIPPINES UNVEILS AI INFRASTRUCTURE MASTER PLAN TARGETING USD 30 BN IN INVESTMENTS

The Department of Information and Communications Technology (DICT) of the Philippines is preparing a National Artificial Intelligence Infrastructure Master Plan that aims to attract approximately USD 30 Bn in investments by 2033. The initiative forms part of the government’s broader strategy to strengthen the country’s digital infrastructure ecosystem and position the Philippines as a regional hub for artificial intelligence, innovation and digital industries.

The Ministry of Information and Communications Technology, the master plan is currently under review and is expected to receive approval from the Economic Development Council by Q3 2026. The Philippines AI+ Infrastructure Master Plan will outline the government’s roadmap for AI development, digital connectivity expansion and the deployment of high-performance computing infrastructure over the next 7 years.

A major focus of the strategy is attracting private-sector investment in digital infrastructure, particularly from hyperscale data centre operators and AI-related technology companies. The plan projects that national data centre capacity will increase to approximately 1.5 GW by 2033. Current installed data centre capacity stands at around 200 MW, although the DICT estimates this could reach 1 GW by the Q4 of 2026 if planned investments materialize.

TERSIS TECHNOLOGIES AND PINGKAS CAPITAL PARTNER ON WTE PROJECTS

Tersis Technologies has signed a memorandum of understanding (MoU) with Pingkas Capital to jointly develop, finance, deploy and operate waste-to-energy (WtE) projects in the Philippines using Tersis’ Syngenic V3 technology platform. The partnership’s first proposed project is planned in Bataan, with the potential for wider deployment across the Philippines and subsequently throughout the ASEAN region.

Under the agreement, Tersis will provide technology, engineering, training and operational support, while Pingkas Capital will lead local stakeholder engagement, permitting, regulatory coordination, financing and business development activities. The partners also intend to develop strategies for generating carbon credits, Verified Carbon Standard (VCS) certifications and Renewable Energy Certificates (RECs).

Pingkas Capital has secured exclusive rights to deploy the technology in the Philippines for an initial 12-month period, extendable to 24 months, with exclusivity potentially expanding across ASEAN following the financial close and commercial operation of the first project.

PHILIPPINES CERTIFIES 13 RE PROJECTS WORTH USD 5.72 BN UNDER GREEN LANE INITIATIVE

The Philippines’ Department of Energy (DOE) has welcomed the certification of 13 renewable energy projects valued at PHP 344.62 Bn (USD 5.72 Bn) under the government’s Green Lane initiative during the Q1 & Q2 of 2026.

The Board of Investments (BOI), these projects accounted for 99.6% of the PHP 346 Bn (USD 5.74 Bn) in Green Lane investments approved during the period and are expected to create approximately 38,716 direct jobs. The DOE stated that the investments reflect strong investor confidence in the country’s renewable energy sector and will help meet rising electricity demand while supporting employment in engineering, construction, technical services and operations.

Since the initiative’s launch in February 2023, the BOI has certified 237 projects worth PHP 6.32 Trn (USD 104.84 Bn), including 182 renewable energy projects valued at PHP 5.41 Trn (USD 89.74 Bn). The Philippines aims to increase the share of renewables in its power generation mix to 35% by 2030 and 50% by 2040.

SUNASIA ENERGY AND VINENERGO TO DEVELOP 422 MWP SOLAR IN THE PHILIPPINES

SunAsia Energy Inc. and Vietnam’s VinEnergo have entered into a strategic partnership to develop a 422 MWp Solar on Water portfolio across Pampanga and Negros Occidental in the Philippines. The three-project portfolio represents an estimated investment of USD 406 Mn and is scheduled to commence commercial operations between 2027 and 2028.

The projects will deploy Solar on Stilts technology, with solar panels mounted on concrete pile structures above water bodies, allowing aquaculture and fishpond operations to continue beneath the installations. The portfolio will comprise nearly 700,000 solar panels and approximately 62 km of new transmission lines. Once operational, the facilities are expected to generate enough renewable electricity to power more than 278,000 homes annually while reducing carbon emissions by approximately 460,888 tonnes each year.

The development is expected to strengthen electricity supply across Luzon and the Visayas while supporting the Philippines’ clean energy transition. By integrating renewable power generation with aquaculture, the projects aim to optimize water resource utilization, preserve local livelihoods and promote the Food-Energy-Water Nexus. The partnership also reflects growing ASEAN cooperation in renewable energy, with both companies positioning the Solar on Water model as a scalable solution for sustainable energy generation, food production and community development.

PHILIPPINES ADVANCES 901 MW SAN MIGUEL BAY OFFSHORE WIND PROJECT WITH CIP

The Philippines’ Department of Finance (DOF) has held discussions with Copenhagen Infrastructure Partners (CIP) on advancing the 901 MW San Miguel Bay offshore wind project in Camarines Sur. The project, which is being developed through a joint venture between CIP and ACEN Corporation, is expected to become the first offshore wind farm in both the Philippines and Southeast Asia. The meeting focused on project progress, financing arrangements and preparations for the country’s upcoming offshore wind auction.

The San Miguel Bay project represents an estimated investment of USD 3 Bn. During the meeting, Finance Secretary Frederick D. Go and CIP representatives reviewed key development milestones ahead of the Fifth Green Energy Auction (GEA-5), the Philippines’ first offshore wind auction. The auction will offer 3.3 GW of offshore wind capacity for delivery between 2028 and 2030, with bidder pre-qualification underway and the competitive bidding process scheduled to begin in Q3 2026.

The project is expected to play a significant role in the Philippines’ offshore wind sector and support the country’s renewable energy targets. According to provincial authorities, construction is targeted to begin in 2026, with commercial operations expected by the Q3 of 2028. The development is also expected to strengthen regional clean energy infrastructure and position the Philippines as Southeast Asia’s first offshore wind market.

PPP CENTER AND EUROPEAN UNION ADVANCE CIRCULAR PPPS FOR LOCAL GOVERNMENTS

The Public-Private Partnership (PPP) Center of the Philippines conducted a PPP Training for local government units (LGUs) in partnership with the European Union-funded Global Gateway Initiative, the European Union (EU)-Philippines Green Economy Partnership, and two of its implementing technical partners, Expertise France (EF) and the United Nations Development Programme (UNDP).

The training aimed to strengthen LGUs’ capacity to develop circular infrastructure projects through PPPs. It forms part of the EU-PH Green Economy Partnership’s technical assistance initiatives to enhance institutional capacity, promote inclusive development strategies, and support climate-smart circular economy efforts.

DOTR'S STRATEGY TO ATTRACT PRIVATE INVESTMENT IN RAILWAY PROJECTS

The Department of Transportation (DOTr) is turning to multilateral-backed financing tools to spruce up its upcoming railway Public-Private Partnership (PPP) projects and attract more private operators and investors. These “new-to-the-Philippines” and “new-to-the-world” guarantee mechanisms would serve as a cushion for proponents vying for several rail projects slated for PPP rollout.

These include the Metro Rail Transit Line 3 (MRT-3) capacity expansion and operations and maintenance (O&M) concession, the Light Rail Transit Line 2 (LRT-2) rehabilitation and O&M project, and the Metro Manila Subway Project O&M contract.

One such measure is a proposed USD 300 Mn step-up loan from the International Bank for Reconstruction and Development (IBRD), a lending arm of the World Bank Group, for the LRT-2 PPP project. This concessional financing package will be optional for bidders.

List of key Transactions - Philippines Q2 2026

Source: YOG INFRA analysis, Public Information

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