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.
JULY 2024
USAID TO HELP DEVELOP PHILIPPINES' PPP PROJECTS PIPELINE
The United States Agency for International Development (USAID) signed a memorandum of understanding (MOU) with the Public-Private Partnership Center (PPPC) to establish a collaborative framework to develop a robust pipeline of PPP projects for local government units (LGUs) and other USAID partner institutions.
The PPPC will collaborate with USAID through its various projects to support its partner institutions in the development, evaluation, approval, procurement, and implementation of PPP projects. This includes training and capacity development programs to ensure these institutions are well-equipped to undertake PPP processes, thereby maintaining a sustainable pipeline of PPP projects. Additionally, the feasibility of funding pre-project activities, through the PPPC’s Project Development and Monitoring Facility, may be evaluated.
This partnership supports the rollout of the newly enacted Republic Act (RA) 11966, also known as the Public-Private Partnership Code of the Philippines, aimed at fostering a more conducive environment for private investment in public infrastructure and promoting sustainable development initiatives effectively. USAID supports numerous development projects in the Philippines, covering various sectors including economic development and local governance, environmental management, energy, health, education, and workforce development.
CHINA-BASED FIRM TO CONSTRUCT 65-MW PV SOLAR POWER PLANT IN NEGROS ORIENTAL
The Government of the Philippines has partnered with the Shanxi Electric Power Engineering Company Limited, a subsidiary of China Energy Engineering Group to build a 65 MWp Areco Solar PV power plant in Bacolod City, Negros Oriental, marking the official start of the construction stage for its first PV power project in the Philippines.
The Areco Solar Photovoltaic Power Plant Project will have a capacity of 50 MW and includes the construction of a 22 kilovolt (kV)/69 kV substation and a 2 km transmission line with the extension of the distance of the transformer substations. This initiative is part of the Philippines’ efforts to increase its renewable energy (RE) capacity, aiming to enhance the share of renewables in its energy mix to 35% by 2030 and 50% by 2040. The plant’s completion is expected to enhance the country’s energy supply and support its shift towards renewable sources, contributing to both social and economic development.
CITICORE, SAN MIGUEL UNIT COLLABORATE ON 153.5 MW SOLAR PROJECT
Citicore Renewable Energy Corp. (CREC) and San Miguel Global Light and Power Corp. (SGLP) have entered into a joint venture for a 153.5 MW solar project in the Philippines. The two parties will jointly develop, build and operate the plant, to be located in Barangay Lucanin, within the province of Bataan on the island of Luzon. SLGP is a unit of San Miguel Global Power Holdings Corp. focused on the development and use of renewable energy.
CREC will initially own 49% and SGLP 51% of the total issued and subscribed capital stock of the joint venture company. Once the project reaches the construction phase, ownership will be split 50/50. The project will add around 76.75 MW to its solar energy capacity. The company is working toward contributing 1 GW of ready-to-build or under-construction projects every year over the next five years.
PHILIPPINES SWITCHES ON 64 MW SOLAR PROJECT
Prime Solar Solutions, a subsidiary of the Philippines -based investment firm Prime Infra, has switched on a 64 MW Solar power plant in Maragondon, the Philippines. Prime Solar has signed a 50 MW, 20-year power supply agreement with Meralco, an electric power distribution company in the Philippines. It will supply the rest of the plant's output to the grid.
Prime Solar's first project includes the Maragondon solar plant. It is one of two projects that will supply up to 128 MW of energy, powering around 84,000 households. The two installations will contribute to the national government's efforts to promote clean, sustainable energy resources. This project brings opportunities to the local community, in the potential to create jobs, stimulate economic growth, and attract investments.
AUGUST 2024
PHILIPPINE PROVINCE EXTENDS WATER SUPPLY PPP BID DEADLINE
The Provincial Government of Negros Occidental (PGNO) has extended the bid submission deadline for the Negros Occidental Bulk Water Supply Project (NBWSP) to October 28, 2024, in response to multiple bidders’ requests for an extension of the bidding timeline, as well as to accommodate additional prospective bidders who may be interested to bid for the Project.
This decision was reached after careful consideration by PGNO’s PPP Pre-qualification, Bids and Awards Committee (PBAC), which has deemed it in the best interest of the Project to effect the extension requested by bidders. With the extension, bidders will have more time to provide feedback on key aspects of the bidding process, which will serve as valuable inputs to the PBAC in further refining the Project’s Bidding Documents and parameters. This feedback mechanism is part of the bidding process for solicited PPP projects such as the NBWSP.
The PBAC has also re-opened the opportunity for other prospective bidders who may wish to participate in the bidding for the Project. Interested parties may purchase access to the Bidding Documents and the right to participate in the bidding for the Project up until the bid submission date. The Project aims to provide Negrenses with clean, potable and safe water through a sustainable and resilient bulk water supply system that will significantly reduce the province’s reliance on ground water and use of deep wells.
PHILIPPINES SECURES ADB BACKING TO EXPEDITE TRANSPORT PPPs
The Department of Transportation (DOTr) signed agreements with the Asian Development Bank (ADB) aimed at expediting the implementation of key transport projects. The agreements cover transaction advisory services for several initiatives, including the operations and maintenance of the MRT-3, the Davao Public Transport Modernization Project (DPTMP), and the Philippine Automatic Fare Collection System (AFCS).
These agreements underscore the strong collaborative relationship between the ADB, the Public-Private Partnership (PPP) Center, and the DOTr. These agreements will accelerate project structuring, improve the commuting experience, and ensure compliance with global standards. The Department of Transportation also plans on introducing efficient protocols for the Davao project launched earlier in 2024.
VENA ENERGY TO DEVELOP 550 MW PHILIPPINE SOLAR PROJECT
Vena Energy, a leader in sustainable and affordable green solutions across the Asia-Pacific region, has signed an investment agreement with MGen Renewable Energy Inc. (“MGreen”), the renewable energy arm of Meralco PowerGen Corporation (“MGen”) for the joint construction of the 550MW Bugallon Solar Power Project, located in Bugallon, Pangasinan under 3 Barracuda Energy Corporation.
The Project is expected to start construction by end of 2024 and commence commercial operations by the end of 2025. With its 550MW of DC capacity, the Project will be one of the biggest solar power plants in the Philippines. Vena Energy is committed to accelerating the energy transition and advancing green solutions that foster sustainable growth and environmental stewardship.
NEW PPP PROPOSALS EXPECTED FOR BACOLOD- SILAY AIRPORT
The Department of Transportation (DOTr) is willing to accept new proposals for Public-Private Partnerships (PPP) to expand the Bacolod-Silay Airport. The DOTr had received a proposal for the airport, located on the Negros Island, but it did not progress.
The department is likely to revoke its original proponent status by accepting fresh proposals. There was already one firm that has proposed to undertake the expansion of the Barcolod Silay airport. In 2020, Udenna Infra had submitted an unsolicited proposal for developing, operating, and maintaining the airport. The DOTr had allocated PHP 80 Mn (USD 1.42 Mn) to PHP 100 Mn (USD 1.78 Mn) to fund repair works at the airport. The amount does not include the cost of expansion that will be implemented through a PPP.
RFP ISSUED FOR INTERNATIONAL AIRPORT PPP PROJECT IN PHILIPPINES
The Public-Private Partnership (PPP) Center of the Philippines has issued a Request for Proposals (RfP) for the Bohol-Panglao International Airport project. This initiative aims to upgrade, expand, operate, and maintain the airport located in Panglao, Bohol.
The project is estimated to cost PHP 4.53 Bn (USD 78 Mn) and will be contracted for a 30-year term. An unsolicited proposal has been submitted by Aboitiz Infra Capital. The National Economic and Development Authority (NEDA) Board, along with the Department of Transportation, will negotiate all proposals.
The project is part of the National Government’s Infrastructure Flagship Projects and seeks to enhance regional connectivity, attract new airlines and international flights, expand capacity, and promote sustainable and efficient operations. Additionally, it aims to develop commercial services within the terminal and surrounding areas.
MSPECTRUM PARTNERS WITH EXCELITAS TECHNOLOGIES FOR A SOLAR ENERGY PROJECT IN LAGUNA
MSpectrum Incorporation, a subsidiary of Manila Electric Company (Meralco), has partnered with Excelitas Technologies Corporation’s local unit for a solar energy project in Cabuyao, Laguna, Philippines. This collaboration aims to enhance renewable energy (RE) adoption in the region by installing a 116 kWp solar facility at Excelitas Technologies Philippines Incorporation’s manufacturing site, expected to be completed by Q4 2024.
The new solar installation will generate about 165,998 kWh of clean energy annually, allowing Excelitas to reduce its carbon footprint by an estimated 751 metric tons. This reduction is equivalent to planting more than 5,430 trees and cutting down over 470,000 km in vehicle travel annually.
NEXIF RATCH ENERGY LAUNCHES THE CALABANGA SOLAR PROJECT IN THE PHILIPPINES
Nexif Ratch Energy (NRE), a prominent independent power producer specializing in renewable energy solutions, has launched the Calabanga Solar Project (CARE) in Camarines Sur, South Luzon, Philippines. CARE is a 74.2 MWp ground-mounted solar PV project and marks the first utility-scale solar power initiative in the Bicol Region, supplying clean energy to the national grid. The majority of its electricity output will be sold under a 10-year Power Supply Agreement with a subsidiary of the Aboitiz Power Corporation Group, providing a stable revenue stream.
NRE is currently working on the 145 MWp NPSI solar project in Visayas. The company is advancing several wind energy initiatives, including the San Miguel Bay nearshore wind project with a capacity of up to 500 MW and the Lucena offshore wind project with a capacity of up to 450 MW.
PHILIPPINES FAST-TRACKS WORLD’S LARGEST PHOTOVOLTAIC-STORAGE PROJECT
The Philippines’ Board of Investments (BOI) has issued a ‘green lane’ endorsement certificate to Terra Solar Philippines, Inc. (TSPI) for its ‘Terra Solar’ energy project, which includes a 3.5 GW of solar PV plant mated to a battery energy storage system (BESS) of 4.5 GWh capacity.
The project planned at a cost of PHP 185 Bn (USD 3.2 Bn) is to span for 3,500 hectares in the Bulacan and Nueva Ecija provinces of the Southeast Asian nation. The developer claims the project to be the world’s largest of its kind, in terms of solar-battery storage combined capacity. The ‘green lane’ certification for the clean energy project would enable the developers to acquire permits and departmental clearances with ease and in quick span of time, since the project would be identified as a ‘strategic investment’ in line with the country’s national developmental plans.
The Terra Solar project has already received the Certificate of Energy Project of National Significance from the Department of Energy under the Philippines Government. The BOI’s green lane certificate will accelerate the permitting and licensing processes, aligning with the Philippines’ national development plans. The first phase of the Terra Solar project is expected to begin commercial operations by February 2026, with the second phase following in 2027.
FDC UTILITIES TO EXPAND POWER GENERATION CAPACITY TO 1,350 MW IN THE PHILIPPINES
FDC Utilities Incorporation (FDCUI), a subsidiary of Filinvest Development Corporation (FDC), has announced plans to expand its power generation capacity from 411 MW to 1,350 MW by 2033. This expansion will increase the share of renewable energy (RE) in the total energy mix to 71%.
This initiative aligns with the Department of Energy’s (DOE) Power Development Plan (2023-2050), which anticipates an annual peak demand growth of 5.5 % until 2030. The plan also supports the government of the Philippines’ objective to increase the share of renewable energy in the country’s energy mix, enhancing energy security and resilience.
FDC Renewables Corporation has received a Green Lane Certificate of Endorsement from the Philippine Board of Investments (BOI) for its 33.4 MW Pampang Hydroelectric Power Project, aimed at expediting the project’s development. FDCUI is also advancing a 135 MW baseload capacity expansion in Misamis Oriental, approved by the DOE in 2019.
MERALCO UNIT AND VENA ENERGY TO DEVELOP A 450 MW SOLAR POWER PROJECT IN THE PHILIPPINES
MGen Renewable Energy Incorporation (MGreen), a subsidiary of Meralco, has partnered with Vena Energy Philippines to develop a 450 MW solar power project in Bugallon, Pangasinan, Philippines. This joint venture, under 3 Barracuda Energy Corporation, will see both companies collaborate to build and operate the solar plant. The financial closing and construction of the project are expected to commence by Q3 2024, with commercial operations targeted to be completed by Q4 2025. This project is part of MGen’s broader goal of achieving 1,500 MW of renewable energy (RE) by 2030.
The company is committed to accelerating the energy transition and advancing renewable solutions that foster sustainable growth and environmental stewardship. Vena Energy owns, develops, constructs, and operates a renewable energy portfolio of onshore wind and solar, offshore wind, and energy storage projects totalling 45 gigawatts.
SEPTEMBER 2024
MRT-7 WILL PARTIALLY OPEN TO PASSENGER TRAFFIC IN THE PHILIPPINES BY 2025
The Department of Transportation (DOTr) has announced that 12 stations of the Metro Rail Transit (MRT) Line 7 in Quezon City are set to begin partial operations by 2025. The MRT-7 is a 22-kilometer rail service that consists of 14 stations, namely:
Quezon North Avenue Joint Station
Quezon Memorial Circle
University Avenue
Tandang Sora
Don Antonio
Batasan
Manggahan
Doña Carm
Regalado
Mindanao Avenue
Quirino
Sacred Heart
Tala
San Jose del Monte.
The entire 22-km-long MRT-7 line, once fully operational, will reduce travel time between Quezon City and San Jose del Monte, Bulacan, to just 35 minutes, with an estimated 300,000 passengers using the system in its first year.
PHILIPPINES’ FIRST AUTONOMOUS BUS SERVICE LAUNCHED IN CLARK
Japan-based Zenmov, Inc., in partnership with MC Metro Transport Operation, Inc., launched its smart autonomous bus service in New Clark City in Capas, Tarlac, marking the official opening of the Philippines’ first publicly accessible, self-driving bus utilizing a transportation cloud system called Smart Mobility Operation Cloud (SMOC).
This initiative is part of a smart public transportation demonstration, led by the New Energy and Industrial Technology Development Organization (NEDO) of Japan and implemented by Zenmov, with no cost to the Government of the Philippines. The program aims to improve mobility, reduce traffic, and promote sustainability in the region. The service will also introduce electric vehicles, smart poles, and real-time traffic management technologies. The demonstration project will come at no cost for the Philippine government, with NEDO and Zenmov committing to finance the project.
Under the demonstration project, a new public transportation system called Primary Rapid Transit, a “last mile” service, will run in select routes in New Clark City, Clark Freeport Zone, and Clark International Airport using SMOC. This application will enable Zenmov to measure and verify the effectiveness of the public transport service system, with an aim to maximize operational availability while keeping the number of vehicles at a minimum by managing a lean dispatching system based on travel demand data.
PHILIPPINES DOTR TO INCORPORATE EVs INTO PUBLIC TRANSPORT MODERNISATION PROGRAM
The Department of Transportation (DOTr) plans to gradually increase the number of electronic vehicles to be included in the Public Transport Modernization Program. This initiative is part of the government’s broader efforts to promote zero carbon emissions and renewable energy (RE) in the transportation sector. DOTr is also pushing further the promotion of active transportation with the establishment of bike lanes and walkways, and other climate resiliency and climate mitigation efforts.
This climate mitigation efforts include electric trains, sustainable aviation fuel, crew training on use of methanol for sea vessels, solar panels for airport terminals, and hybrid ferry boats along Pasig River, among others.
List of key transactions - Philippines Q3 2024
Source: YOG INFRA analysis, Public Information
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