Infrastructure & PPPs in Philippines - Q3 2026 Update
PHILIPPINES is accelerating its 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 50.39 Bn PPP pipeline across 251 projects and a USD 3.16 Bn rail budget for 2027 advancing flagship initiatives like the USD 8.58 Bn Metro Manila Subway, the North-South Commuter Railway, and the USD 1.01 Bn Davao Public Transport Modernization Project. The country is also advancing its clean energy transition through massive solar-plus-storage developments, including the 3,500 MWp MTerra Solar complex, a 1 GW renewable energy hub in Aurora, and the 923 MWp Laguna Lake floating solar project, alongside nationwide EV charging network expansions. These physical assets are complemented by a USD 40 Mn digital national ID upgrade and a USD 34.4 Bn AI Infrastructure Masterplan aiming for 1.5 GW of data center capacity by 2033, 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.
JULY 2026
PHILIPPINES PAUSES 3.3 GW OFFSHORE WIND AUCTION
The Philippines’ Department of Energy (DOE) has suspended all activities under the fifth round of its Green Energy Auction Programme (GEA-5) to review and recalibrate the auction framework before proceeding. The auction was designed to award 3.3 GW of fixed-bottom offshore wind capacity for projects scheduled to be delivered between 2028 and 2030.
The review will assess implementation issues including port infrastructure readiness, permitting requirements, environmental and port-related costs, and potential global supply chain disruptions, particularly those linked to the Middle East conflict. The DOE aims to ensure a transparent, implementation-ready auction process aligned with infrastructure availability, regulatory requirements and prevailing project development conditions. Revised timelines and updated auction guidelines will be issued following the review.
BASIC ENERGY AND AC MOBILITY LAUNCH PUBLIC EV CHARGING STATIONS IN THE PHILIPPINES
Basic Energy Corporation and AC Mobility Holdings Inc. have commenced commercial operations of the first two electric vehicle (EV) charging stations under their nationwide charging network rollout in the Philippines. Developed by Basic Energy Renewables Corporation in partnership with AC Mobility, the stations are located at the Total service station along the North Luzon Expressway and the EcoOil service station in Alabang, Muntinlupa City, and are now open to the public.
Each charging site is equipped with a 120-kW DC fast charger and a 22 kW AC charger to support a range of electric vehicles. The partners are continuing to expand the network, with two additional charging stations under construction at Total Sumulong and EcoOil Cainta, while 16 sites are in the design and costing stage, 20 locations are undergoing site surveys, and at least 51 prospective sites are being assessed for future deployment.
The charging network forms part of Basic Energy’s strategy to support the development of the Philippines’ electric mobility ecosystem. The initiative complements the Electric Transport Solution Program launched in April 2026 by Basic Energy, AC Mobility, First Gen Corporation and Ecology Builders Development Corporation, which aims to accelerate the adoption of electric buses and sustainable public transportation through integrated charging infrastructure and industry collaboration.
AESEN AND TOPLINE GROUP FORM OFFSHORE SERVICES JOINT VENTURE IN THE PHILIPPINES
Aesen and Topline Group have established Aesen Topline Offshore Corp., a joint venture with an estimated cost of PHP 600 Bn (USD 9.75 Bn) that will provide offshore logistics, maritime support and project management services for offshore energy, marine construction and infrastructure projects in the Philippines. The new company combines Aesen’s offshore maritime logistics and multi-vessel project execution capabilities with Topline Group’s local operational presence, regulatory expertise and business network.
The joint venture will deliver integrated maritime solutions for offshore energy developments, offshore wind projects, marine civil construction and critical maritime infrastructure. The partners expect increasing investments in offshore energy, port infrastructure and coastal developments to drive demand for specialised marine support services, with the company focusing on safe, reliable and efficient offshore logistics, regulatory compliance and end-to-end project support throughout the project lifecycle.
BERDE RENEWABLES TO DEPLOY 200 MW SOLAR AND 500 MWH BATTERY STORAGE ACROSS THE PHILIPPINES AND THAILAND
Berde Renewables, an I Squared Capital portfolio company, has signed a Master Framework Agreement (MFA) with Sungrow Power and its regional distributor Solar Hive to deploy 200 MW of solar capacity and 500 MWh of battery energy storage systems (BESS) across the Philippines and Thailand over the next three years.
Berde Renewables will procure 200 MW of Sungrow solar inverters and 500 MWh of BESS to support commercial and industrial renewable energy projects in both countries. Solar Hive will provide regional logistics, technical support, spare parts and after-sales services.
The partnership also covers the deployment of EV charging solutions, smart energy technologies, technical training, certification programmes, joint market development initiatives and potential vendor financing and co-investment opportunities.
The projects will be delivered under Berde Renewables’ Power Purchase Agreement (PPA) model, through which the company finances, develops, owns and operates renewable energy assets before transferring ownership to customers at the end of the contract period.
Neither party disclosed how much they plan to spend to hit the 300-MW target. Industry players earlier estimated that for solar projects, a developer must spend PHP 40 Mn (USD 650,800) to PHP 50 Mn (USD 813,500) per megawatt.
The integrated solar-plus-storage projects are expected to improve grid stability, enable daytime-to-evening energy shifting, enhance energy resilience, and reduce electricity costs for commercial and industrial customers in the Philippines and Thailand.
MGEN INAUGURATES PHASE 1 OF MTERRA SOLAR PROJECT IN THE PHILIPPINES
Meralco PowerGen Corporation (MGEN), together with its project partners, has inaugurated Phase 1 of the MTerra Solar project in Nueva Ecija, Philippines. The first phase comprises 1,373 MW of solar photovoltaic (PV) capacity and an 825 MW battery energy storage system (BESS), equivalent to 3,300 MWh of storage, making it one of the world’s largest integrated solar and battery energy storage facilities developed on a single site.
Phase 1 has fully energised all 741 battery units and is currently capable of exporting up to 750 MW to the Luzon grid, pending the completion of additional grid-related works. Following the successful completion of grid tests, the facility will begin supplying 600 MW of mid-merit renewable energy under a Power Supply Agreement with Meralco. By the end of June 2026, more than 2,000 MWdc of solar panels had been installed, while the project had recorded over 30 Mn work hours without a lost-time injury.
The MTerra Solar project is expected to strengthen the Philippines’ energy security by increasing indigenous renewable energy generation, improving grid stability through integrated battery storage and reducing reliance on imported fuels. The project supports the Philippine Energy Plan and the country’s renewable energy targets of 35% by 2030 and 50% by 2040. In addition to its energy benefits, MGEN has invested PHP 88.6 Mn (USD 1.56 Mn) in education, livelihood, public safety and community development programmes, while supporting local employment, road safety improvements and agrivoltaics research in partnership with Central Luzon State University.
IB VOGT COMMISSIONS 99 MWP TANTANGAN SOLAR POWER PLANT IN THE PHILIPPINES
International solar developer ib vogt has commenced commercial operations at the 99 MWp Tantangan Solar Power Plant in South Cotabato, Philippines, following an energisation ceremony held less than a year after construction began. The project is ib vogt’s second solar development in Mindanao and has been designated a national priority under the Philippines’ clean energy programme. It is also one of the largest solar projects in the region, exceeding the typical 10–50 MWp capacity range of most solar installations in the country.
The Tantangan project combines solar photovoltaic (PV) generation with a battery energy storage system (BESS) to provide a dispatchable, near-baseload renewable energy solution that supports rising electricity demand and improves grid reliability in Mindanao. Once fully operational, the facility is expected to generate more than 150 GWh of electricity annually, supplying clean energy to over 82,000 households while reducing carbon dioxide emissions by more than 66,000 tonnes per year.
This project will require cumulative investments of over USD 300 Bn between 2024 and 2040 to deliver on its energy transition goals, and support from overseas banks and government vehicles could be crucial in delivering these funds.
The Tantangan project is its first solar-plus-storage hybrid project in Southeast Asia and the first of more than 500 MW of hybrid renewable energy capacity the company expects to have operational or under construction across the Philippines by the end of 2026. The project received subordinated financing from Pentagreen Capital and British International Investment (BII), with both organisations highlighting the development as an example of collaborative investment supporting the expansion of renewable energy infrastructure and the energy transition across Southeast Asia.
METRO MANILA SUBWAY PROJECT REMAINS ON TRACK FOR 2028 DEMONSTRATION RUN
The Philippine government has confirmed that a demonstration run of the 33-km Metro Manila Subway Project remains targeted for 2028, while full commercial operations are expected by 2032. The flagship rail project is progressing under the government’s Build Better More infrastructure program, with construction advancing on multiple sections.
The metro line will connect Valenzuela City and Paranaque City, with a branch serving Ninoy Aquino International Airport Terminal 3. The project is being financed through a loan agreement with the Japan International Cooperation Agency (JICA), covering an investment of more than PHP 488 Bn (USD 8.58 Bn).
The Metro Manila Subway is the Philippines’ first underground metro system and forms the centrepiece of the country’s rail expansion program. The Department of Transportation (DOT) has acknowledged that right-of-way acquisition remains a challenge for several railway projects, although relocation activities for affected communities are continuing.
FIRST GEN SECURES NIA APPROVAL FOR 120-MW PUMPED STORAGE PROJECT
First Gen Group has cleared a major regulatory milestone by securing approval from the National Irrigation Administration to proceed with its planned 120-megawatt Aya Pumped Storage Project in Pantabangan, Nueva Ecija. The agreement grants the company a 25-year, renewable term to build, run, and maintain the facility while clearing the way to obtain the remaining required permits. Estimated at around PHP 6 Bn (USD 105 Mn), the project is slated to begin commercial operations by 2030.
The facility will utilise the Aya and Masiway reservoirs to balance energy supply, pumping water to an upper reservoir during off-peak hours and releasing it through turbines during high-demand periods. This flexible storage capacity aims to stabilise the power grid, particularly during peak evening demand, while optimizing water resource management. Additionally, it will maximise performance for neighbouring hydropower assets, including the Pantabangan-Masiway and Casecnan plants.
The agreement aligns with broader national efforts to bolster energy security and implement sustainable water usage strategies. The project supports grid stability while ensuring long-term conservation and maximum output from existing water assets. As of late 2025, First Gen maintained an installed renewable energy capacity of 1,764.2 megawatts across hydro, geothermal, solar, and wind operations.
ONGOING INFRA PROJECTS TO BE PRIORITIZED BY GOVT
The Philippine government is shifting its public investment strategy to prioritise and expedite ongoing infrastructure projects while slowing down the approval of new ones. This recalibration comes as the country anticipates losing access to low-interest concessional loans over the next three years, following its economic upgrade to upper-middle-income status.
With limited fiscal space heading into upcoming budget cycles, state funds are being strictly reserved for required government counterparts on active investments. Continuing current projects remains a top priority because these initiatives are already at advanced implementation stages and have pre-committed funding.
To maximise remaining official development assistance before the 3 year grace period ends, authorities aim to fast-track dozens of pipeline projects from bilateral and multilateral partners. This proactive adjustment ensures critical infrastructure and social sector projects secure favourable loan terms before higher borrowing rates take effect.
251 PPP PROJECTS WORTH USD 50.39 BN IN THE PIPELINE
The Philippines currently has 251 projects worth PHP 3.10 Trn (USD 50.39 Bn) in the pipeline to be undertaken by the government and the private sector, data from the Public-Private Partnership (PPP) Center showed.
165 projects worth PHP 2.97 Trn (USD 48.28 Bn) will be implemented by the national government while the remaining 86 projects worth PHP 127.58 Bn (USD 2.07 Bn) will be implemented by local government units. Railways continued to account for the biggest chunk, with total projects amounting to c. Aviation followed with PHP 1.20 Trn (USD 19.50 Bn), and road, PHP 942.5 Bn (USD 15.32 Bn).
The majority of these projects will be located in the National Capital Region, Central Luzon and Calabarzon. PPP data showed that a total of 288 projects worth PHP 3.58 Trn (58.18 Bn) are already under implementation. Of the total, 184 projects worth PHP 2.52 Trn (USD 40.96 Bn) are being implemented by the national government, while 104 projects worth PHP 1.05 Trn (USD 17.07 Bn) are being implemented by local government units.
PETROGREEN UNIT SECURES USD 10 MN FOR PHILIPPINE BESS
PetroGreen Energy Corporation, through its subsidiary EcoSolar Energy Corporation, secured a PHP 635.90 Mn (USD 10.34 Mn) project finance facility from Rizal Commercial Banking Corporation. Arranged by RCBC Capital Corporation and managed by RCBC Trust Corporation, the loan will partially fund a 20MW/40MWh Battery Energy Storage System in Panitan, Capiz. The venture marks the company's first energy storage project and represents the fourth initiative financed by the bank for the group over the past three years.
The energy storage installation is being developed to enhance the stability and overall reliability of the Panay sub-grid. By providing cleaner, more dependable infrastructure, the facility aims to better support local communities and industries. Construction is moving forward on schedule, with physical completion expected by August 2026. Official testing and commissioning of the facility are slated to begin the following month in September 2026.
Integrating battery storage technology addresses long-standing grid challenges by balancing the intermittent supply of renewable sources and mitigating rolling power outages. The project lowers reliance on fossil fuels while aligning with national climate objectives for a cleaner energy transition. Ultimately, the partnership aims to provide Filipino households and commercial sectors with a more resilient, reliable, and affordable electricity supply.
CREC SECURES USD 65.8 MN LANDBANK FINANCING FOR EMBEDDED SOLAR POWER PLANTS
Citicore Renewable Energy Corporation (CREC) has secured a PHP 4.05 Bn (USD 65.8 Mn) loan agreement with LANDBANK to fund two 41-megawatt-peak solar power plant developments under Citicore Solar Embedded, Inc. Located in Pampanga and Nueva Ecija, the facilities will feature integrated battery storage systems. These installations will expand the company's total portfolio capacity by an additional 82 megawatts-peak and 106 megawatt-hours.
The initiatives directly support the national objective to increase renewable sources to half of the country's power generation capacity by 2040. The partnership emphasises public-private sector cooperation focused on delivering dependable, sustainable energy infrastructure to rural communities while advancing the country's overall transition toward clean energy.
By partnering with local electric cooperatives, including PELCO I and SAJELCO, the embedded solar facilities will link directly into distribution networks. This structural arrangement minimises transmission system losses and helps lower power costs for end users while simultaneously assisting utility companies in satisfying their mandated clean energy requirements.
PHINMA UNIT EXPLORES SCHOOL PPP PROJECTS WITH PHILIPPINES LOCAL GOVERNMENTS
PHINMA Education Holdings is considering Public-Private Partnerships (PPPs) with local government units to manage tertiary schools in areas where suitable acquisition targets are scarce. This expansion path aims to broaden access to higher education for low-income families, though potential shifts in local government leadership present an operational risk. Alongside potential PPPs, the company is seeking acquisitions in Cebu and Davao, expanding in Indonesia, and evaluating opportunities in Vietnam, building on its recent acquisition in Metro Manila and an existing joint venture in Indonesia.
Operating the largest private higher education network in Southeast Asia with 178,000 students, the institution faces significant academic and financial challenges across its markets. To raise its overall graduation rate to 60% within the next five years, the education group is rolling out targeted retention interventions, including strict attendance tracking and expanded student coaching. The organisation is also strengthening ties with industry partners to improve graduate employability and secure direct career pathways. These efforts aim to bridge severe literacy gaps and ease financial pressures while keeping higher education accessible and affordable.
AUGUST 2026
US ANNOUNCES OVER USD 2.5 BN INVESTMENT INITIATIVES FOR THE PHILIPPINES AND SOUTHEAST ASIA
The Government of the United States has announced investment commitments and assistance programmes worth more than USD 2.5 Bn for the Philippines and the Southeast Asian region. The initiatives cover infrastructure, energy, technology, security, healthcare, critical minerals, and regional connectivity as part of efforts to strengthen the US-Philippines alliance and the US-ASEAN Comprehensive Strategic Partnership.
For the Philippines, the package includes a USD 60 Mn Millennium Challenge Corporation Threshold Program to strengthen the energy sector, more than USD100 Mn in proposed strategic infrastructure assistance focused on Subic Bay under the Luzon Economic Corridor, including upgrades to port facilities and a fuel storage terminal with a capacity exceeding 120 Mn litres, USD 10 Mn for modernising critical information and communications technology infrastructure, USD 100 Mn in Foreign Military Financing for fiscal year 2026, USD 19 Mn for counterterrorism programmes, USD 9 Mn to expand a Philippine Coast Guard pier in Palawan, USD 4 Mn to support critical minerals development, and a jointly funded five-year Strategic Objective Agreement of up to USD 685 Mn to strengthen HIV, tuberculosis and global health security programmes. The US is also funding a USD 6.5 Mn contract for the Rhombus AI Concierge analytics platform and USD 3 Mn for cybersecurity training.
PARTIAL OPERATIONS PLANNED FOR DAVAO PUBLIC TRANSPORT MODERNIZATION PROJECT
The Philippines’ Department of Transportation (DOTr) plans to begin partial operations of the Davao Public Transport Modernization Project (DPTMP) i Q1 202828, The bus rapid transit-style project is intended to modernize public transport in Davao City by introducing a fleet of modern electric and Euro-5 diesel buses supported by intelligent transport systems and upgraded passenger infrastructure.
The USD 1.01 Bn project, financed through a loan agreement signed with the Asian Development Bank (ADB) in July 2023, will deploy nearly 1,000 buses, including 386 electric buses, across 29 routes covering a 672.95 km road network. The project also includes the implementation of standardized bus operations, intelligent transport systems, designated bus stops with shelters and lighting, and dedicated bus lanes along selected corridors to improve service reliability and operational efficiency.
Once fully operational, the DPTMP is expected to serve approx 800,000 passengers per day, providing a safer, more reliable and environmentally sustainable public transport system while reducing greenhouse gas emissions and air pollution. The project forms part of the DOTr’s broader national public transport modernization programme.
PHILIPPINES TO LAUNCH GREEN ENERGY AUCTION FOR OFF-GRID ISLANDS IN 2027
The Philippine Department of Energy (DOE) plans to launch a dedicated Green Energy Auction (GEA) in 2027 for off-grid islands served by the state-owned National Power Corporation (NAPOCOR). The programme will support the replacement of diesel-fired generation with solar power and battery energy storage systems (BESS), with the initial auction expected to cover 20 larger NAPOCOR-served islands. The DOE is finalising the list of eligible islands and auction parameters ahead of the planned rollout.
The programme will be tailored to the operating requirements of off-grid island communities and is intended to reduce reliance on diesel generation while improving energy security and lowering electricity generation costs. DOE Undersecretary Rowena Cristina Guevara said generation costs on off-grid islands average around PHP 18 (USD 0.29) per kWh, reaching as high as PHP 62 (USD 1.01) per kWh in some remote locations because of fuel transportation costs. Renewable energy developers, local government units and other stakeholders have participated in focus group discussions to help refine the auction design.
The initiative is also intended to reduce the Universal Charge for Missionary Electrification (UCME), which subsidises the difference between regulated electricity tariffs and the actual cost of generation in off-grid areas. NAPOCOR will continue providing uninterrupted electricity services while successful bidders develop and commission their renewable energy facilities. The DOE is currently completing preparations for the auction, including determining eligible islands and finalising the programme’s implementation parameters.
VOLTAI TARGETS 1,000 EV BATTERY-SWAPPING STATIONS IN THE PHILIPPINES
Voltai, a mobility startup under Aboitiz Power’s 1882 Energy Ventures, aims to scale its electric motorcycle infrastructure to around 1,000 battery-swapping stations over the medium term. Having launched the Philippines’ largest two-wheeler EV swapping network in October 2025 with 15 stations at Metro Manila Cleanfuel sites, the company will begin expanding in 2027. The rollout will first deepen Metro Manila coverage before reaching nearby northern and southern provinces, with long-term plans for Cebu and Davao.
To eliminate charging downtime, Voltai’s system allows riders to quickly swap depleted batteries for fully charged units under a fixed-fee lease model. This all-in-one package includes after-sales support, a rider app, fleet-management software that tracks real-time routes and avoided emissions, and a two-battery electric motorcycle. Built for commercial demand, the motorcycle offers a 140 km range, a top speed of 80 km/hr, and a 200 kg carrying capacity.
Targeting logistics, delivery, and ride-hailing operators, Voltai completed successful H1 2026 pilots with partners like JRS Express and Xpress. These trials yielded 20% to 60% in operational savings, prompting most participants to transition into full commercial agreements. Ultimately, Voltai’s expansion positions battery-swapping technology as a practical complement to conventional EV charging for high-utilization commercial fleets.
PHILIPPINES ANNOUNCED ON 41 MWP SOLAR AND 53 MWH BATTERY STORAGE PROJECT IN PAMPANGA
Citicore Renewable Energy Corporation and Pampanga I Electric Cooperative have announced an integrated solar photovoltaic (PV) and battery energy storage system (BESS) project in Magalang, Pampanga, Philippines. The facility will pair 41 MWp of solar generation capacity with 53 MWh of battery storage to reserve renewable power for subsequent use. Financial details, including the overall project cost and procurement value, have not been disclosed.
Embedded directly within Pampanga I Electric Cooperative’s local distribution network, the plant will supply electricity straight to area consumers rather than routing power through the national high-voltage grid. This localized generation and storage approach is designed to minimize transmission-related losses while supporting local grid requirements. Additionally, the initiative will help the cooperative meet the Philippines’ mandated Renewable Portfolio Standards.
Building on a 2024 commercial partnership between the two organizations, construction is currently underway with completion targeted for H2 2027. Once operational, the facility will bolster regional electricity supply and provide dedicated renewable power and storage capacity for local consumption. Ultimately, the partners expect this integrated model to serve as a replicable framework for other electric cooperatives and distribution utilities developing local renewable infrastructure.
AC MOBILITY EXPANDS EV CHARGING NETWORK TO SUPPORT PUBLIC TRANSPORT ELECTRIFICATION
AC Mobility has partnered with Basic Energy Corporation and Grab Philippines to expand electric vehicle (EV) charging infrastructure for public and commercial transport across the Philippines. The initiative combines the development of dedicated charging hubs for electric public transport fleets with a digital charging management system for taxi and ride-hailing operators. Specific financial details, including the overall project value and deployment timeline, have not been disclosed.
Through its collaboration with Basic Energy, AC Mobility is establishing charging hubs along major commuter corridors to serve both private EVs and electric buses under the Iwas Taas Pamasahe Transport Solutions Program. Building on existing sites at EcoOil Alabang and the North Luzon Expressway Total station, a new northbound South Luzon Expressway Total station hub will feature both DC fast chargers and AC units. Additional locations are planned across EDSA, Newport City in Pasay, Quezon City (E. Rodriguez and Visayas Avenue), Mandaluyong, Cainta, Marikina, and Sumulong Highway.
Simultaneously, AC Mobility is supplying its Evro-managed ChargeFleet platform to GrabCar Electric and GrabTaxi Electric fleets, enabling digital charging credit administration and convenient charging during shift handovers. Intended as a pilot for wider adoption across the taxi and ride-hailing sector, the system forms part of AC Mobility’s broader Philippine EV infrastructure rollout. Ultimately, these partnerships aim to boost charging availability and minimize vehicle downtime as commercial and public transport operators transition to electric fleets.
GMR GROUP CONTINUES TO PURSUE SANGLEY POINT INTERNATIONAL AIRPORT PROJECT
India-based GMR Group remains committed to the delayed Sangley Point International Airport (SPIA) project in Cavite, Philippines, having recently conducted traffic and financial studies alongside two to three site visits. Before identifying a specific financing amount for the development, the company is awaiting required government clearances linked to the Philippine Navy, which currently occupies the former American naval base. Throughout this process, GMR remains actively engaged with both the government and the SPIA consortium while respecting national sovereignty requirements.
To fast-track the USD 11 Bn development, the Philippine government formed a technical working group under Administrative Order No. 44 in June 2026, co-chaired by the Department of Transportation and the Philippine Reclamation Authority. Tasked with expediting permits, licenses, and authorizations while submitting quarterly progress reports to the Office of the President, the body supports the Virata-Yuchengco-led SPIA Development Consortium, which won the build-and-operate contract in 2022. Overall, the airport project is expected to generate up to 15,000 jobs and approx. USD 500 Mn in government revenue.
GMR first made a firm commitment to support the Sangley project in August 2025 and will participate as a partner within the SPIA consortium. The company brings an established track record in Philippine aviation infrastructure, having previously developed Clark International Airport. Additionally, GMR developed and formerly operated Mactan-Cebu International Airport, where it continues to provide ongoing technical services.
PHILIPPINES ADVANCES TRANSPORT PROJECTS TO IMPROVE ACCESS TO TOURIST DESTINATIONS
The Philippines’ Department of Transportation (DOTr) and Department of Tourism (DOT) are strengthening coordination on transport infrastructure projects aimed at improving access to tourist destinations and supporting growth in the country’s tourism industry. The Government discussed ongoing and planned projects to improve connectivity and accessibility to key tourism destinations nationwide.
The DOTr provided updates on airport and seaport projects, including Siargao Airport, Benoni Port in Mahinog, Camiguin, and the Port of Jubang in Dapa, Siargao Island, Surigao del Norte. The government is also pursuing improvements to passenger terminal buildings and runway extensions at regional airports, including Busuanga, Tacloban, Aklan, Tuguegarao, Siargao, Bukidnon and Laoag airports.
PHILIPPINES TO ALLOCATE USD 1.72 BN FLOOD-CONTROL BUDGET
The Philippine government is set to allocate the proposed PHP 107.4 Bn (USD 1.72 Bn) flood-control budget for 2027. This thorough review aims to guarantee that funds are directed only toward legitimate, necessary, and feasible infrastructure projects. The heightened evaluation follows recent investigations into alleged anomalies, such as substandard, non-existent, or poorly prioritized flood-control initiatives from the past.
Funding priority will focus on the country's ten most flood-prone areas and major river basins. The administration stressed that all unfinished flood-control infrastructure must be completed prior to the introduction of any new projects. Additionally, authorities have urged the creation of a long-term national infrastructure master plan to maintain project continuity and stability across different political administrations.
Instead of relying solely on conventional structures, the government advised building alternatives like floodways, dams, and water-impounding facilities to manage rainfall and support dry-season water supply. This specific flood-control allocation is part of the broader PHP 7.2 Trn (USD 115.2 Bn) National Expenditure Program for 2027. Only projects with a proven capacity to reduce flooding and zero irregularities will receive approval.
SEPTEMBER 2026
PHILIPPINES UNVEILS USD 34.4 BN AI INFRASTRUCTURE MASTERPLAN
The Philippine government has launched the final version of its Philippines AI+ Infrastructure Masterplan (PAIIM) 2026–2033, a USD 34.4 Bn roadmap aimed at establishing the country as a regional hub for artificial intelligence infrastructure. The plan targets a 30-fold increase in AI data centre capacity, from 50 MW to 1.5 GW by 2033, with around 400 MW planned for deployment by 2030.
The investment is expected to include USD 13.5 Bn from public sources and USD 21 Bn from private investors. The masterplan identifies connectivity, AI computing and data centres, sustainable energy and water, workforce development, regulation, and AI adoption as key pillars. It also targets 40% renewable energy supply for AI infrastructure by 2033 and identifies Clark-Bataan as the primary development corridor, alongside strategic and regional hubs.
SHELL ENERGY PHILIPPINES CONTRACTS OUTPUT OF 240-MWP SAN ISIDRO SOLAR PROJECT
Shell Energy Philippines Inc (SEPH) has signed a 15-year power purchase agreement with Greenlight Renewables Holdings Inc for the output of the 120-MWp second phase of the San Isidro solar project in Leyte, Philippines. SEPH already has a long-term agreement covering the first phase, bringing the entire 240-MWp solar complex under contract.
The 120-MWp Phase 1 began generating electricity in October 2025, while Phase 2 entered operation in July 2026. The combined project is expected to supply enough electricity for around 140,000 households annually and avoid approx. 91,000 tonnes of CO2 emissions each year. San Isidro is owned by a joint venture between Shell Overseas Investments BV and Emerging Power Inc., which aims to develop 1 GW of renewable energy capacity by 2028.
PHILIPPINES PROPOSES USD 3.16 BN FOR RAIL PROJECTS IN 2027
The Government of the Philippines has proposed a budget of PHP 197.3 Bn (USD 3.16 Bn) for the Rail Transport Program under the 2027 National Expenditure Program (NEP). This allocation represents a jump of over 256% from the PHP 55.34 Bn (USD 885.10 Mn) approved in 2026. Around 97% of the total proposed funding is concentrated on two primary transit developments. Of this share, PHP 123.84 Bn (USD 1.98 Bn) is earmarked for the North-South Commuter Railway (NSCR) System, and PHP 67.44 Bn (USD 1.08 Bn) is set aside for Phase I of the Metro Manila Subway Project (MMSP).
The North-South Commuter Railway (NSCR) System will consist of 35 stations along its corridor. The network is designed to connect Metro Manila directly with surrounding provinces, including Bulacan, Pampanga, and Laguna. Meanwhile, the 33-km Metro Manila Subway Project (MMSP) will feature 17 stations across its underground route. The subway line will link Valenzuela with Bicutan and include a dedicated spur connection to Ninoy Aquino International Airport.
The remainder of the 2027 rail budget is assigned to existing network upgrades and extension works. The proposal includes PHP 1.94 Bn (USD 31.03 Mn) for the MRT Line 3 Rehabilitation Project to support ongoing system improvements. Another PHP 1.17 Bn (USD 18.71 Mn) is designated for the development of the LRT Line 1 Cavite Extension. Finally, PHP 603.89 Mn (USD 9.66 Mn) is allocated to cover the interim operations of the LRT-1 South Extension Project–Common Station.
MTERRA SOLAR PHASE 1 STARTS COMMERCIAL OPERATIONS WITH 600 MW CAPACITY
MTerra Solar Phase 1 has started commercial operations in the Philippines, delivering 600 MWac of mid-merit capacity under its Power Supply Agreement with Meralco. Commercial operations began on August 26, 2026, following the project’s receipt of the Final Certificate of Approval to Connect from the National Grid Corporation of the Philippines (NGCP), confirming completion of required safety, technical and grid connection tests.
The integrated facility was inaugurated in July 2026 following the energisation of 1,373 MWac of solar capacity and 825 MW of battery energy storage, equivalent to 3,300 MWh. A further 250 MWac is expected to enter commercial operation in the coming months. Jointly owned by Meralco PowerGen Corporation and Actis, the project is planned to reach 3,500 MWp of solar capacity and 4,500 MWh of energy storage when fully completed.
LAGUNA LAKE FLOATING SOLAR PROJECT ADVANCES WITH 923 MWP CAPACITY IN THE PHILIPPINES
The Laguna Lake Floating Solar Power Project in the Philippines has advanced following a commitment ceremony involving SunAsia Energy Inc. and Thailand-based Gunkul Engineering Public Company Limited. The project will comprise seven floating solar facilities with a combined capacity of nearly 923 MWp, supporting the country’s expansion of renewable energy generation.
The development is expected to demonstrate large-scale floating solar deployment while contributing to the Philippines’ renewable energy targets of at least 35% of the power generation mix by 2030 and 50% by 2040. Community participation, environmental protection and local livelihoods are also expected to be considered during project development.
AOLANI AND NVIDIA TO DEPLOY 22,000 GPUS ACROSS MALAYSIA AND THE PHILIPPINES
Singapore-based AI cloud company Aolani has signed a strategic compute collaboration with NVIDIA to expand AI infrastructure across Southeast Asia. The collaboration will support the deployment of 22,000 NVIDIA Blackwell Ultra GPUs across two AI facilities in Malaysia and the Philippines in early 2027, taking Aolani’s total planned deployment to more than 48,000 GPUs and its AI factory capacity to over 100 MW.
Aolani, an NVIDIA Cloud Partner since 2023, plans to provide NVIDIA-powered cloud services to AI companies, enterprises, startups, developers and institutions across Southeast Asia. The company said the Philippine facility is expected to be among the country’s first large-scale AI infrastructure platforms, while the exact locations, GPU allocation between the two facilities and investment value have not been disclosed.
PHILIPPINES CLEARS UNISYS-BACKED USD 40 MN PPP FOR DIGITAL NATIONAL ID UPGRADE
The Philippine government has approved the procurement phase for the Philippine Digital National Identity (PDNI) Project, a Public-Private Partnership valued at PHP 2.48 Bn (USD 39.59 Mn). Originally submitted as an unsolicited proposal by Unisys Public Sector Services Corporation, the contract is now open to competing bids under a comparative challenge process through the fourth quarter. The initiative will operate under a Build-Transfer-Operate model, featuring a six-month transition followed by a 20-year concession period.
The project covers national registration, physical card production, authentication systems, private-sector integration, and core ICT infrastructure management. Deploying private-sector expertise is intended to upgrade the system's operational efficiency while ensuring citizens receive a reliable, convenient digital credential for accessing financial, social, and public services. The upgrade aligns with broader government modernization efforts, including proposed biometric and data analytics infrastructure for border security.
PHILIPPINES ADVANCES 17.8 GW POWER PROJECT PIPELINE THROUGH GRID IMPACT STUDIES
The Philippines Department of Energy endorsed 137 power generation and storage projects totalling 17.8 GW for system impact studies during the first half of 2026. Battery energy storage systems accounted for 85 projects, alongside 18 wind projects, 16 solar-plus-storage projects and 8 hydropower projects. The system impact studies assess whether the transmission network can accommodate new connections and identify required upgrades to transmission lines, transformers and substations.
The National Grid Corporation of the Philippines highlighted the need to align generation and transmission development to avoid stranded capacity. System impact study endorsements do not guarantee project completion, with financing, permitting and grid connection challenges continuing to affect project timelines. The pipeline also includes six fossil-fuel projects, comprising three coal, two diesel and one natural gas facility.
ADB APPROVES USD 1.5 BN FINANCING PACKAGE FOR PHILIPPINES
The Asian Development Bank (ADB) has approved a USD 1.5 Bn financing package for the Philippines to support vulnerable households and maintain essential public services amid higher fuel, food and transport costs. The funding will support the government’s Unified Package for Livelihoods, Industry, Food, and Transport through the ADB’s Countercyclical Support Facility.
The package includes measures such as fare discounts, fuel and fertiliser assistance, subsidies for provincial and small electric cooperatives, and support for public transport operators and drivers. The financing forms part of the ADB’s wider regional response to economic pressures linked to the Middle East conflict, with the Philippines package focused on maintaining essential services and supporting affected households and transport-sector workers.
APECO AND HUGE ENERGY PLAN 1 GW RENEWABLE ENERGY PROJECT IN THE PHILIPPINES
The Aurora Pacific Economic Zone and Freeport Authority (APECO) and Huge Energy have signed a memorandum of understanding (MoU) to develop a renewable energy project with a planned capacity of up to 1 GW in Casiguran, Aurora, Philippines. The project will be developed in three phases, with the initial phase comprising a 100 MW solar photovoltaic plant, battery energy storage system (BESS) and substation.
The second phase is planned to add 350 MW through a combination of solar and waste-to-energy technologies, while the final phase will add 550 MW, bringing the total planned capacity to 1 GW. APECO has allocated 90 hectares for the project, with Huge Energy and South Korean energy, procurement and construction company Dong-A Global managing the development. The project will cover planning, permitting, feasibility studies, grid interconnection, procurement, financing and operations and maintenance, subject to technical and financial evaluations and regulatory approvals.
PPP CENTER & CEBU TEAM UP TO DEVELOP PROJECT PIPELINE
The Public-Private Partnership (PPP) Center and the Cebu provincial government have entered into a memorandum of agreement to build a pipeline of infrastructure and development initiatives. The PPP Center will assist the province throughout project identification, evaluation, structuring, procurement, and implementation. Cebu will set up a dedicated PPP unit to coordinate these efforts and explore project financing support through the revolving Project Development and Monitoring Facility.
As an initial priority, the province has earmarked a solar energy program across provincial hospitals to reduce electricity costs and enhance power resilience. The collaboration will also pursue inter-local government and regional connectivity projects to improve transit and logistics. These joint public-private initiatives are designed to attract private investment and drive sustainable economic growth across Cebu and Central Visayas.
K-WATER ADVANCES IN USD 740 MN PHILIPPINE SMART CITY PROJECT
Korea Water Resources Corp. (K-water), in a consortium with Philippine utility Maynilad Water Services, has secured original proponent status from the Bases Conversion and Development Authority (BCDA) for a water infrastructure project in New Clark City, the Philippines. Expected to exceed KRW 1 Trn (USD 740 Mn) in total value with a first phase worth KRW 350 Bn (USD 259 Mn), the Public-Private Partnership (PPP) covers building and operating water-source, distribution, and wastewater-treatment facilities.
Located 100 kilometers northwest of Manila, the 94.5-square-kilometer smart city is designed for 860,000 residents to ease capital congestion, addressing acute local shortages where water supply coverage currently sits in the 40% range. Following a feasibility study launched in August 2024 and a final proposal submitted in January, the plan incorporates an underground water-storage dam, an AI-powered treatment plant, and smart network-management technology to reduce water losses.
While the certification grants the consortium preferential negotiation rights to match rival bids, the proposal must still undergo a mandatory Swiss Challenge and internal reviews before a final agreement is reached. The utility indicated that this milestone validates South Korea's AI-based water management technologies abroad as it pursues further Philippine projects in smart industrial complexes, desalination, and renewable energy.
PBBM SEEKS INDIA EXPERTISE FOR PH RAILWAY, SPACE TECHNOLOGY PROJECTS
Philippine President Ferdinand R. Marcos Jr. met with India's state-owned transport consultancy, Rail India Technical and Economic Service Ltd. (RITES), on the sidelines of the 18th BRICS Summit in New Delhi to secure technical expertise for major domestic railway projects. The discussions centered on three priority initiatives: the Mindanao Railway Project, a mass rail system in Cebu, and the extension of the Philippine National Railways (PNR) from Tutuban in Manila. RITES is evaluating potential participation through consultancy services or Public-Private Partnerships (PPP), while also helping the Philippines explore official development assistance (ODA) options.
In a separate meeting, the president engaged with the Indian Space Research Organisation (ISRO) to strengthen technical cooperation with the Philippine Space Agency (PhilSA). The administration seeks to leverage India's space capabilities to achieve its long-term goal of launching a domestic satellite to bolster national communications, climate-driven weather forecasting, and defense security. To conclude the Saturday agenda, the Philippine leader was also scheduled to meet with three Indian firms to explore potential investments and job creation opportunities.
PPA SIGNED 5-YEAR PORT DEVELOPMENT DEAL WITH ANTWERP-BRUGES
The Philippine Ports Authority (PPA) has entered into a five-year memorandum of understanding with Port of Antwerp-Bruges International to advance domestic port development and operational management. The partnership focuses on bilateral knowledge exchange, capacity building, and implementing international standards across port planning, digital transformation, and risk management. It also establishes frameworks to prepare for public-private partnership initiatives, emergency response scenarios, and broader maritime investment ventures.
The collaboration will support infrastructure modernization, disaster-resilient engineering, and green port operations, including shore-based power supplies and renewable energy adoption. Upgrades will also target passenger logistics through real-time data integration and the expansion of the Online Reservation Assistance System for advance ticketing. Furthermore, the initiative prioritizes inter-agency system connectivity to improve overall security and service efficiency for port users.
NORTH-SOUTH COMMUTER RAILWAY FULL OPERATIONS MOVED TO Q3 2033
Full operations for the 147-kilometer North-South Commuter Railway (NSCR) in the Philippines have been pushed back from 2032 to Q3 2033. Approved by the Economy and Development Council (EDC) chaired by President Ferdinand Marcos Jr., the revision includes minor budget adjustments alongside the updated schedule. The delay stems from government cost-cutting measures, careful management of public funds, procurement hurdles, and ongoing right-of-way issues.
Initial partial operations will begin in December 2027, followed by the Malolos-to-Clark segment in Q4 2028. Operations for the Clark-to-Solis and Alabang-to-Calamba sections are slated for Q4 2031, leading up to full Clark-to-Calamba service in Q3 2033. Alongside the railway update, the council also reviewed public-private partnerships for the Mactan-Cebu International Airport, technical-vocational education initiatives, and road network development in conflict-affected areas of Mindanao.
IB VOGT APAC STARTS CONSTRUCTION ON 99-MW SOLAR PROJECT IN ILOILO, PHILIPPINES
Singapore-based ib vogt APAC, a subsidiary of Germany-headquartered ib vogt, announced the 99-MW Luca Solar Power Plant in Ajuy, Iloilo, the Philippines. Once operational, the facility is expected to generate about 158 GWh of electricity to power 79,000 households over a projected 20-year lifespan. The plant doubles the company's built and under-construction capacity in the country, supporting its goal of reaching 500 MW in the Philippines by year-end alongside a third, larger project set to enter construction before the end of the year.
Globally, the parent group operates across more than 30 countries with over 600 MW under construction—including 574 MW of solar, 29 MW of battery energy storage systems (BESS), and 69 MW of wind—and manages a pipeline of 29 GW of solar, 9.70 GW of BESS, and 1.90 GW of wind projects. Backed by the United Kingdom government through British International Investment to help unlock additional private-sector capital, the project aims to provide predictable energy costs and strengthen grid security in the Visayas.
The development will create hundreds of local jobs during construction, ongoing skilled roles during operations, and wider economic investment for Barangay Luca and the Municipality of Ajuy. This capacity addition aligns with the Philippines' push for a reliable, resilient, and diversified energy system to meet rising power demand and transition toward a lower-carbon future. It also reflects a broader expansion across core Southeast Asian markets, where low-cost, dependable electricity is set to drive regional economic growth over the coming decade.
ACEN INVESTS USD 148 MN IN SOLAR AND BATTERY STORAGE PROJECTS IN ZAMBALES
ACEN Corp., the renewable energy arm of the Ayala Group, is extending over PHP 9.24 Bn (USD 147.5 Mn) in loans to two subsidiaries to accelerate clean energy projects in Zambales, Philippines. Its 100%-owned subsidiary Sanmar Solar Inc. secured up to PHP 6 Bn (USD 96 Mn) to develop a 500 MW battery energy storage system (BESS) in San Marcelino, which will store excess solar power and stabilize the grid during peak demand. Additionally, local project vehicle Giga Ace 8 Inc. received up to PHP 3.24 Bn (USD 51.8 Mn) to construct the 300 MW Palauig 2 solar farm alongside associated transmission lines and substation facilities.
Requiring an estimated total investment of PHP 16 Bn (USD 256 Mn), the Palauig 2 project will become ACEN’s second-largest solar installation in the Philippines once completed. The financing follows strong first-half financial results for ACEN, which recorded PHP 3.9 Bn (USD 62.4 Mn) in earnings driven by PHP 22.5 Bn (USD 360 Mn) in electricity sales revenues. Alongside expanding its domestic solar and storage capacity, the company continues to grow its international renewable portfolio across Australia, India, Indonesia, Laos, and Vietnam.
PHILIPPINES AND CANADA EXPLORE COOPERATION ON TRANSPORT INFRASTRUCTURE
The Philippines Department of Transportation (DOTr) has been exploring cooperation with Canada on major infrastructure projects and the modernisation of national transport systems. Discussions with Canadian authorities cover potential collaboration in the maritime sector, including port modernisation, maritime domain awareness, coastal monitoring and disaster resilience.
The Philippine Ports Authority is upgrading and modernising seaports to support agro-industrial development and improve cargo and passenger services. The discussions are also expected to support broader inter-agency cooperation to strengthen transport capacity, connectivity and network reliability.
List of key Transactions - Philippines Q3 2026
Source: YOG INFRA analysis, Public Information
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