Infrastructure & PPPs in Philippines - Q4 2025 Update

YOG INFRA
1 day ago
21 min read

Philippines saw a clear step-up in project momentum in Q4-2025, led by the award of over 10 GW of renewable capacity under GEA-4 and the launch of the country’s first 3.3 GW offshore wind auction (GEA-5). PPP activity also gained visibility through the expansion of the School Infrastructure Program to 105,000 classrooms, reinforcing growing private-sector participation in both energy and social infrastructure. This pickup in project execution signals improving investor confidence as projects move from planning to implementation. With a deepening project pipeline and stronger auction outcomes, the Philippines is positioning itself as one of Southeast Asia’s fastest-growing clean-energy and infrastructure markets. These trends are expected to sustain capital inflows and project awards into 2026 and beyond.

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

YOG INFRA Q4 2025 insight series

OCTOBER 2025

LEVANTA RENEWABLES SECURES DEVELOPMENT RIGHTS FOR A 166 MWP BESS PROJECT IN VISAYAS

Levanta Renewables, a Southeast Asia-based renewable energy platform supported by Actis, has secured the development rights for a 166 MWp solar and battery energy storage project in the Visayas region under the Philippines’ Fourth Green Energy Auction (GEA-4). The project, spread across 155 hectares, will feature a 175 MWAC solar installation paired with a Battery Energy Storage System (BESS), representing an estimated investment of PHP 5 Bn (USD 87 Mn). It aims to enhance grid stability and accelerate the country’s clean energy transition.

Once operational, the facility is expected to displace over 200,000 tons of CO₂ annually and strengthen the Philippines’ energy security by reducing reliance on imported fossil fuels. The project will also contribute to local development by generating employment, increasing tax revenues, and implementing ER 1-94 community programs.

The project supports the Philippines’ target of sourcing 35% of its electricity from renewables by 2030 and contributes to the expansion of solar and storage capacity across the archipelago. It marks another strategic milestone for Levanta Renewables as it continues to scale operations across Southeast Asia.

PHILIPPINE’S DOE PROPOSES POLICY ALLOWING POWER GENERATORS TO BUILD TRANSMISSION INFRASTRUCTURE

The Department of Energy (DOE) has proposed a new policy enabling power generation companies to finance and construct transmission infrastructure to accelerate the completion of power projects and address ongoing grid bottlenecks. The move seeks to resolve delays in project dispatch caused by limited grid capacity and technical constraints within the national transmission network—issues that have particularly affected renewable energy developers.

Under the draft circular, generation companies would be permitted to develop and fund new or expanded transmission lines, substations, and related facilities—collectively termed associated transmission projects—beyond their existing point-to-point (P2P) connections. These assets would be implemented under agreements with the National Grid Corporation of the Philippines (NGCP), which would oversee project execution, cost recovery, and eventual turnover to the grid operator.

The DOE stated that the proposal aims to align grid expansion with generation growth, ensuring the timely integration of new capacities and improving system reliability and energy security. The draft policy, now open for public comment until October 15, 2025, is expected to help bridge transmission development delays and enhance investor confidence in the country’s power sector.

PHILIPPINES UNVEILS NATIONAL FRAMEWORK FOR NUCLEAR POWER INTEGRATION

The Philippines’ Department of Energy (DOE) has issued its comprehensive framework for the integration of nuclear energy into the country’s power generation mix. Under Department Circular (DC) No. 2005-10-0019, Manila formally established the policy foundations for the Philippines first commercially developed and operated nuclear power plant (NPP), designated as a Pioneer NPP.

The Pioneer NPP will be treated as a baseload facility and granted priority dispatch in coordination with the DOE, the Independent Market Operator (IMO), and the System Operator (SO), regardless of the nuclear technology deployed. The DOE will explore government participation models and financing options in collaboration with the Department of Finance, Department of Economy, Planning, and Development, the Maharlika Investment Corporation, and other relevant agencies.

Grid readiness will also be prioritized to ensure seamless integration of nuclear power into the transmission system. To support long-term financial viability, flexible contracting mechanisms such as auctions, direct contracting, or aggregation for industrial and economic zone use will be introduced. The Energy Regulatory Commission, in consultation with stakeholders, will implement a Regulatory Asset Base-type model or a similar capital recovery mechanism, anchored on minimum contract terms of 25 years, extendable for another 25 years. The Pioneer NPP will be automatically certified as an Energy Project of National Significance (EPNS), giving it access to incentives and fast-track processing under Executive Order No. 30.

PHILIPPINE AIRLINES CALLS FOR UNIFIED NATIONAL AIRPORT MASTERPLAN

Philippine Airlines (PAL) has urged the government to establish a coordinated national airport masterplan to boost efficiency, expand capacity, and align development across the country’s gateways.

Although, the Philippines has nine designated international airports, nearly on par with regional peers such as Vietnam (12) and Thailand (10), its overall capacity remains limited. It was proposed that the masterplan focus on short-term optimisation of the Ninoy Aquino International Airport (NAIA), while defining its long-term role alongside Clark International Airport and the new Bulacan Airport. The plan should also prioritize upgrading secondary airports through night-rating, runway expansion, and modern navigation systems to function as regional hubs.

Further, the masterplan addresses air traffic management modernisation, surface transport integration (including expressways and future rail links), and investment incentives aligned with sustainability and competitiveness goals. Fernandez stressed the need for resilience measures, such as redundant power and radar systems, to avoid nationwide disruptions.

30-YEAR NATIONAL INFRASTRUCTURE MASTERPLAN PROPOSED IN THE PHILIPPINES

The Government of the Philippines has urged the Department of Public Works and Highways (DPWH) to support Senate Bill No. 2, also known as the Masterplan for Infrastructure and National Development (MIND) Act. The bill aims to institutionalize a 30-year Comprehensive Infrastructure Development Masterplan (CIDMP), outlining the Philippines’ long-term vision, goals, and strategies for infrastructure projects.

The proposed masterplan would cover large-scale, multi-administration projects such as railways, dams, and skyways, with the goal of ensuring consistent implementation and reducing the risk of anomalies.

As a longtime advocate for transportation and infrastructure, the bill seeks to elevate the Philippines’ infrastructure to meet current and future demands, laying the foundation for inclusive economic growth and supporting the country’s broader development objectives.

PHILIPPINES AND JAPAN SIGN ENERGY PARTNERSHIP

The Governments of Philippines and Japan have signed a memorandum of cooperation (MoC) on energy, announced the Department of Energy (DOE). The Energy Partnership was formalised by Japanese Ministry of Economy, Trade and Industry, aiming to enhance energy resilience, support low-carbon development, and contribute to climate change mitigation under the Paris Agreement. The agreement will be effective for four years, with the possibility of extension by mutual consent.

Under the partnership, Japan will provide technological expertise, knowledge exchange, and capacity-building support to the Philippines. Collaborative pilot projects and policy dialogue will cover renewable energy (RE), grid integration, energy storage, hydrogen, ammonia, liquefied natural gas (LNG), and carbon capture, utilization and storage (CCUS).

The cooperation also aligns with the Asia Energy Transition Initiative, a Japanese-led program supporting Southeast Asian countries in achieving carbon neutrality. Japan’s Agency for Natural Resources and Energy and the Philippines’ Energy Policy and Planning Bureau will act as focal points for implementation.

SWEDEN GRANTS USD 1.3 MN FOR FEASIBILITY STUDY OF SUBIC–CLARK–MANILA–BATANGAS RAILWAY

The Government of Sweden has granted USD 1.3 Mn through Swedfund International to support the feasibility study of the Subic–Clark–Manila–Batangas (SCMB) Railway, a flagship project under the Luzon Economic Corridor (LEC). The agreement for the grant financing was signed between Swedfund International and the Department of Transportation (DOTr) The Swedish contribution complements funding from the United States Trade and Development Agency (USTDA), which is supporting parallel studies on transport modeling, port–rail integration, and institutional planning.

The Asian Development Bank (ADB) will oversee procurement of the consultant for the SCMB project’s main feasibility study. The proposed freight railway will connect major ports in Subic, Manila, and Batangas to improve logistics efficiency and reduce transport costs.

The initiative forms part of the trilateral cooperation among the Philippines, Japan, and the United States through the LEC framework. It aims to enhance infrastructure connectivity, promote sustainable industrial development, and boost economic growth across Luzon’s key logistics hubs.

PHILIPPINES PREPARES PHP 35 BN WIND FARM IN ZAMBALES TO BOOST CLEAN ENERGY SUPPLY

A major new wind-farm project is set to rise in the province of Zambales, marking a significant step in the Philippines’ transition to cleaner power. Alba Viento Power Corporation is planning a 300-megawatt wind-farm development in the municipalities of Botolan and Cabangan. The estimated investment is about USD 600 Mn (PHP 35 Bn). The project will span nearly 4,700 hectares of land and will connect to the national grid via the Botolan substation operated by National Grid Corporation of the Philippines.

Construction is targeted to begin in Q1-2027, with commercial operations anticipated around Q1-2029. The developer emphasises that the facility will not only supply electricity to Filipino households and businesses but will also support national development goals and the country’s renewable energy transition. The company plans to use higher-capacity turbines and optimise land footprint to reduce environmental impact within the contract area. It also notes that the project aligns with the country’s clean-energy ambitions and supports efforts to diversify the power mix away from fossil fuels.

This development comes at a time when the Philippine government is pushing for more renewable-energy capacity, including larger wind-farm investments in different regions. Overall, the Zambales wind-farm project signals a growing emphasis on harnessing the country’s strong wind-energy potential and delivering more reliable, affordable, and sustainable power to the grid.

WIND FARM PLANNED IN BAGO CITY WORTH USD 250 MN

The project coordinated with the Bago-Negros Energy Corp. and is proposed and to be funded by Thai-owned Sermsang Power Corp. Authorities from the Environmental Management Bureau Negros Island Region (EMB-NIR) confirmed the proposal to build the first-ever 150-megawatt wind power project in Negros Occidental, which will be in Bago City.

Seven barangays in the city have been identified as the location of the project. The areas – Calumangan, Napoles, Taloc, Sampinit, Busay, Balingasag, and Lag-asan were identified in the notice of public scoping set on October 28. Public scoping is an early stage in the environmental impact assessment (EIA) process where the proponent aims to provide an overview of the proposed project, gather issues and concerns, and other relevant information to provide the scope of work and terms of reference for the preparation of the environmental impact statement.

The project aims to establish at least 24 windmills since they already have the supply-agreement contract with the Department of Energy (DOE). The Bago project is among the wind power projects awarded by the Department of Energy as of March 31, 2025. However, the proposal is still subject to assessment, including the possible locations.

PHILIPPINES DOE TO HOLD SPECIAL GREEN ENERGY AUCTION FOR WASTE-TO-ENERGY PROJECTS IN JANUARY 2026

The Department of Energy (DOE) announced that it will conduct a special Green Energy Auction (GEA) in January 2026 exclusively for waste-to-energy (WTE) projects that will utilize feedstock from Metro Manila and other Highly Urbanized Cities (HUCs). The DOE stated that projects awarded under this auction are expected to be completed by the Q4-2027.

Metro Manila and other HUCs generate approximately 6.12 million metric tons of municipal solid waste annually, equivalent to about 335 megawatts (MW) of baseload energy capacity. In addition, the DOE plans a follow-up auction in Q2 of 2026 for biomass and WTE projects located across the country.

Waste-to-energy is considered an emerging renewable technology and forms part of the government’s broader strategy to tackle solid waste management challenges, mitigate flooding, and expand clean energy capacity. The initiative aligns with the Philippine Energy Plan (PEP) and the country’s renewable energy targets of 35% by 2030 and 50% by 2040. The special auction is expected to attract private sector investment while contributing to the Philippines’ transition toward a cleaner and more sustainable energy system.

DOST LAUNCHES PH’S FIRST SOLAR-POWERED E-FERRY

The Department of Science and Technology (DOST) launched the country’s first locally developed electric ferry, which will sail along the Pasig River. Named M/B Dalaray, which means “flow and current,” the e-ferry is expected to help reduce traffic, the transport industry’s dependence on fuel, and reduce risk of oil spills and pollution in waterways.

It can carry up to 40 passengers along with three crew members or 5 tons of loaded weight. M/B Dalaray is a Battery-Electric Catamaran Passenger Ferry, which uses Lithium-ion batteries and solar panels to operate. It has zero direct emissions, which makes it an important step in the fight against climate change.

The M/B Dalaray stands as a milestone in the country’s move toward green, efficient, and locally made maritime transport solutions. The energy costs of the M/B Dalaray clock at PHP 45 (USD 0.77)/kilometer, which is clearly cheaper than current diesel ferry's PHP 130 (USD 2.22)/kilometer. With PHP 54 Mn (USD 922,257) in funding under the DOST, the ferry project was headed by Dr. Lew Andrew Tria of UP Diliman’s Electrical and Electronics Engineering Institute.

DOE LAUNCHES FIRST CARBON CREDIT RULES TO BOOST CLEAN ENERGY PROJECTS, CUT EMISSIONS

The Department of Energy (DOE) has rolled out the country’s first set of rules for carbon credits in the energy sector — a move seen to help companies cut greenhouse gas emissions, attract clean energy investments, and prepare the Philippines to trade in international carbon markets.

Carbon credits represent reductions in greenhouse gas emissions — for example, from renewable power projects, energy efficiency improvements, or early retirement of coal plants. One carbon credit equals one metric ton of avoided carbon dioxide emissions, which can be sold to organizations aiming to offset their carbon footprint.

The policy will guide energy companies in accessing carbon finance and help the country take part in global emissions trading under the Paris Agreement. It also establishes a new DOE Task Force on Energy Carbon Credits (TFECC) to ensure transparency and prevent “double counting” of credits. The Circular promotes transparency, accountability, and environmental integrity by ensuring that projects generate real, measurable, and verifiable emission reductions.

The Philippines also aims to work with countries such as Singapore, Japan, and members of the European Union to exchange best practices and explore projects that meet international carbon trading standards. The initiative forms part of the Philippine Energy Plan (PEP) 2023–2050, which targets a secure and low-carbon energy future through renewable energy expansion, improved energy efficiency, and emerging green technologies.

PACIFICSUN PLANS PHP 4.9 BN SOLAR POWER PLANT IN PAOAY

Renewable energy firm PacificSun Renewables Corp. has unveiled plans for PHP 4.9 Bn (USD 83.63 Mn) solar power project in Paoay, set to generate up to 120.96 megawatts (MW) of clean energy and advance the Philippines’ shift toward sustainable power sources.

The Paoay Solar Power Project will span approximately 81.81 hectares across Barangays Mumulaan, Suba, and Nagbacalan, situated within a timberland area under Proclamation No. 150. This zone is co-managed by the Department of Environment and Natural Resources (DENR) and the Ilocos Norte provincial government, primarily for eco-tourism and reforestation efforts.

As an affiliate of Sta. Clara Power Corp. and Sta. Clara International Corp., PacificSun is committed to developing, owning, and managing renewable energy facilities across the country. In its project description submitted to the Department of Environment and Natural Resources (DENR), the company underscores the project’s goals to “improve energy security and dependability, promote a cleaner environment, and stimulate local economic growth” by generating jobs and providing stable green energy.

HDF ENERGY TO DEVELOP USD 1.6 BN HYDROGEN POWER PROJECT PIPELINE IN THE PHILIPPINES

Hydrogen de France (HDF Energy), a global leading developer of green hydrogen infrastructure and high-power fuel cells plans to invest USD 1.6 Bn in 15 “green hydrogen” power generation facilities across the Philippines over the next five years. The projects aim to provide stable and baseload 24/7 renewable electricity to island grids under the company’s Renewstable model, which integrates intermittent renewable energy sources, e.g., solar, with substantial on-site energy storage in the form of green hydrogen.

Priority sites include the island grids of Marinduque, Masbate and Basilan and, Olutanga, where the conventional grids face challenges of intermittency and limited capacity. Philippines’ archipelagic geography and growing clean-energy demand make it a key market for hydrogen-based solutions.

At HDF Energy’s Renewstable plants, solar electricity is fed directly into the grid during the day, with excess energy stored for later use. Short-term fluctuations are managed with batteries, while longer-term storage is achieved through green hydrogen produced via water electrolysis. Stored in large tanks, this hydrogen is converted back into electricity using high-power fuel cells, supplying the grid at night or during extended cloudy periods. The system delivers continuous, dispatchable renewable power, reduces reliance on diesel generators, and supports grid stability across remote island grids.

Construction of the first plant is expected within two years, with development taking around two years and construction about 18 months.

ERC GREEN-LIGHTS 206-MW WIND FARM IN NORTHERN SAMAR

Northern Samar is poised to become a major player in the Philippines’ renewable energy sector after the Energy Regulatory Commission (ERC) approved the grid connection of the 206-megawatt (MW) San Isidro Wind Power Project. Located in San Isidro town, the project is being developed by Lihangin Wind Energy Corp. (LWEC), a joint venture among Aboitiz Renewables Inc., Vivant Energy Corp., and Singapore-based Vena Energy.

The ERC approval clears the way for the facility to connect to the Visayas grid through the National Grid Corporation of the Philippines (NGCP) substations in Calbayog City and San Isidro. This ensures that once commercial operations begin in February 2026, the power generated will contribute to regional supply stability.

The project had already secured key permits from the Department of Energy (DOE) and the Department of Environment and Natural Resources (DENR). Once operational, it will help reduce reliance on imported fossil fuels and support the government’s goal of achieving a 35% renewable energy share in the power mix by 2030. The San Isidro Wind Power Project will feature 33 wind turbine generators capable of producing 206.25 MW of electricity, along with over 130 transmission towers. It will span approximately 176 hectares, with turbines to be installed in the coastal villages of Salvacion, San Juan, Palanit, Mabuhay, Veriato and Caglanipao.

NOVEMBER 2025

CIP TO INVEST USD 3 BN IN PHILIPPINES’ FIRST OFFSHORE WIND FARM

Copenhagen Infrastructure Partners (CIP) of Denmark will commit USD 3 Bn to build its first offshore wind farm in the Philippines through its partner ACEN – Renewable Energy Solutions. The project, located in Camarines Sur near San Miguel Bay, follows a May 2025 agreement for CIP to sell a 25% stake in the up to 1 GW San Miguel Bay offshore wind project.

The project will have a total capacity of up to 1 GW. It is CIP’s first offshore wind project in Southeast Asia and forms part of the Philippines’ broader renewable energy transition. The offshore wind farm will include the installation of turbines, foundations, and associated electrical infrastructure connecting to the national grid.

CIP previously signed 25-year Offshore Wind Service Contracts with the Philippines’ Department of Energy for three offshore wind farms totaling 2 GW. The investment is expected to support the Philippines’ shift from fossil fuels to renewable energy, contribute to national energy security, and encourage further foreign participation in the country’s clean energy sector.

THE PHILIPPINES LAUNCHES E-BUS PILOT TO ADVANCE CLEAN MOBILITY IN SUBIC BAY

The Subic Bay Metropolitan Authority (SBMA) has launched an electric bus pilot in its Central Business District as part of efforts to make the Subic Bay Freeport Zone carbon-neutral by 2030. The trial, which ran fare-free, tested the buses’ operational performance, passenger comfort, and charging efficiency under real-world conditions. Four electric buses currently serve the CBD route, with the pilot marking a key step toward a full rollout of the Pure Battery Electric Bus (PBEB) project.

Under the PBEB initiative, SBMA has allocated PHP 10 Mn (USD 169,500) to construct and upgrade 58 bus stops across the Freeport, including eight in the CBD and others in Cubi, Binictican, Kalayaan, and theme park areas. The facilities are expected to be completed by December 2025. SBMA received 10 e-buses in May 2025, with initial testing conducted earlier this year. The project complements SBMA’s PHP 250 Mn (USD 4.2 Mn) Carbon Neutral Port program, which will provide shore power connections to vessels docking at Subic.

The initiative aligns with national priorities to accelerate the shift toward sustainable and smart transport, supported by the Department of Science and Technology (DOST). Projects such as Project GreenWAVE in Siargao and ScrapCycle Technology were highlighted as examples of circular economy initiatives transforming waste into new value streams.

PHILIPPINES TARGETS 1 GW HYPERSCALE DATA CENTER CAPACITY BY 2026

The Government of the Philippines has announced plans for a major expansion of its hyperscale data center capacity, aiming to reach 1 GW, up from the current sub-200 MW. Hyperscale data centers, designed for massive computing and data storage with ultra-fast connectivity, are critical for supporting global traffic and cloud computing services.

To attract investment from global cloud operators such as AWS, Google, and Microsoft, the government is addressing high power costs and connectivity issues. Aguda said that by next year, power supply improvements and new policies will make the Philippines more appealing to hyperscaler operators. The DICT also plans to construct three major data centers in 2026 at a cost of PHP 2.5 Bn (USD 42.72 Mn), with a broader plan to establish nine facilities over three years, worth PHP 7.5 Bn (USD 128.16 Mn). These domestic centers aim to support data localisation, reduce reliance on foreign cloud services, and enhance cybersecurity.

The expansion aligns with the country’s goal to strengthen its digital infrastructure and competitiveness in Southeast Asia, enabling the Philippines to match Singapore’s hyperscale data center capacity while promoting local investment in the technology sector.

ENVITEC TO CONSTRUCT FIRST BIOGAS PLANT IN THE PHILIPPINES

Germany-based EnviTec Biogas has announced plans to build its first biogas facility in the Philippines, in partnership with First Quezon Biogas Corporation (FQBC). The 1.4 MW plant will be located in Candelaria, Quezon Province, and is expected to begin supplying electricity to Meralco’s grid by June 2026. The project marks a key step in EnviTec’s expansion into Southeast Asia.

The plant will process poultry manure from 4.5 million broilers, combined with rice-straw silage, to generate electricity and produce organic fertiliser. Current infrastructure includes two 5,250 cubic metre fermenters, a biogas engine, transformer, clamp silo, digestate lagoon, and intake hall. Installation of additional systems, such as fermenter internals, pumps, digestate treatment, and control systems, is scheduled for early 2026.

PHILIPPINES’ DOE AWARDS 10 GW OF RE CAPACITY IN GEA-4 AUCTION

The Department of Energy (DOE) has awarded 10,195.49 MW of renewable energy capacity to 123 winning bidders in the fourth round of its Green Energy Auction Program (GEA-4).

The awarded capacity comprises: over 4,179.09 MW of ground-mounted solar, 2,284 MW of floating solar, 2,518.29 MW of on-shore wind, 1,189.29 MW of integrated renewables with energy storage, and 24.82 MW of rooftop solar. Winners will receive 20-year supply contracts starting from commercial operation, and are required to submit performance bonds, affidavits, system-impact studies and financial proof by 6 December 2025.

The Philippines aims to add 2,372 MW of new capacity in 2026 (1,040 MW in Luzon, 252 MW in Visayas, 120 MW in Mindanao), rising to 2,362 MW in 2027 and 2,766 MW in 2028.

CIP UNIT EYES PHP 30.5 BN WIND POWER PROJECT IN NUEVA ECIJA

Denmark’s Copenhagen Infrastructure Partners (CIP) is spending PHP 30.5 Bn (USD 519.73 Mn) for its proposed development of a 300-megawatt (MW) onshore wind farm in Nueva Ecija. The proposed wind project will span 4,617 hectares in San Jose City and the municipalities of Lupao and Carranglan.

With a potential total capacity of 300 MW, the project will not only add clean energy to the Luzon grid but also support the Philippine government’s broader objectives of enhancing energy security, diversifying the energy mix, and advancing the transition toward a low-carbon economy.

Construction is scheduled to begin in Q2 of 2027, with completion expected by Q2 of 2029. Feasibility assessments showed high wind speeds in the area, making the location ideal for wind power generation.

The project site also features buildable ground conditions that can be developed with limited disruption to the protected area, cultural heritage sites, and sensitive habitats. This marks an early stage in the environmental impact assessment process, during which the proponent will present to the public with a brief description of the project.

ABOITIZPOWER EYES PHP 7.6 BN EXPANSION OF OLONGAPO SOLAR PARK

Aboitiz Power Corp. is looking to spend PHP 7.6 Bn (USD 129.4 Mn) to expand its solar park in Olongapo City, Zambales. Based on a filing with the Department of Environment and Natural Resources, AP Renewable Energy Corp. (APREC) has proposed to build and operate a facility that can generate 179.26 megawatts (MW). APREC is a subsidiary of Aboitiz Renewables, Inc., the group’s renewable energy arm.

Construction works for Phase 2 of the Olongapo Solar Power Project are expected to start in Q2-2026. Commercial operations are targeted by early 2028. The proposed solar power project is fully aligned with the Philippines’ renewable energy transition, directly supporting the national shift toward cleaner, more sustainable energy sources. The government has a goal of scaling up renewables’ share in the electricity power generation mix to 35% by 2030 from the current 22%. The proposed expansion in Olongapo would complement the initial solar project, which is designed to have 221 MW of generating capacity.

The Olongapo plant is considered as Aboitiz Renewables’ biggest solar project yet. It will be linked to the Castillejos 230-kilovolt substation of the National Grid Corp. of the Philippines. Aboitiz Renewables also has investments in several clean power assets. These include geothermal, large hydro, run-of-river hydro, wind and battery energy storage systems. By 2030, Aboitiz Renewables to have 4,600 MW of capacity.

DEPARTMENT OF EDUCATION TARGETS 105,000 CLASSROOMS DIGITALIZATION VIA PPP

The Department of Education (DepEd) aims to produce 105,000 classrooms and address digital gaps through the Public-Private Partnership (PPP) for School Infrastructure Project (PSIP). It will test the core of our governance to deliver these classrooms and the core of our commitment, as a nation, to do right by our learners.

The PPP framework was adopted by DepEd in 2010 to address the classroom backlog. The first phase of PSIP was completed in 2016 and has constructed 9,296 classrooms in regions I, III, and IV-A worth PHP 16.43 Bn (USD 279.63 Mn). The PSIP Phase 2, on the other hand, costs PHP 3.86 Bn (USD 65.69 Mn) and involves the designing, financing, and construction of 4,370 one-storey, two-storey, three-storey, and four-storey classrooms, including furniture, fixtures, and toilets in 1,735 public schools in regions I, II, III, X, CAR, and CARAGA. It managed to build 13,391 classrooms, these two tranches. Following the same framework, the new generation of PSIP targets the construction of 105,000 classrooms from 2026 to 2031.

The third phase of PSIP aims to construct 15,000 classrooms in regions I, II, III, IV-A, IV-B, V, CAR, and NCR. For PSIP IV, the department targets 40,000 classroom constructions in regions VI, VII, NIR, VIII, and selected areas in Luzon. Meanwhile, regions IX, X, XI, XII, XIII, BARMM, and other sites not covered by the first two waves are included in the 50,000 target for PSIP V. Apart from classroom construction, the PSIP also aims to address the digital gap in the sector through PSIP Connect, which aims to disseminate devices, internet connectivity, and power to public schools nationwide. Data from DepEd revealed that Region 4A has the highest classroom shortage at 31,002, while Cordillera Administrative Region (CAR) has the lowest at 2,301. 54% or 89,050 of the classroom deficit is in Luzon, followed by Mindanao at 31% or 51,445, and Visayas at 15% or 24,948.

PHILIPPINES LAUNCHES FIRST OFFSHORE WIND-ONLY GREEN ENERGY AUCTION

Philippines formally launched the fifth round of its Green Energy Auction (GEA-5), opening the country’s first-ever auction dedicated exclusively to offshore wind power. The GEA-5 round places 3.3 GW of fixed-bottom offshore wind capacity on offer, with projects expected to come online between 2028 and 2030, positioning offshore wind as a central pillar of the country’s long-term power mix.

The Department of Energy (DOE) has adopted a milestone-driven framework, linking project timelines with grid expansion plans, port readiness, and construction logistics—an acknowledgement of the infrastructure challenges that have slowed energy projects in the past. By identifying priority ports and synchronising development schedules with transmission capacity, the government is attempting to reduce delivery risks and provide greater certainty to investors and lenders. Successful bidders will secure long-term power supply contracts of 20 years, offering predictable revenues and helping de-risk one of Southeast Asia’s most promising but underdeveloped offshore wind markets.

DECEMBER 2025

MOU SIGNED TO DEVELOP GREEN HYDROGEN POWER PLANTS IN MINDANAO AND SPUG AREAS

HDF Energy Philippines and the state-owned National Development Company (NDC) have signed a memorandum of understanding to accelerate the development of hybrid green hydrogen power plants across Mindanao, the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), and off-grid areas served by the Small Power Utilities Group (SPUG).

Under the agreement, the two parties will jointly assess and develop multi-megawatt power projects that combine renewable energy generation, lithium-ion battery storage, green hydrogen production and storage, and fuel cell-based power systems. The projects will use HDF Energy’s Renewstable technology to provide stable, non-intermittent electricity as an alternative to diesel-based generation.

The partnership targets regions with high development needs and limited grid reliability, aiming to deliver baseload renewable power while reducing emissions and operating costs. The MoU also covers cooperation in research and development related to electrolysis, proton exchange membrane technologies, hydrogen fuel cells, and hydrogen safety infrastructure.

ADB PREPARES USD 4 BN LENDING PIPELINE FOR PHILIPPINES IN 2026

The Asian Development Bank (ADB) is preparing a lending program of around USD 4 Bn for the Philippines in 2026, covering a mix of new government-led initiatives and phased financing for ongoing multiyear projects. The planned package will support projects across key sectors, including transport, health, and education, and will include carryover tranches for large-scale infrastructure schemes already under implementation. ADB along with the Department of Finance and the Department of Economy, Planning and Development will finalise the lending pipeline.

Major infrastructure projects expected to continue receiving phased financing include future stages of the Bataan–Cavite Interlink Bridge and the North–South Commuter Railway. These projects form part of ADB’s long-term engagement in the Philippines, where large transport investments are structured over multiple loan phases spanning several years.

CARBEV AND VINFAST TO DEVELOP NATIONAL ELECTRIC MOBILITY ECOSYSTEM IN THE PHILIPPINES

CBEV Transport Technology Inc. (CarBEV) has signed a strategic memorandum of understanding (MoU) with global electric vehicle manufacturer VinFast to establish a framework for cooperation beginning in 2026, aimed at developing a fully integrated electric mobility ecosystem across the Philippines. The agreement outlines collaboration on electric fleet deployment, charging infrastructure expansion, and green mobility programs for public and private transport.

Under the MoU, the partners will coordinate the rollout of battery-electric vehicles for transport operators, ride-hailing platforms, logistics fleets, and government agencies, alongside the development of strategically located charging stations and electrification of major transport corridors. Joint working groups will be formed to define operational models, investment structures, and phased deployment timelines, supported by technical and market readiness assessments.

The initiative aligns with the Philippines’ transport modernisation agenda and national policies promoting electric vehicle adoption, including incentives under the Electric Vehicle Industry Development Act. By combining CarBEV’s local fleet operations and market expertise with VinFast’s vehicle manufacturing and technology capabilities, the partnership aims to support large-scale EV adoption, reduce transport-related emissions, and build a nationwide electric mobility ecosystem over the coming years.

MAP AND DOE SIGN JOINT ENERGY ACTION AGENDA TO ADVANCE PHILIPPINE ENERGY PLAN 2023–2050

The Management Association of the Philippines (MAP) and the Department of Energy (DOE) have signed the Joint Energy Action Agenda (JEAA) for 2026–2028 to accelerate the implementation of the Philippine Energy Plan (PEP) 2023–2050, which targets increased renewable energy deployment and reduced reliance on fossil fuels.

The JEAA is structured around four priority pillars: accelerating delivery of the energy mix, addressing infrastructure bottlenecks, refining the energy market to promote greater competition and financing, and managing the costs of the energy transition. Key actions include supporting fast-track approvals through the Energy Virtual One Stop Shop, unlocking waste-to-energy projects, expanding transmission development through coordination with the National Grid Corporation of the Philippines, and strengthening Retail Competition and Open Access through regulatory reforms.

The initiative aligns public and private sector efforts to improve power sector planning, infrastructure delivery, financing frameworks and market design. The DOE remains the lead agency overseeing national energy strategy, while MAP will support industry coordination and private-sector participation to improve energy security, affordability and sustainability nationwide.

List of key transactions - Philippines Q4 2025

Source: YOG INFRA analysis, Public Information

ABOUT YOG INFRA

Our objective is to drive economic growth and make positive social impact through sustainable infrastructure development.

YOG INFRA is an infrastructure focused financial advisory firm. We work with Developers and Development Finance Institutions (DFIs) and help them make informed investment decisions across infrastructure development lifecycle.

With our offices in Singapore, India and UAE, we work on projects globally, and the team brings strong experience in supporting development of infrastructure projects.

For more information about us, our service offerings and team, please visit www.yoginfra.com Contact us at info@yoginfra.com

#infrastructure #update #PPP #Philippines