The P214.87 billion project loan highlights strong lender support for large-scale energy infrastructure tied to the country’s renewable transition.
The financing will support the 1,400-MW Pakil pumped storage hydropower plant in Laguna and the 600-MW Wawa pumped storage hydropower plant in Rizal, both targeted for completion by 2030.
Bank syndicate supports green loan
The financing syndicate includes Bank of the Philippine Islands, BDO Unibank, Inc., China Banking Corp., Land Bank of the Philippines, Metropolitan Bank & Trust Company, Philippine National Bank, Security Bank Corporation, and Union Bank of the Philippines.
The facility will be classified as a green loan, with assistance from MUFG Bank, Ltd..
Management’s view
“These agreements will accelerate critical infrastructure investments and strengthen energy security and reliability, which are the foundations of the Philippines’ sustained economic growth,” said Guillaume Lucci, president and CEO of Prime Infra.
Grid stability key to renewable expansion
Pumped storage technology works by pumping water to an upper reservoir during periods of low electricity demand and releasing it to generate power during peak hours.
The system acts like a large-scale battery for the grid, helping manage fluctuations from renewable sources such as solar and wind. The projects were awarded under the Department of Energy’s third Green Energy Auction Program and are considered energy projects of national significance.
—Edited by Miguel R. Camus
