Prime Infrastructure Capital Inc. (Prime Infra) has secured financing agreements totaling ₱273.47 billion to support the development of its pumped storage hydropower portfolio with a combined capacity of 2 gigawatts.
During separate ceremonial signings on March 12, the company signed a ₱214.87-billion project financing agreement with an eight-member bank syndicate composed of Bank of the Philippine Islands, BDO Unibank, China Banking Corporation, Land Bank of the Philippines, Metropolitan Bank & Trust Company, Philippine National Bank, Security Bank Corporation, and Union Bank of the Philippines.
The loan will be classified as a green loan with the assistance of MUFG Bank.
Complementing the local financing deal, Prime Infra also secured a ₱58.6-billion dual-currency equity standby letter of credit facility from foreign lenders MUFG Bank, Mizuho Bank, and Sumitomo Mitsui Banking Corporation.
According to Guillaume Lucci, president and chief executive officer of Prime Infra, the financing reflects strong confidence from both local and international banks in the company’s capacity to deliver large-scale infrastructure projects.
“These agreements will accelerate critical infrastructure investments and strengthen energy security and reliability, which are the foundations of the Philippines’ sustained economic growth,” Lucci said.
The funds will support the ongoing construction of the 1,400-megawatt Pakil Pumped Storage Hydropower Plant of Ahunan Power Inc. in Laguna and the 600-megawatt Wawa Pumped Storage Hydropower Plant of Olympia Violago Water & Power Inc. in Rizal.
Both projects, targeted for completion by 2030, were included in the third Green Energy Auction Program of the Department of Energy and have been designated as energy projects of national significance.
Pumped storage technology stores energy by pumping water to an upper reservoir during off-peak hours and releasing it later to generate electricity during peak demand. This system helps stabilize the power grid and supports intermittent renewable energy sources such as wind and solar.
The projects are also aligned with the Philippine government’s target of increasing the share of renewable energy in the country’s power generation mix to 35 percent by 2030 and 50 percent by 2040.
The signing ceremonies were held at Solaire Resort & Casino and were attended by executives from participating financial institutions as well as Prime Infra officials, including Chief Financial Officer Sandy Alipio, Head of Treasury Emma Villa del Rey, Pumped Storage Projects President Noel Gonzales, and Renewable Energy Chief Financial Officer Eduardo Olbes.
Prime Infra and representatives from an eight-member bank syndicate formalizes the project financing agreement for the development of a 2GW pumped storage portfolio during a ceremonial signing at Solaire Parañaque on March 12.
