SINGAPORE—The Asian Development Bank (ADB) is exploring extending financing of up to $1 billion to help strengthen the Philippines’ power grid, a senior director told reporters at the sidelines of the Asian Clean Energy Summit 2025.
ADB senior director Priyantha Wijayatunga confirmed there was a request for the agency to improve the Philippines’ transmission system, noting the significance of the potential funding.
“It’s just a lot of money, not small money. Because you need a lot of money when it comes to these large investments,” Wijayatunga said.
The arrangement is complicated because the grid operator, National Grid Corporation of the Philippines (NGCP), is a private company, not a government-owned entity.
“How we are going to support, we have to work out. Because it’s not a government-owned grid at the moment,” Wijayatunga said.
He said the funding is “in the pipeline”, but the channel of financing remains unclear. It could be channeled through NGCP or the government’s Department of Energy (DOE).
Wijayatunga noted that sovereign financing, which is direct lending to the government, would have to go through the DOE, while non-sovereign financing could potentially go to the private sector.
“It will have to be through DOE if we are talking of sovereign financing because obviously sovereign financing cannot go into the private sector. But it can be both sovereign and non-sovereign. But the sovereign money will have to go through DOE,” he said.
The process of extending the loan may take a while, as it necessitates contractual discussions between the government and the grid operator, Wijayatunga said.
Such grid investments are “necessary” as the Philippines develops its offshore wind capabilities. “So if you want to bring offshore wind into the grid, you need grid investments,” Wijayatunga said.
The ADB is also supporting the Philippines in adopting energy-efficiency building measures, particularly focusing on public or government buildings, as the building sector is one of the biggest consumers of energy. The bank has also been assisting the country to introduce new energy technologies to island communities.
Wijayatunga said the ADB’s current energy policy does not allow it to finance nuclear power projects, but it can support capacity development and institutional development for such initiatives.
