The Asian Infrastructure Investment Bank (AIIB) is expected to provide a USD200 million loan to co-finance a broader World Bank-led financing package supporting energy transition, electricity market reforms and water sector improvements in the Philippines. The proposed financing forms part of the Philippines Energy Transition and Climate Resilience Program and will complement a USD800 million World Bank loan, bringing total financing to USD1 billion.
The programme is designed to support policy and institutional reforms aimed at accelerating renewable energy deployment, improving electricity market competition and strengthening water resource management. Under the first reform pillar, the Philippine government will implement measures to encourage private-sector investment in renewable energy projects, promote energy efficiency and support transport electrification. Additional reforms will address barriers to renewable energy integration, enhance electricity market flexibility and improve water supply and sanitation services, particularly for underserved communities.
According to AIIB, progress under the first phase of the programme has already contributed to the operationalisation of the renewable energy market, advancement of offshore wind development, expansion of retail electricity competition and initial support for electric vehicle adoption. The bank noted that renewable energy’s share of the country’s power generation mix has increased to 32 per cent, up from 30 per cent, as the Philippines works toward a target of 42 per cent by 2027. The programme is also expected to support offshore wind auctions, expand EV charging infrastructure, strengthen ancillary electricity services and improve the efficiency of public spending on water infrastructure projects.
