MANILA, Philippines — Prime Infrastructure Capital Inc. (Prime Infra), led by tycoon Enrique Razon Jr., has secured a record-breaking ₱273.47 billion in financing to fund the development of its 2,000-megawatt (MW) pumped storage hydropower portfolio. This landmark deal is the largest of its kind in the Philippines.
The financing package consists of two major components:
- ₱214.87 Billion Project Finance: Structured as a “green loan,” this deal was signed with a consortium of eight major local banks, including BPI, BDO, Chinabank, LandBank, Metrobank, PNB, Security Bank, and UnionBank. MUFG Bank Ltd. served as the lead coordinator for the international support.
- ₱58.6 Billion Equity Facility: A dual-currency equity standby letter of credit facility was secured from Japanese lenders MUFG Bank, Mizuho Bank Ltd., and Sumitomo Mitsui Banking Corp.
The capital will fund two massive “energy projects of national significance”: the 1,400-MW Pakil Pumped Storage Hydropower Plant in Laguna and the 600-MW Wawa Pumped Storage Hydropower Plant in Rizal. Both facilities are targeted for completion by 2030 and were awarded under the Department of Energy’s Green Energy Auction Program.
Pumped storage technology acts like a giant natural battery. It works by moving water to an upper reservoir during off-peak hours (when electricity demand and costs are low) and releasing it through turbines to generate power during peak demand. This process is critical for stabilizing the national grid and integrating intermittent renewable sources like wind and solar.
Prime Infra President and CEO Guillaume Lucci stated that the historic financing reflects deep confidence in the company’s ability to deliver large-scale infrastructure essential for the Philippines’ energy security. This move aligns with the national goal of increasing renewable energy’s share in the power mix to 35% by 2030 and 50% by 2040.
The deal also follows a recent strategic partnership where First Gen Corp., led by the Lopez family, agreed to acquire a 33% stake in Prime Infra’s hydropower portfolio for ₱61.88 billion to further support the projects’ construction.
