Razon’s Prime Infra secures P273.5B loans for pumped storage hydro projects

Filipino billionaire Enrique Razon Jr.’s Prime Infrastructure Inc. on Thursday announced it has secured two financing deals worth P273.47 billion to bankroll the development of its pumped storage hydropower portfolio with a combined two-gigawatt capacity. 

In a news release, Prime Infra said it held separate ceremonial signings on March 12, 2026.

The first deal signed was a P214.87-billion project loan agreement with an eight-member bank group which 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 Corp., and Union Bank of the Philippines.

Prime Infra said the loan deal with the eight-bank group will be classified as a green loan with the assistance of MUFG Bank Ltd.

The second financing deal, amounting to P58.6 billion, was forged with foreign lenders MUFG Bank, Mizuho Bank Ltd., and Sumitomo Mitsui Banking Corp.

The financing deals, Prime Infra said, will bankroll the ongoing construction of the 1,400-megawatt (MW) Pakil Pumped Storage Hydropower Plant of Ahunan Power Inc. in Laguna and the 600-MW Wawa Pumped Storage Hydropower Plant of Olympia Violago Water & Power Inc. in Rizal.

Both projects are targeted for completion by 2030.

The projects are part of the Department of Energy’s (DOE) third Green Energy Auction Program and deemed as energy projects of national significance.  

“This historic financing reflects the confidence of local and international banks in Prime Infra’s capability to deliver large-scale, critical infrastructure. Our pumped storage hydropower projects demand significant capital, and we are fortunate to have the trust of our banking partners,” said Guillaume Lucci, president and CEO of Prime Infra. 

“These agreements will accelerate critical infrastructure investments and strengthen energy security and reliability, which are the foundations of the Philippines’ sustained economic growth,” added Lucci. 

Pumped storage technology allows for energy storage by pumping water to an upper reservoir during off-peak hours and releasing it to generate power during peak demand. 

This helps stabilize the grid and manage intermittent renewable energy sources like wind and solar.

Prime Infra said the projects support the government’s target to increase the share of renewable energy in the Philippines’ generation mix to 35% by 2030 and 50% by 2040. — JMA, GMA Integrated News