The ADB, Asian Development Bank, has helped on the financing for the Tiwi and Makiling-Banahaw (Makban) geothermal assets in the Philippines.
The Philippines is a geothermal hotspot. Developing this natural resource will help meet the country’s growing demand for power with low-carbon and fuel imports.
The Tiwi and Makban Geothermal Green Bonds Projects are the 7th and 4th largest geothermal facilities in the world. ADB lent $37.7 million to help finance the plant’s operations, maintenance and expansion. It seeks to expand private sector interest in long-term investments for renewable energy development. The project also introduced a new financing mechanism. In the Philippines’ first green bond issue, ADB guaranteed 75% of a $225 million-equivalent bond issued. “We had proposed a solution where ADB will credit-enhance and this enabled new lenders to come in and consider the project. It is giving an alternative funding source for infrastructure projects in Asia, not just the Philippines,” Genalyn Uy, Senior Investment Specialist, ADB.
That will be critical if Asia is to meet its massive infrastructure needs.