The transaction advisory services agreement was signed by Takeo Koike, Officer-in-Charge of ADB’s Office of Public-Private Partnership (OPPP), and Reuben S. Lista, President and Chief Executive Officer of PNOC at a ceremony in Manila.
ADB Principal PPP Specialist Siddhartha Shah said: “The Philippines’ first LNG hub will help in ensuring long-term energy security to the Philippines and source a cleaner energy resource.
“It will also increase energy access and create new demand in the power, transportation, and industrial sectors in Luzon and in neighboring islands."
Given the imminent depletion of domestic gas reserves at the Malampaya gas field in Palawan, which provides a substantial amount of power supply in the country, PNOC is developing a robust and sustainable gas supply strategy through the establishment of an LNG hub in Batangas.
Under the agreement, ADB’s OPPP will advise and assist PNOC in all aspects of the project, including the award and execution of the final project agreements.
The project, which could cost up to $2 billion, will consist of a regasification terminal, storage, power plant, and other related infrastructure. It is in line with the Government of the Philippines’ Energy Plan and supports ADB’s increasing focus on environmentally sustainable infrastructure and private sector participation.
The Philippines is a founding member of ADB and is host to the bank’s headquarters since it was set up in 1966. ADB has provided $18.3 billion in total loan assistance to the Philippines, comprising $17.2 billion for the public sector and $1.1 billion for the private sector. ADB has also been supporting the country through knowledge work, with $357.1 million in total approved technical assistance and grants.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members—48 from the region.
