AIIB funds Philippine port expansion

The senior unsecured corporate loan, AIIB’s first non-sovereign-backed transaction in the Philippines, will fund major development projects at the Manila International Container Terminal, the South Luzon Container Terminal and the Mindanao Container Terminal.

The investment programme includes terminal expansion works, technology-enabled infrastructure upgrades and the deployment of electric cargo handling equipment aimed at reducing emissions from port operations.

Under the development plan, MICT’s annual handling capacity will increase to 3.7 million teu by 2027, while MCT is expected to reach around 1 million teu by 2028. The new South Luzon Container Terminal, currently under development in Batangas, will add a further 800,000 teu of annual capacity by 2028.

The projects are also expected to improve berth productivity and strengthen regional supply chain connectivity throughout the Philippines.

ICTSI chair and president Enrique K Razon Jr said the partnership would support both expansion and sustainability goals.

“We value AIIB’s shared commitment to long-term value creation, inclusive economic growth and responsible business practices,” Razon said.

The financing will also support the acquisition of fully electric quay cranes and replacement of diesel-powered yard equipment as ICTSI accelerates its environmental transition strategy.

“ICTSI represents exactly the type of partnership AIIB aims to build as the bank enters its second decade,” said AIIB president, Zou Jiayi.

“This transaction demonstrates how AIIB can support infrastructure development by deploying innovative financing instruments and working closely with global operators who have the scale and execution capacity to deliver impact.”