The Philippine government and the Asian Infrastructure Investment Bank (AIIB) are exploring partnerships in digitalization, energy, and infrastructure projects aimed at improving ease of doing business and accelerating economic growth, according to the Department of Finance (DOF).

Finance Secretary Frederick Go identified digitalization and lower energy costs as priority areas for the country during a recent meeting with AIIB officials. 

“Two of the major issues in the ease of doing business are red tape and high energy costs. If there’s a way for us to work on these, then we can significantly enhance public service delivery and improve our investment environment, which will help us grow the economy,” Go said.

The Finance chief underscored the need to improve government processes and reduce red tape to support more efficient and sustainable public service delivery. He also pushed for long-term solutions that would make electricity more affordable and reliable for households, businesses, and investors.

The AIIB is a Beijing-based multilateral development bank established to finance sustainable infrastructure projects across Asia and beyond. Proposed by China in 2013 and officially launched in 2016, the AIIB was created to bridge the region’s massive infrastructure funding gap and serves as an alternative to Western-led institutions such as the World Bank.

The DOF said AIIB’s expertise in renewable energy development, including solar, wind, and hydro projects, could help the Philippines transition toward more sustainable energy sources and lower power costs over the long term.

AIIB President Zou Jiayi reaffirmed the bank’s commitment to supporting the Philippines through financing and technical assistance tailored to the country’s priorities.

“We are here to listen and understand how we can support your priorities for the Philippines,” Zou said.

The bank also expressed interest in supporting projects involving water management and governance, emphasizing the need for sustainable investment in water infrastructure. In addition to sovereign financing, the AIIB said it could also provide non-sovereign financing support for private sector projects.

The AIIB has recently expanded its participation in Philippine infrastructure projects, including a $300-million loan agreement with International Container Terminal Services Inc. (ICTSI) to support port development and expansion initiatives.

Announced last Wednesday, the senior unsecured corporate loan — AIIB’s first non-sovereign-backed transaction in the Philippines — will support technology-enabled infrastructure upgrades at the Manila International Container Terminal (MICT), the South Luzon Container Terminal (SLCT) currently under development in Batangas, and the Mindanao Container Terminal (MCT).

Together, the investments are expected to increase annual container throughput capacity, improve berth productivity, and contribute to the Philippines’ economic growth.