Philippines Geothermal Resource De-Risking Facility

Project Dates: January 2026 - December 2050

Philippines Geothermal Resource De-Risking Facility

PROJECT OBJECTIVE

Geothermal Resource De-Risking Facility (GRDF) aims to reactivate greenfield investment in geothermal, which has been stranded since 2001, by mitigating investment risk at pre-development stage through sharing resource exploration cost and risk with the private developers. ADB extended technical assistance (TA) to assess investment constraints in entire geothermal development chain, and to prepare GRDF concept design in consultation with DOE and the National Geothermal Association of the Philippines (NGAP).

PROJECT DESCRIPTION

The Geothermal Resource De-Risking Facility (GRDF), supported by ADB, aims to revive geothermal investment in the Philippines by sharing exploration risks with private developers at the pre-development stage. It provides convertible loans covering up to 50% of drilling costs, with strict project selection and a target success rate of at least 75% to ensure financial sustainability. Managed by PSALM and implemented with DOE, the facility combines a risk mitigation window and a refinancing mechanism to recycle funds and scale investments. The $250 million program will be rolled out in two phases, supporting up to 16 projects (431 MW), and is expected to unlock up to $2.6 billion in downstream investment while reducing emissions and reliance on imported fossil fuels.