The Land Bank of the Philippines said it can finance up to 90% of project costs for electric cooperatives, as it steps up support for power sector investments aimed at strengthening energy security.

Speaking during the 2026 Electric Cooperative Summit held on April 14–15 at Novotel Manila Araneta City, Assistant Vice President Ronaldo Averion said the bank’s lending capacity is designed to help electric cooperatives move forward with infrastructure upgrades and expansion projects.

“Private banks usually finance up to 70% or 80%, but LandBank can finance as much as 90% of the project requirements,” Averion said.

Electric cooperatives play a key role in supplying power to areas outside Metro Manila, but often face challenges in accessing sufficient financing for large-scale projects or upgrades. LandBank said its higher financing threshold aims to address this gap and accelerate the rollout of critical energy infrastructure.

The bank currently has approved loans totaling PHP 11.25 billion for electric cooperatives, covering a range of performance categories and regions. These include areas with significant demand for financing support such as Mindanao.

LandBank’s financing covers various components of energy projects, including project preparation, capital expenditures, and construction. These also include upgrades to power distribution systems, equipment modernization, and the development of substations, which typically require substantial funding.

“Most of the documentary requirements are already available; it’s just a matter of submitting them,” Averion said, noting that the bank follows standard regulatory requirements, including permits and approvals from agencies such as the Department of Energy.

The bank also supports renewable energy and energy efficiency projects through its Renewable and Alternative Energy Plus lending program, which provides financing for clean energy technologies and sustainable infrastructure.

“What we’re doing right now will never be enough. We will always be needing more,” Averion concluded, emphasizing the continuing need for greater investment in the power sector.

LandBank said expanding access to financing is key to enabling electric cooperatives to upgrade their systems, improve reliability, and contribute to broader energy security goals.

How critical is financing support in enabling electric cooperatives to upgrade and expand power infrastructure?

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