MANILA, Philippines - The Development Bank of the Philippines (DBP) has entered into a partnership with ECO-Asia Clean Development and Climate Program to extend free technical assistance to clean energy projects in the Philippines.
ECO-Asia is under the wings of the United States Agency for International Development (USAID). It aims to bridge the gap between investments and clean energy business by building partnerships in Asia’s fastest-growing economies.
DBP president and chief executive officer Reynaldo G. David said the program is designed to promote clean energy investments.
“Once the fruits of this partnership are realized and green electricity flows to rural communities, business opportunities, local employment, and genuine sustainable development will inevitably follow,” David said in a press statement.
DBP is a state-run financial institution that advocates green energy. Its local knowledge allows for effective channel to ECO-Asia’s resources to areas that have the most significant impact to the local population.
He added that the partnership will help stimulate more clean energy investments in the country, particularly in the Visayas and Mindanao regions, which hold the highest potential for clean energy projects due to the abundant natural resources and a progressive agricultural industry.
ECO-Asia is the regional coordinator of the Private Financing Advisory Network (PFAN), a multilateral, public-private partnership initiated by the Climate Technology Initiative in cooperation with the United Nations Framework Convention on Climate Change. In addition to the Philippines, PFAN is active in other Asian countries including China, India and Indonesia.
DBP reported at the end of the first semester that it has loan facility amounting to ¥3.57 billion (P1.77 billion) funded by the World Bank. The facility can be used to provide adequate, affordable and reliable energy services, in partnership with the private sector.
“This supports the government’s targets of energizing 100 percent of the barangays and bring about 10,000 additional household connections, and a reduction in greenhouse gas (GHG) emission equivalent to 20,0002 tons of carbon dioxide per annum,” David reported.
Eligible borrowers for the loan facility are renewable energy service companies or corporations, non-government organizations, cooperatives, renewable energy technology (RET) system purchasers and suppliers; electric cooperatives (ECs); eligible private sector proponents (private distribution utilities such as electric corporations); microfinance institutions (MFIs), rural banks, thrift banks and loans associations, credit cooperatives, and credit NGOs.
The DBP executive added that the eligible projects include: development and construction of small-scale energy generation and mini-grid rural electrification projects through conventional and renewable energy resources; stand-alone renewable energy rural system electrification project, improvement of power supply system safety, reliability, efficiency, and power service quality; any projects which improve the reliability and efficiency of rural power supply and increase access to electricity services by underserved customers. – Ted Torres