Enigin Update - $1 Billion Renewables and Energy Efficiency Loan for Philippines
THE ASIAN Development Bank (ADB) is negotiating with the Philippine government to offer $1 billion worth of loans for energy efficiency and renewable energy projects.
Principal planning and coordination specialist at the ADB, Samuel Tumiwa, revealed that the Manila-based development bank has been in talks with the Philippine Departments of Energy, and of Finance for the terms and design of the proposed loan.
“We’re still discussing with the Energy and Finance departments. It will go to the government and also the private sector,” Tumiwa told reporters at the sidelines of the Clean Energy Expo Asia 2010.
Tumiwa said the ADB’s $1-billion loan for energy efficiency and renewable projects would carry a 1.2-percent interest for 28 years with an eight-year grace period. According to Tumiwa, they expect the loan to be approved by middle of 2011.
Once approved, this amount will add to the existing $250 million in concessional loans that the Philippines has already received via the Clean Technology Fund (CTF).
These ADB loans, amounting to a total of $1.25 billion, are expected to help leverage an estimated $2.75 billion worth of investments needed to implement key programs and projects that would significantly reduce greenhouse gas emissions.
Sohail Hasnie, principal energy specialist at the ADB, said earlier that the Philippines would be an ideal country to place such huge investments as it has been leading the region on the energy efficiency and renewable energy front.
Currently, the Philippines is one of the countries leading in the use of renewable energy sources. About 43 percent of its total primary energy supply comes from such sources, although the country still has one of the lowest per capita electricity consumption in the East Asia region.
With an ever increasing reliance on renewable energy it is as important for the country to be energy efficient, so as not to waste the investment in developing alternative energy, equally the need is recognised for the investment in energy efficiency.
Enigin Distributors in the Philippines have been helping government, commerce and industry to become energy efficient, saving energy and costs on utility bills. Using Enigin PLC's Eniscope real-time energy management system, many organisations have been able to make major advances in reducing energy use.
WooChong Um, ADB director- general, lauded the Philippine government for its initiatives on renewable energy and climate change mitigation.
Picture of Manila by Jun Acullador
