PHILGUARANTEE appointed as Program Manager of WORLD BANK funded Projects
On March 27, 2020 The WORLD BANK informed the Department of Finance that its team has completed the due diligence of PHILGUARANTEE with the following results: (1) PHILGUARANTEE hurdled WORLD BANK’s eligibility criteria for financial intermediaries and is eligible to be the Program Manager of the Philippine Renewable Energy Development Project (PHRED) and the existing Electric Cooperative Partial Credit Guarantee Program (ECPCG); (2) PHILGUARANTEE satisfied the World Banks’ requirements to fulfil the technical, procurement, financial management, and environmental and social responsibilities of the projects.
During the regular meeting of the PHILGUARANTEE Board of Directors on April 29, 2020, a recommendation to accept the role of Program Manager of PHRED and ECPCG was approved.
The Electric Cooperative – Partial Credit Guarantee Program (EC-PCG Program) was established by the Department of Finance and Department of Energy, with a grant from the Global Environment Facility (GEF). The ECPCG guarantees commercial loans of Accredited Financial Institutions (AFIs) to Electric Cooperative (EC) borrowers to finance power distribution system upgrades and reduce systems losses.
The PHRED is an expansion of the ECPCG and a follow-up to both the Rural Power Project (RPP) and the Electric Cooperative System Loss Reduction Project (ECSLRP). It seeks to build on the more promising aspects of the RPP for investment support to renewable energy and energy efficiency projects. It will focus on the energy efficiency and renewable energy market segment in the rural electrification sector, that are less likely to obtain commercial financing.
The PHRED will provide guarantees to additional investments in renewable energy generation in all parts of the Philippines, including the off-grid areas. It aims to bolster private sector lending to electric cooperatives’ renewable projects that are embedded within their service areas and largely overlooked by the big energy project developers.