IFC to fund energy efficiency projects

CEBU, Philippines - To help develop the Philippines into one of the lead countries adopting energy efficiency, the International Finance Corporation (IFC) recently announced to partner with more financial institutions in funding energy efficiency-related projects in the country.

This was stated by IFC operations officer for sustainable finance Noel N. Verdote, who was one of the speakers at the 3rd Cebu Energy Efficiency Forum hosted by the European Chamber of Commerce in the Philippines (ECCP) held at Radisson Blu Hotel yesterday.

IFC is the private investment arm of the World Bank, which recorded a total loan portfolio for energy efficiency projects in the Philippines amounting to US$378 million in partnership with financial institutions such as Bank of the Philippines Islands (BPI), China Bank, and Banco De Oro (BDO), among others.

Despite the fact that the interest among companies in adopting an energy efficiency program remains low in the country, BPI senior vice president Mario B. Palou said that cutting cost through energy efficiency practices is slowly gaining ground within Philippine corporations.

BPI and IFC offer the Sustainable Energy Finance Program, which is designed not only to extend financial assistance to companies but also to provide technical support and to fully develop an energy efficient operation within the company.

Under this program, BPI has allocated a loan budget ranging from as low as P15 million to as high as P200 million loan for a single company.

To date, only the cement and steel manufacturing firms have so far considered investing on energy efficient program as part of their core business, while other companies are slowly digesting the importance of such practice.

Edwin Severino of Sheridan Resort and Hotel, which is one of the beneficiaries of BPI’s energy efficiency financing program, said that the resort expects to cut about 40 percent to 50 percent of energy savings, spending at least P1.6 million a month for energy generation.

Yesterday's forum themed "Sustaining the Energy Efficiency Initiatives in the Philippines," was also supported by the Department of Energy (DOE), and Schneider Electric (Phils) Inc. among others. /JOB (FREEMAN)