Spain to provide $64.7-M facility for solar project

The Spanish government will provide a $64.773-milllion mixed credit facility to finance the so-called Solar Power Technology Support (SPOTS) project for the benefit of agrarian reform communities.

The Department of Energy signed recently a memorandum of agreement (MOA) with Department of Agrarian Reform (DAR) to implement the project. The MOA signing was led by Energy Secretary Vincent S. Perez and Agrarian Reform Secretary Hernani Braganza.

SPOTS is an integrated social development project which aims to address poverty alleviation in at least 80 unenergized Agrarian Reform Communities (ARCs) through the application of solar photovoltaic systems.

The project is an integrated solar power-based package focused on agricultural productivity, agribusiness development, community development and social development.

Under the project, various systems that will be installed in the selected ARCs include PV-powered water pumps in irrigation, PV-powered incubators and hatcheries for agribusiness activities, PV-powered community lighting (schools, barangay hall), and PV-powered vaccine refrigerator for rural health clinics, among others.

The project will be implemented in January 2003. It will be carried out in two phases. Phase I will cover 40 ARCs in Mindanao (Region IX, X, XI, XII, Caraga) while Phase II will be implemented nationwide with the same number of target beneficiary ARCs.

Of the $64.773 million, some $54.2 million is the loan portion and about $10.423 million represents the government counterpart.

If the project will commence as scheduled on January 2003, it will be completed in 2005. Phase I and Phase II will be done in the period of 18 months each.

Aside from providing for adequate energy and electricity in 80 agrarian reform communities, it will also give basic needs such as infrastructure and potable water supply to the communities.