ADB extends $1.5-M grant for energy proj in Negros Occ

The Asian Development Bank (ADB) has issued a $1.5-million grant to fund projects for bringing renewable energy and livelihood opportunities to low-income villages of Negros Occidental.

The Japan Fund for Poverty Reduction (JFPR), financed by the Japanese government, is the actual source of the amount facilitated by the ADB.

The project is the sixth JFPR project in the Philippines, ranging from urban development projects for slum communities in Metro Manila to livelihood projects for the rural poor in Mindanao.

Under the program grant, eight renewable energy systems will be set up in the villages, harnessing micro hydropower, solar, biomass, or wind systems.

To mobilize the participating communities, sitios or barangays will be organized into power associations and a fund collection mechanism will be set up to operate and maintain the renewable energy systems.

A revolving fund will be established so that lighting, tools, and equipment can be installed and households can connect to the renewable energy-based electricity.

To set up livelihood opportunities, another revolving fund will promote activities that can make use of the renewable energy-based electricity. These would include community-owned rice mills to increase rice production, mini ice plants for cold storage of fish products, the purchase of small power tools and sewing machines for small home-based businesses, and skills development and on-site training.

The project will also help participants identify potential markets to bring their products.

After the end of the four-year assistance period, the project will be turned over to the communities which will then take responsibility for operating and maintaining the renewable energy systems, and developing sources of livelihood.

To make the project financially sustainable, the project will be supported by a small energy service charge, which should be more than offset by the extra income generated and savings on other fuels.

The community-based project will bring power to more than 100 households and 2,480 people in eight off-grid villages depending mainly on the use of kerosene, batteries, and candles for energy. About a third of the beneficiaries live below the regional poverty threshold of $0.27 per day.

The eight potential areas that will benefit from the project are Sitio Cabayabasan, Montilla, Moises Padilla; Sitio Bais, Yubo, La Carlota City; Bgy. Bunga, Don Salvador Benedicto; Bgy. Gawahon, Victorias City; Refugio Island, San Carlos City; Lakawon Island, Cadiz City; Molocaboc Island, Sagay City; and Sitio Tabadiang, Minoyan, Murcia.