MANILA, Philippines - The Development Bank of the Philippines (DBP) recently signed a memorandum of understanding (MOU) with Constellation Energy Corp., Foundation Markets, and Enerasia Renewable Corp. to explore possible joint undertakings in the development of viable new and renewable energy (NRE) projects in the country.
DBP president and chief executive officer Reynaldo G. David said that efforts to promote renewable energy will not be hampered by the unexpected movements in global oil prices. “There is need to push for renewable energy or anything related to global climate change,” he said.
He added that the firms from Canada and the United Kingdom have agreed to help DBP in identifying potential sites for NRE projects both in on-grid and off-grid areas, and in addressing capital requirements of identified NRE projects, including the potential involvement of foreign investments in accordance with existing Philippine laws.
Constellation Energy Corp. is engaged in the exploration, development, utilization and commercialization of various NRE projects such as ocean, solar, wind, biomass, hydro, and geothermal power plants. Foundation Markets is an investment bank which has expertise in the areas of energy and environment, while Enerasia Renewable Corp. is a renewable energy and investment company based in Canada.
David also said that DBP is working on a $40 million additional fnancing under the World Bank Rural Power Project to support more renewable energy projects in the country. The said funding, David added, is expected to be made available by the second half of the year, and will supplement the P10 billion fund that DBP has under the Environmental Development Program of the Japan International Cooperation Agency (JICA).
Last year, DBP approved loans to two NRE projects in Luzon amounting to P2.1 billion – the rehabilitation of the Ambuklao and Binga hydropower plants in Benguet and construction of a bio mass plant in San Manuel, Nueva Ecija.
“DBP also has several hydropower projects in the pipeline located in off-grid areas particularly in Oriental Mindoro. These proposed projects are envisioned to reduce power rates for consumers in the countryside,” David said.
David added DBP will play a great role in the development of renewable energy projects with the recent passage of Republic Act 9513, or the Renewable Energy Act of 2008 which encourages the utilization of renewable energy resources and subsequently reduce the country’s dependence on fossil fuels.