BPI allots P5 billion for sustainable energy finance

MANILA, Philippines - Bank of the Philippine Islands (BPI) continues to be at the forefront of green energy revolution with more than P5 billion allotted for its sustainable energy finance (SEF) program over a period of two years.

Nanette A. Biason, senior manager for BPI’s SEF specialized lending unit, said the bank is targeting a loan portfolio of P2 billion for the program which is expected to increase to over P5 billion by 2011.

BPI signed a risk-sharing facility agreement with the International Finance Corp. (IFC), the private investment arm of the World Bank. It aims to support the creation of a commercial financing market for sustainable energy projects in the country.

With the IFC assistance, BPI could expand its financial products by opening up opportunities for micro, small and medium enterprises to avail of loans for energy efficient operations. These include purchase of capital equipment like cooling systems, production machinery and lighting systems that are more energy-efficient.

With the passage of the Renewable Energy Act and approval of its implementing rules, BPI foresees more companies going into renewable energy to save on costs.

Angeline Hwang, vice-president for corporate banking division at BPI, said there is currently a strong demand for green buildings, particularly in hotels.

Soon-to-be completed Sheridan Beach Resort is aiming to be the first environmentally first class hotel to be built in Palawan City. Located in Sabang Island, the 90-room Sheridan Hotel obtained over P200 million in loan from BPI to construct an energy sufficient building.

The hotel uses 30 percent less energy through the use of latest construction technology. A green, vegetated rooftop is planted on the hotel’s restaurant and tourism building to reduce heat.

Sheridan Hotel has also adopted a total waste management system which allows the use of treated water to toilet flushing completely odorless . The system provides lower consumption, reduce maintenance and operational costs.

To ensure sustainable development, the hotel is also into organic farming to provide fresh fruits and vegetables to the end consumer or wholesaler. 

Aside from Sheridan Hotel, other projects include expanding a biogas facility in a 15,000-head piggery in Bulacan, retrofitting a corrugated box factory in Cagayan de Oro, and constructing a corn husk post-harvest facility in Cagayan Valley.

BPI itself has commissioned an energy service company to undertake the retrofit of the centralized chillers at its 30-year-old head office building at the corner Ayala Avenue and Paseo de Roxas, Makati.

The upgrade, which involves the change and installation of a new cooling system is expected to generate annual electricity savings of more than P6 million and reduce the building’s carbon emissions to up to 300 tons of carbon dioxide annually.

 BPI has been undertaking project financing for large proponents such as the Aboitiz and Lopez energy firms which function independently of the joint IFC facility.