Government to put up P1.7-B credit facility for alternative energy projects

MANILA, Philippines – The government will put up a P1.7 billion foreign-backed credit facility to fund environment-friendly and alternative energy projects in the country.

Press Secretary Jesus Dureza said the National Economic and Development Authority (NEDA) Board, chaired by President Arroyo, approved the Credit Line for Energy Efficiency and Climate Protection (CLEECP) to be implemented by the Land Bank of the Philippines (LBP) in a meeting yesterday at the Palace.

“It is a credit facility for those who have projects that protect the environment, provide energy efficiency, promote conservation, minimize the greenhouse effect,” Dureza told a news briefing.

He said the CLEECP would run from 2009 to 2012.

A memo to the NEDA Board from the Investment Coordination Committee released by the Palace stated that German bank Kredintanstalt fur Wiederaufbau (KfW) will provide P1.377 billion that would be converted to Japanese yen and be released in two tranches. The LBP will provide the remaining P344.29 million.

The CLEECP aims to lower annual carbon dioxide emissions to 24 million tons through energy efficiency measures and direct emissions reduction projects, the memo said.

The scope of the project will be nationwide, but 50 percent of the overall loan amount will be made available for the Visayas and Mindanao.

The KfW will also extend a grant of 500,000 euros for technical assistance to the LBP.

The CLEECP is expected to generate 722 jobs, the ICC said.

“The project may not have a significant impact in creating new jobs… the more significant impact of CLEECP is in terms of energy savings/energy efficiency and reduction in greenhouse gas emissions,” it said. – Paolo Romero