List of Available Financing Programs

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ANNEX 5

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List of Available Financing Programs

List of Available Financing Programs

CapacityBuilding Needs / Type of Financing Assistance Available
Training Courses /

• Grant

Apprenticeship Programs /

• Grant

Technical Assistance /

• Loan
• Grant
• Equity Investment

Consultancy Services /

• Loan
• Grant
• Equity Investment

Process Design and Development /

• Loan

Equipment Procurement /

• Loan

Research and Development /

• Grant

1. LOANS

1. Asian Development Bank

Address:6 ADB Avenue, MandaluyongCity

1550 Metro Manila, Philippines

E-mail Address:

Telephone Number: + 632 632 4444

Fax Number: + 632 636 2444

Website:

ADB is a multilateral development finance institution established in 1966 dedicated to reducing poverty in Asia and the Pacific. It is owned by 63 member countries, mostly from the region. It raises funds through member contributions and bond issues on capital markets.

ADB engages in mostly public sector lending, and some limited private sector lending for development purposes in its developing member countries. ADB’s clients are its member governments, who are also its shareholders.

1.1Forms of Assistance:

Project Loans

Areas of Assistance:

Poverty reduction, human development, environment, agriculture, energy, social infra, rural and urban development, governance

Interest Rate:

Ordinary Capital Resources (OCR) currently 6.46% for dollar loans, 5.72% for multi-currency loans (pool-based variable lending rate, determined every six months).

Terms of Assistance (years):

Maturity Period – 20 (exclusive of grace period)

Grace Period – 4–5

Other Charges – 0.75% annual commitment fee charged on undisbursed portion of loan based on disbursement schedule (15% of TPC for 1st year; 45% 2nd year, 85% 3rd year; 100% 4th year); and 1% front-end fee

1.2Forms of Assistance:

Program Loans

Areas of Assistance:

Policy and institutional reforms, budgetary and BOP support (i.e. capital market sector), sector loans (forestry, livestock, environment, communal irrigation, food crops, agrarian reform)

Interest Rate:

Ordinary Capital Resources (OCR) currently 6.46% for dollar loans, 5.72% for multi-currency loans (pool-based variable lending rate, determined every six months).

Terms of Assistance (years):

Maturity Period – 20 (exclusive of grace period)

Grace Period – 4–5

Other Charges – 0.75% commitment fee on undisbursed portion of the loan (flat rate); ad 1% front-end fee

1. Department of Energy (DOE) – CapacityBuilding to Remove Barriers to Renewable Energy in the Philippines Project (CBRED) – Project Preparation Fund

Contact Person:Francis A. Benito/ CBRED-PMO Director

Address: CBRED-PMO – Dept. of Energy

2nd Flr National Petroleum Lab. Bldg.

EnergyCenter, Merritt Road, FortBonifacio,

Taguig Metro Manila.

Telephone Number: +632 840 1401 loc 268

Telefax Number:+632 840 2175

E-mail Address:

The Global Environment Facility (GEF), an international financial mechanism, provides grants to developing countries for projects and activities that protect global environment. On the other hand, the United Nations Development Programme (UNDP) provided capacity building assistance in the implementation of GEF projects. Under GEF’s Operational Program No. 6 entitled “Promoting the Adoption of Renewable Energy (RE) by Removing Barriers and Reducing Implementation Costs”, UNDP is assisting DOE in implementing the PHI/01/G33 “Capacity Building to Remove Barriers to Renewable Energy in the Philippines” (CBRED) Project.

The CBRED Project aims to reduce the annual growth rate if GHG (greenhouse gases) emissions by replacing part of the current fossil fuel use in the Philippines through the removal of major barriers to RE that will lead to the development and widespread utilization of RE systems/applications.

The specific objectives of the Project include: (i) strengthening the capacity of relevant GOP agencies to formulate, enact, and implement sound RE policies, (ii) providing RE information for targeted audiences to build markets, (iii) increasing coordination among organizations concerned with RE; and (iv) assisting market penetration of RE in remote off-grid communities, and (v) improving the quality of RE technologies and systems.

To be able to achieve said objectives, the Project is divided into six components, one of which is the RE Initiatives Delivery and Financing Mechanism. Under this component, the CBRED Project is establishing three pilot funds, to support NRE projects that promote and apply innovative strategies and delivery mechanism (e.g., Renewable Energy Service Company or RESCO, Concession, Community-Based and Lease-to-Own).

One of the three funds is the Project Preparation Fund which providespartial grant fund to assist RE developers on project preparation, feasibility work and packaging. Its terms and conditions are given below:

Eligible Borrowers

Local government units (LGUs), rural electric cooperatives (RECs), barangay power associations or cooperatives, non-government organizations (NGOs), private corporations and individual project developers

Eligible Projects

Hydropower projects (pico, micro and mini); biomass-based projects (biogas, direct burning for power and non-power applications); wind projects (power and non-power); geothermal (waste heat recovery); solar PV (except individual solar home systems); and solar water heaters

Amount of Loan

Up to 50% of the total project preparation cost, but must not exceed Php5 million

Collateral Requirements

None

Equity Participation

The borrower shall provide at least fifty percent (50%) of the total cost of project preparation.

Repayment Term

The loan matures in three (3) years inclusive of a six (6) months grace period on principal payments.

Interest Rate

0%

Filing Fee

One-time filing fee of Php1.000.00

1. Development Bank of the Philippines – Danish Tied Credit Facility

Contact Person:Jett Salvatierra, Assistant Vice President

PMI-DBS

Address:DBPBuilding, Makati Avenue, Makati City

Telephone Number:+632 8403435

Fax Number:+632 8944444

E-mail Address:

Website:

Amount of Facility:

US $25,000,000

Relending Scheme:

Retail Lending

Target Sectors:

Infrastructure, water supply, environmental projects, renewable energy, deliveries for hospitals and technical schools, energy and telecommunications projects in rural districts, agro-industries, fish processing and windmill projects

Eligible Enterprises:

Filipino citizens, partnerships, single proprietorship, corporations, local government units

Eligible Expenditures:

Expenditures involving Danish exports

Sub loan Size:

Loan limit for each project is SDP 2 MM (equivalent to P110 million based on current exchange rate)

Repayment Term:

Up to 10 years; equal, semi-annual, 6 months after commissioning

Commitment Fee:

0.25% of the undisbursed loan amount

End-user Rate/Interest Rate:

9.00%

1. Development Bank of the Philippines (DBP) – J-EXIM 4

Contact Person:Jett Salvatierra, Assistant Vice President

PMI-DBS

Address:DBPBuilding, Makati Avenue, Makati City

Telephone Number:+632 8403435

Fax Number:+632 8944444

E-mail Address:

Website:

Amount of Facility:

US $ 500 million

Relending Scheme:

Wholesale and Retail Lending

Target Sectors:

Manufacturing, utilities, construction, transportation, telecommunication, power, hotels and other lodging places

Eligible enterprises:

Filipino private companies with more than P200 million in total assets before financing

Eligible expenditures:

For purchase of plant and/or equipment, working capital and lease financing

Sub loan Size:

Minimum amount for each sub loan shall be P20 million.

Financing Mix:

Up to 70% of the project cost can be funded by J-Exim

Repayment Term:

Maximum of 8 years including a 1.5-year grace period

Commitment Fee:

0.75% p.a. on the unutilized portion of the sub loan

End-user Rate/Interest Rate:

Variable: WAIE-2+Retail Spread

Fixed Loans:

VR+1% for loans with maturity of 3 years to 5 years;

VR+2% for loans with maturity of over 5 years

Prepayment Penalty

0.05% of amount to be prepaid with 60 days advance notice

1. Development Bank of the Philippines (DBP) – KFW-Long Term Financing Facility

Contact Person:Jett Salvatierra, Assistant Vice President

PMI-DBS

Address:DBPBuilding,

Makati Avenue, Makati City

Telephone Number:+632 8403435

Fax Number:+632 8944444

E-mail Address:

Website:

Amount of Facility:

Dm 250,000,000

Relending Scheme:

Retail Lending

Target Sectors:

All sectors

Eligible expenditures:

To finance up to 85% of the total contract price in Euro or US $ of contracts involving the importation of equipment and services from the Federal Republic of Germany.

Repayment Term:

From 4 to 10 years based on contract amount.

Commitment Fee:

0.375% p.a. based on unreleased balance of each loan.

End-user Rate/Interest Rate:

Other Fees:

0.25% flat, based on approved loan amount

Prepayment Penalty

For fixed interest loans only

1. Development Bank of the Philippines (DBP) – New and Renewable Energy Project Preparation Fund

Contact Person 1:Julieta Y. Salvatierra, Assistant Vice President, PMI-DBS

E-mail Address:

Contact Person 2:Rustico Noli D. Cruz, Chief Account Management Specialist

E-mail Address:

Address:Sen. Gil Puyat Ave cor. Makati Ave, Makati City

Telephone Number:+63 2 8403435/ 8189511 loc. 2529/2543

Fax Number:+63 2 8935380

Website:

Eligible Loan Projects

Small scale New and Renewable Energy (NRE) Projects

Amount of Loan

Up to 95% of the total project cost but not to exceed One Hundred Thousand Pesos (P100,000.00)

Repayment Term

Principal and interest payable quarterly, with a maximum term of five (5) years inclusive of the six (6) months grace period

Interest Rate

Six percent (6%) per annum

Collateral Requirements

• Hard collateral acceptable to DBP
• Collateral substitutes such as but not limited to guarantees and joint and several signatures (JSS) of the principals of the borrowing entity

Equity Participation

At least five percent (5%) of the total project cost

1. Development Bank of the Philippines (DBP) – Hydro Energy Financing Program

Contact Person:Eufemia C. Mendoza, First Vice President,

PMI-DBS

Address:DBPBuilding, Makati Avenue, Makati City

Telephone Number:+632 8403435

Fax Number:+632 8944444

E-mail Address:

Website:

Objectives

• To provide financial support to hydro project developers in line with government’s rural electrification program in areas where the generation of electric power using the hydro scheme is proven to be a viable alternative to conventional power generation systems; and
• To improve the quality of life of Filipinos, particularly the rural folk, by appropriately addressing their specific needs utilizing renewable and environment-friendly alternative sources.

Eligible Borrowers

Duly registered entities authorized to undertake the project with at least 60% Filipino ownership with an exclusive or non-exclusive reconnaissance permit granted by the Department of Energy (DOE) such as but not limited to:

• Single proprietorships
• Partnerships
• Corporations (public or private)
• Cooperatives
• Non-government organizations
• Local government units

Eligible Loan Purposes

Eligible borrowers may avail of the loan to:

• Finance the construction of new hydro facilities, including pre-operating cost and expenses;
• Finance the rehabilitation, modernization, and expansion of existing hydro facilities to enhance its present level of viability

LOAN FEATURES:

Loan Term

Allowable repayment term of the fund source

Grace Period on Principal

Maximum of three (3) years for new projects and one (1) year for rehabilitation/modernization projects reckoned from the date of initial drawdown.

Interest Rate

DBP Funds – Prevailing interest rate with the gross receipt tax (GRT) for the account of the borrower

ODA Funds – Applicable interest rate depending on fund source

Filing Fee

One half of 1% of loan amount (minimum P500)

Other Fees

Depends on fund source for ODAs

Collateral Requirements

Loan may be secured by assets acquired out of the loan proceeds and other applicable securities specific to the projects such as but not limited to:

• Real Estate Mortgage
• Chattel Mortgage
• Loan Guarantee
• Internal Revenue Allotment for LGUs
• Assignment of Insurance Cover
• Assignment of Supplier’s BuyBack Guarantee
• Joint and Several Signatures (JSS) of principal stockholders in case of corporation and key officers for cooperative

Equity Participation

At least 25% of the total cost of the project. Depending on total project cost, syndicated loans shall be considered.

1. Development Bank of the Philippines (DBP) – WB – Rural Power Project for Type A Beneficiaries (RESCO, QTP, NGO, Cooperatives and LGUs)

Contact Person 1:Julieta Y. Salvatierra, Assistant Vice President, PMI-DBS

E-mail Address:

Contact Person 2:Rustico Noli D. Cruz, Chief Account Management Specialist

E-mail Address:

Contact Person 3:Oscar SF. Dela Cruz, Manager

E-mail Address:

Address:Sen. Gil Puyat Ave cor. Makati Ave, Makati City

Telephone Number:+63 2 8403435/ 8189511 loc. 2529/2543

Fax Number:+63 2 8935380

Website:

Objectives

The project is aimed at supporting reforms and priority investments to improve quality of life in rural areas through the provision of adequate, affordable and reliable energy services, in partnership with the private sector.

Eligible Beneficiaries

• Renewable Energy Service Companies/Corporations (RESCO)
• Qualified Third Parties (QTP)
• Non-Governmental Organizations (NGO)
• Cooperatives other than Electric Cooperatives
• Local Government Units (LGU)

Eligibility Criteria for Beneficiaries

• Established, organized and operating in accordance with the laws o the Republic of the Philippines
• Has a business plan for implementing a Type A Subproject satisfactory to DBP
• Provides annual audited accounts satisfactory to DBP which demonstrate that the entity is financially sound
• Has a second projected service coverage ratio based on forecast cash flows, as defined by DBP, of at least 1 time
• Has at least one year of operational experience, or access to expertise satisfactory to DBP, in small-scale energy generation and/or power distribution; and
• If an LGU, has received resolutions passed by its municipal council and mayor enabling the LGU to participate in the Projectand to execute a Type A Sub loan Agreement with DBP, satisfactory to DBP.

Eligible Projects

For development and construction of small-scale energy generation and mini-grid rural electrification projects through conventional and renewable energy resources.

Eligible Loan Purposes

Capital investment/Working capital/Interest during construction/Consultant’s Services

LOAN FEATURES:

Loan Term

Maximum of fifteen (15) years with maximum of five (5) years grace period based on cash flow

Interest Rate

Prevailing market rate, fixed or variable

Commitment Fee

0.85% on unreleased balance to start after 45 days from date of notice of approval or upon completion of full documentation, whichever comes earlier up to full availment.

Front-end Fee

1% based on amount of loan

Insurance

Insurance coverage on all insurable assets placed by and endorsed in favor of DBP

Collateral Requirements

Real Estate Mortgage/Chattel Mortgage/Loan Guarantee/Assignment of Revenues/Internal Revenue Allotment (IRA) for LGUs/Joint and Several Signatures (JSS)

Equity Participation

Minimum of 10% based on Total Project Cost

1. Development Bank of the Philippines (DBP) – WB – Rural Power Project For Type B BENEFICIARIES (RET Purchasers/Suppliers)

Contact Person 1:Julieta Y. Salvatierra, Assistant Vice President, PMI-DBS

E-mail Address:

Contact Person 2:Rustico Noli D. Cruz, Chief Account Management Specialist

E-mail Address:

Contact Person 3:Oscar SF. Dela Cruz, Manager

E-mail Address:

Address:Sen. Gil Puyat Ave cor. Makati Ave., Makati City

Telephone Number:+63 2 8403435/ 8189511 loc. 2529/2543

Fax Number:+63 2 8935380

Website:

Objectives

The project is aimed at supporting reforms and priority investments to improve quality of life in rural areas through the provision of adequate, affordable and reliable energy services, in partnership with the private sector.

Eligible Beneficiaries

• Renewable Energy Technology (RET) system purchasers (i.e. individual households, shops and other businesses, community groups, etc.)
• Renewable Energy (RET) system suppliers (i.e. Solar home system, small wind or wind-PV systems, pico-hydro units)

Eligible Projects

Stand–alone renewable energy rural system electrification project, including the marketing, sale, purchase, and installation of RET systems

Eligible Loan Purposes

• Capital Investment
• Working Capital

LOAN FEATURES:

Loan Term

Maximum of six (6) years with maximum of six (6) months grace period based on cash flow

Interest Rate

Prevailing market rate, fixed or variable

Commitment Fee

0.85% on unreleased balance to start after 45 days from date of notice of approval or upon completion of full documentation, whichever comes earlier up to full availment.

Front-end Fee

1% based on amount of loan

Insurance

Insurance coverage on all insurable assets placed by and endorsed in favor of DBP

Collateral Requirements

• Real Estate Mortgage
• Chattel Mortgage
• Loan Guarantee
• Assignment of Revenues
• Internal Revenue Allotment (IRA) for LGUs
• Joint and Several Signatures (JSS)

Equity Participation

Minimum of 10% based on Total Project Cost

1. Development Bank of the Philippines (DBP) – WB – Rural Power Project for Type C Beneficiaries (Electric Cooperatives)

Contact Person 1:Julieta Y. Salvatierra, Assistant Vice President, PMI-DBS

E-mail Address:

Contact Person 2:Rustico Noli D. Cruz, Chief Account Management Specialist

E-mail Address:

Contact Person 3:Oscar SF. Dela Cruz, Manager

E-mail Address:

Contact Person 4:Miriam G. Salvador, Chief Account Management Specialist

E-mail Address:

Address:Sen. Gil Puyat Ave Cor. Makati Ave, Makati City

Telephone Number:+63 2 8403435/ 8189511 loc. 2529/2543

Fax Number:+63 2 8935380

Website:

Objectives

The project is aimed at supporting reforms and priority investments to improve quality of life in rural areas through the provision of adequate, affordable and reliable energy services, in partnership with the private sector.

Eligible Beneficiaries

Electric Cooperatives

Eligible Projects

• Improving power supply system safety, reliability, efficiency and power service quality for existing customers, through rehabilitation and capacity upgrades of the existing supply system (including purchase of secondhand sub-transmission facilities)
• Removing supply system constraints
• Encouraging institutional development of Electric Cooperatives
• Providing the necessary hardware, software, motor vehicles, tools and equipment to improve employee productivity, safety, and efficiency of customer service provision

Eligible Loan Purposes

• Capital Investment
• Working Capital
• Interest during construction period
• Consultant’s services
• Acquisition of existing sub-transmission lines of NPC not previously financed by the Bank

LOAN FEATURES:

Loan Term

Maximum of fifteen (15) years with maximum of five (5) years grace period based on cash flow

Interest Rate

Prevailing market rate, fixed or variable