Financing Renewable Energy Projects Programs Mgmt Group

LBP-PMD1-CPMULANDBANK LBP-PMD1-CPMULBP-PMD1-CPMULANDBANKLANDBANK LBP-PMD1-CPMU

Financing Renewable Energy Projects

Programs Mgmt Group


PRESENTATION OUTLINE

Why support/finance Renewable Energy projects

Renewable Energy loan portfolio

Financing programs for Renewable Energy projects

ISO 14001 Certified


WHY SUPPORT/FINANCE RENEWABLE ENERGY

PROJECTS?

Advocacy in clean and green projects

Pursuant to the Renewable Energy Law

Contribution to reduce global warming and address climate change issues

ISO 14001 Certified


Biomass(8) P572 M

Hydro (8) P272 M

RENEWABLE ENERGY LOAN PORTFOLIO

ISO 14001 Certified


RENEWABLE ENERGY PROSPECTIVE PROJECTS

ISO 14001 Certified

Biomass(3) P771 M

Hydro (19) P8,094 M

Solar (1) P250 M


Renewable Energy for Wiser and Accelerated Resources Development (REWARD) Program

FINANCING PROGRAM FOR RENEWABLE ENERGY PROJECTS

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Eligible Borrower

Sole Proprietorship Partnership Corporation (at least 60% Filipino-owned)Cooperative Local Government Unit Government-Owned and Controlled Corporations

REWARD PROGRAM

ISO 14001 Certified


Eligible Expenditures

Project Feasibility Study PreparationWorking Capital (short-term and permanent working capital)Fixed Asset Investment

REWARD PROGRAM

ISO 14001 Certified


Eligible Projects

Biomass-basedHydropowerWind powerGeothermal Solar Energy (solar photovoltaic, solar water heaters)Co-generation

REWARD PROGRAM

ISO 14001 Certified


Interest Rate

Market rate (variable)Special financing rate (variable/fixed)

Loan Size

Will depend on project requirement

REWARD PROGRAM

ISO 14001 Certified


REWARD PROGRAM

ISO 14001 Certified

Tenor

SHORT TERM Via up to 360-day PN

TERM LOAN Based on cash flow with monthly or

quarterly repayments (principal & interest)

Loan tenor is up to a maximum of 7 years (internal) or 15 years (special financing)


Financing Mix based on Total Project Cost

Sub-borrower’s Equity (min.) - 25%LBP fund (max.) -

75%

Collateral/Security

May be secured by any or a combination of tangible collaterals or acceptable guarantees consistent with current banking practices, pertinent laws and BSP regulations.

REWARD PROGRAM

ISO 14001 Certified

LBP-PMD1-CPMULANDBANK LBP-PMD1-CPMULBP-PMD1-CPMULANDBANKLANDBANK LBP-PMD1-CPMUISO 14001 Certified

ADDITIONAL INCENTIVES EXTENDED TO RENEWABLE ENERGY

PROPONENTS

LBP provides free validation/independent review on the Feasibility Study, Detailed Engineering Design and Environmental Assessment Report that the Consultants prepared for the proponent. This provides additional level of comfort to the project proponent in pursuing the investment.


LBP CAN PARTNER WITH OTHER FINANCIAL INSTITUTIONS IN POOLING THE FINANCING REQUIREMENT OF THE RENEWABLE ENERGY PROJECT

CO-FINANCING OPTION

ISO 14001 Certified


Special Financing Facilities

Program Fund

Fund Source

Support for Strategic Local Development and Investment Project (S2LDIP)

US$ 100 M World Bank

CBRED Project Preparation Fund (PPF)

US$ 0.321 M UNDP

Carbon Finance Support Facility (CFSF)

n/a n/a

FUNDS/FACILITY AVAILABLE FOR RENEWABLE ENERGY

PROJECTS


Support for Strategic Local Dev’t & Investment Project

(S2LDIP)Funded by

The World Bank

ISO 14001 Certified


PROJECTS

http://www.ruralhometech.com/drainage/bd01c1.htm


Provinces Cities Municipalities Public Utilities Operator (WD,

Electric Coops, Telecoms) Private Operator (willing to

partner with the LGU)

Amount of Facility USD 100M

Eligible Borrowers

WB-S2LDIP

ISO 14001 Certified

Financing Mix 90% S2LDIP 10% LGU equity


Maximum of 15 years inclusive of 2 years grace period on principal

Amount of Loan Based on the requirement of the project but should not exceed the Net Borrowing Capacity (For LGUs)

Based on the cash flow, but not to exceed P500 million (For utility and private operators)

Repayment Term

WB-S2LDIP

ISO 14001 Certified


CBRED Project Preparation Fund (PPF)

• The CBRED-PPF is a grant fund in the amount of US$ 321,300.00

• Intended to assist RE developers’ cost of preliminary activities.

• The PPF provides a zero interest loan of up to P5M or 50% of the project preparation cost.

• The balance shall be the proponent’s equity

ISO 14001 Certified


PROJECTS


Carbon Finance Support FacilityAssistance to Project Owner• Arrange the pre-assessment/due diligence

activities• Prepare the Clean Development Mechanism (CDM)

Project Activity (CPA) – Design Documents and the CDM Sustainable Development Form

• Facilitate the Designated National Authority (i.e. DENR) endorsement of the CDM project application

• Arrange the validation and verification activities with a Designated Operational Entity (DOE) or the Third Party Auditor

• Provide support and assistance on CDM documentation and monitoring


PROJECTS


Thank You

ISO 14001 Certified