Electric Cooperative System Loss Reduction Project

closed

Closed

The Electric Cooperative Systems Loss Reduction Project will achieve significant, and sustained energy efficiency improvements in electric cooperatives (ECs), in order to provide customers with reliable, and least-cost power supply over the long term. The project will consist of two components - Partial Credit Guarantee Program, which includes eligible EC subproject investments, and the establishment of a Global Environment Facility (GEF)-funded partial credit guarantee facility to support such investments, and, - capacity building and implementation support for key stakeholders. The Partial Credit Guarantee Program will include a) provision of risk mitigation to lenders, thus to investor borrowers, to support energy efficiency investments; b) guarantees would leverage existing banking credit assessments expertise, share borrower credit risk with commercial lenders, and improve terms and access to loan financing, including the extension of maturities for borrowers; c) the guarantee coverage required would be determined by the nature of each investor EC, and status of the EC, as well as specific debt financing structure; and, d) the guarantee liabilities for a given transaction would be decreased over the life of the loan, in line with principal amortization schedule. Activities under the Capacity Building and Implementation Support component will include two Subcomponents: 1) the LGU Guarantee Corporation (LGUGC) subcomponent will provide technical assistance, training, study tours and workshops to LGUGC, financial intermediaries, selected ECs, and ECs investors, in power distribution systems, to strengthen LGUGC capacity; and, 2) provision of technical assistance to the Department of Energy (DOE) for implementation of periodic reporting, monitoring and evaluation of the credit guarantee program, as well as the assessment of energy efficiency gains of ECs from improved access to commercial lending. Capacity building within DOE would include technical assistance, training, study tours in procurement, and in energy regulation, operations and management practices.

FY17 - Energy and Extractives

World Bank Group

Project

Power Generation (CCGT), Commercial, Government