Rural Power Project

closed

The objective of the Project is to assist in the implementation of the first phase of the Rural Power Development Program, aimed at supporting reforms and priority investments, to achieve the aforementioned objectives of the sector. The rural electrification subprojects component would have two subcomponents: (1) grid-connected electric cooperative (EC) subprojects; and, (2) decentralized electrification. The first subcomponent will improve power supply systems' safety, reliability, efficiency and power service quality for existing customers, through rehabilitation and capacity upgrades of the existing supply system; remove supply system constraints, encourage institutional development of ECs, and, improve employee productivity, safety, and, efficiency of customer service provision. The second subcomponent will support investments in small power generation, decentralized grids, and stand-alone renewable energy technologies (RET) systems, most notably photovoltaic (PV) systems. The Partial Credit Guarantee Fund component will help establish, and provide grant funds to partially cover loan losses incurred in the provision of loans to RET purchasers, and suppliers. This component would be funded by a United Nations Development Program (UNDP)-Global Environment Facility (GEF) grant. Finally, the third component will support the Department of Energy, the Development Bank of the Philippines, participating financial intermediaries, and participating enterprises in reducing market barriers for the commercialization of RETs, by building capacity of concerned public, and private sector entities. Investment risks would be reduced through strong project development, appraisal, procurement, and supervision of RET subprojects, and, by supporting implementation policies on energy tariffs and subsidies, and on regulation, and planning. This component will be funded by the Bank-GEF grant.