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IFC Facilitates Public-Private Partnership to Develop
Rural Electrification Project in the Philippines
Manila, Philippines, September 1, 2008—IFC,
a member of the World Bank Group, has helped broker a power supply agreement
in the Philippines that will benefit 330,000 people, over half of whom
will gain access to electricity for the first time. Services will be improved
for those who already have access to electricity.
Under the terms of the agreement between
Basilan Electric Cooperative, Inc., a local distribution utility company
known as BASELCO, and Coastal Power Development Corporation, a private
power producer that won the competitive bid on the project, Coastal Power
will supply 11.8 megawatts of dependable electricity to BASELCO, at a cost
of 11 pesos per kilowatt-hour from 2010.
“By signing this agreement, we can
guarantee that there will be a significant improvement in the quantity
and quality of electricity supply for residents and businesses on Basilan
Island. The increase will allow BASELCO to meet current and potential demand
24 hours a day, seven days a week at a competitive price,” said Ismael
Basa, President of BASELCO’s Board.
“Coastal Power’s price represents
annual savings of more than 50 million pesos from the National Power Corporation’s
operating cost, because of increased efficiency. This will reduce subsidies
and improve our organization’s financial position,” said Cyril Del Callar,
President of NPC. “We would like to thank IFC for its advisory services
and ongoing support.”
“Once again, IFC is pleased to partner
with the Philippine government and the private sector to facilitate a transaction
that will help increase efficiency, provide reliable power to remote islands
in Mindanao, and
meet the government’s objective of total rural electrification,” said
Jesse Ang, IFC Resident Representative for the Philippines. “This is consistent
with IFC’s strategy to support sectors identified for their high development
impact.”
This initiative was made possible by
DevCo, a multidonor program affiliated with the Private Infrastructure
Development Group and supported by U.K.’s Department for International
Development, the Dutch Ministry of Foreign Affairs, the Swedish International
Development Agency, and the Austrian Development Agency.
About IFC
IFC, a member of the World Bank Group,
fosters sustainable economic growth in developing countries by financing
private sector investment, mobilizing private capital in local and international
financial markets, and providing advisory and risk mitigation services
to businesses and governments. IFC’s vision is that people should have
the opportunity to escape poverty and improve their lives. In FY07, IFC
committed $8.2 billion and mobilized an additional $3.9 billion through
syndications and structured finance for 299 investments in 69 developing
countries. IFC also provided advisory services in 97 countries. For more
information, visit www.ifc.org.
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