|
|  |
| GEF Philippines Sustainable Energy Financing Program |
|
| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 507694 |
| Company name | INTERNATIONAL FINANCE CORPORATION(IFC) |
| Country | Philippines |
| Sector | Other (For Non-Investment Projects) |
| Environmental category | FI |
| Department | Environment & Social Development |
| Status | Pend Approval-NonInv |
|
| Date SPI disclosed | April 20, 2009 |
| Projected board date | May 20, 2009 |
|
| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
The Philippines Sustainable Energy Finance Project II ("Phils SEF II" or the "Project") supports the creation of a commercial financing market for sustainable energy (SE) projects in the Philippines. This will assist the Philippines in improving energy security and economic productivity, and promoting private enterprise in the energy sector. Phils SEF II will cover both Energy Efficiency (EE) and Renewable Energy (RE) projects. It will focus on providing three to four local FIs with the support necessary to develop their own portfolio of SE projects.
The Program is designed to leverage IFC’s capabilities and experience and donor resources to address those barriers, and will result in:
- improved access to financing for SE projects, which will continue beyond the support of IFC financial instruments and TA;
- growth and business development for private enterprises related to EE/RE projects;
- promotion of more sustainable development, with better use of natural resources and reduction in greenhouse gas emissions; and,
- assistance in correcting market imperfections, and a clearer regulatory environment that will further enable sustainable business development in EE and RE.
This program will support the National Government as it implements both its national energy efficiency and climate change mitigation campaigns.
This project uses $5.3 million of GEF funds to support advisory services ($2.3 million) and risk sharing ($3 million) for financial institutions. Where IFC invests in risk sharing facilities with specific financial institutions the sponsors and financing arrangements will be disclosed under separate SPIs. |
|
| Project sponsor and major shareholders of project company |
| The project will support a number of different sponsors. These will be identified and disclosed under individual investment agreements. |
| Total project cost and amount and nature of IFC's investment |
| This SPI covers the GEF Grant of $2.3million for advisory services and $3million for risk sharing facilities. IFC investment to be determined. |
| Location of project and description of site |
| All work will be carried out in the Philippines with Philippine financial institutions. All sub-loans from FIs will be to clients/projects in the Philippines |
|
| Anticipated development impact of the project |
| The Program contributes to the Philippines Country Assistance Strategy (CAS) of the World Bank and IFC by creating greater opportunities for FIs in financing investments with high growth potential and by implementing programs with high replicability in the areas of SE financing. The project will have an impact on emissions of greenhouse gases with an estimated direct environmental benefit of avoided CO2 emissions of 3.1 million tons. |
 |
| IFC's expected development contribution |
IFC is very well suited to implement this Program as it has:
- significant experience due to well-established financial markets and energy investment portfolios in the Philippines;
- a well-established Advisory services delivery infrastructure with which to administer the Program; and
- extensive experience in implementing SE financing programs – a field in which it is a global leader and in which it already has experience within the Philippines.
In addition to the above, having carried out similar programs in eight other countries, IFC is in a very strong position to leverage years’ of experience and expertise to ensure the success of this program. |
| Environmental and social issues - Category FI |
| Where IFC invests in risk sharing facilities with FIs, IFC will review the capacity of the FIs to manage social and environmental risks associated with the portfolio of SE projects to be supported. Where necessary, IFC will require the FIs to establish a Social & Environmental Management System (SEMS) to screen investments against national laws and if applicable, the IFC Performance Standards. |
|
| For inquiries about the project, contact: |
William Beloe
Head for Advisory Services & Program Manager for Sustainability - Philippines
IFC East Asia and Pacific
11th Floor, Tower One, Ayala Triangle
Ayala Ave., Makati City
Philippines
Tel: +63 2 848 7333
Fax: +63 2 848 7339
Email: WBeloe@ifc.org Web: www.ifc.org |
|
| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
| Local access of project documentation |
IFC East Asia and Pacific
11th Floor, Tower One, Ayala Triangle
Ayala Ave., Makati City
Philippines |
|
|
|
|