The Asian Development Bank has started negotiations with the Philippine government and the private sector to finance $1 billion worth of renewable energy and energy efficiency projects.
“We’re still in discussions with the Energy and Finance departments. It will go to the government and also the private sector,” Samuel Tumiwa, principal planning and coordination specialist at the ADB, told reporters at the sidelines of the Clean Energy Expo Asia 2010.
“Right now, we have six wind farms that we are talking to with developers in the Philippines,” he said.
He said ADB had given the Philippines about $2 million of grant money to fund feasibility studies on wind projects.
“We have to balance how much would go to renewable energy and energy efficiency, how to balance between private sector and public sector,” he said.
Tumiwa said the ADB’s $1-billion loan for renewable and energy efficiency projects would carry a 1.2-percent interest for 28 years with an eight-year grace period.
He said the Philippines would receive $250 million from the Clean Technology Fund. The fund is part of a broad global initiative to help developing countries meet the cost of actions needed to fight climate change.
The fund will aid the country in combating rising greenhouse gas emissions due to increased vehicle ownership, rapid urbanization rate and land use change.
“For the CTF money in the Philippines, the thing we are really focusing on is scaling up the use of solar energy. We’re going to use about $125 million of CTF money for solar, [with] 0.25-percent interest for 40 years,” he said.
WooChong Um, ADB director- general, lauded the Philippine government for its initiatives on renewable energy and climate change mitigation.
