LBP-PMD1-CPMULANDBANK LBP-PMD1-CPMULBP-PMD1-CPMULANDBANKLANDBANK LBP-PMD1-CPMU
Financing Renewable Energy Projects
Programs Mgmt Group
LBP-PMD1-CPMULANDBANK LBP-PMD1-CPMULBP-PMD1-CPMULANDBANKLANDBANK LBP-PMD1-CPMU
PRESENTATION OUTLINE
Why support/finance Renewable Energy projects
Renewable Energy loan portfolio
Financing programs for Renewable Energy projects
ISO 14001 Certified
LBP-PMD1-CPMULANDBANK LBP-PMD1-CPMULBP-PMD1-CPMULANDBANKLANDBANK LBP-PMD1-CPMU
WHY SUPPORT/FINANCE RENEWABLE ENERGY
PROJECTS?
Advocacy in clean and green projects
Pursuant to the Renewable Energy Law
Contribution to reduce global warming and address climate change issues
ISO 14001 Certified
LBP-PMD1-CPMULANDBANK LBP-PMD1-CPMULBP-PMD1-CPMULANDBANKLANDBANK LBP-PMD1-CPMU
Biomass(8) P572 M
Hydro (8) P272 M
RENEWABLE ENERGY LOAN PORTFOLIO
ISO 14001 Certified
LBP-PMD1-CPMULANDBANK LBP-PMD1-CPMULBP-PMD1-CPMULANDBANKLANDBANK LBP-PMD1-CPMU
RENEWABLE ENERGY PROSPECTIVE PROJECTS
ISO 14001 Certified
Biomass(3) P771 M
Hydro (19) P8,094 M
Solar (1) P250 M
LBP-PMD1-CPMULANDBANK LBP-PMD1-CPMULBP-PMD1-CPMULANDBANKLANDBANK LBP-PMD1-CPMU
Renewable Energy for Wiser and Accelerated Resources Development (REWARD) Program
FINANCING PROGRAM FOR RENEWABLE ENERGY PROJECTS
LBP-PMD1-CPMULANDBANK LBP-PMD1-CPMULBP-PMD1-CPMULANDBANKLANDBANK LBP-PMD1-CPMU
Eligible Borrower
Sole Proprietorship Partnership Corporation (at least 60% Filipino-owned)Cooperative Local Government Unit Government-Owned and Controlled Corporations
REWARD PROGRAM
ISO 14001 Certified
LBP-PMD1-CPMULANDBANK LBP-PMD1-CPMULBP-PMD1-CPMULANDBANKLANDBANK LBP-PMD1-CPMU
Eligible Expenditures
Project Feasibility Study PreparationWorking Capital (short-term and permanent working capital)Fixed Asset Investment
REWARD PROGRAM
ISO 14001 Certified
LBP-PMD1-CPMULANDBANK LBP-PMD1-CPMULBP-PMD1-CPMULANDBANKLANDBANK LBP-PMD1-CPMU
Eligible Projects
Biomass-basedHydropowerWind powerGeothermal Solar Energy (solar photovoltaic, solar water heaters)Co-generation
REWARD PROGRAM
ISO 14001 Certified
LBP-PMD1-CPMULANDBANK LBP-PMD1-CPMULBP-PMD1-CPMULANDBANKLANDBANK LBP-PMD1-CPMU
Interest Rate
Market rate (variable)Special financing rate (variable/fixed)
Loan Size
Will depend on project requirement
REWARD PROGRAM
ISO 14001 Certified
LBP-PMD1-CPMULANDBANK LBP-PMD1-CPMULBP-PMD1-CPMULANDBANKLANDBANK LBP-PMD1-CPMU
REWARD PROGRAM
ISO 14001 Certified
Tenor
SHORT TERM Via up to 360-day PN
TERM LOAN Based on cash flow with monthly or
quarterly repayments (principal & interest)
Loan tenor is up to a maximum of 7 years (internal) or 15 years (special financing)
LBP-PMD1-CPMULANDBANK LBP-PMD1-CPMULBP-PMD1-CPMULANDBANKLANDBANK LBP-PMD1-CPMU
Financing Mix based on Total Project Cost
Sub-borrower’s Equity (min.) - 25%LBP fund (max.) -
75%
Collateral/Security
May be secured by any or a combination of tangible collaterals or acceptable guarantees consistent with current banking practices, pertinent laws and BSP regulations.
REWARD PROGRAM
ISO 14001 Certified
LBP-PMD1-CPMULANDBANK LBP-PMD1-CPMULBP-PMD1-CPMULANDBANKLANDBANK LBP-PMD1-CPMUISO 14001 Certified
ADDITIONAL INCENTIVES EXTENDED TO RENEWABLE ENERGY
PROPONENTS
LBP provides free validation/independent review on the Feasibility Study, Detailed Engineering Design and Environmental Assessment Report that the Consultants prepared for the proponent. This provides additional level of comfort to the project proponent in pursuing the investment.
LBP-PMD1-CPMULANDBANK LBP-PMD1-CPMULBP-PMD1-CPMULANDBANKLANDBANK LBP-PMD1-CPMU
LBP CAN PARTNER WITH OTHER FINANCIAL INSTITUTIONS IN POOLING THE FINANCING REQUIREMENT OF THE RENEWABLE ENERGY PROJECT
CO-FINANCING OPTION
ISO 14001 Certified
LBP-PMD1-CPMULANDBANK LBP-PMD1-CPMULBP-PMD1-CPMULANDBANKLANDBANK LBP-PMD1-CPMUISO 14001 Certified
Special Financing Facilities
Program Fund
Fund Source
Support for Strategic Local Development and Investment Project (S2LDIP)
US$ 100 M World Bank
CBRED Project Preparation Fund (PPF)
US$ 0.321 M UNDP
Carbon Finance Support Facility (CFSF)
n/a n/a
FUNDS/FACILITY AVAILABLE FOR RENEWABLE ENERGY
PROJECTS
LBP-PMD1-CPMULANDBANK LBP-PMD1-CPMULBP-PMD1-CPMULANDBANKLANDBANK LBP-PMD1-CPMU
Support for Strategic Local Dev’t & Investment Project
(S2LDIP)Funded by
The World Bank
ISO 14001 Certified
FUNDS/FACILITY AVAILABLE FOR RENEWABLE ENERGY
PROJECTS
LBP-PMD1-CPMULANDBANK LBP-PMD1-CPMULBP-PMD1-CPMULANDBANKLANDBANK LBP-PMD1-CPMU
Provinces Cities Municipalities Public Utilities Operator (WD,
Electric Coops, Telecoms) Private Operator (willing to
partner with the LGU)
Amount of Facility USD 100M
Eligible Borrowers
WB-S2LDIP
ISO 14001 Certified
Financing Mix 90% S2LDIP 10% LGU equity
LBP-PMD1-CPMULANDBANK LBP-PMD1-CPMULBP-PMD1-CPMULANDBANKLANDBANK LBP-PMD1-CPMU
Maximum of 15 years inclusive of 2 years grace period on principal
Amount of Loan Based on the requirement of the project but should not exceed the Net Borrowing Capacity (For LGUs)
Based on the cash flow, but not to exceed P500 million (For utility and private operators)
Repayment Term
WB-S2LDIP
ISO 14001 Certified
LBP-PMD1-CPMULANDBANK LBP-PMD1-CPMULBP-PMD1-CPMULANDBANKLANDBANK LBP-PMD1-CPMU
CBRED Project Preparation Fund (PPF)
• The CBRED-PPF is a grant fund in the amount of US$ 321,300.00
• Intended to assist RE developers’ cost of preliminary activities.
• The PPF provides a zero interest loan of up to P5M or 50% of the project preparation cost.
• The balance shall be the proponent’s equity
ISO 14001 Certified
FUNDS/FACILITY AVAILABLE FOR RENEWABLE ENERGY
PROJECTS
LBP-PMD1-CPMULANDBANK LBP-PMD1-CPMULBP-PMD1-CPMULANDBANKLANDBANK LBP-PMD1-CPMUISO 14001 Certified
Carbon Finance Support FacilityAssistance to Project Owner• Arrange the pre-assessment/due diligence
activities• Prepare the Clean Development Mechanism (CDM)
Project Activity (CPA) – Design Documents and the CDM Sustainable Development Form
• Facilitate the Designated National Authority (i.e. DENR) endorsement of the CDM project application
• Arrange the validation and verification activities with a Designated Operational Entity (DOE) or the Third Party Auditor
• Provide support and assistance on CDM documentation and monitoring
FUNDS/FACILITY AVAILABLE FOR RENEWABLE ENERGY
PROJECTS
LBP-PMD1-CPMULANDBANK LBP-PMD1-CPMULBP-PMD1-CPMULANDBANKLANDBANK LBP-PMD1-CPMU
Thank You
ISO 14001 Certified