World Bank submits final report on financing options for public EE to DOE, copies PE2

BONIFACIO GLOBAL CITY, TAGUIG, 26 April 2018 -- The World Bank's acting country director for Brunei, Malaysia, Philippines and Thailand officially submitted to the Philippine Government, through Secretary Alfonso Cusi of the Department of Energy (DOE), the findings of the study “The Philippines: Options for Financing Energy Efficiency in Public Buildings” that was prepared by the World Bank energy team during May-November 2017. The president of the Philippine Energy Efficiency Alliance (PE2) was among the stakeholders copied in the World Bank’s submission to the Government.

A draft report of the study was discussed at a roundtable, held on 18 January 2018 in the World Bank Philippines country office. Officials from the DOE, Department of Budget and Management (DBM), and Department of Education were in attendance, along with PE2 officers, trustees and member representatives, and other representatives from the private sector and civil society. Based on the outcomes of the roundtable, the Bank team finalized the study report.

The study confirmed the significant energy efficiency potential of public buildings in the Philippines. Realizing this potential in National Government Agency (NGA) office buildings only would result in the following annual benefits:

  • Monetary savings for the national budget of about PHP3.6 billion;
  • Electricity savings above 440 million kilowatt hours; and
  • Emission reductions of 308,000 tons of CO2.

Should energy efficiency improvements take place in both central and local government buildings, as well as in other public-sector utilities such as street lighting and irrigation across the country, total annual benefits would be at least three times larger than the ones estimated for NGA office buildings.

The study reviewed international experience with institutional and financing options for energy efficiency investments in public buildings and recommended two financing mechanism options that are most suited to the Philippines. These are: (i) establish a project implementation unit under DBM to administer a budget financing with capital recovery scheme; or (ii) assign the Philippine National Oil Company Renewables Corporation as the lead implementing agency of the investment component, serving as a super Energy Service Company. The options could be implemented simultaneously and strengthen the implementation of the Government Energy Management Program.

The World Bank energy team will further discuss the proposed options with DOE, DBM and other government entities, and explore options for a follow on advisory and/or financial support to implement them. PE2 and the World Bank will continue to coordinate as each organization progresses in respective efforts to support the Philippine Government scale-up energy efficiency in the public sector.

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