Ongoing and Completed Projects | IRG-P - International Resources Group - IRG Philippines | Energy and Environmental Consulting Business | Manila, Philippines

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Ongoing Projects

ECO–Asia Clean Development Programme (USAID funded)

The U.S. Agency for International Development has initiated the ECO-Asia Clean Development Programme to promote policy and market transformation in Asia and encourage strategic investments in clean technologies in the region. Specifically, the programme will identify and promote activities that increase investment in clean technologies and lead to their expansion and scale-up. The programme is a 3-year regional programme covering China, India, Indonesia, Philippines, Thailand and Vietnam. Based on a comprehensive regional analysis of clean energy priorities, the programme has identified three priority areas where it will focus its actions to achieve results: (1) end-use efficiency, with focus on compact fluorescent lamps; (2) improved efficiency of coal power supply; and (3) support to accelerate financing of clean energy technologies. Program activities in these sectors will be built around three pillars: increasing policy and market incentives, mobilizing finance and deploying clean energy technologies, and regional information sharing to accelerate deployment.

For the above project, the IRG-Philippines is providing the services of the Project Coordinator for the Philippines tasked among others to lead the development and implementation of specific activities in the Philippines within the priorities of the programme, provide technical inputs to programme elements that are specific to the Philippines and develop and sustain relationships with Philippine stakeholders.

Technical Assistance for Renewable Energy Engineering Service Industry Development (DOE/UNDP-GEF funded)

In this subcontract IRG-Philippines is developing the Engineering Service Industry Development (ESID) Program which aims to strengthen the technical expertise of RE engineering service providers (ESPs) in the country. The ESID Program is comprised of the following sub-programs: (1) Capacity Building Sub-Program, (2) Engineering Service Industry Registration Sub-Program (ESI RSP), and (3) the Monitoring and Evaluation Sub-program. These sub-programs are being developed based on the results of a needs-assessment conducted by IRG-P among local engineering service providers.

The Capacity Building Sub-Program is composed of two interventions that will directly benefit the ESPs through the enhancement of knowledge and skills and through improved access to tools and equipment. The two interventions of the Capacity Building Sub-program are: (a) RE Engineering Service Providers’ RE Training (REESPT), and (b) RE System Design and Project Analysis Software Development. The REESPT will provide a closely supervised training regimen on various aspects of RE system design, project management, installation and deployment, operation and maintenance to local ESPs. The RE System Design and Project Analysis Software Development intervention on the other hand serves to enhance the capability of ESPs towards accurate design and simulation of the technical performance, and financial viability of specific RE projects and systems.

The Engineering Service Industry Registration Sub-Program provides a registration mechanism that would enable the DOE and the RE sector know the current level of competencies of ESPs and understand their gaps and needs in effectively performing the services required by the RE industry. This Registration Sub-Program is essentially a support activity to the Capacity Building Sub-Program which will identify specific ESPs and their needs. A duly designated Registration Organization will be tasked to make an assessment of the current level of know-how and skills of registered ESPs. There is no “pass” or “fail” criterion, rather, each ESP will be categorized based on industry-accepted competency level standards. An ESP may ascend to a higher level by participating in the Capacity Building Sub-Program to enhance its capabilities.

The Monitoring and Evaluation Sub-Program will serve as the over-all performance tracking platform for the ESID Program. It will document the activities undertaken under the other sub-programs and evaluate their effectiveness in contributing to the attainment of the over-all objective of the ESID Program.

Technical Assistance to Manufacturers of RE Equipment (DOE/UNDP-GEF funded)

IRG-P is developing a program that will enhance the technological capacity of local Renewable Energy (RE) manufacturers to improve RE systems and equipment to a state that is responsive to customers’ needs and in the long-term be globally competitive. The Technical Assistance (TA) Program for Manufacturers of RE Equipment being developed will address the gaps identified by local RE manufacturers during the assessment made by IRG-P on the current technological state of the RE industry. The Program is composed of the following sub-programs, namely: (1) RE Technology Support and Development Sub-Program (RETSDev), (2) RE National Standards and Testing Centers Sub-Program, and (3) RE Product Certification Sub-Program.

The RE Technology Support and Development Sub-Program (RETSDev) is the heart of the TA Program. RETSDev includes five specific interventions that will be extended to RE equipment and component manufacturers; these are: (a) RE Technology Assistance Fund (RETAssist), (b) RE Technology Development Network (RETDev), (c) RE Product Monitoring, (d) RE Equipment Design and Project Analysis Software Development, and (e) RE Manpower Development Program (REMDP). The RETAssist will provide financial assistance to groups undertaking projects or activities towards technical innovation and adaptive research that are aimed at enhancing the level of quality and commercialization potential of RE technologies. RETDev network on the other hand will promote and facilitate strategic planning, institutionalize linkages and consolidate initiatives of the private sector, research institutions, and government agencies. The RE Product Monitoring activity is envisioned to be a mechanism for the inventory of the operation status of RE installation. It will develop a database of RE system components and equipment which will make relevant information available to the industry. In order to lessen the premature failure and sub-optimal performance of RE systems, the RE Equipment Design and Project Analysis Software Development activity will facilitate RE manufacturers’ access to software applications which will enable them to automate their designs and analysis processes. Finally, the RE Manpower Development Program (REMDP) will be the strategy for the transformation and advancement of professional and academic engineering education necessary to address the manpower challenges faced by the industry, such as the inadequate preparation of graduates and personnel for accomplishing tasks related to the design, operation and maintenance of RE systems.

The RE National Standards and Testing Centers Sub-Program will enable the RE industry to rationalize its efforts towards enhancing the technical performance of RE systems and components. The technical performance of RE systems or components will be benchmarked against industry-developed and accepted RE Product Standards. Since RE systems and components have varying levels of development, the formulation and adoption of the national RE product standards must be on a participatory and consensus-building approach. In addition its implementation will require the establishment or strengthening of testing centers for RE products/components.

The RE Product Certification Sub-Program provides the mechanism that will document the compliance of RE systems and components to industry-developed RE product standards. Participation to the Certification Sub-program will initially be on a voluntary basis but will be subject to periodic review to identify the appropriate implementation scheme. The RE products being applied for certification will be assessed against the industry-developed RE Product Standards and based on its field performance test reports. There will be three (3) certification levels for each product. As one ascends to the next level, additional criteria would have to be satisfied. The highest level (Level 3) is intended to help the RE equipment provider to attain global competitiveness. Incentives, such as capacity building programs, will be made available to applicants to entice more RE manufacturers to participate in the Certification Sub-Program.

Health Banks for the Poor: Redeem Your Health Goods (World Bank funded through the Development Marketplace)

IRG-Philippines is one of 22 winners selected from 2,900 applicants to the 2007 Global Development Marketplace competition of the World Bank which is jointly funded by the Bill and Melinda Gates Foundation. This project is an innovative approach that addresses both health and environmental concerns of poor families in the island barangays of Binuangan and Salambao in the municipality of Obando, Bulacan province. The two barangays have the highest incidence of underweight children among the nine barangays of Obando. In addition, because of its geographical isolation from the mainland of Obando the two barangays do not have a waste disposal system in place. Accumulated wastes in vacant lots are very common in both barangays which become breeding grounds for disease-carrying agents including bacteria, rats and mosquitoes. Hence, many of the underweight children are frequently afflicted with diarrhea, skin diseases, colds and infection.

IRG-Philippines is establishing two Health Banks, one for each barangay, where families of underweight children may exchange their recyclable wastes for vitamin supplements, milk and basic medicines. The Health Banks will have two sections, namely: (1) the Materials Recovery Facility (MRF), and (2) the Transaction Section. Out-of-school youth will operate the Materials Recovery Facility which will accept the recyclable materials deposited by participating families. Barangay Health Workers will operate the Transaction Section where health products may be withdrawn. Seminars and training will be conducted by IRG-Philippines for the staff of the Health Banks to adequately prepare them for performing their tasks and responsibilities at the Bank. IRG-Philippines will also conduct seminars for all households of the two barangays on proper child health care and proper household waste disposal.

Completed Projects

Capacity Building for Wind Project Developers, providers of Engineering Consulting Services and Government Planners on the Conduct of Preparatory Activities for the Development of Wind Power Projects in the Philippines and Vietnam, and Adopting European and International Standards (European Union Co-funded)

IRG-P was the lead implementer of this project which developed and conducted training modules for three (3) groups of stakeholders in the Philippines and Vietnam who play major roles in their country’s wind energy project development, namely: wind project developers/investors, providers of technical/engineering consulting services and government planners. The training program focused on the internationally-accepted processes for carrying out the different stages in wind power project development such as the initial identification of potential wind sites, pre-feasibility studies and securing financing. The project looked into the experiences of EU countries like Denmark and Germany, which have successfully implemented wind farm projects. The project educated the participants on European and internationally-accepted practices in carrying out wind energy project development activities in a manner that will facilitate partnership with European investors and equipment suppliers.

Capacity Building for Local Government Units (LGUs), Public Market Vendors and Households in Calaca, Batangas on the Sustainable Operation and Maintenance of a Biogas Facility Fuelled by Biodegradable Solid Wastes: Learning from European and ASEAN/Thai Best Practices (European Union Co-funded)

IRG-P led the team of implementers, along with two European consulting firms and a Thai institution, to build the capacity of the LGU, public market vendors, and households in six (6) poblacion barangays of Calaca municipality, province of Batangas, Philippines on biogas technology and responsible solid waste management. The project also assisted the municipality of Calaca to partially comply with the Ecological Solid Waste Management Act of 2000 (RA 9003) which mandates all municipalities to develop and implement a solid waste management system. IRG-P experts designed a solid waste management plan for the six poblacion barangays in consultation with the municipal LGU and the households. Considering that the municipal public market is one of the biggest contributors of waste in Calaca, the market vendors association was given appropriate capacity building program on proper handling of solid wastes. Moreover, after the conduct of an assessment of the wastes generated by the six barangays, the viability of installing a biogas facility to provide power to the public market was looked into. The result of the study showed that with the current amount and kinds of wastes generated by the municipality, it is appropriate to go into composting of the biodegradable wastes for selling of the compost as fertilizer. This will minimize the amount of waste to be disposed in the current dumpsite. In combination with the waste water of the alcohol distillery located in the municipality, the biogas generation option becomes viable. The project team likewise facilitated the identification of potential sources of funding for the construction of the biogas power plant by meeting with local banks and donors as well with regional fund sources like the Asian Development Bank. All funders expressed interest to participate in financing the biogas project especially since it will qualify under the Clean Development Mechanism of the Kyoto Protocol where the sale of CERs would provide additional income stream.

Increasing Access to Local Sources of Financing for Renewable Energy Investments and Design of Innovative Financing Instruments: Case Study in the Philippines, Exchanging Experiences with Thailand, and Applicability of European Approaches (European Union co-funded)

IRG-P was the lead implementer of this project, which aimed to increase the access of renewable energy project investors to local sources of financing to encourage the development and use of renewable energy in the country. This was achieved by capacitating three local banks: the Land Bank of the Philippines, Equitable PCI Bank and First Metro Investment Corporation on renewable energy technologies, markets, economics, and energy policies linked to RE development and financing. Eight (8) training modules were identified and developed for the RE capacity building program, namely: (a) Philippine Energy Scenario and introduction to RE systems, (b) Hydropower, (c) Geothermal Energy, (d) Solar Energy, (e) Wind Energy, (f) Biomass Energy, (g) Kyoto Protocol/ Clean Development Mechanism and (h) RE policy and Finance. IRG-P’s hydro, biomass, wind, solar and CDM experts conducted the lectures on RE technologies and economics for a core group of participants from the three beneficiary banks.

IRG-P designed innovative financing instruments and a strategy to integrate RE lending in the banks’ policies. Guidelines for RE lending were developed by the IRG-P with the core group from each bank by taking as examples selected RE projects in the pipeline. Considering Thailand’s successful RE policies and programs and Europe’s vast experience in RE financing and development, the project looked at Thailand’s and Europe’s experiences in RE development and finance and picked-up approaches that may be adapted locally. The beneficiary banks had dialogues with their Thai and European counterparts and exchanged experiences in financing RE projects. IRG-P organized national and regional fora to share the outputs of the activities with financing institutions, policy-makers and RE stakeholders in the Philippines and in the Southeast Asian region.

Market Service Center (MSC) Business Planning and Development, (DOE/UNDP-GEF funded)

The Market Service Center (MSC) is a new concept in the Renewable Energy sector in the Philippines aimed to serve as the focal point in the country for RE market development by providing link between investors/stakeholders and government institutions, particularly, the PhDOE, to harmonize expectations and mutual support. It is intended to be a one-stop-shop providing the range of services required by the RE industry from project development to implementation. The key function of the MSC is to catalyze the realization of increased private sector investment in the RE sector. Other functions include the provision of assistance to RE project proponents in securing permits, licenses and approvals required to undertake RE projects, the provision of technical advisory and information services to various client groups, assistance in fund sourcing for project investors and the promotion of the financing programs developed by the CBRED project.

The development of strategies for the sustainability of operation of the MSC was a major objective of the subcontract. Towards this goal, the IRG-P developed the operational framework and prepared the documents required to formally establish the Market Service Center. This included identifying the most appropriate legal personality the MSC should take to allow it to attain its objective of providing services to the RE industry in a manner that will sustain its operation. It also develop the MSC business plan as the road map to its sustainable operation. IRG-P also provided capacity building to the personnel of the MSC for the effective execution of their functions. The MSC started its pilot operation in 2006 and is currently working on its registration with the Securities and Exchange Commission.

RE Initiatives Delivery and Financing Mechanisms (DOE/UNDP - GEF funded)

This subcontract aimed among others to design the mechanics and work plan of three (3) kinds of funds to be established under the CBRED Project to assist RE project developers and technology users. These are the Project Preparation Fund (PPF), Loan Guarantee Fund (LGF), and Micro Finance Fund (MFF). The PPF is intended to provide partial conditional loan for project preparation activities such as feasibility studies, engineering design and securing permits and licenses required in the implementation and operationalization of RE projects. The LGF provides partial loan guarantee based on a risk sharing mechanism that allows higher percentage of guarantee cover for clients with lesser capability to put up the required guarantee cover on its own. The MFF is intended to provide financing for small-scale RE projects in remote off-grid areas which lack access to traditional fund sources. As an initial step, the purpose, scope and limitations of the 3 Funds were developed. Fund and Program Managers were selected by a committee composed of representatives from the PhDoE, the UNDP and relevant sectors assisted by the IRG-P project team. Similarly, the IRG-P team also developed the funds management and operating guidelines and the criteria for proposal evaluation and approval. A monitoring and evaluation system on the use and implementation of the Funds and the specific projects that will tap the funds were also developed. The 3 funds became operational in 2006. An initial pipeline of projects for the three funds had been identified.

Alliance for Mindanao Off-Grid Renewable Energy (AMORE) – Development, Installation and Guidance in the Implementation of the Monitoring and Evaluation Framework for the AMORE Project, (USAID-funded)

Many rural electrification projects have not been sustainable in the use of the renewable energy systems beyond project life. Studies revealed that this is due mainly to the failure in establishing a sustainability framework that defines the processes needed to ensure that the objectives of the project will be met even beyond the project term. The AMORE (Alliance for Mindanao Off-Grid Renewable Energy) project aims to electrify about 160 remote rural barangays in Muslim Mindanao, particularly in the provinces of Tawi-tawi, Sulu, Basilan, Zamboanga del Sur, Sultan Kudarat, and Maguindanao using the most appropriate RE technologies such as solar PV and micro-hydro systems. It aims to make a difference in the arena of rural electrification by employing a sustainable approach. Towards this direction, a tool to enhance the capability of the project to sustain its viable operation must be established while the project is still in the implementation phase. A system to provide for a regular review of whether specific objectives are sufficiently met on time is an essential component of the project operation. This allows for constant monitoring on whether deviations from agreed targets will potentially happen or are already happening.

IRG-P’s task was to develop and install the Monitoring and Evaluation (M & E) Framework through capacity building of the AMORE M and E team and management and field personnel. IRG-P also provided guidance in the implementation of the M&E Framework at the home office and project sites. Trigger Indices were established to provide system alarms identifying potential problems of the project. This gave the management a focused monitoring of project areas critical to the realization of the Mission Statement and project objectives. A system audit was also established within the M & E framework to evaluate the project at certain intervals to give the management an over-all view of the status of the project.

Mentoring approach was used to transfer the required level of expertise to the M and E team. This involved seminars, workshops, walk-through guidance and on-call access to mentors whenever necessary.

DAlliance for Mindanao Off-Grid Renewable Energy (AMORE) - Development of Sustainability Framework for Rural Off-grid Renewable Energy Electrification Projects (USAID- funded)

The AMORE project aims to provide electricity to some 160 barangays in the provinces belonging to the Autonomous Region of Muslim Mindanao (ARMM), using renewable energy (RE) technologies such as solar photovoltaic (PV) and micro-hydro systems.

IRG-P was engaged to develop strategies and approaches to increase the probability of sustaining the operation of the RE systems for rural electrification. Specifically, criteria for the selection of project sites and technology clients were developed. IRG-P conducted post project assessment of similar projects that were completed during the last decade, as input for the sustainability framework. These included: 1) Desk assessment of related documents of four (4) completed PV rural electrification/provision of community services projects, namely: (Municipal Solar Infrastructure Project (MSIP), PROSOLAR: Isang Libong Bahay, Pailaw Mula sa Araw, O’ILAW Program, and Rural Photovoltaic Electrification (RPE), and 2) Field Study of sample sites where RE systems were installed, under the same four projects.

Primary data gathering approaches employed were, key informant interviews, focused group discussions and household interviews using prepared questionnaires. The main purpose was to identify the lessons learned in the whole project cycle of each of the four projects considering the institutional, social, technical, financial, and environmental components, with the objective of using the lessons learned and insights gained in developing a sustainability framework for rural off-grid electrification. It gathered first-hand data on causes of project failure which was measured by the non-use of the RE systems that were installed under the projects. IRG-P then developed the sustainability framework including the selection criteria for site selection and client identification. The sustainability framework model was adjusted to fit the conditions at the sites where the AMORE Project operates.

The Sustainability Framework that was developed proved to be effective in increasing the sustainability of rural electrification projects. This was demonstrated by the findings in sample project sites that failed to adopt the selection criteria for project sites and beneficiaries which resulted to selection of the wrong and unsustainable project sites. Within very short duration after project completion, major technical and non-technical problems surfaced. Not too long after, some of the RE systems were abandoned.

To assist in the systematic planning and implementation of the AMORE project and similar projects in the future, a Sustainability Framework was developed for rural off-grid electrification projects as guide in project development, planning, implementation and monitoring.

Beginners’ Training Course on Hydro Power Development

The objective of the training program was to provide basic knowledge on hydropower development for selected employees of the Department of Energy and the Philippine National Oil Company who have no experience in hydropower development but will be directly involved in hydropower projects in the near future. IRG-P developed and conducted a 10-day training program for selected staff of the Department of Energy and the Philippine National Oil Company aimed to provide basic knowledge on hydropower development. It provided the hydropower expert who was the main resource person for the training. A training needs assessment was done as input in the development of the training program. An assessment of the level of appreciation and understanding of hydropower technology by the participants before and after the training was conducted. Results revealed considerable increase in understanding of various aspects (technical, market, financial, and environmental) of hydropower development after the completion of the training program. The participants’ feedback was that the 2-week training was rather short. They realized that there is a lot more to learn and they expressed the need to undergo an extensive training program.

World Bank-Funded Pre-Investment Studies for Rural Off-Grid Electrification Project

IRG-P is the lead local partner of the IRG based in Washington DC, its affiliate company and prime contractor for the project which aimed to prepare a pipeline of market packages (non-electrified municipalities/provinces) for possible funding by the World Bank through its Adaptable Program Loan (APL), to be on-lent by the Development Bank of the Philippines to private project developers and investors. Project activities included the determination of the economic least cost option for providing electricity to a list of pre-identified municipalities and barangays in the main islands of Luzon, Visayas and Mindanao using as input, data such as the available technology options (both conventional and renewable), projected level of electrification and household penetration over a period of time, and the evaluation of the financial viability of the least cost electrification option. The financial viability of the electrification option was evaluated considering the size, demographic profile, economic status, capability and willingness to pay, among others of target customers. Using the data on the required amount of subsidy to make the electrification project attractive for private investment, the barangays were prioritized for offering to the private sector who can take out a loan from the APL through the Development Bank of the Philippines.

IRG-P provided the National Project Coordinator (NPC) responsible for the day-to-day operation of the project. She managed the over-all planning and implementation of activities with RE technology support coming from local and international consultants. She liaised with the World Bank and the PhDOE on project-related matters. IRG-P also provided the local technical experts for solar and hydro technologies, financial modelling, social experts and small isolated grid expert. The study involved primary data gathering through site visits and interviews of sample household customers to validate their capability and willingness to pay and current expenditures for lighting as major inputs to the financial model that was developed. The NPC likewise maintained close coordination with the Local Government Units, electric cooperatives and potential private investors to ensure their cooperation and support to the electrification activity. A major criterion in the development of the marketing and financial approach is meeting the objective of sustainability of providing electricity services or equipment (e.g. individual PV solar home system) to the target customers. Through site visits and interviews of sample household customers, a validation is made of their capability and willingness to pay and current expenditures for lighting as required by the financial model.

Project activities included conducting of field visits and consultations with the community in order to study their energy use pattern, capacity and willingness to pay and interest to participate in the electrification project. Consultations were likewise conducted with the LGUs and ECs to ensure their cooperation and support should the project reach implementation. The most appropriate scheme for electrification was studied considering the clustering/dispersion of households and their capability to pay for electricity services using their current energy expenses as one of the bases. Combination of energy supply sources were considered to best suit the topographical characteristics of the municipalities as well as the clustering of households. For example, both mini-grid electrification using the least economic cost technology option and stand-alone solar PV systems were considered for each barangay in order to have a significant level of household penetration. The objective was to be able to electrify not only the center of the barangay but the distant households as well for as long as they have the capability to pay. The analyses recognized that there is a limitation to what the households can pay and therefore, grants/subsidies were needed to be secured to meet the desired returns of the private investors.

Business and financing models were developed for consideration by the private investors who took on the task of implementing the electrification project. The risk-sharing mechanism between the private investors, the national government and the local government units was studied under different sets of assumptions in order to assess the feasibility of the project.

Ten (10) municipalities representing 3 provinces were prioritized. Specific non-electrified barangays in 10 municipalities were prioritized according to the level of government subsidy required to attract private investors to pursue their electrification. A financial model was developed. It was used to evaluate the viability of potential candidate municipalities and barangays using specified market data. The result was the prioritized list of candidate sites based on agreed financial parameters. The financial model also determined the level of subsidy the government and/or any fund provider will need to put in to make specific municipalities/barangays financially attractive to private investors. As follow-on to this activity, the World Bank has provided a substantial loan facility for the Philippine energy sector through the Development Bank of the Philippines (DBP).

United Nations Development Program (UNDP): Financing Energy Services for Small-Scale End-Users (FINESSE)

The project’s main objective was to develop and strengthen the Development Bank of the Philippines’ (DBP) technical capability to evaluate and manage new and renewable energy projects for financing focusing on training and capacity-building as well as building institutional linkages with other players in the sector. The goal of the capacity building exercise was to make the DBP the conduit for international funds for RE lending in the Philippines. A pipeline of projects for possible financing by the Bank from project development to actual implementation was identified. To determine the appropriate capacity building program that will address the needs of the core group members representing the Bank, a training needs analysis was made. A major activity done is the development of the Bank’s different sets of Lending Guidelines for different RE technologies considering the inherent characteristics and features of each technology. It facilitated the link between the Bank and the major players in the RE industry such as the potential project developers and investors by organizing business meetings aimed to promote the financing packages that the Bank offers. Players in each technology area were convened separately to allow for a focused discussion.

IRG-P provided the National Project Coordinator tasked with the responsibility to supervise the day-to-day operation of the Project. It also provided the local RE experts and administrative support for the project. IRG-P developed the monthly program of activities with appropriate implementation strategies and provided technical guidance to the DBP RE Core Group in the execution of their tasks, with the support of the local team of RE experts. It was responsible for the preparation of the Lending Guidelines for each RE technology taking into consideration the inherent features and requirements of each. For example, a longer loan maturity term and grace period on principal payment is given to a mini-hydro project loan because of the longer construction period of such power plant compared with a solar facility.

The Development Bank of the Philippines is presently the most active local financing institution in the field of RE project lending. It has institutionalized its New and Renewable Energy Financing Program. As a result of the in-house expertise that was built from FINESSE, it has been selected as the conduit of a World Bank Adaptable Program Loan that provides financing for different players in the RE sector.

Development of CBRED Project Brief and Document for UNDP/GEF Funding

The project aimed to produce the Project Brief and the corresponding Project Document (Prodoc) for the CBRED Project, a 5-year program intended to carryout specific activities to address specific barriers related to policy, financing, marketing, institutional arrangements and promotions of RE technologies in the Philippines. The Prodoc is used by the funder as the basis for evaluating the merits of the proposal. IRG-P assisted an international expert in the preparation of the project brief and corresponding project document for a 5-year project titled, Capacity Building to Remove Barriers to Renewable Energy Development (CBRED) in the Philippines to be executed by the Department of Energy with funding from the GEF through the UNDP. CBRED intended to implement specific barrier removal activities to facilitate the development of RE technologies and their widespread use in the Philippines. CBRED Project was approved for funding by the UNDP/GEF and is presently being executed by the Department of Energy.

The Project Brief and corresponding Project Document were completed. The Prodoc was presented to the UNDP-GEF for funding and was later approved. The CBRED Project is currently being implemented by the Department of Energy. Specific activities that address pre-identified barriers to RE development have been implemented while others are in progress. An example is the establishment of 3 kinds of funds aimed to help RE project developers in securing financing for various stages of project development until implementation. A One-Stop-Shop intended to provide services to project investors is in the process of being established. At present, CBRED is being implemented by the Department of Energy. It is a 5-year project that has been in operation for about four (4) years now and shall be completed in July 2008.

United Nations Development Programme (UNDP): Capacity-Building to Remove Barriers to Renewable Energy Development (CBRED) in the Philippines

This project aimed to identify activities that will address the different barriers to the widespread use of renewable energy technologies and systems in the Philippines in areas such as policies, information dissemination and user awareness, market delivery and financing mechanisms, development of RE product standards and institutional linkages. IRG-P’s developed a medium-term RE outlook in the Philippines and framework for monitoring and evaluation of the GEF impacts in the country. It included a review of the current sources of local, bilateral and multilateral financing for renewable energy projects, their terms and conditions and the specific activities that qualify for their financing. This pointed to the gaps in available financing from project RD&D to the ultimate stage of commercialization. A review of the existing work linkages among the different agencies involved in the development, promotion and commercialization of RE technologies and systems was made and a framework for effecting an inter-agency collaboration and resources - sharing was developed. Likewise, an approach to keep local RE development activities in touch with the related development elsewhere was recommended.

Preparation of Major Components of the Project Design Document (PDD) for Mini-hydro and Wind Projects

This subcontract aimed to prepare the major components of the PDD for two (2) renewable energy projects of a local RESCO for application to the CDM. Specifically, the PDDs were intended for presentation during the road show in European countries led by the Philippine Department of Energy with the objective of attracting European investors to invest in RE projects in the Philippines. The potential CERs to be generated from the two (2) projects is the bottom-line of the marketing effort by the RESCO.

Preparation of Proposal for the Establishment of the Clean Development Mechanism – Designated National Authority (CDM-DNA) in the Philippines (UNDP, GEF-Funded)

IRG-P prepared a detailed proposal on the establishment of the CDM Designated National Authority in the Philippines, including its operational framework as guide in the operationalization of the DNA. The legal options considered in the establishment of the DNA took into account current related efforts of the government on climate change and the expediency of tapping that option in order not to lose time in anticipation of the ratification of the Kyoto Protocol.

The proposal was approved for funding by the Dutch Government through the UNDP and was the basis for the ToR for the follow-on activity, which is the establishment and operationalization of the CDM-DNA in the Philippines. The activities proposed had been implemented and the Designated National Authority is now fully operational.

Appreciation Seminar on Clean Development Mechanism (CDM) for the Development Bank of the Philippines’ Top Management

The objective of the seminar was to create understanding and awareness among the top executives of the Development Bank of the Philippines, a leading Government Financial Institution, on the background and objectives of CDM and the opportunities available to the bank under this financing mechanism. As a result of the seminar, the DBP management recognized the opportunities CDM offers and pursued the creation of its CDM team that is now fully operational and actively exploring and pursuing opportunities to position the bank in the CDM arena.

IRG-P coordinated the development and conduct of the seminar for the top management of the Development Bank of the Philippines and assisted in the preparation of seminar materials.

Seminar on Clean Development Mechanism for DBP Area Management Office Heads and Senior Account Officers

The 3-day seminar which was participated by fifty (50) representatives from the head office and provincial branches of the bank nationwide aimed to create understanding and awareness on the background and objectives of CDM and the opportunities available to the bank under the CDM financing mechanism. Detailed discussion on the mechanics of pursuing CDM projects including the preparation of Project Design Documents were undertaken during the seminar. Examples of projects worldwide that had reached closure in terms of selling their CERs were discussed and analyzed for the methodologies and assumptions used in their PDDs.

Appreciation Seminar on Clean Development Mechanism for the Department of Energy and Private Sector Representatives

The objective of the seminar was to create understanding and awareness among key officials of the Philippine Department of Energy and potential RE project developers and investors on the background and objectives of CDM and the opportunities it brings to both the government and the private sector particularly as a source of additional cash inflows for renewable energy projects. The potential role of the PhDOE in the operation of the CDM Designated National Authority was discussed considering that renewable energy projects are potential candidates for CDM. IRG-P coordinated the development and conduct of the appreciation seminar and assisted in the preparation of seminar materials.

The PhDOE pursued follow-up capacity building in the area of CDM. Specifically, in the road shows it conducted in Europe on that same year, it actively pursued opportunities for European investors to invest in RE projects in the Philippines for carbon credits. In the succeeding road shows, CDM opportunities had been made an integral part of the project discussion process.

Development of Medium Term RE Outlook and Framework for Monitoring GHG Impact (UNDP-funded)

This subcontract aimed to identify specific activities that will address the different barriers to the widespread use of renewable energy technologies and systems in the Philippines in areas such as policies, information dissemination and user awareness, market delivery and financing mechanisms, development of RE product standards and institutional linkages. IRG-P’s task was to develop a medium term RE outlook in the Philippines and the framework for monitoring and evaluation of the GHG impact. It included a review of the current sources of local, bilateral and multilateral financing for renewable energy projects, their terms and conditions and the specific activities that qualify for their financing. This pointed to the gaps in available financing from project R & D to the ultimate stage of commercialization. A review of the existing work linkages among the different agencies involved in the development, promotion and commercialization of RE technologies and systems was made and a framework for effecting an inter-agency collaboration and resources- sharing was developed. Likewise, an approach aimed to keep local RE development activities in touch with related developments elsewhere was recommended.

Capacity Building on Strategic Planning and Project Management

The activity aimed to capacitate representatives from the government and private sectors in assessing opportunities for energy investments. IRG-P was tasked to lecture on the Clean Development Mechanism (CDM) background, opportunities, and current barriers or areas of concern affecting the entry of projects for consideration under CDM.

Capacity Building on Renewable Energy Technologies for the Land Bank of the Philippines

Recognizing the need for innovative financing programs to help spur the commercial use of renewable energy sources in the Philippines, the United Nations Environmental Programme (UNEP) tapped the services of IRG-P to develop and conduct a 2-week seminar on the technical aspects of RE technologies for selected personnel of the Land Bank of the Philippines (LBP). The objective was to create awareness among the participants on the technical aspects of RE technologies and their potential for power / non-power application. IRG-P developed and conducted a technical training on selected renewable energy technologies that provided the participants with the basic knowledge on the characteristics, operation and maintenance and uses of commercially-ready RE systems and the status of development of emerging ones. This activity is in support of the bank’s interest to develop a lending facility for renewables. As a result of this initial effort by the IRG-P, the Land Bank of the Philippines again with the leadership of IRG-P became a beneficiary of a full blown capacity building program on how to do lending for renewable energy projects with partial support from the Euro-Asean Energy Facility. The training program included a 3-day course on CDM and PDDs. As a result, the LBP now has a CDM group and is actively pursuing opportunities for CDM financing and CER trading.

Asian Development Bank (ADB): Rural Electrification Institutional Strengthening

Working hand in hand with Snowy Mountain Engineering Corporation of Australia and local partner Sycip, Gorres and Velayo (SGV), IRG-P was involved in an ADB technical assistance (TA) project to the government of the Philippines, whose basic objective was to improve and strengthen the institutional capabilities of the Philippine Department of Energy, its attached agencies, and the rural energy sector in general, in the planning, implementation, and evaluation of energy programs and projects in rural electrification, with special focus on off-grid areas. The TA also aimed to develop procedures to enable integration of livelihood programs into the rural electrification project cycle to ensure sustainability of the projects. IRG-P conducted the training needs analysis of various players involved in RE commercialization (e.g. project proponents/implementers like local government units, electric cooperatives, technicians, RE vendors) and developed appropriate training interventions to make them more efficient and effective partners in the rural electrification program of the government.

British Petroleum Solutions. A Case Study on the Socio-economic Impact, Technical Performance, and Sustainability of Solar PV installations in Selected Recipient Municipalities under the Municipal Solar Infrastructure Project (MSIP)

The project aimed to evaluate the socio-economic impact and sustainability of the various solar PV installations in sample municipalities which were beneficiaries of solar PV systems for various community applications under the MSIP. The market delivery approach was evaluated for effectiveness and sustainability of the systems. The scheme for collecting sufficient O and M funds was similarly looked into for its ability to sustain the O and M requirements of the installations in the long term. IRG-P was the local partner of the British firm Environmental Resource Management whose service was engaged by British Solution to make a case study to evaluate the status of sample communal PV installations that were put up under the MSIP project in the late 90’s. MSIP was jointly funded by AusAid and the Philippine Government through the Department of Interior and Local Government. IRG-P provided the local solar PV expert and the social scientist for the study. It also assisted in the development of the questionnaire and interview guides for the field data gathering. Sample applications included communal water pumping, lighting and refrigeration for health centers, streetlights and lighting for barangay halls. Conduct of site visits and consultations with the community people were done in order to get their own assessment of the benefits they had derived from the project and the effectiveness of the sustainability approach. Operators of the service centers, which were set up to provide after-sales services were likewise visited and interviewed. The reasons for failure of some of the project sites were established and documented as ‘lessons learned’ to serve as guide in the implementation of similar projects in the future. A proposed approach to prevent similar problems from happening in related future projects was developed.