Electric Cooperatives (ECs) in the Philippines are generally undercapitalized, and their operational performance is poor. As a result, the supply of electricity in rural areas is unstable, with frequent outages and fluctuating voltages. International Finance Corporation (IFC) Philippines advisory services found that a principal reason was the ECs' lack of sound capital expenditure (capex) plans, and introduced a new product to address the issue. The results from the pilot training of six ECs in post-conflict areas of Mindanao will be replicated in all ECs in the country and ultimately bring an estimated $274 million worth of investments in capex and power-generation, and reduce greenhouse gas emissions by 600,000 metric tons per year starting in 2015. To get to this point, IFC learned lessons about the importance of building strong relationships to 'sell' ownership of the program to clients and pivotal stakeholders and ensure program sustainability through local consultants and partner organizations.
Details
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Author
Cariaga, Art Sevilla, Jed A. Fernando-Pacua, Marianna Beloe, William Trant
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Document Date
2009/11/01
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Document Type
Brief
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Report Number
52083
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Volume No
1
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Total Volume(s)
1
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Country
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Region
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Disclosure Date
2012/01/17
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Disclosure Status
Disclosed
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Doc Name
Bringing reliable electricity to rural areas of the Philippines
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Keywords
small and medium enterprise;Electricity;supply of electricity;independent power producer;rural area;diversity of culture;memorandum of agreement;project time frame;concept of time;greenhouse gas emission;rural electrification program;cost of training;operational performance;electricity connection;demand forecast;rural environment;operational improvement;adequate power;night flight;engineering analysis;electric cooperative;rural parts;rural home;productivity loss;capital expenditure;business planning;pilot training;electricity distribution;regulatory official;kilowatt hour;long-term financing;competency training;remote village;risk profile;rural setting;foreign consultant;electric supply;commercial bank;
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Citation
Cariaga, Art Sevilla, Jed A. Fernando-Pacua, Marianna Beloe, William Trant
Bringing reliable electricity to rural areas of the Philippines (English). IFC smart lessons brief Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/482401468294949474/Bringing-reliable-electricity-to-rural-areas-of-the-Philippines