Here’s a press release from the Philippine Department of Energy a few weeks back stating that the United Nations Development Fund is offering 3 financing programs for would be alternative energy players in the country. Funding for these programs are taken from the Global Environment Facility (GEF) and CBRED Project (Capacity Building to Remove Barriers on Renewable Energy Development in the Philippines) of the UNDP.
The three Financing Schemes offered are:
- Project Preparation Fund (PPF) - “to assist RE project developers in paying for the cost of their project activities including feasibility studies, engineering design, securing permits and licensing and loan proposal packaging.” It will be handled by the Land Bank of the Philippines a government bank.
- Loan Guarantee Fund (LGF) - “a partial loan guarantee mechanism for Renewable Energy (RE) projects to spur the development of sustainable energy sources for the Philippines. This will be available to RE project developers, including retail funders of small RE systems, whose loans may require a high level of securitization or are inadequately capitalized and could not meet the collateral requirements of financial institutions.” The LGF fund will be handled by the LGU Guarantee Corporation and Banco de Oro – Universal Bank, which are private establishments.
- Micro-Finance Fund (MFF) - “a loan financing mechanism for off-grid or small-scale power projects at concessionary rates or long-term financing. Specifically, it is intended to fund micro-finance intermediaries for re-lending to small scale, including household type of projects in remote, off-grid areas. The Peace and Equity Foundation shall manage the fund under this program dubbed as BEST-OF-PREN or Building Economic Social and Technological Opportunities and Foundations to Promote Renewable Energy Nationwide.”
Of course, the only sad thing about this release is the news that the Renewable Energy Bill that has been passed in Congress is still pending in the Senate. Since we are in an election year and awaiting the outcome of the May 15 local elections for new congressmen and senators. June is the only time that the Renewable Energy Bill can be acted upon.
Some of the incentives included in the bill are:
Exemptions from tariff duties, and zero-rated value-added tax for the importation of machinery and equipment for the first 10 years of an operating contract. Tax credits on locally purchased capital equipment and services may also be offered. Special tax rates may also be imposed on equipment and machinery to be used for renewable energy development. An income tax holiday may also be granted to potential investors for the first six years of commercial operations.
[source]
Some of the incentives offered in this bill are already included in the investment package offered by the DOE which are:
Income tax holidays and exemptions from or reduced real property tax, tax on domestic capital, and import duties.[source]
Article here
Category: Asia
