Financial Advisory for the "CBRED Project on Renewable Energy Initiatives and Delivery Mechanism" - Philippines (2005)

The objective of the Capacity Building for Removal of Barriers to Renewable Energy Development (CBRED) Project is to strengthen the capacity of relevant agencies of the Philippine Government in formulating, enacting and implementing sound RE policies; to provide RE information to targeted audiences in order to build markets; to assist market penetration of RE in remote off-grid communities; and to improve the quality of RE technologies. Six components make up the CBRED Project, and the RE Initiatives and Delivery Mechanism is the 4th component.

It is specifically intended to address the financial barriers to RE development by establishing 3 pilot funds such as: 1) Project Preparation Fund – a fund providing partial grant to assist RE developers in the project development stage particularly in the preparation of feasibility studies and project design; 2) Loan Guarantee Fund – a fund providing guarantee to financial institutions to enable RE project proponents access financing for their projects in off grid areas; and 3) Micro-Finance Fund – a fund providing financing at concessional rates on a long-term basis for small scale or off-grid RE projects.

Services Provided: 1) Financial advisory services; 2) Due diligence review of the three pilot funds; 3) Development of fund promotions program and design of promotional materials; and 4) Design and review of appropriate financing structure for potential renewable energy projects.

Funding Agency/Client: United Nations Development Programme (UNDP) / Department of Energy