Business Financing Capacity Building for the Philippine Efficient Lighting and Market Transformation Project (2007)

The objective of this project is to build the capacity of local financial institutions to provide financing for EEL initiatives. This project provides training to banks on the technical processes underlying EEL investments, innovative financing techniques, use of ESCOs, and risk management. In the context of the need for commercial financing by start-up ESCOs and EEL projects, this training emphasizes “project finance” type of lending as opposed to “asset-backed” lending to build their confidence in the reliance on energy savings to pay off the initial investment cost. Marketing and promotional materials are prepared to help banks sell their financing products. While the Development Bank of the Philippines recently established its own EEL financing window, this project provides DBP with technical assistance in streamlining its financing guidelines to make it more responsive to the needs of the industry.

Services Provided: 1) Training Needs Assessment; 2) Preparation of training curriculum; 3) Conduct of the training program; 4) Preparation of promotional materials for EEL financing products, and 5) Development of Financing Guidelines for the Development Bank of the Philippines. Funding Agency/Client: UNDP, Department of Energy.