PELMATP Design and Implementation of EEL Micro Financing Scheme: Business Finance Capacity Building - Philippines (2008 - 2009)

The Philippine Efficient Lighting Market Transformation Project (PELMATP) is a five-year project being implemented by the Government of the Philippines through the Department of Energy (DOE). The project aims to remove barriers against the widespread use of energy-efficient lighting (EEL) systems in the Philippines. It is supported by the Global Environment Facility (GEF) through its implementing agency, the United Nations Development Programme (UNDP).

PELMATP has several components addressing policy, institutional, information, and financial barriers. The Design and Implementation of the EEL Micro Financing Scheme is one of the components earmarked to address the financing barriers. Its goal is to promote EEL through consumer cooperatives, a sector noted to be an effective distribution channel of consumer products. The expected output is a micro-financing/ business model scheme that will facilitate the procurement and distribution of EEL products through the said sector.

Activities included: 1) Conduct inventory and assessment of existing consumer cooperatives for the purpose of identifying the type of cooperatives that can participate in EEL micro-financing and determine their capacity building needs; 2) Develop the appropriate EEL Micro financing model(s) suitable for consumer cooperatives; 3) Conduct regional consultations with consumer cooperatives and provide the training to capacitate the cooperatives to participate in the micro-financing model developed. A set of criteria will be developed to select the most suitable training sites; 4) Negotiate financing bulk procurement arrangements with EEL suppliers (importers and manufacturers); and 5) Implement the micro-financing models in three (3) cooperatives in the country preferably one each in Luzon, Visayas, and Mindanao. Funding Agency/Client: UNDP, Department of Energy.