1. ACCESS TO SUSTAINABLE ENERGY PROJECT
(ASEP)

2. ASEP
A program of the Department of Energy (DOE) funded by the European Union (EU) and Global Partnership on Output-based Aid (GPOBA) in partnership with World Bank (WB)
Has three components: 1) Photovoltaic Mainstreaming (PVM)/ Solar Home Systems (SHS); 2) Rural Network Solar (RNS); and 3) Prepaid Metering (PPM)
Managed by the LGU Guarantee Corporation (LGUGC)

3. Solar Home Systems
Concept: Output-based aid to accelerate electrification in the Philippines. Contractors compete for supply & installation contracts; on-going service provided by electric cooperatives, and regulated by the Energy Regulatory Commission
Eligibility: Non-electrified households. EC’s would offer solar home system service in areas that cannot be economically grid-connected
Mechanism: Following verified installation of solar home systems, Contractors seek reimbursement of a portion of the capital cost of the system. User fees pay for customer services, maintenance and replacement of parts

4. Key Processes Market Identification Subsidy Allocation
Installation and Training
Verification and Payments
LGUGC through Independent Verification Agents and World Bank
DOE, NEA, and participating ECs
Target: 40,500
connections
LGUGC and World Bank
Contractors and ECs

5. ASEP Timeline Subsidy competitions for PVM 2017 2017
HH Connections and subsidy competitions for RNS
HH Connections and RNS power plants
2018
2019
More connections and RNS power plants
EC and HH
Selection
2017

6. ASEP Strengths Presence of motivated, capable ECs
Issues from previous SHS pilot programs addressed:
Inclusion of ECs as key to mainstreaming
Regulated tariff between households and ECs
Ownership of SHS units by ECs
Quality certification

7. Who We Are

8. WHAT WE DO CREDIT GUARANTEE GUARANTEE PROGRAM MANAGEMENT CREDIT RATING
RELATIONSHIP MANAGEMENT WITH FINANCIAL INSTITUTIONS
CREDIT RATING
CREDIT GUARANTEE
GUARANTEE PROGRAM MANAGEMENT
COLLABORATION WITH NATIONALGOVERNMENT

9. LGUGC as ASEP Project Manager
Grant Agreements with International Bank for Reconstruction and Development (IBRD)/World Bank signed on June 14, 2016
Grant Amount of $3,000, for the PVM Project Component from Global Partnership on Output-based Aid (GPOBA)
Grant Amount of €18,400, for the PVM, RNS and PPM Components from the European Union (EU)

10. LGUGC as ASEP Project Manager
DOE/NEA
Aggregation of ECs to have at least [*] Households (HHs) per Contract *TBD
LGUGC
Preparation of Bidding Documents, Conduct of Bidding and Awarding of Contracts
Solar System Contractors/ECs
Supply and Installation of Solar Systems in households, RNS, Prepaid Meters
Verification of Completed Installations (may use third party verifiers)
LGUGC to WorldBank
Endorsement of payment of subsidy to Solar System Contractors
WorldBank to Contractors
Subsidy release

11. Eligible Bidders
Foreign or domestic company duly registered with Securities and Exchange Commission (SEC) to enter into solar business in the Philippines
With experience in installation of solar households systems and rural network solar power systems
Pre-qualified by LGUGC and/or manufactured solar household system units to be installed are certified by Lighting Global

12. Terms of Reference May include: Local presence After Sales Services
Technician
EC training for Repair and Maintenance

13. Bidding Follow World Bank procurement guidelines
Observe proactivity of assisting ECs, prospective SHS installation firms and RNS power companies within the limits allowed
Screen and evaluate tender offers
Create a Technical Working Group to ensure compliance of bids with the technical specifications of the Project
Recommend to World Bank the selected Subsidy Recipients

14. Verification
Standardize the method of transaction verifications by Independent Verification Agent/s
Require strict submission of complete documentary requirements for verification
Independent Verification Agent/s to validate submitted information and technical compliance of the installed SHS and RNS systems

15. Subsidy Payment Endorse payment of subsidy to World Bank
World Bank pays subsidy through LGUGC within 60 days from endorsement

16. 13 Partner Banks Banco de Oro Unibank, Inc.
Bank of the Philippine Islands
Development Bank of the Philippines
East West Banking Corporation
Land Bank of the Philippines
Metropolitan Bank & Trust Company
Philippine National Bank
Philippine Veterans Bank
Rizal Commercial Banking Corporation
Robinsons Bank Corporation
Security Bank Corporation
Union Bank of the Philippines
United Coconut Planters Bank

17. Thank You!