1. Financing Renewable Energy Projects Programs Mgmt Group

2. PRESENTATION OUTLINE  Why support/finance Renewable Energy projects  Renewable Energy loan portfolio  Financing programs for Renewable Energy projects ISO 14001 Certified

3. WHY SUPPORT/FINANCE RENEWABLE ENERGY PROJECTS? Advocacy in clean and green projects Pursuant to the Renewable Energy Law Contribution to reduce global warming and address climate change issues ISO 14001 Certified

4. RENEWABLE ENERGY LOAN PORTFOLIO ISO 14001 Certified

5. RENEWABLE ENERGY PROSPECTIVE PROJECTS ISO 14001 Certified

6. Renewable Energy for Wiser and Accelerated Resources Development (REWARD) Program FINANCING PROGRAM FOR RENEWABLE ENERGY PROJECTS

7. Eligible Borrower Sole Proprietorship Partnership Corporation (at least 60% Filipino- owned) Cooperative Local Government Unit Government-Owned and Controlled Corporations REWARD PROGRAM ISO 14001 Certified

8. Eligible Expenditures Project Feasibility Study Preparation Working Capital (short-term and permanent working capital) Fixed Asset Investment REWARD PROGRAM ISO 14001 Certified

9. Eligible Projects Biomass-based Hydropower Wind power Geothermal Solar Energy (solar photovoltaic, solar water heaters) Co-generation REWARD PROGRAM ISO 14001 Certified

10. Interest Rate Market rate (variable) Special financing rate (variable/fixed) Loan Size Will depend on project requirement REWARD PROGRAM ISO 14001 Certified

11. REWARD PROGRAM ISO 14001 Certified Tenor SHORT TERM Via up to 360-day PN TERM LOAN Based on cash flow with monthly or quarterly repayments (principal & interest) Loan tenor is up to a maximum of 7 years (internal) or 15 years (special financing )

12. Financing Mix based on Total Project Cost Sub-borrower’s Equity (min.) - 25% LBP fund (max.) - 75% Collateral/Security May be secured by any or a combination of tangible collaterals or acceptable guarantees consistent with current banking practices, pertinent laws and BSP regulations. REWARD PROGRAM ISO 14001 Certified

13. ADDITIONAL INCENTIVES EXTENDED TO RENEWABLE ENERGY PROPONENTS LBP provides free validation/independent review on the Feasibility Study, Detailed Engineering Design and Environmental Assessment Report that the Consultants prepared for the proponent. This provides additional level of comfort to the project proponent in pursuing the investment.

14. LBP CAN PARTNER WITH OTHER FINANCIAL INSTITUTIONS IN POOLING THE FINANCING REQUIREMENT OF THE RENEWABLE ENERGY PROJECT CO-FINANCING OPTION ISO 14001 Certified

15. Special Financing Facilities Program FundFund Source Support for Strategic Local Development and Investment Project (S2LDIP) US$ 100 MWorld Bank CBRED Project Preparation Fund (PPF) US$ 0.321 MUNDP Carbon Finance Support Facility (CFSF) n/a FUNDS/FACILITY AVAILABLE FOR RENEWABLE ENERGY PROJECTS

16. Support for Strategic Local Dev’t & Investment Project (S2LDIP) Funded by The World Bank ISO 14001 Certified FUNDS/FACILITY AVAILABLE FOR RENEWABLE ENERGY PROJECTS

17.  Provinces  Cities  Municipalities  Public Utilities Operator (WD, Electric Coops, Telecoms)  Private Operator (willing to partner with the LGU) Amount of Facility  USD 100M Eligible Borrowers WB-S2LDIP ISO 14001 Certified Financing Mix  90% S2LDIP  10% LGU equity

18.  Maximum of 15 years inclusive of 2 years grace period on principal Amount of Loan  Based on the requirement of the project but should not exceed the Net Borrowing Capacity (For LGUs)  Based on the cash flow, but not to exceed P500 million (For utility and private operators) Repayment Term WB-S2LDIP ISO 14001 Certified

19. CBRED Project Preparation Fund (PPF) The CBRED-PPF is a grant fund in the amount of US$ 321,300.00 Intended to assist RE developers’ cost of preliminary activities. The PPF provides a zero interest loan of up to P5M or 50% of the project preparation cost. The balance shall be the proponent’s equity ISO 14001 Certified FUNDS/FACILITY AVAILABLE FOR RENEWABLE ENERGY PROJECTS

20. ISO 14001 Certified Carbon Finance Support Facility Assistance to Project Owner Arrange the pre-assessment/due diligence activities Prepare the Clean Development Mechanism (CDM) Project Activity (CPA) – Design Documents and the CDM Sustainable Development Form Facilitate the Designated National Authority (i.e. DENR) endorsement of the CDM project application Arrange the validation and verification activities with a Designated Operational Entity (DOE) or the Third Party Auditor Provide support and assistance on CDM documentation and monitoring FUNDS/FACILITY AVAILABLE FOR RENEWABLE ENERGY PROJECTS

21. Thank You ISO 14001 Certified