Low-income villagers to benefit from renewables in the Philippines

MANILA, Philippines, 2004-08-11 (Refocus Weekly) Eight off-grid villages in the Negros Occidental region of the central Philippines will benefit from a grant of US$1.5 million to install renewable energy systems.

The ADB (Asian Development Bank) will provide the money from its Japan Fund for Poverty Reduction, which is financed by the Japanese government. The project is the sixth JFPR project in the Philippines, which have included urban development projects for slum communities in Manila to livelihood projects for the rural poor in Mindanao.

This community-based project will set up solar, wind, biomass and micro hydro systems for 2,480 residents who depend on kerosene, batteries and candles for energy. One-third of the villagers live below the regional poverty threshold of 27¢ per day, and the project was approved because of its creation of livelihood opportunities.

“Negros Occidental is indeed very fortunate to be a beneficiary of this generous grant which will make a significant impact on the lives of its rural poor,” says Thomas Crouch of ADB. To mobilize the participating communities, sitios or barangays will be organized into power associations and a funds collection mechanism will be set up to operate and maintain the renewable energy systems.

A revolving fund will be established so lighting, tools and equipment can be installed and homes can connect to the green power systems. A second revolving fund will promote activities which consume the power, such as community-owned rice mills to increase rice production, ice plants for cold storage of fish products, purchase of small power tools and sewing machines for home-based work, and skills development and on-site training.

After the four-year assistance period ends, the project will be turned over to the communities to take responsibility for operating and maintaining the renewable energy systems, and developing sources of livelihood. To make the project financially sustainable, a small energy service charge will be imposed that will be offset by the extra income generated and the savings on other fuels.

The government of the Philippines wants all barangays (districts) to have access to electricity by 2006, but not all homes in remote island and upland communities can be connected to the grid by that time due to technical and financial constraints.

JFPR was launched in 2000 with an initial contribution of $90 million, followed by another contribution of $155 million and a commitment of $50 million. The fund supports projects that target the poor and take innovative approaches.


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