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Philippines
>> Regional Overview >> Philippines Overview ACTIVITY DATA SHEET
PROGRAM: Philippines
TITLE AND NUMBER: Reduced Emissions of Greenhouse Gases, 492-005
STATUS: Continuing
PLANNED FY 2001 OBLIGATION AND FUNDING SOURCE: None.
PROPOSED FY 2002 OBLIGATION AND FUNDING SOURCE: None.
INITIAL OBLIGATION: FY 1996 ESTIMATED COMPLETION DATE: FY 2004Summary: Global warming can affect global ecosystems adversely; increase the severity of weather extremes, resulting in typhoons, droughts and flooding; raise sea-levels; and increase associated losses in life, biodiversity, infrastructure, and food supplies. Since the Philippines is an archipelago and an agriculture and fishery-based economy, it is particularly vulnerable to the likely effects of sea-level rise, El Niņo and La Nina phenomena. USAID's global climate change (GCC) strategy addresses global warming by mitigating greenhouse gas (GHG) emissions from the power sector. This is being done by expanding the use of clean fuels, promoting more efficient electricity generation, distribution, and consumption and improving the policy environment. The benefits from the anticipated final passage of a USAID-assisted legislation that will restructure the power sector and privatize the government owned National Power Corporation (NPC), will include more private sector investments and increased use of clean indigenous fuels resulting in reduced GHG emissions, and the lowering of electricity rates.
Key Results: The end-of-activity target is to avoid the release of some 20 million metric tons of carbon dioxide (CO2)-equivalents into the atmosphere by 2002, with no adverse impact on economic growth. The major quantitative impact of the GCC activity comes from its support for development of the natural gas sector. These numbers should be realized in 2002, when the natural gas-fired power plants become operational.
Performance and Prospects: USAID has, as provided for in its strategy, has merged the GCC activity into the environment objective (492-004) for a more integrated and comprehensive program. The $2.997 million obligation for the GCC activity planned for FY 2001 instead will be made from funding under the expanded environment objective. Ongoing policy reform activities for the energy sector will continue to be funded out of the stand-alone GCC program from previously obligated funds.
Implementation of the GCC activity is on track. The climate change team carried out activities to reduce the growth of greenhouses gases from the energy sector in four key areas: 1) increase the use of clean fuels such as natural gas and renewable energy that are also indigenous to the country, 2) improve the policy environment especially in the area of restructuring of the electricity industry and privatization of the government-owned National Power Corporation (NPC) that has been a monopoly since 1936, 3) increase energy efficiency in the generation, transmission and end-use applications and 4) strengthen the capability of government agencies involved in the restructuring of the electricity industry and in formulating global climate change policies.
Policy: The proposed Electricity Industry Reform Act 2001 has reached the stage of final deliberation in the Bicameral Committee of the Philippine House and the Senate. USAID has supported the Coalition of Consumers for the Power of Choice with accurate technical information that highlighted the flaws in the proposed bicameral version. Both the executive and legislative branches of government are reworking the legislation to achieve a "good and effective" bill-one that promotes fair and open competition and provides benefits to consumers. Private sector investments will be encouraged to construct new power plants and transmission facilities to spur the economy and prevent potential power shortages in the future. The GOP's Executive and Legislative branches, and civil society, have expressed their appreciation to USAID for providing experts to lead and facilitate crucial discussions on the major issues in the bill. After passage of the power sector restructuring legislation, USAID will assist the Department of Energy (DOE) in developing implementing rules and regulations.
Clean Fuels: A renewable energy (RE) action plan is being finalized. The increased use of RE in far-flung and isolated areas for rural electrification will help alleviate poverty. The action plan will promote sustainable RE projects through community ownership, livelihood activities and strengthening of existing government institutions such as the local government units (LGUs) and electric cooperatives (ECs). Technical assistance will be provided to identify the technology to be used, conduct social preparation of the community, build linkages to financing for implementation, and develop a communication plan to replicate the successes in other parts of the country. USAID will also assist private sector initiatives in promoting community awareness and participation.
USAID has completed the baseline analysis of the solar, biomass, and mini-hydro resource maps. These maps have identified great potential for power generation and agricultural uses in the upland, coastal and island areas of the country. These maps will assist prospective developers and investors in identifying the most appropriate and economical technology. A guidebook for developing sustainable rural renewable energy services has been drafted to help stakeholders assess potential renewable energy resources, encourage community participation, develop a business plan, and obtain financing.
To encourage more private sector participation, USAID assisted the DOE to remove technical and financial barriers for RE investment found in existing administrative and executive orders. Royalties and franchise costs have been waived for RE projects. Moreover, RE projects are no longer regulated as conventional sources of energy. USAID also assisted in drafting a proposed RE bill that will provide incentives for more investments in RE. In 2001, USAID will continue to work closely with other donors to encourage increased and sustainable development and utilization of renewable energy.
Capacity building. USAID has supported the Philippine Department of Energy in informing its ASEAN counterparts of the science, policies, economics and market opportunities of climate change. Participants included senior energy and environmental officials from Indonesia, Malaysia, Singapore, Thailand, Laos, Cambodia, Vietnam, Brunei, Burma, and the Philippines. At an ASEAN conference on climate change held in the Philippines, the Deputy Director of the Malaysia Meteorological Service and chair of a subsidiary body under the UN Convention on Climate Change was greatly impressed by the advanced state of knowledge on climate change at the USAID-funded, Manila-based Climate Change Information Center (CCIC). He recommended that his ASEAN colleagues use CICC's website. In addition, the chairman of the ASEAN Center for Energy (ACE) and the Director of the CICC signed an agreement endorsing the CCIC as the "one-stop information center" for the ASEAN nations for information exchange, technical collaboration, training and research, for an initial period of five years. The CCIC is the only electronic hub on climate change in the region, and is now linked to the worldwide web on climate change.
In FY 2000, USAID made significant progress in capacity building in the energy sector. For example, a training program involving the Energy Regulatory Board (ERB) technical staff was launched. ERB's ability to be an effective and independent regulator is critical in implementing a restructured electricity industry. USAID sponsored the first Harvard Institute for International Development (HIID) workshop on climate change in Asia. This highly successful event heightened the awareness of the participants of the economic development perspective on climate change other than the negotiation aspect. USAID also sent officials from government, NGOs and government financial institutions to observe renewable energy and electric cooperative activities in the U.S. This created host-country advocates to move forward the renewable energy program and increase capacity building of electric cooperatives in the Philippines.
End-Use Efficiency. USAID provided technical support to educate building owners and trade organizations and to include energy efficiency as a topic in the curriculum of major universities. Today, commercial building owners are introducing energy efficiency methods in lighting and mechanical equipment to save electricity. Professional trade organizations are recommending energy efficient equipment in their building specifications. The resulting reduction in energy consumption translates to less burning of fossil fuels. Similarly, the heat rate program recommended to NPC power plants has resulted in savings in fossil fuels for power generation, and in a significant reduction in GHG emissions.
Possible Adjustments to Plans: None.
Other Donor Programs: USAID-funded technical assistance to improve energy sector policies continues to provide a basis for multilateral donors to extend major energy loans to the Philippines. USAID's assistance in enacting a good power sector reform bill will enable the GOP to meet conditionality associated with approximately $1.0 billion in Asian Development Bank, Japan Export and Import Bank and Japan Bank of International Cooperation loans to support power sector reforms and construction of new facilities. USAID also provided assistance to DOE and the World Bank in identifying opportunities for expanded use of renewable energies. This effort will support the development of a World Bank $200 million rural electrification loan.
Principal Contractors, Grantees, or Agencies: USAID implements activities through major contractors and cooperators including PA Consulting, U.S. DOE, the National Renewable Energy Laboratory, U.S. Energy Association, and the International Institute for Energy Conservation.
FY 2002 Performance Table
Philippines: 492-005
Performance Measures:
Indicator FY97 (Actual) FY98 (Actual) FY99 (Actual) FY00 (Actual) FY00 (Plan) FY01 (Plan) FY02 (Plan) Indicator 1: Fossil fuel-based energy saved or avoided through clean fuels, cleaner fuel technologies, and increased efficiency in energy generation, transmission and distribution. NA 3,300 309,142 310,257 486,000 627,000 6,000,000 Indicator 2: Fossil fuel-based energy saved through increased end use efficiency NA 412 2,963 8,022 7,413 11,963 16,813 Indicator 3: Policy advances that contribute to the adoption of legislative or administrative actions which increase efficiency and/or cleaner production in the Philippine energy sector NA 35 70 74 93 99 100 Indicator 4: Tools for improved energy sector development and mgmt, provided with assistance from USAID capacity/capability building, implemented or used by Philippine government agencies or electric utilities. NA 146 412 635 370 400 440 Indicator Information:
Indicator Level (S) or (IR) Unit of Measure Source Indicator Description Indicator 1: IR Megawatt-hour (MW-h) of energy saved or generation avoided -- cumulative measure Contractors, independent verification from Contractors and partners -- Hagler Bailly, NREL, PEI, RMI, USDOE This indicator only measures results achieved with support from USAID, and will be collected annually. Indicator 2: IR Megawatt-hour (MW-h) of energy saved -- cumulative measure Contractors (RMI, Hagler Baily, IIEC); independent verification This indicator only measures results achieved with support from USAID, and will be collected annually Indicator 3: IR Weighted index score of all policy goals (from 0 to 100%). Cumulative measure. Mission, GOP, and contractors (Hagler Bailly, RMI, NREL, USDOE) estimates of progress based on criteria set This indicator only measures results achieved with support from USAID and will be collected annually. Indicator 4: IR One point for each tool used by each unit (plant, utility, government agency, etc) for each year tool is used -- annual measure Mission, GOP, and contractors/cooperators (see list below); independent verification This indicator only measures results achieved with support from USAID and will be collected annually. U.S. Financing
(In thousands of dollars)
Obligations Expenditures Unliquidated Through September 30, 1999 17,711 DA 12,726 DA 4,985 DA 0 CSD 0 CSD 0 CSD 0 ESF 0 ESF 0 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 0 DFA 0 DFA 0 DFA 762 MAI 734 MAI 28 MAI 0 DCA 0 DCA 0 DCA Fiscal Year 2000 5,000 DA 4,797 DA 0 CSD 0 CSD 0 ESF 0 ESF 0 SEED 0 SEED 0 FSA 0 FSA 0 DFA 0 DFA 0 MAI 28 MAI 0 DCA 0 DCA Through September 30, 2000 22,711 DA 17,523 DA 5,188 DA 0 CSD 0 CSD 0 CSD 0 ESF 0 ESF 0 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 0 DFA 0 DFA 0 DFA 762 MAI 762 MAI 0 MAI 0 DCA 0 DCA 0 DCA Prior Year Unobligated Funds 0 DA 0 CSD 0 ESF 0 SEED 0 FSA 0 DFA 0 MAI 0 DCA Planned Fiscal Year 2001 NOA 0 DA 0 CSD 0 ESF 0 SEED 0 FSA 0 DFA 0 MAI 0 DCA Total Planned Fiscal Year 2001 0 DA 0 CSD 0 ESF 0 SEED 0 FSA 0 DFA 0 MAI 0 DCA Future Obligations Est. Total Cost Proposed Fiscal Year 2002 NOA 0 DA 0 DA 22,711 DA 0 CSD 0 CSD 0 CSD 0 ESF 0 ESF 0 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 0 DFA 0 DFA 0 DFA 0 MAI 0 MAI 762 MAI 0 DCA 0 DCA 0 DCA
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Last Updated on: May 29, 2002 |
