1st Clean Energy Finance and Investment Consultation Workshop: “Unlocking finance and investment for clean energy in the Philippines” 31 May – 1 June 2022, Makati Diamond Residences, Legazpi Village, Makati City

1. Current Green Energy
Financing Programs
1st Clean Energy Finance and Investment Consultation Workshop
Unlocking Financing and Investment for Clean Energy in the Philippines
May 31, 2022

2. Presentation Outline
DBP Profile
1
DBP’s Green Energy Financing Programs
2
Challenges/barriers to Financing
3
Risks to Financing
4
Capital Mobilization
5

3. • 100% owned by the National Government
• Philippines’ Premier Development Financial Institution
• 75 years of supporting country-wide development
• Key Player in Nation-Building
• 6th largest bank in the Philippines in terms of asset
size (Php 1.158 Trillion)
• Recipient of national and international awards
(ADFIAP, Karlsruhe Awards, etc.)​
• Strength is on medium and long-term financing
• Nationwide network: 129 branches; 11 branch-lite
offices; 5 provincial lending groups; 32 lending centers
Luzon
48 Branches
14 Lending Centers
Branches: 129
Branch Lites: 11
Lending Groups: 5
Lending Centers: 32
NCR
19 Branches
Visayas
27 Branches
7 Lending Centers
Mindanao
35 Branches
11 Lending Centers

4. DBP Priority Development Thrusts
Finances
infrastructure
initiatives
Provides
financing for
SME Sector
Advances
environmental
protection
Promotes well-
being of Filipinos

5. DBP’s GREEN ENERGY FINANCING PROGRAMS

6. DBP’s GREEN ENERGY FINANCING PROGRAMS
• Finances utility-scale energy generation using
renewable energy and power distribution projects
• Caters to private corporations, distribution utilities,
and LGUs
• Provides long-term financing of up to 15 years
inclusive of 5 years grace period on principal that
matches project developers requirement
• Interest rate may be fixed or variable
• Total renewable energy capacity funded at 428.9
MW covering solar, wind and hydropower

7. DBP’s GREEN ENERGY FINANCING PROGRAMS
• Finances utility-scale solar merchant plant project in
Luzon and Visayas of up to 60% and 50% of the total
project cost, respectively
• Provides loan tenor of up to 12 years and grace period
of 1 year
• Project should comply with defined technical
parameters (i.e. min. of 10 MW, investment cost of
US$ 0.75 M/MW, capacity factor of 18% or better, etc.)
• Potential vehicle for the Green Energy Auction
Program (GEAP); From merchant to bilateral
arrangement

8. DBP’s GREEN ENERGY FINANCING PROGRAMS
• Finances energy efficiency projects including solar rooftop/ground
mounted or other renewable energy projects for own used and or net
metering
• Caters to public sector, private companies, Energy Service Providers, and
Energy Service Companies (ESCO) certified by DOE
• Provides loan tenor of up to 10 years inclusive of up to 1 year grace period
based on cash flows
• Interest rate may be fixed or variable
• Allows up to 100% financing of the total project cost for public institutions /
Up to 80% for private companies and ESPs / ESCOs
• Provides Omnibus Term Loan Facility for ESCOs/ESPs covering two (2)
years pipeline projects
• Allows loan repayment based on savings

9. DBP’s GREEN ENERGY FINANCING PROGRAMS
• PASADA aims to support the implementation
of the national government’s Public Utility
Vehicle Modernization Program (PUVMP)
• Key features:
✓ 5-6-7 Program Features (5%-Equity, 6%-
Fixed Interest Rate, and 7-year Loan Term)
✓ Government subsidy amounting to Php 160K
per unit

10. DBP’s GREEN ENERGY FINANCING PROGRAMS
• Supports the strict implementation of R.A. 9003 and
R.A. 6969
• Finances solid and hazardous waste management
facilities and waste to energy projects
• Caters to public and private institutions engaged in solid
and hazardous waste management and waste to energy
projects
• Provides loan tenor of up to 15 years inclusive of up to
5 years grace period for CAPEX Projects
• Provides up to 100% debt for public institutions and
70% for private institutions

11. Challenges/Barriers to Financing
1. Renewable Energy
- Availability of off-take agreement (i.e. PPA, ESA)
- Equity requirement for RE investors
2. Energy Efficiency
- Issues on ESCO performance contracting services for public
institutions
3. E-Vehicles
- Market acceptance problem
- Proven technology
- Cost of vehicles
- Availability of charging stations

12. Risk in Financing
1. Renewable Energy
- Technicality on CSP requirement
- Construction delays
- Limited capacity for hydro Feed-In Tariff (i.e., 98.88 MW
remaining)
2. Energy Efficiency
- COVID 19 lockdown affected the projected energy savings
due to low energy consumption
3. E-Vehicles
- Lack or absence of Local Public Transport Route Plan
resulting to regulatory and financing risks

13. Capital Mobilization
1. Tapping of non-traditional fund source
• DBP ASEAN Sustainability Bonds amounting
Php 18.125 Billion
• Green Climate Fund (GCF) of up to US$ 250
Million per project
2. Partnership
- MOU between DBP and Infrastructure Asia

14. Thank you!
Thank You!