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Financing Utilities for Sustainable Energy Development (FUSED)

The FUSED Program aims to contribute in the increase access to electricity services through financing in order to help achieve inclusive growth and poverty reduction. At the end of the FUSED Program by 2030, it is expected to have at least funded Php 40 Billion of the estimated investment requirement for power generation and distribution in the Philippine Energy Plan 2012-2030.

Program Objectives

Specific Development Objectives:

1. Power Generation

      • Increase in electricity exported to the grid
      • Potential additional/existing connections generated/supported
      • Carbon dioxide emissions avoided
      • Volume of fossil fuel avoided

2. Power Distribution

      • Additional connections generated
      • Avoided system loss

Eligible Borrowers

      • Private Corporations
      • Electric Cooperatives
      • Local Government Units
      • Government Owned and Controlled Corporations
      • Private Financial Institutions

Eligible Projects

      • Development and construction of energy generation or mini-grid rural electrification projects thru conventional (coal, diesel, bunker, etc.) and renewable energy resources (hydro, wind, solar, biomass, geothermal and other emerging technology) to address power supply system constraint.
      • Power distribution and transmission projects that will improve power supply system safety, reliability, efficiency such as reduction of system losses and power service quality for existing customers through rehabilitation and upgrading of distribution system.
      • Purchase of necessary equipment (hardware and software), service vehicles, tools, and other non-network projects (e.g. office building, warehouse) to improve efficiency and service delivery.
      • Any project which improve the reliability and efficiency of rural power supply and increase access to electricity services.

Eligible Expenditures

      • Capital Investment
      • Institutional development
      • Working capital requirement (i.e. prompt payment rebate, operations and maintenance)
      • Interest during construction
      • Plant acquisition and/or refinancing of existing loan
      • Consultancy services
      • Project preparation activities for renewable energy projects (i.e. feasibility study, detailed engineering design)

Loan Featuress

Equity Participation

      • Private corporations – minimum of 20% based on total project cost
      • Electric Cooperatives, Local Government Units and Government Owned and Controlled Corporations – minimum of 10% based on total project cost

Repayment Term

      • The term of the loan shall be based on the project cash flows or depending on the source of fund. The mode of repayment shall be monthly or quarterly depending on the cash flow of the project and/or the business.

Basic Documentary Requirement

For Renewable Energy Power Projects:

      • Feasibility Study
      • Detailed Engineering Design
      • ECC/CNC including EIA Report/IEE Checklist
      • Water Rights Permit
      • Renewable Energy Development Service Contract
      • Certification Pre-Condition/Certificate of Non-Overlap
      • Grid Impact Study/Distribution Impact Study
      • Electricity Sales Agreement approved by ERC/Renewable Energy Supply Agreement
      • Engineering, Procurement and Construction (EPC) Contract
      • Proof of Ownership or Authority to Use Project Site/Right of Way

For Conventional Power Projects (coal, diesel, bunker, etc.)

      • Feasibility Study
      • Detailed Engineering Design
      • ECC/CNC including EIA Report/IEE Checklist
      • Water Rights Permit
      • Engineering, Procurement and Construction (EPC) Contract
      • Certificate of Endorsement by Dept. of Energy
      • Certification Pre-Condition/Certificate of Non-Overlap
      • Grid Impact Study/Distribution Impact Study
      • Electricity Sales Agreement approved by ERC
      • Fuel Supply Agreement
      • Description of air pollution control facilities and the expected quality of emission. Note that the supplier should guarantee compliance of the emission to the National Emission Standards for Source Specific Air Pollutants.
      • Proof of Ownership or Authority to Use Project Site/Right of Way

For Transmission and Distribution Projects

      • CAPEX Application submitted to ERC including Distribution Development Plan
      • Latest Monthly Engineering Report
      • ECC/CNC including EIA Report/IEE Checklist
      • NEA Clearance to Borrow
      • Certification Pre-Condition/Certificate of Non-Overlap
      • Proof of Ownership or Authority to Use Project Site/Right of Way

Download brochure

Program Managers

Paul D. Lazaro
Head, Lending Program Management Group
818-9511 local 3310/3311
pdlazaro@dbp.ph

Rustico Noli D. Cruz
Head, Program Development and Management I
893-3547 / 818-9511 local 2316
rndcruz@dbp.ph

Raquel C. Anzures
Head, Loan Program Development Unit
893-1782/818-9511 local 2379
rcanzures@dbp.ph

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