Written by Lenie Lectura
20 Mar 2014
The Department of Energy (DOE) was able to tap the Export-Import (Ex-Im) Bank of the United States for a $1-billion facility to finance the renewable-energy (RE) and liquefied natural gas (LNG) industries in the country.
The agency said it signed a memorandum of understanding (MOU) on Wednesday for $1 billion worth of financing guarantees.
“The signing of the MOU is an important venue to cultivate partnerships and cooperation between the Philippine government and the American private sector,” Energy Undersecretary Raul B. Aguilos said.
Under the MOU, the DOE and Ex-Im Bank will exchange information on trade and business opportunities and explore options for utilizing up to $1 billion in Ex-Im Bank medium- and long-term loan guarantees or direct dollar loans to finance US exports in support of selected energy projects in the Philippines.
In particular, the DOE and Ex-Im Bank will work together in promoting business development opportunities on RE and LNG facilities, including port, receiving terminals, regasification facilities, pipelines and other transportation infrastructure.
The DOE is formulating a fuel-mix policy that would encourage energy diversification that is cleaner and sustainable, including RE and LNG. By 2030 the DOE also targets a 9,930-megawatt increase in the country’s RE capacity.
For LNG, the DOE pushes for the development of a Natural Gas Master Plan with the technical assistance from the World Bank through its transaction advisors, the Lantau Group and Arup.
Conducted in three phases, the phases 1 and 2 of the plan will be on the establishment of an investment and transactional framework, which the DOE and the advisors are nearing completion. The phase 3 will involve the creation of a master plan for the longer term. source
Anything spend related to the generation of energy is handy investment in long run.
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