World Bank unit wavers on RE funding

‘First come, first served’ policy favors big firms


MANILA, Philippines—International Finance Corp., the private sector funding arm of the World Bank, is considering whether it should finance certain renewable energy (RE) projects given the government’s “first-come, first-served” policy, which it said tended to favor the bigger power developers.

IFC Philippines resident representative Jesse O. Ang said the agency would still have to take a look at the policy. IFC will determine if it has to put out money for power projects despite the uncertainty of whether these will be eligible for the feed-in-tariff (FIT) rates.

FIT is a mechanism under the Renewable Energy Act that assures developers of fixed cash flow over the next 20 years.

“Ideally, the best solution is that you’re eligible and so no more question that you’ll build it. But the government has decided they would do something else—the first come, first served [policy]. So it comes with a certain characteristic because you’re going to put money out even if you don’t know if FIT is going to happen. What if they don’t build it properly? By the way, the money is out already, which means the money’s gone. So will banks do that? [Banks] have to have some assurance,” Ang explained.

According to Ang, the policy announced by the Department of Energy affected largely the small power players.

Some renewable energy projects, Ang said, could be done on the back of a strong balance sheet by some of the bigger power entities that have the financial muscle because this meant that such developers could carry the risk of not being able to secure a FIT.

“Of course, this favors the big guys. For the others who really need FIT and they don’t have strong balance sheets, they would be somehow in a disadvantage,” he added.

“Some projects will happen but it favors (the big companies) because they’re the ones with the balance sheet. Clearly, without assurance of FIT, you also have to find another way to have an assurance, so the cheaper technologies like hydro [resources] will have an advantage over the wind and solar [sectors], which really need [the support of] FIT rates because they are very expensive. But if the government decided it that way, then let it be that way,” Ang pointed out.

The DOE earlier announced its adoption of a “first come, first served” policy in allocating the limited 760-megawatt installation target for renewable energy projects. This policy means that upon the project’s declaration of commerciality, a developer must race against other project proponents in building its own renewable energy facility to be awarded an allocation and therefore be eligible to avail itself of fixed cash flow over the next 20 years via the FIT rates.

Although developers have come to appreciate the value of this policy as this would weed out the so-called “flippers,” many proponents argued that this policy posed a huge challenge for them.

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  • nazar_agawin

    “Although developers have come to appreciate the value of this policy as this would weed out the so-called “flippers,” many proponents argued that this policy posed a huge challenge for them.”

    Governance is about for the greater good. As reported, this “first-come-first-serve” (FCFS) would weed out the so-called “flippers”, but what about those who have already invested money on the development of their RE projects? Did it do justice to them upon implementing the FCFS policy? Were they been consulted? Trans-Asia Renewable Co. (TAREC), Aboitiz Renewables, Inc., Firstgen, EDC, etc. have already spent millions in duration studies. Some are even in the advance stage as to acquiring right-of-way activities. And all these investments might come to naught with this ill-conceived FCFS policy. IFC has laid out the principle in project financing – certainty of cash flow. Now, getting FIT eligibility only when you finish first does give exactly the banks the assurance that you will eventually get it, and therefore put a lot of risk on lending institution. As a natural reaction IFC will think twice whether to give the much needed funding to these RE projects. A reported ground breaking ceremony of biomass facility in Isabela last March 11, 2013, in which DOE officials were present gave a naïve comment: “There is greater interest … [The DOE’s presence in these ceremonies] gives financial institutions the assurance that the power projects are backed by the government”. Nope, that is not an assurance that lending institutions accepts. In effect this “weeding” out the “flippers” also discourages serious RE investors, and so did the DOE cater for the greater good?

    In this season of lent maybe we can get wisdom from the parable of the weed, as narrated by our Lord Jesus himself: “… because while you are pulling the weeds, you may uproot the wheat with them. Let both grow together until the harvest. At that time I will tell the harvesters: First collect the weeds and tie them in bundles to be burned; then gather the wheat and bring it into my barn.” I hope that DOE would clarify and justify its position with the stakeholders by holding a dialogue as soon as possible.
    power consultant

  • mxsclxmxn

    Free Masonry Has Reached the Government!

    Satan’s Synagogue as per Pope Clement XII year 1738

    In the P100 BILL series 2012 Serial # ZK188477 has a logo of the Grand Lodge of Free and Accepted Masons. Freemasonry has its goal of destroying Christendom and replacing it with man-centered government and Satanic religion filled with errors.

    How can this logo of a satanic group be allowed to print in the monetary instrument of the country with the constitution believing in a God asking for HIS Divine Providence?

    In Freemasonry the god of the secret societies is covertly substituted for the One True God. This false god is identified in the Masonic lodges as “the Great Architect.”

    Since Freemasonry has attempted so strenuously to claim that they are just a “good ole boy” fraternity that does good works and has a good time, most people will be shocked to learn the bitter truth behind that facade. Freemasonry certainly isn’t “free”. It could cost you your soul.

    Once Masons progress to the higher degrees and they finally believe the ‘Masonic lie”; and they will ‘understand’ that the Grand Architect of the Universe is not the God of the Old or New Testaments, but instead is the perfect dues paying Mason in good standing, who like the statue example above, they chipped away at, and finally shed needless ‘layers’ from both their old useless religion, and from loyalties outside of Masonry, which all along were what concealed them from their own personal true image, as the one and only real God.

    Freemasonry is one of many apostate religions dedicated to the destruction of traditional Judaism and Christianity. Those who aspire to grow in their closeness to Jesus Christ, and to increase their discernment in these days, would do well to stay very clear of Freemasonry. Are your loyalties with Jesus Christ or are they with the lodge? Both are diametrically opposed to one another as you will see below.

    Masons have mixed idolatry, paganism, the occult, Gnosticism, Kabala, fertility cults, Satanism, spiritualism, demonology, and put it into a blender and come up with the Masonic religion. It is not of God! It is a false religion; the Harlot of Babylon. Masons say they offer new candidates “the light”. The light they are actually giving is: Lucifer. The Christian Bible says that Satan walks to and fro on this earth masquerading as an “angel of light”, that many might be deceived.

    An insidious byproduct of Freemasonry is to keep husbands and wives out of churches & away from their children and their homes…

    Satan does not need to receive worship to achieve his goals. All he has to do is to keep a man from following Jesus. Satan knows that anyone who does not follow in the teachings of Jesus does not have God. (2 John 9)

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