Energy gets a paltry $60 million out of the $1.336 billion World Bank funding of RP development projects

Ten development projects for the Philippines totaling a combined cost of $1.336 billion have been proposed by the multi-lateral lender World Bank as part of its commitment to the country.

Of these, the biggest funding goes to the proposed $682 million Light Railway Transit (LRT) Line 1 South Extension project which will be implemented by The Light Rail transit Authority (LRTA).  This is followed by the $180 million Cavite-Laguna North-South Highway project to be implemented by the Department of Public Works and Highways.

The energy sector gets a paltry total of $60 million which consists of two projects: one, $40 million is allotted for Additional Financing for Rural Power project which is unspecified, but emphasizes renewable energy and mining and to be implemented by the Department of Energy; and two, the Ethanol Plant Wastewater Biogas project which is to be implemented by Roxol Bioenergy Corp, a private company.

Why, the seemingly lopsided bias against the energy sector?

The energy sector is one of the least developed infrastructures of the country which ought to receive considerable attention from out policy makers.  This underdevelopment is starkly manifested by a not so robust generation and transmission infrastructure and high cost of electricity which is the highest in the region next only to Japan.

The World Bank and other multi-lateral financial institutions count on the host country to provide the necessary input for them to fund the required development projects.

If so, are our energy policy makers blind to the needs of the energy sector?

Off the head, one can recite a litany of projects in the energy sector that demand attention and funding:

·         Energy policy: We have just passed the Renewable Energy Law, yet the implementing rules and regulations as well as associated legislation have yet to be worked out. These are not easy projects. For example, putting in place a viable feed-in tariff or a renewable portfolio standards cannot be made overnight; much research and analysis need to be made. What about net metering and planning a distributed grid?

·         Wind energy: We don’t even have a reliable wind energy map. Shall we just depend on a study of the U.S. National Renewable Energy Laboratory (NREL) to guide us in developing our wind energy resources? A more detailed wind energy map would go a long way towards encouraging private investors to put up wind farms. What about local research?

·         Solar energy: Again, a map of the solar energy distribution in the country is at best, sketchy. What about the development of low-cost solar panels? How about helping the struggling researchers at Ateneo and U.P.?

·         Geothermal energy: While we take pride in being the second in geothermal power production worldwide and having produced local talent, these competitive advantages would easily vaporize into thin air without a sustained effort at continuously studying and developing these indigenous resources.

·         Energy efficiency: We only have a nascent energy efficiency movement.

And so on.

The World Bank cannot be blamed for putting dimes and nickels to our energy sector. We are more to blame of not getting enough financial support if we cannot articulate what needs to be done in the sector.