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LOOKING
at the possible influx of investments in the renewable
energy sources in the country, the government asked
Tuesday its multilateral lenders to rechannel the
repayment of Philippine debts into renewable energy
projects.
“I also
encouraged our development partners to consider
seriously the rechanneling of repayments for Philippine
debts that will mature starting on 2008 to renewable
energy projects,” Energy Secretary Raphael P.M. Lotilla
said at the sidelines of the Asian Development Bank’s (ADB)
Asia Clean Energy Forum.
The
energy chief noted that the National Power Corp. (Napocor)
has more than $3 billion in principal loans maturing in
2008, 2009 and 2010. “And any discount on these debts is
a welcome development,” he added.
Lotilla
explained that Napocor’s debt to multilateral lenders
amounted to $6 billion, of which about $3 billion is
expected to be reduced starting 2008 to 2010.
Of the
$3 billion debt, according to Lotilla, about half are
accounted for to multilateral lenders such as ADB, World
Bank and Japan Bank for International Cooperation, while
the balance is sourced from a consortium of banks and
other lending institutions.
Lotilla
also welcomed ADB president Haruhiko Kuroda’s
announcement, among others, of contingent loans for
renewable energy where expected returns that do not
materialize can be converted into grants.
Lotilla
expressed support for the initiatives being undertaken
by the ADB to promote energy and cleaner sources of
energy.
“Asia
faces a particularly daunting challenge in securing the
energy it needs to support growth and poverty reduction
in a responsible, sustainable manner,” Kuroda said.
About 70
percent of Asia’s energy needs are dependent on fossil
fuels, which is a primary source of greenhouse gases.
Asia now accounts for one-quarter of the world’s
greenhouse-gas emissions.
“Clean
energy, including energy efficiency and renewable
energy, needs to be actively promoted. Developing
countries should be encouraged to explore possibilities
for renewable energy sources, such as wind, solar and
bio fuels,” Kuruda said. He urged Asian countries to
start planning “for the inevitable worsening of climate
change,” warning that greenhouse gases remain in the
atmosphere for many decades.
Last
year, ADB announced its intention to increase its
spending on its clean energy program to $1 billion a
year.
Kuroda
said that while this was “only a small fraction” of the
region’s needs, he expressed confidence that the ADB’s
contribution would catalyze significant additional
resources.
One of
the challenges to be addressed at the conference is how
best to get clean energy technology to be broadly rolled
out across Asia. Another issue to receive attention is
the need for a regional approach to clean energy
promotion.
Finding
ways to pay for clean energy is also a major concern.
The cost of renewable energy projects, while falling,
remains higher than those for conventional energy.
Kuroda
said ADB’s board of directors has approved the
establishment of the Clean Energy Financing Partnership
Facility, which is made up of a multilateral clean
energy fund and a series of bilateral clean energy trust
funds. |
