TERMINAL REPORT
Technical Assistance to DOE for Enhancing Private
Sector Participation in New and Renewable Energy
Investments for Off-Grid Rural Electrification
(TASK 2 – Consultations with Local Governments on
Investments in New and Renewable Energy)
Submitted to the:
By:
DEVELOPMENT PLANNING AND ENVIRONMENTAL MANAGEMENT, INC.
Prepared for:
This report was prepared under the terms and conditions of Contract No. 492-C-00-97-00063-00.
The opinions expressed herein are those of the authors and do not necessarily reflect the views of the USAID.
A Joint Program of the
Philippines Department of Energy
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US Agency for International Development
PHILIPPINES CLIMATE CHANGE MITIGATION PROGRAM
United States Agency for International Development (USAID)
and the
Department of Energy
Manila, Philippines
Prime Contractor - PA Consulting, Inc
3
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Floor, Department of Energy Building
Energy Center, Merritt Road, Fort Bonifacio, Taguig Metro Manila, Philippines
Phone: (632) 840-1401 to 21 loc 343; Fax: (632) 840-2184; E-Mail: [email protected]
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Terminal Report 2
Philippine Rural Power Off-Grid Electrification Program
TABLE OF CONTENTS
REVIEW OF ACTIVITIES UNDERTAKEN 1
SUMMARY OF CONSULTATION WORKSHOPS RESULTS 5
SUMMARY OF HELPING FACTORS 8
SUMMARY OF HINDERING FACTORS 12
RECOMMENDATIONS RESULTING FROM CONSULTATION WORKSHOPS 15
RECOMMENDATIONS ON FOLLOW THROUGH ACTIVITIES 22
ANNEXES
1 Memorandum re the Final List of LGUs Targeted for Consultation-
Workshops
2 Sample of Consultation-Workshop Handouts
3A Slide Notes - PowerPoint Presentation on New and Renewable Energy for
Off-Grid Communities
3B Diskette File - PowerPoint Presentation on New and Renewable Energy for
Off-Grid Communities
4A Sample Field Coordination Correspondences
4B Compilation of Team’s LGU Consultation Workshop Itineraries
5 Schedule of Conducted LGU Consultation Workshops
6 LGU Consultation Workshop Design and Session Guide for Facilitators
7 Formal Expression of Interest
8 Suggested Elements of a Structured Participatory Process for Assessing
NRE Projects in LGUs
Terminal Report 1
Philippine Rural Power Off-Grid Electrification Program
TERMINAL REPORT
TASK 2
TECHNICAL ASSISTANCE FOR ENHANCING PRIVATE SECTOR
PARTICIPATION IN NEW AND RENEWABLE ENERGY INVESTMENTS
This Terminal report consists of four parts namely: (a) a review of activities carried out
under this Task; (b) a summary of the results of the consultation workshops; (c)
recommendations resulting from those consultations; and, (c) recommendations on activities
to follow through on the results of the consultations.
REVIEW OF ACTIVITIES UNDERTAKEN
The deliverables of Task 2 are as follows:
1. Selection of local governments in which to hold consultation workshops for the
purpose of determining how a national Program for the Promotion of New and
Renewable Energy sources (NRE) could be made acceptable to local government
units (LGUs).
2. The design of presentation kits for use in those consultation workshops.
3. The conduct of the consultation workshops.
4. On a best effort basis, generate expressions of interest from the participants in
the workshops.
5. The generation of information on the seven LGUs to be covered by the Task.
6. Recommendations on follow through activities in the LGUs in which the
consultations were held.
7. Terminal report.
Work on the Task consisted broadly of five phases, namely:
§ Selection of the LGUs;
§ Preparation of presentation or briefing materials;
§ Preparations for the consultation workshops;
§ Conduct of the consultation workshops; and
§ Completion of reports.
A brief description of each phase follows.
Terminal Report 2
Philippine Rural Power Off-Grid Electrification Program
Phase Description
Selection of LGUs This phase consisted of intensive discussions with the United
States Agency for International Development (USAID), the
Department of Energy (DOE) and the PA Consulting. Both
USAID and the DOE understandably had their respective
concerns to address by way of this activity. To satisfy all those
concerned, the Task 2 Team decided to cover eight rather than
the contracted seven LGUs.
Other than the challenge posed by differing priorities of the
concerned agencies, the Task 2 Team encountered no serious
difficulties. The memorandum summarizing the basis for the
final selection is attached as Annex 1. The selected LGUs were
Nueva Vizcaya; Masbate; Northern Samar; Laoang, Northern
Samar; Capiz; Antique; Lanao del Norte; and, Zamboanga del
Norte. With the LGUs defined, the Team proceeded to organize
teams to coordinate preparations for the consultations.
Design of Presentation
and Briefing Materials
This also entailed extensive consultations with the Department
of Energy, specifically the office of Engr. Ruben Quejas. A total
of three consultation meetings were held. The briefing
materials consisted of a reference document using a "Question
and Answer" format and a PowerPoint presentation. A copy of
the reference document is presented as Annex 2 and the
PowerPoint presentation is presented in Annex 3. A diskette
copy of the PowerPoint presentation is attached to this report
for reference.
A major difficulty encountered was the initial dearth of case
materials to show the participants. The first drafts of the
materials consisted mostly of non-Filipino cases. With the help
of the other Task consultants, the Team was able to gather
enough information to generate a more "Filipinized" version of
the New and Renewable Energy Development program.
Preparations for the
Consultation Workshop
This phase was the most difficult in the Task. It consisted of
three parallel activities, namely: (a) the design of the
Consultation Workshop process; (b) the gathering of
information relevant to the Consultation Workshops; and, (c)
actual field preparation work.
The most valuable pieces of information gathered were the
maps, the data showing the level of energization by barangay,
and the key local players in the energy sector. This helped the
team determine which municipalities and barangay heads to
invite, and what institutions had to be tapped to ensure
Terminal Report 3
Philippine Rural Power Off-Grid Electrification Program
effectiveness of Consultation-Workshops. In Mindanao, the role
of the Mindanao State University in Iligan (MSU-IIT) was critical
as they used their network to ensure that the preparations were
in order.
The last activity was the most difficult. It consisted of three
tasks, namely: informing the selected LGUs and key institutions
of the planned event; requesting their assistance to coordinate
the preparations; and requesting the LGU to host the activity.
When informed of their selection, all except Nueva Vizcaya
province agreed to cooperate. Governor Agbayani said he
would be very busy attending to his re-election bid. A surrogate
LGU was selected: Kasibu, Nueva Vizcaya. It turned out to be a
good site as it was (and still is) in the midst of an initiative to
establish a NRE facility in four of its barangays.
Capiz and Masbate provinces begged off barely fourteen days
before the scheduled consultation. This and other coordination
problems encountered were attributable to the closeness of the
start date to two major events in the Philippine calendar namely
the Holy Week and synchronized elections. The latter was the
most troublesome. The local chief executives were afraid of
organizing events that would be snubbed.
Guide to field coordinators containing their prepared talking
points with Local Chief Executives (LCEs); the prepared team
itineraries; and sample correspondence to other local players
are shown under Annex 4A-B.
Conduct of Consultation
Workshops
The Consultation Workshops were conducted within March 26
and April 18. The Holy Week served as a break between the
two batches of LGUs. Not much difficulty was encountered
during the workshops. The worst that happened were tardiness
of participants. In Lanao del Norte the workshop started at
10:00 AM continuing into 6:00 PM.
A Facilitator and a Co-Facilitator from the Team handled each
Consultation Workshop. When present, representatives from
the DOE and the Affiliated Non-Conventional Energy Centers
(ANECs) or the local electric cooperative served as the technical
resource persons alternately. For Zamboanga del Norte, in the
absence of both the ANEC and the DOE, the MSU-IIT provided
expert counsel to the participants.
A summary of the Consultation Workshop results is presented in
the next section. The schedule of Consultation Workshops is
attached as Annex 5.
Terminal Report 4
Philippine Rural Power Off-Grid Electrification Program
Reports The documentation reports on the workshops were completed
one week (April 26) after the last consultation (Masbate, April
19). The terminal report was completed on May 10. No
difficulties were experienced in this phase.
Terminal Report 5
Philippine Rural Power Off-Grid Electrification Program
SUMMARY OF CONSULTATION WORKSHOPS RESULTS
The Consultation Workshop activity consisted of 6 activities including the Opening Activity,
designed for a maximum running time of 8 hours. The six activities included:
§ Opening Activity
§ Introduction of the Philippine Rural Electrification Program, New and Renewable
Energy and the Market Package Concept
§ Current Reality Dialogue
§ DOE Information on Next Steps for the LGU
§ Expression of Interest to the Program
§ Closing Activity
In all, four (4) provinces, eighteen (18) municipalities and forty-two (42) barangays were
represented in the Consultation Workshops. A total of 144 officials and private citizens
participated in said activities.
A copy of the Workshop Design is presented in Annex 6. The table below summarizes the
major results of activities 2-5 of the Consultation Workshops.
Workshop Activity Major Results
Introduction of the
Philippine Rural
Electrification Program, New
and Renewable Energy
(NRE) and the Market
Package Concept
Very few clarificatory questions were asked on the Philippine
Rural Electrification Program. Of more interest to the
participants were the presentation on the NRE and the
Market Packages.
The NRE discussions centered on the cost of installation and
the technical requirements as well as features of the
installation.
On the Market Package, the discussion centered on the
clustering approach used. In all consultations conducted,
none of the identified service area clusters reached ten
barangays. The facilitators observed that at the most, four
barangays would form a cluster. The use of the pre-
identified clusters in breaking up barangays into workshop
groups had to be reviewed in the light of some communities'
opinion that such clusters would not work. Wide dispersion
of households and connectivity reasons were commonly
cited in questioning the validity of the market packages.
Terminal Report 6
Philippine Rural Power Off-Grid Electrification Program
Current Reality Dialogue In assessing the demand for electricity, none opted for a
free ride to electrification. Of the 19 clusters or workshop
sub-groups, 17 stated that they need electricity so much
that they are willing to invest in it given the right price.
The remaining two clusters opted to allow private investors
to take the lead under a BOT arrangement. But they
offered to provide funding (from their 20% development
fund) should the private investor request for equity
counterpart from them or in the event that the private
investor drops the electrification project.
1
It was noted that
several times, participants agreed that upland households
are willing to pay the right price for electricity.
The distribution of demand by user type varied widely
among the 19 clusters. On the average the projected
percentage distribution in the use of power was as follows:
§ Residential 32%
§ Livelihood 56%
§ Public Services 12%
A rundown of the identified hindering and favoring factors is
presented in this section. The most mentioned favoring
factor is LGU support followed by the availability of a
resource, support of an organization and finally the technical
capacity to implement an NRE project.
For subsequent activities, the participants often mentioned
the following:
§ Search for financing source
§ Preparation of feasibility studies
§ Issuance of resolutions in support of the project
§ Network with their higher LGUs to request for
counterpart funding
§ For the local electric cooperative to provide training
to barangays with NRE projects
§ Assess the resource in terms of its capacity (volume
flow) for micro-hydro
§ Conduct information, education campaigns to
educate people on the NRE
1
Participants in the two clusters explained that they would wait first for an investor to finance the
planned NRE project in the light of a private sector’s expressed interest to pursue an NRE project in
the area under a BOT arrangement. See the Masbate Consultation Workshop proceedings.
Terminal Report 7
Philippine Rural Power Off-Grid Electrification Program
educate people on the NRE
§ Seek investors in NRE potentials
DOE Information on Next
Steps for the LGU
Where the DOE was present, the representative was asked
to comment on the "next steps" identified by the
participants. In Kasibu, the DOE was engaged in
discussions on the technical requirements of the solar and
micro-hydro systems. In Antique and Northern Samar, the
representative expounded on the requirements of
government financial institutions (GFIs). The discussions
were varied. The roles of ANECs were also discussed.
Expression of Interest to
the Program
Informal expressions of interest were prepared by the
participants. In Kasibu and Antique, narrative EOIs were
drafted on site by the participants and signed by everyone.
In other sites, posters were produced, either by cluster or in
plenary, and signed by the participants.
2
In the first two consultations in Northern Samar, a formal
Expression of Interest (EOI) to be signed by the participants
was provided. The legal language and the idea of signing
the EOI dampened the enthusiasm of the participants, as it
was perceived to carry a legal obligation on their part. This
prompted the Team to drop the more formal format and opt
for the more informal process of eliciting EOIs. Please see
sample format of formal EOI in Annex 7.
2
Please refer to the Consultation Workshop Proceedings for reproduction of EOI posters.
Terminal Report 8
Philippine Rural Power Off-Grid Electrification Program
SUMMARY OF HELPING FACTORS
LGU Support
§ 20% of IRA may be used for the projects (7)
§ Willingness of barangays to provide counterpart funds from their IRA (2)
§ Counterpart from the LGU may be made available (2)
§ IRA is available (2)
§ Barangay resolutions can be issued
§ Barangay support in the form of 20% IRA
§ Barangay teachers and officers can help
§ Some municipal counterpart funds
§ Electric posts made available by barangays
§ Counterparting is accepted, fast release of budget from ANIAD to projects
§ Financial assistance from LGU
§ LGUs and stakeholders are cooperative
§ Receptivity of LCEs to NRE
§ Resolutions issued requesting for support from the DOE
§ Right of eminent domain
§ P500, 000 cash in bank with additional funds from the IRA (Guibo, Siayan)
§ The Mayor and the barangay council support the effort
Terminal Report 9
Philippine Rural Power Off-Grid Electrification Program
Support from Other Organizations
§ Presence of cooperatives and other groups (3)
§ Coordination of NGOs and LGUs is good (2)
§
Presence of institutions that can be of help (NORMASELCO,
TESDA, ANEC and DOST) (2)
§ Presence of local NGOs (2)
§ Acceptance by barangay council and local people's organization
§ Cooperatives are active
§ Existing partnerships between people’s organizations, non-
government organizations, local governments and ANECs.
§ Financial assistance from the NGOs
§ NGOs supportive of NRE initiatives
§ Presence of farmers' cooperative
§ Strong community organization
§ Supportive Electric cooperative and NAPOCOR
§ High level of interest in NRE by the NAPOCOR and LANECO
§ Province is host of ER 1-94
§ Regular release in share in national wealth to the province
Resource Is Available
§ Solar and wind resources available/plentiful (3)
§ Abaton falls, Sibuton falls
§ Availability of resource
§ Barangay water sources
§ Cabagian and Palmera falls
§ Falls and wind are available
§ Maliao River
§ Micro-hydro sites have been identified by the LGUs
§ Natural resources
§ Panagawayan falls for mini hydro
§ Panay River
§ Waterfalls
§ Rivers and streams abound
§ Salog River for micro-hydro
§ Streams and rivers abound
§ Sunlight is available
§ Available local materials
§ Water resources will be maximized
§ Water supply is available (Panay River)
Terminal Report 10
Philippine Rural Power Off-Grid Electrification Program
Technical Capability to Implement the Project
§ Availability of electricians and technicians (3)
§ Available human resources/manpower available (3)
§ Availability of skilled people/trained labor (2)
§ Barangay electricians are available
§ Existing solar project
§ Experience in solar energy
§ Presence of ANEC
§ Presence of electricians and technicians
§ Technical capability
Community Preparedness
§ Bayanihan spirit is alive (2)
§ Concern for watershed conservation
§ Cooperative spirit of the residents
§ Feasibility studies completed
§
People are willing to pay higher that the current
P100 they spend for electricity or lighting
§ Strong community organizing sk
ills brought by
ANIAD
Complements Other Projects
§ Agri-producing area
§ CBRMP can complement
§
municipalities
§ Need for water
§ Presence of ecotourism sites
§ Salvador is covered by corn cluster program
§ Tourism potential
Terminal Report 11
Philippine Rural Power Off-Grid Electrification Program
Effective Implementation of Electrification
Programs
§ Barangay electrification program
§ Electrification under the ARC program
§
LANECO and NPC programs are implemented
province-wide
§ On-going barangay electrification program
§ Proposed electrification of MASELCO
Other Factors
1. Accessibility
2. Accessibility by road
3. Low labor cost for maintenance
4. Rare typhoons
5. Transparency in government transactions
Terminal Report 12
Philippine Rural Power Off-Grid Electrification Program
SUMMARY OF HINDERING FACTORS
Technical Constraints to Construction or
Installation of the
Facility
§ Lack of farm-to-market road/ Poor road condition/network (6)
§ Lack of accessibility for delivery of materials (4)
§ Inaccessibility of project site (3)
§ Right of way (ROW) problems (2)
§ Transportation problems (2)
§ Catubig river obstacle
§ Construction will be difficult
§ Difficult terrain
§ Inadequate communication facilities
§ Location of sites
§ Micro-hydro may need lots of materials to construct
§ No hardware to implement the project
§ Off-grid areas
§ Some micro-hydro sites are far away
§ Source of materials to be used
Community Preparedness
§ Dole-out mentality (3)
§ Expensive fees / Fees are not affordable (2)
§ Expensive fees (P50-100)
§ Financial constraints on the part of the households
§ Insufficient information
§ Low income (2)
§ Need for capability building
§ No champion or prime mover
§ No community support
§ No support from landowners
§ No viable organization to manage the facility later
§ P60 a month is too much
§ Some micro-hydro potentials are located in private lots
§ Too expensive at P90 per month
§ Tribal resistance to the project
§ Waiver from cultural minorities for the implementation of the
project
Terminal Report 13
Philippine Rural Power Off-Grid Electrification Program
Fund Limitations
§ Lack of financial resources/investment funds (7)
§ Lack of counterpart support from LGUs (2)
§ No financial support (2)
§ Financial support needed for the electrification program
§
MASELCO agrees to connect sites if the LGU helps cover
the cost of clearing coconut trees
Technical Limitations to Implement the Project
§ Absence of RE service companies in the province
§ Lack of expertise in NRE
§ Lack of technical personnel
§ Lack of technical skills
§ Limited technical knowledge of NRE
§ Needs technical studies
§ No experts or technical personnel
§ Dispersed households
§ Household distribution dispersed in target barangays
§ Limited sunlight
§ Some sites are used for irrigation purposes
§ Typhoons are common and will affect risk as well as
construction
Bureaucratic Requirements
§ Bureaucratic red-tape delays implementation (2)
§
DENR has not issued any policy on need for ECC
for RE projects
§ Difficult to get approval of agencies
§ Implementing arm of the project has not been
identified
§ Lack of transparency delays implementation
§ Poor networking between agencies
Terminal Report 14
Philippine Rural Power Off-Grid Electrification Program
Peace and Order
§ Peace and order situation is bad (3)
§ Insurgency
§ Crime situation
Politics
§ Political factors (2)
§ Political affiliation: Favoritism
§ Politics or intervention of politicians in
development of a site
Terminal Report 15
Philippine Rural Power Off-Grid Electrification Program
RECOMMENDATIONS RESULTING FROM
CONSULTATION WORKSHOPS
The following are two sets of recommendations, based principally on the results of
consultations with local government officials and other participants to the workshops held
between March 26 and April 20, 2001. The first set of recommendations deals with how the
local government units (LGUs) can be motivated to actively support the New and Renewable
Energy (NRE) Development Program of the Department of Energy (DOE). The second set
concerns suggestions on an initial batch of local governments which may be approached for
the implementation of the DOE's NRE Program.
Some of the recommendations may seem obvious but we state them anyway for emphasis
and in recognition of the strategic role that local governments play in countryside
development. In that regard we start by invoking Section 2.c of the Local Government Code
of 1991 requiring "all national government agencies and offices to conduct periodic
consultations with appropriate local government units, non-governmental and people's
organizations and other concerned sectors of the community before any project or program
is implemented in their respective jurisdictions." Related provisions in the Code include
Sections 26 and 27.
MOTIVATING LGUs TO SUPPORT THE GOVERNMENT’S NEW
AND RENEWABLE ENERGY RESOURCES DEVELOPMENT PROGRAM
Involve local government units (LGU) in the design of NRE projects from
conceptualization to implementation.
The workshops merely confirmed how LGUs could be of tremendous help in initiating NRE
projects in their localities. The workshops specifically showed:
§ How LGUs could facilitate rapid assessments of NRE resources, using local
knowledge;
§ How cooperative they could be in facilitating preparations for more detailed studies
on each potential NRE resource;
§ The LGUs' openness to venture with private parties in the development of NRE
resources;
§ Their willingness to provide financial and other forms of support to viable NRE
projects, if need be.
Terminal Report 16
Philippine Rural Power Off-Grid Electrification Program
Asked about their level of interest in NRE projects for their off-grid zones, all 19 of the
barangay clusters formed during the Consultation Workshops said that they were willing to
implement the projects even if they have to invest in it.
3
As observers at the Consultation
Workshops, one could not help
but notice the subtle authority
that local chief executives
(especially Governors) held over
Electric Cooperatives. That
relationship could be crucial when
the need for waivers arises.
There is also the need for the
LGU's support in preparing the
community to ensure the viability
of the NRE facility. Community
unpreparedness was the second
most-mentioned hindrance to NRE
development during the
workshops.
As experienced in the workshops,
there appears to be possible
differentiation of roles for each
level of LGU. At the provincial
level, the following concerns
could be addressed:
§ The role or contribution of the local electric cooperative.
§ Networking with national agencies and private sector establishments with capacity to
finance or provide technical assistance to NRE initiatives.
§ Commitments for financial support to municipalities and barangays willing to implement
NRE projects. The province receives substantial portions of the shares in natural wealth
of LGUs. The barangays and municipalities could use these proceeds for their NRE
projects. Some provinces also provide "support to barangays" from the development
fund, on a regular basis.
On the other hand, actual project planning is best done at the municipal level, participated
in by the barangay clusters. The planning process, which to some extent was done in
Laoang, Kasibu, Tapaz and Dimasalang covered initial identification of resources, assessment
3
In two clusters, the participants said they would wait first for an investor to finance the planned NRE
project before they invest in an NRE Project, considering that there were identified private companies
that expressed interest under a BOT arrangement. See the Masbate Consultation Workshop
proceedings.
The workshops yielded information on a number of LGU
initiatives in NRE development, including two mini-
hydro
development projects (Lanao del Norte and Zamboanga del
Norte)
Participants mentioned local government supports the most
as a "helping factor" in the implementation of the NRE
Program. A summary of "Helping and Hindering Factors" is
attached for reference. The more common forms of
support are:
§
Counterpart funds from their respective development
funds (20% of regular incom
e). Antique had
appropriated more than P1.0 million for its
electrification program while several barangays had set
aside substantial amounts as their counterpart to NRE
projects. The municipality of Siayan in Zamboanga del
Norte, has a barangay (Guibo) with P500,000
ready for
investment in an NRE project.
§ Making available non-
financial LGU resources. In
Zamboanga del Norte, the Governor verbally committed
financial support to viable NRE projects identified and
the provincial team of electricians who al
so complement
the local electric cooperative's technical pool.
Terminal Report 17
Philippine Rural Power Off-Grid Electrification Program
of community preparedness and the LGU's financial capacity and making an initial estimate
of demand for energy, at the barangay level. It was observed that a process could be
designed so that a structured municipal-barangay level project planning could be completed
quickly.
Given basic technical information, the community can very well assist experts in pointing out
local resources and other factors that can be tapped and considered in planning and
designing NRE facilities, and immediately rule out options that do not match local realities
and preferences. Such a process can be tedious and costly without the key informant's
cooperation and active participation.
Annex 8 presents a summary of a participatory planning process in which information and
insights vital to the formulation of a realistic project plan can be generated and organized.
Involvement of the LGUs and community representatives in such a process has served as a
venue not only for project planning but also ultimately for bonding the key local players to
the project and the subsequent effort.
Except perhaps for coastal or island communities, peculiarities of a site in terms
of its physical characteristics as well as the customs (of indigenous peoples) and
livelihood systems of its people, distinguish one NRE Project Package from
another. There may be a need to design a method, or structured process, for
customizing certain NRE project components.
The components of NRE projects referred to
are:
§ Organization and management;
§ Financial packaging; and
§ Marketing.
Twice, tribal opposition was mentioned as a
hindering factor to NRE project
implementation. As noted earlier, the
unpreparedness of communities was the
second most-mentioned hindrance to project
implementation. On the other hand, it is the
careful handling of tribal communities by an
NGO that figured prominently in what appears
to be a successful initiative in Kasibu, Nueva
Vizcaya. In the same light, not all barangays
share the exact same level of enthusiasm for
NRE projects. It was only in Kasibu that the
team experienced four barangays sharing the
same level of excitement for the NRE projects
in the pipeline (one under installation).
§
Cultural Minorities in LGUs Covered
by the Consultations
§
More than 20% of Zamboanga del
Norte's population is Subanon, most
of them
occupying the province's
hinterland.
§
Antique's aeta population is
concentrated in the highlands
where micro-
hydro potentials
abound.
§
70% of Kasibu's population consists
of a mixture of Igorot, Benguet,
Bugkalot and other Cordillera tribes-
people.
§ Lanao
's del Norte's uplands are
inhabited mostly by Muslim
communities.
Terminal Report 18
Philippine Rural Power Off-Grid Electrification Program
Peculiarities arising from differences in existing or potential livelihood systems of upland
communities is another reason for customization The people of Guibo, Siayan Zamboanga
want electricity to power their eco-tourism potential while the tribal communities of Dine,
Pao, Siguem and Paqued, all in Kasibu want electricity for their common work facility and
water supply. On the other hand, the barangays of Salvador in Lanao del Norte want
electricity for milling and entertainment.
There may also be a need to customize the
clustering of communities on the basis of
localized characteristics rather than pre-
determined factors based on statistics.
Localized characteristics could range from
customs and tradition, which bear on the
community's decision to tap an NRE source, to
the readiness of a community to sustain an
NRE facility, i.e. the issue of user fees.
In all consultations conducted, none of the
identified service area clusters reached ten
barangays. The facilitators observed that at
the most, four barangays would form a cluster.
The use of the pre-identified clusters in
breaking up barangays into workshop groups
had to be reviewed in the light of some
communities' opinion that such clusters would
not work. Wide dispersion of households and
connectivity reasons were commonly cited in
questioning the validity of the market
packages.
In the north and in Mindanao, the likelihood of tribal communities being affected by NRE
projects is high and therefore all the reason to be sensitive to unique cultural features. In
the workshops of Kasibu, Lanao del Norte, Zamboanga del Norte and Antique, concerns of
tribal and cultural communities figured with some prominence in the discussions. The De La
Salle University's experience with cultural minorities in the installation of a micro-hydro
project should be a good reference.
In the same vein, the NRE Program should not be hasty is advising communities to form
"cooperatives" that would own the facility, or having a "juridical personality." The approach,
which was extensively promoted during Marcos' time led to frustrations with the cooperatives
movement.
The Kasibu experience should be a good source of learning in this regard. The community
organization taking the initiative in the NRE project deliberately refrained from forming a
formal cooperative until such time that they believe they are prepared, organizationally, to
call themselves one.
No Need To Wait for the Clusters
At the
Zamboanga del Norte workshop,
the participants were flabbergasted
when a participant from Guibo, Siayan
suddenly announced that the barangay
had P500,000.00 in the bank for its
NRE project. Then and there, the
barangay requested for assistance to
proceed
. Were we supposed to tell him
to wait for at least nine other
barangays to form a Market Package?
The Kasibu group number only four
barangays, two of which have been
"energized", having been connected to
the grid. The participants remarked
that only
eight households have
actually been connected to the grid.
How can this situation figure in the
Market Package clustering?
Terminal Report 19
Philippine Rural Power Off-Grid Electrification Program
Affiliated Non-conventional Energy Centers (ANECs), being closer to the LGUs,
should be accorded more support to actively promote NRE. Their skills in dealing
with the political and socio-cultural aspects of NRE development need
strengthening.
Politics and community unpreparedness combined were mentioned most often by workshop
participants as the hindering factors to NRE development. Surprisingly, lack of technical
skills was one of the least mentioned as a hindrance.
ANECs representatives were present in four of the eight workshops. The ANEC for Region VI
(based in Iloilo City) came prepared and was very knowledgeable on the Antique area and
the technical aspects of NRE. Its representatives distinguished themselves during the
discussions thus illustrating the potential role that ANECs can play in promoting NRE
technology among LGUs.
A noticeable deficiency in the discussion on NRE technology was the lack of local examples,
particularly of successful cases of viable NRE-based systems in the Philippines. Most systems
in place were established through grant financing while the Shell RESCO and Atulayan
experiences in Aklan and Camarines Sur, respectively have not yet been assessed.
In that regard, it is suggested that a Conference of ANECs be organized as a forum for
sharing experiences and insights not only on technology but also in the political and socio-
cultural aspects of NRE project implementation.
The number of ANECs needs to be increased at a ratio of at least one per province. Before
reaching such a standard, ANECs will have to tap every resource available. One such
resource is the Project Development Assistance Center (PDAC) based in the National
Economic and Development Authority's (NEDA) regional office. PDACs are mandated to
assist LGUs in their project development needs.
Facilitate the release of LGUs' share in national wealth from Government Owned
and Controlled Corporations (GOCCs) and agencies (NGAs) and assist LGUs
access financial resources from funds established under ER-1-94.
At the consultations, the National Power Corporation (NAPOCOR) explained sources of funds
that LGUs may tap to finance NRE projects, other than the financing programs of the
Development Bank of the Philippines and the Land Bank. These funds include: (a) the LGU's
share in national wealth as stipulated in Articles 386-392 of the Implementing Rules and
Regulations (IRR) of the Local Government Code of 1991; and, (b) funds established under
ER 1-94.
For the former, provinces may learn from Lanao del Norte, which regularly receives its share
from the National Power Corporation while barangays may learn from Guibo, Siayan, and
Zamboanga del Norte. Likewise, Kasibu barangays received funding from the Philippine
National Oil Corporation (PNOC) to finance their micro-hydro project.
Terminal Report 20
Philippine Rural Power Off-Grid Electrification Program
Funds generated from the share in national wealth are substantial. Under the Code, if the
proceeds were derived from the development and utilization of hydrothermal, geothermal
and other uses of energy, 20% of the LGU's share may be used for development and
livelihood projects while 80% must be used to "lower the cost of electricity in the LGUs
where the source of energy is located".
On the other hand, funds established under ER 1-94 may be used for projects of
cooperatives, including livelihood and NRE projects of communities. Lanao del Norte has
had experience in accessing this fund source.
There should be more policy and networking support to LGUs. This is a role best
performed by the Department of Energy. In addition the Department must be
ready to serve as mediator between Electric Cooperatives and LGUs over cases
affecting the implementation and operation of NRE facilities.
Four NRE projects encountered at the workshops resulted from networking activities of the
Department of Energy. These are the mini-hydro project in Zamboanga del Norte, Capiz and
Lanao del Norte, the hybrid system in Masbate and the micro-hydro project in Kasibu. In
Zamboanga del Norte, the DOE linked the province to Smith-Bell. In Masbate, the LGU was
linked by the DOE to Breeze Electric. In Kasibu, the DOE linked the interested farmers'
groups to the PNOC. These experiences point to a vital role that the DOE can play in
supporting LGU initiatives: linking LGUs to investors.
The Department of Energy, NAPOCOR and the Philippine National Oil Company (PNOC) need
to develop guidelines that will facilitate the release of LGUs' shares in national wealth as well
as access to the funds established under ER 1-94.
At the consultation in Dimasalang, Masbate, a cluster of barangays expressed preference to
manage its own NRE project. The local electric cooperative was open to the idea provided
they are paid royalties for the franchise. The LGU representatives found this unacceptable.
This is one case where intermediation perhaps by the DOE will be necessary for NRE and off-
grid electrification to prosper.
Allow both the LGUs, NGOs, private groups and local electric cooperatives to
develop creative mechanisms that will promote the viable operation of NRE
Systems within franchise areas.
There was no instance in which local electric cooperatives (LECs) expressed opposition to the
operation of NRE systems within their franchise areas. In all cases, the LECs encouraged
LGU representatives to establish and operate NRE systems. There has to be ways of
formally reflecting such supportive attitude in agreements between LGUs and local electric
cooperatives. Waiver of franchise rights is only one of those ways.
Terminal Report 21
Philippine Rural Power Off-Grid Electrification Program
In Kasibu, the NUVELCO agreed to allow the
PRRM to establish a micro-hydro system for
certain barangays. However, there is a
provision in the memorandum of agreement
(MOA) categorically stating that the MOA is
not a waiver of franchise.
Without discounting their involvement in
large scale (more than 10 barangays, as
described in the Market Packaging concept),
commercial development of NRE systems
within the next few years, Local governments
are likely to be implementing small scale,
community-based initiatives involving one to
four barangays at most. Many may even be
"stand alone" installations in conjunction with
barangay-level facilities such as water supply,
street lighting or communications. Such initiatives may require less sophisticated
arrangements.
But when such sophisticated arrangements become necessary, it would be useful to have
available, tested models illustrating alternative management or organizational set-ups that
could be used as basis for crafting more appropriate arrangements.
Implement the NRE Program in the Autonomous Region of Muslim Mindanao
(ARMM) areas in partnership with Muslim institutions.
Muslim participants in the Lanao del Norte workshop noted the National Electrification
Administration report showing large numbers of unenergized barangays in the ARMM area.
To boost the Program and ensure its success, MSU-IIT Chancellor Dr. Mar Salazar, who
served as resource person in the Lanao and Zamboanga del Norte workshops, suggested
that genuine, and respected Muslim institutions be intensively involved in the program’s
implementation. He said that the Mindanao State University- Institute of Technology (MSU-
IIT) in Iligan is particularly keen in participating in the initiative.
It was observed that the institution is already into NRE activities. The MSU has satellite
campuses throughout Muslim Mindanao and enjoys the respect of all Muslim communities.
The consultation
workshop in Dipolog
City coincided with the signing of a
Memorandum of Agreement between
Smith-
Bell RESCO, the Zamboanga del
Norte Electric Cooperative and the
Provincial Government, to cooperate
towards developing a mini-hydro plant.
Likewise the Philippi
ne Rural
Reconstruction Movement in Kasibu and
the Nueva Vizcaya Electric Cooperative
signed a Memorandum of Agreement for
the former to develop and operate a
micro-
hydro plant in four barangays of
the municipality.
Terminal Report 22
Philippine Rural Power Off-Grid Electrification Program
RECOMMENDATIONS ON FOLLOW THROUGH ACTIVITIES
Consultations in eight LGUs were conducted. In all, participation was enthusiastic, despite,
or perhaps because of, the novelty of the subject matter. Surprisingly, LGU representatives,
especially those at the barangay level, had one or two project ideas ready by the end of
each consultation. The following represents the Task 2 Team's thoughts on the level of
readiness of the eight LGUs for NRE initiatives.
A simple set of criteria was agreed upon by the members of the Task 2 Team, particularly
those who were involved in the preparations for and the conduct of the workshops. Not
included in the set of criteria were factors that were used in the ranking of the Market
Packages such as number of unenergized households, average household income and
others. The assessment focused on factors that would be indicative of their readiness and
willingness to implement NRE projects in their areas.
Only six factors were considered namely:
1. Availability of funds to implement an NRE project
This is indicated by amounts set aside by the local government for the implementation of
an identified NRE project.
2. NRE projects identified or contemplated, with a resource already identified
This is indicated by an identified resource that the community or the LGU believes is a
viable source of NRE. These include hydro, biomass, solar or wind source. LGUs
appeared to be confident about their water and solar sources for projects.
3. The local electric cooperative's level of support
This is indicated by the participation shown by the local electric cooperative at the
workshop as well as its actual support to community initiatives in NRE development as
evidenced by documentation and accounts by key informants at the workshop.
4. Presence of an investor willing to invest in an NRE Project or an Organization
willing to provide funds for NRE Projects in the Province/Municipality
Investors include the LGU, a donor, a private investor, the electric cooperative or an
organization or institution contemplating to secure funds for a local NRE project.
Organizations refer to national agencies or private institutions known to be peddling
funds to LGUs or communities willing to implement NRE projects.
5. ANEC presence in the LGU
Terminal Report 23
Philippine Rural Power Off-Grid Electrification Program
The LGU will need technical advice in the installation of the NRE system. The presence
of an active ANEC in the area will be important. In the absence of an active ANEC, the
presence of another active institution knowledgeable in the technology would do.
6. Perceived general interest of the local leadership and officials in the
development of NRE projects in the area.
This will be based on a subjective assessment by the workshop facilitators, of the general
level of interest shown by the local officials as indicated by their support during the
preparations, their participation in the consultations and declarations made at the workshop.
The presence of either the chief executives of the LGU is indicative of the importance they
give to NRE development, or at least the rural electrification program as a whole.
Based on the above factors, the Team ranked the readiness of the LGUs as follows:
Most Ready
§ Zamboanga del Norte
§ Antique
§ Kasibu Barangays
As may be gleaned from the table below, these LGUs or communities are ready for project-
level technical assistance. Project development activities including the validation of NRE
resource availability could already proceed in these LGUs. However, follow through
activities should include expanding the coverage of the NRE program and promoting
investments in larger scale projects
Ready but needs further support in terms of project identification and study.
The NRE program will also need some social marketing push.
§ Masbate
§ Lanao del Norte
§ Northern Samar (including Laoang)
This set of LGUs, while displaying keen interest in the NRE program, needs more
assistance in defining the project sites. Perhaps because the workshops were conducted
during the campaign period, not much attention was given to making financial
commitments to the NRE Program. Pledges were made during the workshops but these do
not carry any weight. Further work must be done to convince local officials to commit
financial resources to achieve gains in the local rural electrification program. Rapid
assessment activities using the methodology presented in Annex 1 could be used to help
the LGUs determine the financial resource requirements of their NRE program.
Least Ready
§ Tapaz, Capiz
It is suggested that further work in this municipality be terminated considering that
electrification, according to them, is not the first priority.
Terminal Report 24
Philippine Rural Power Off-Grid Electrification Program
Characterizing the LGUs’ Readiness for NRE Program/Projects Using Prioritization Factors 1, 2 and 3
Factor
Considered
Local
Government
1
Availability of funds to implement
an NRE project
2
NRE projects identified or contemplated
but with a resource already identified
3
The local electric cooperative's level of
support
Zamboanga del
Norte
P500,000.00 is available immediately
for an NRE project in the municipality of
Siayan. The amount is currently
deposited in a bank.
A micro-hydro project was identified in
barangay Guibo, Siayan. The municipal
government had written the Department of
Energy for assistance. The DOE replied that it
was sending a team to evaluate the site.
The development of a mini-hydro is currently
subject of a memorandum of agreement
between the local electric cooperative. The
province and the Smith-Bell Resco
The representative of the electric cooperative
participated actively in the consultation and sat
with the representative of the municipality of
Siayan. While the subject of franchise waiver
was not discussed, the representative said there
was no really not to allow the implementation of
the project by the LGU. The electric cooperative
gets substantial support from the provincial
government in the form of electric lines, posts
and a team of linemen under the provincial
government's employ.
Antique In the year 2000, the provincial
government allocated P1.2 million from
its 20% development fund to finance
NRE projects.
A micro-hydro project has been identified in
the municipality of Bugasong. It was subject of
a feasibility study financed by the USAID. Also
DOE projects have been identified in 5
barangays of five municipalities.
The representative of the Antique Electric
Cooperative committed to provide technical
assistanc
e to communities investing in NREs.
They also expressed openness to waive their
franchise rights in off-grid areas. Discussions
with the electric cooperative's management also
revealed their desire to be a co-investor to NRE
projects in the province.
Kasibu, Nueva
Vizcaya
The barangay councils of Dine and Pao
have set aside unspecified amounts to
complement the funds to be invested
by the Philippine Rural Reconstruction
Movement and the Philippine National
Oil Company for proposed micro-hydro
projects.
Micro-hydro sources have been identified in the
barangays of Dine and Pao.
There was no representative from the local
electric cooperative. But there is an existing
agreement between the Nueva Vizcaya Electric
Cooperative (NUVELCO) and the Philippine Rural
Reconstruction Movement (PRRM) in which the
latter is allowed to implement an NRE project
under the condition that the management and
operation of the facility is turned over to a
community planning, monitoring and evaluation
committee. Under the agreement, the NUVELCO
shall provide technical training to the
community, hauling support and serve as
"external consultant".
Terminal Report 25
Philippine Rural Power Off-Grid Electrification Program
Characterizing the LGUs’ Readiness for NRE Program/Projects Using Prioritization Factors 1, 2 and 3 (continued)
Factor
Considered
Local
Government
1
Availability of funds to implement an NRE
project
2
NRE projects identified or contemplated
but with a resource already identified
3
The local electric cooperative's level of
support
Laoang, North
Samar
No funds have been set aside by the municipal
government although a pledge to do so was
made during the workshop. The municipality
provided batteries to a DOE battery-charging
project in Batad Island.
The Abaton, Sibunot, Cabagian and Palmera
falls were mentioned as possible project
sites.
There were representatives of the Northern
Samar Electric Cooperative but their
participation was very limited. In the
workshops though, they committed to
providing training support to communities.
Lanao del Norte No funds have been set aside for NRE
projects.
However, the barangays of the municipality of
Salvador expressed their plan to allocate some
of their barangay funds for a micro-hydro
project.
Representatives of the municipality of
Salvador identified parts of the Salug river
for a micro-hydro project. Most of the
beneficiaries would belong to the Muslim
communities.
The representative of the Lanao del Norte
Electric cooperative, together with
representatives of the National Power
Corporation (NAPOCOR) were very supportive
of the effort. LANECO has set up one solar
panel in the province as pilot. Although there
was no firm commitment on the draft
franchise waiver agreement, the
representative did not discount the possibility
of it being approved by the LANECO board.
Northern Samar No funds have been budgeted for NRE projects
although according to the participants,
barangays and municipalities have set aside
funds for barangay electrification projects in the
past.
Provincial government participants did not
identify specific project sites.
"Buck passing" between the Northern Samar
Electric Cooperative (NORSAMELCO) and the
NAPOCOR was reported by the participants.
Dimasalang,
Masbate
The municipality set aside funds for the
purchase of generators, which provide
electricity for only three hours and is expensive
to maintain. They are willing to set aside funds
for NRE projects. As of the workshop, no funds
had been allocated for the purpose. However
during the workshop the barangays of San
Vicente, Calabad, Balantay and Rizal set aside a
total of P282,000 for NRE projects.
They have identified several barangays in
the municipality for solar and wind projects.
Preference is for solar-based systems. The
four barangays mentioned were specified as
project sites for solar-based systems.
The Masbate Electric Cooperative is very
supportive of efforts to install NRE systems in
the province. They have set up solar systems
in two municipalities and have agreed to the
operation of a hybrid NRE system by Breeze
Electric. They have also committed to secure
funds, if necessary to support village-level NRE
initiatives.
Tapaz, Capiz No funds have been set aside for NRE
initiatives. The community representatives
expressed their preference for roads.
A micro-hydro installation was planned in
the past for barangay Minan. The project
fell through.
No representative of the Capiz Electric
Cooperative was present.
Terminal Report 26
Philippine Rural Power Off-Grid Electrification Program
Characterizing the LGUs’ Readiness for NRE Program/Projects Using Prioritization Factors 4, 5 and 6
Factor
Considered
Local
Government
4
Presence of an investor willing to invest in
an NRE Project or an Organization willing to
provide funds for NRE Projects in the
Province/Municipality
5
ANEC presence in the LGU
6
Perceived general interest of the local
leadership and officials in the
development of NRE projects in the area
Zamboanga del Norte A representative of the Smith-Bell RESCO
stayed through most of the workshop and
listened intently to the discussions. She
was obviously watching out for potential
investment opportunities. In addition, the
municipality of Siaya and the barangay
government of Guibo have funds for an NRE
project.
The Affiliated Non-Conventional Energy
Center for Zamboanga del Norte is the
Mindanao State University in Marawi City
(MSU-
Marawi). It is perceived to be weak.
However, its sister institution, the MSU-
Iligan Institute of Technology, is willing to
provide the service expected of an ANEC
not only for Zamboanga del Norte but for
the entire Muslim communities.
The provincial staff maintained close contact
with the Team as preparations for the
workshop were made. They helped in the
arrangements and waived their fees for the
use of the conference venue. Governor
Amatong graced the opening and declared full
support for the program in the form of
financial and technical assistance to barangays
with viable NRE initiatives. He believes that
NREs will be the only way to energize the
inaccessible barangays.
Antique While carrying out preparatory work the
Antique Electric Cooperative officials
revealed their intention to be a co-investor
in any NRE initiative in the province.
ANELCO covers 16 of the 18 municipalities
of Antique. Two others are served by the
Aklan Electric Cooperative.
ANEC presence in Antique is strong. They
have had joint undertakings with Antique
local governments in the past and are
respected as an authority on NRE. The
Central Philippines University serves as the
ANEC for Region 6.
The staff of the Antique Integrated Area
Development Project (ANIAD) provided helped
the Task 2 team prepare for the worksh
op.
They also were active during the workshop
itself and maintained very close coordination
with the Task 2 Manila Office. The Governor
himself gave instructions to his staff to
support the effort. The province made
arrangements for the workshop to be held at
the Evelio Javier Training Center. The
Center's Executive Director welcomed the
participants to the workshop.
Kasibu, Nueva Vizcaya
The Philippine Rural Reconstruction
Movement, Bayombong Field Office, will
serve as the major investor, with the
community providing their resources as
well.
ANEC presence in the province is poor. No
representative was at the workshop to help
explain the technology. Fortunately, the
DOE representative was present to help in
explaining the technology.
The municipal Mayor and other town officials
are not keen on the project, which is strongly
supported by the barangays. The barangay
government of Dine organized the workshop
and offered a community facility as venue and
overnight place for the facilitating team.
Terminal Report 27
Philippine Rural Power Off-Grid Electrification Program
Characterizing the LGUs’ Readiness for NRE Program/Projects Using Prioritization Factors 4, 5 and 6
Factor
Considered
Local
Government
4
Presence of an investor willing to invest in an
NRE Project or an Organization willing to
provide funds for NRE Projects in the
Province/Municipality
5
ANEC presence in the LGU
6
Perceived general interest of the local
leadership and officials in the development of
NRE projects in the area
Laoang, Northern
Samar
There has not been any known interest to
invest in NRE projects in the municipality.
ANEC presence in the region, including the
province of Northern Samar is strong. A
representative of the University of Eastern
Philippines actively participated in the
workshop by sharing his technical knowledge
on the subject matter. The ANEC has taken
the initiative to conduct measurements of
wind power in the province. It also assisted
the DOE in implementing the Batad Island
Project. A distinctive feature of the ANEC is
its capacity to "play politics" with LGU
officials.
The municipal Mayor attended the workshop
but could not commit resources to future NRE
initiatives. The municipal officials however
were very supportive of the consultation and
did what they could to make it a successful
activity.
Lanao del Norte One private sector representative, from the
Mindanao Cooperative Institute of Technology,
expressed its interest to invest in NRE
initiatives. The MCIT's desire to invest in NRE
projects was encouraged by the NAPOCOR
representative who said that they preferred
financing NRE projects initiated by private
sector organizations. MCIT is supported
actively by the MSU-IIT. The NAPOCOR
manages funds under ER 1-94. The funds can
be used for NRE projects operated by
community-based cooperatives. The local
electric cooperative did not express any
objection to such initiatives.
The Affiliated Non-Conventional Energy
Center covering Lanao del Norte is the
Mindanao State University in Marawi City
(MSU-
Marawi). It is perceived to be weak.
However, its sister institution, the MSU-Iligan
Institute of Technology, is willing to provide
the service expected of an ANEC not only for
Zamboanga del Norte but for the entire
Muslim communities.
Lanao del Norte posed the least problem in
terms of preparatory work. The Governor
herself saw to it that the activity was
supported. The Governor's husband, ex-
Governor Abdullah Dimaporo, guested the
closing, in behalf of the Governor. He said
that the province is willing to set aside funds
for barangay initiatives and will support
efforts to access shares of municipalities and
barangays in national wealth for the
NAPOCOR.
The province is pushing for the mini-hydro-
project in Bacolod under a Build-Operate-
Transfer arrangement. The feasibility study
on the project has been completed and the
Regional Development Council has indorsed
its submission to the Investment Coordinating
Council (ICC) of the National Economic and
Development Authority (NEDA).
Terminal Report 28
Philippine Rural Power Off-Grid Electrification Program
Characterizing the LGUs’ Readiness for NRE Program/Projects Using Prioritization Factors 4, 5 and 6 (continued)
Factor
Considered
Local
Government
4
Presence of an investor willing to invest
in an NRE Project or an Organization
willing to provide funds for NRE Projects
in the Province/Municipality
5
ANEC presence in the LGU
6
Perceived general interest of the local
leadership and officials in the
development of NRE projects in the area
Northern Samar No investors in NRE projects have been
identified.
ANEC presence in the region, including the
province of Northern Samar is strong. A
representative of the University of Eastern
Philippines actively participated in the
workshop by sharing his technical knowledge
on the subject matter. The ANEC has taken
the initiative to conduct measurements of
wind power in the province. It also assisted
the DOE in implementing the Batad Island
Project. A distinctive feature of the ANEC is
its capacity to "play politics" with LGU
officials.
The provincial government was very
supportive of the activity but emphasized that
their priority concern was still electrification
through the grid. They expressed their plan
to move for grid connection through Allen
Samar from Sorsogon (Luzon). The province
has supported grid electrification by providing
posts and electric wires to the electric
cooperative. The Governor did not commit to
providing funds for NRE projects although
barangay and municipal representatives to
the workshop said they would be asking their
respective officials for financial support to the
NRE Program.
Dimasalang,
Masbate
Other than DOE, which funded the solar
project in Batad island, there is no investor
interest to set up NRE facilities in the
municipality. However, one group of
barangays prefers to wait for investors
interested in a BOT arrangement.
No representative from the ANEC, which is
based in Pili, Camarines Sur. It is too far to
be an effective promoter of NRE
technologies.
The Mayor was there to grace the workshop.
The municipality helped tremendously to
ensure the activity's success. The barangay
officials who were present pledged to allocate
more than P200,000 as a pool from their
Internal Revenue Allotments (IRA) as
counterpart for NRE projects.
Tapaz, Capiz A French company with funding from the
Japanese Bank for International Cooperation
(JBIC) prepared a feasibility study on the
proposed mini-hydro plant in Tapaz. It was
not sure if the French company is interested
in setting up the facility under some
financing mode. Other than this, no
investor has expressed interest in Tapaz.
As stated earlier, the ANEC presence in
Region 6 is strong. They have had joint
undertakings with local governments in the
past and are respected as an authority on
NRE.
As the consultation gave the barangay
captains the municipal officials an opportunity
to match the need for NRE projects to the
communities' other concerns. In the
discussions, roads turned out to be of higher
priority over electrification. Next was
livelihood for the upland communities.
Annex 1
Memorandum re the final List of LGUs Targeted for Consultation Workshops
March 13, 2001
Fax Message
For: Director Francis Benito
Mr. Reuben Quejas
Mr. Chat Tatlonghari
Cc: Ms. Arlene Pamintuan
In an effort to come up with a “compromise list” we propose to go back to Masbate, field
validate our perception on it and exert every effort to make it work. Masbate will
however replace Nueva Vizcaya which we would have loved to do, knowing its
potential. Below is a list of LGU’s that we really hope will address everyone’s concern:
Region 5, Masbate
The DOE informed us that the province appears to be ready for an RE package. USAID
apparently supports the view. It has received very little attention in terms of
development assistance in the past. Its League of Municipalities is still in its infancy
after 10 years of effort. The Evelio Javier Foundation, which works closely with the
municipalities are wary of the dynamics in Masbate. A strong provincial leadership is an
advantage but we understand that the program will be dealing more with the
municipalities. Six municipalities of the province qualify under Land Bank’s credit criteria
(in connection with its Renewable Energy Program). If the latter is listed by rank, the
highest among Masbate’s municipalities, Aroroy, is ranked 198
th
in a total of 349. We
intend to hold a provincial level workshop in Masbate (1).
Region 6, Capiz and Antique:
Again these two LGUs are DOE seem to be DOE priority. Both provinces are ably led
by their respective Governors, particularly Governor Bermejo (Capiz). The latter is
probably one of the best the provinces will ever have. We know of their long wish to
develop a potential microhydro in Tapaz, an upland municipality with power problems of
its own. Antique on the other has a strong League of Municipalities and a long history
of civil society involvement in governance, a feature that will come in a handy when
support for power development is called for. Capiz and Antique are lucky for having the
strong support of the Gerry Roxas Foundation, based in Capiz but with strong links in all
Panay Island Provinces. GRF is a very influential institution. We propose to hold two
(2) provincial-level workshops in these provinces but will need additional funds to cover
airfare, land travel and preparatory work LOE. Both provinces were not in the original
list, i.e., Cotabato, Lanao del Norte, Masbate, Northern Samar.
Region 8, Northern Samar:
Everybody agrees on the need for support to Northern Samar. Practically all of its
municipalities have unserved barangays. Its league of Municipalities has displayed a lot
of initiative in the last few years. Its NGO sector is militantly active and can be counted
upon for support when RE issues are brought up before the local development councils
both at the provincial and municipal levels. The province, I believe is a good choice.
We propose to hold a provincial and a municipal workshops in the province (2).
Region 9, Zamboanga del Norte:
Again a DOE priority. Like Northern Samar, many of its barangays are unserved. Many
of its municipalities, which border Zamboanga Sur have a long history of civil conflict
(MNL/MILF/NPA). But its Governor, Isagani Amatong, belongs to the likes of Governor
Vic Bermejo of Capiz: democrat, strong, honest and viciously pro-decentralization. His
line of leadership is impeccable. I would highly rate the likelihood of success of a project
under his leadersip. Civil society membership in his development council is active and
progressive. We plan to hold one provincial workshop in Dipolog City.
Region 12, Lanao del Norte:
USAID has a long presence in the province through ILAP, GEM, and GOLD. There are
pockets of unserved barangays, particularly Muslim areas, in the province. ILAP in
particular has succeeded in bringing some level of stability in its once-MILF/MNLFzones
and the USAID would like to follow through on those gains. It would be a good learning
experience to hold a consultation with one of the more advanced ILAP sites (Tangkal).
We probably will be holding the workshop in Tangkal, subject to Governor Dimaporo’s
approval.
Please agree on the list so we can proceed to prepare for the workshops. Time is
running out on us with the coming Holy Week and elections. We plan to hold all
workshops before the Holy Week. It may be difficult to hold these after that period.
Thank you.
Butch Ragragio
Annex 2
Sample of Consultation workshop Handouts
“Frequently Asked Questions on the Opportunities for Investing in New and Renewable
Energy for LGUs