PE2 promotes ESCO, PPP contracts for EE by LGUs
ASIAN DEVELOPMENT BANK, Mandaluyong City, 11 November 2019 – The Philippine Energy Efficiency Alliance (PE2) promoted during a forum held here today energy service contract (ESCO) performance contracting and public-private partnership (PPP) transactions as financing modalities that local government units (LGUs) can adopt for energy efficiency (EE) projects in their localities. PE2 president Alexander Ablaza was one of the resource persons during an LGU Forum on Opportunities for Energy Efficiency co-organized by the Department of Energy (DOE), European Union – Access to Sustainable Energy Programme (EU-ASEP) and the Asian Development Bank (ADB).
Ablaza explained that private capital can be tapped for initial investments in EE projects hosted by national government agencies, government-owned and controlled corporations and local government units through expanded procurement regulations that would enable ESCO performance contracts for singular EE projects and PPP transactions for larger, bundled EE projects. He cited that Section 11 of Republic Act 11285 effectively provides the much-needed flexibility in how public sector entities taps private sector capital as they budget, procure and enter into multi-year contracts for EE projects in its facilities.
The PE2 head added that joint venture (JV) guidelines for government corporations, state universities and colleges and water districts are also being updated by the National Economic and Development Authority (NEDA) to include energy efficiency as an eligible infrastructure and development project type.
Ablaza emphasized that it was imperative for the emerging implementing rules and regulations and subsequent policy issuances of RA 11285, otherwise known as the Energy Efficiency and Conservation Act, to provide clear guidelines that would finally enable procurement of ESCO performance contracts and PPP transactions for government EE projects.
PE2 treasurer and trustee Theresa Acedillo Lapuz and member services and communications manager Luigi G. Eusebio also participated in the LGU forum.
Other speakers included Undersecretary Jesus Cristino P. Posadas of DOE, Dr. Yongping Zhai of ADB, Enrico Strampelli of the EU Delegation to the Philippines, Bert Hunter of the Connecticut Green Bank, Dr. Verena Streitferdt of EU-ASEP, DOE Division Chief Artemio P. Habitan, Engr. Armando Comandao of the City of Mandaluyong, DOE Director Patrick T. Aquino, Engr. Patrick E. Montero of the Philippine Council for Industry, Energy and Emerging Technology Research and Development of the Department of Science and Technology, Deputy Executive Director Melissa A. Santiago-Yan of the Government Procurement Policy Board – Technical Services Office, Mayor Arlene B. Arcillas of the City of Santa Rosa, Atty. Christie Marie Alga of the City of Mandaue, Director Maria Lerma L. Advincula of the PPP Center, Senior AVP Rustico Noli D. Cruz of the Development Bank of the Philippines (DBP), Diana G. Connett of ADB, and Team Leader Douglas Liner of EU-ASEP.
