THE PROJECT IN A NUTSHELL
The Development Bank of the Philippines (DBP) recognizes the need to promote environment-friendly technologies and to generate more economic opportunity by promoting energy for small-scale users and underserved populations.

To help DBP address these, the United Nations Development Programme (UNDP), through funding provided by the Netherlands government, is currently implementing a technical assistance project, the main objective of which is to develop and strengthen the Bank's technical capability to evaluate and manage new and renewable energy projects for financing.

Project Focus
The project concentrates on training and capacity-building as well as strengthening of DBP's institutional linkages and arrangements with other players in the sector to enable it to more effectively lend for NRE projects in the Philippines and to eventually serve as the conduit for international lending for NRE development in the Philippines.

What is FINESSE?
FINESSE stands for Financing Energy Services for Small-Scale End-Users. It was launched in 1991 to provide financial assistance for the commercialization of mature and market-ready alternative energy systems. In the Philippines, it was formally launched in October 1998 with DBP as the implementing institution, the basic premise being: one barrier to NRE development is lack of access to financing by project developers/end-users.

For more information, visit http://www.finesse-dbp.com/.

Experience in NRE Financing
The Bank has financed a total of six NRE projects to date. These are:

• PV Solar Home Systems in Burias Island, San Pascual, Masbate
• BElance Solar Power Project of St. Joseph Credit Union in Dupax del Norte, Nueva Vizcaya
• 1.5 MW Mini-Hydro Electric Power Plant of MICC in Ilian, Lanao del Sur
• Minihydro Project of HEDCOR
• Minihydro Project of Bicol Hydropower
• Power Generating Incinerator Plant of Industron, Inc.

Project Targets
The project's targets may be qualified into two categories -- qualitative and quantitative:

Qualitative

• Establishment of an appraisal system with focus on project evaluation and loan processing guidelines specific to NRE investments
• Improvement of loan processing time for NRE projects
• Improved NRE loan portfolio
• Enhanced technical and project management capabilities of DBP's NRE core group

Quantitative

• Generation of a project pipeline at the end of the project term
• Setting up of appropriate lending guidelines and operating procedures for NRE project financing within the Bank's lending policies and guidelines
• Establishment of a revolving fund for project preparation
• Enhanced institutional linkages among agencies engaged in NRE projects
• Establishment of an electronic NRE database within DBP