Sep 212014
 

http://wikileaks.org/cable/2009/06/09MANILA1283.html#
Reference ID Created Released Classification Origin
09MANILA1283
2009-06-16 22:38
2011-08-30 01:44
UNCLASSIFIED
Embassy Manila

VZCZCXRO0281
OO RUEHCHI RUEHCN RUEHDT RUEHFK RUEHHM RUEHKSO RUEHNAG RUEHPB
DE RUEHML #1283/01 1672238
ZNR UUUUU ZZH
O 162238Z JUN 09
FM AMEMBASSY MANILA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4395
INFO RUEHZU/APEC COLLECTIVE IMMEDIATE
RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS IMMEDIATE
RUCPDOC/DEPT OF COMMERCE WASHDC IMMEDIATE
UNCLAS SECTION 01 OF 02 MANILA 001283

SIPDIS

STATE FOR EROSE AND LHAWLEY
USAID FOR LGUTIERREZ
USTDA FOR DROSSITER

E.O. 12958: N/A
TAGS: SENV TRGY TSPL ECIN ECON APECO ENRG EAID PGOV RP
SUBJECT: USG-PHILIPPINES RENEWABLE ENERGY PARTNERSHIPS

Ref: STATE 52444

¶1. Summary: The U.S. Agency for International Development (USAID)
and U.S. Trade and Development Agency (USTDA) both assist the
Philippines in renewable, clean, and efficient energy projects. USG
agencies are also facilitating regional conferences on climate
change and clean energy. USAID and the Asian Development Bank will
host the fourth Climate and Clean Energy Week at the Bank’s
Headquarters in Manila from June 15-19, 2009. End Summary.

USAID Energy Projects
———————

¶2. USAID Philippines manages three energy projects which it funds
for $2-3 million annually. The projects focus on four goals: (1)
improved energy sector planning, policy formulation and increased
public understanding and support for reforms; (2) strengthened
Energy Regulatory Commission as an independent and credible
regulator that fosters competition, encourages private investment
and prevents anti-competitive behavior; (3) electrification of
off-grid communities in conflict-affected areas of Mindanao using
renewable energy; and (4) reduction of greenhouse gases by improving
policies and improving access to information and technology that
encourages the use of cleaner fuels and energy efficiency.

¶3. For the third consecutive year, USAID has jointly organized the
Asia Clean Energy Forum with the Asian Development Bank on June
15-19 at ADB headquarters in Manila. This support is administered
through the USAID’s ECO-Asia Clean Development and Climate Program
under the Regional Development Mechanism for Asia. The Forum
provides a venue to exchange experiences and forge new partnerships
to advance clean energy solutions in the region. The week-long event
will promote best practices in policy and finance and generate
solutions to the region’s climate and energy security challenges.
ECO-Asia’s Clean Development and Climate Program works with Asian
governments and industry in three areas: (1) Saving energy through
efficient lighting; (2) Increasing power production and reducing
coal use; and (3) Increasing access to financing for clean energy.

USAID: Alliance for Mindanao Off-Grid Renewable Energy
——————————————— ———

¶4. The Alliance for Mindanao Off-Grid Renewable Energy (AMORE) is a
seven-year project in cooperation with the Philippine Department of
Energy, the Autonomous Region in Muslim Mindanao and private U.S.
firm Sunpower Corporation. The primary contractor for AMORE is
Winrock International, Inc. The program began October 2002 and will
end September 2009. By end of 2009 AMORE will energize at least 400
remote and conflict affected rural communities in Western and
Central Mindanao. The total project budget is $10.4 million.

¶5. AMORE encourages strong community participation in designing and
operating solar and microhydo systems and with an objective to
contribute to peace and development initiatives in Western and
Central Mindanao by improving the quality of life in these
communities. Activities build local technical and financial
capacity to effectively collect user fees, maintain and expand
renewable energy systems access in remote villages. USAID provides
technical expertise and training for the installation, operation and
maintenance of the systems. Sunpower Corporation and the Philippine
Department of Energy have procured renewable energy equipment for
the project.

¶6. Since 2002, AMORE has achieved the following results: (1)
Provided electricity to more than 14,000 households in 400 remote
rural villages using solar cells and micro-hydro power systems; (2)
Installed more than 300 renewable energy powered street lights and
illuminated more than 140 community centers; (3)Provided renewable
energy systems to 116 schools, enabling them to access distance
education services and audio visual materials; (4)Prevented the
emission of over 6,100 tons of carbon dioxide; (5)Organized at least
400 community development associations that plan and manage the
renewable energy systems in their communities; (6) Strengthened the
capability of the communities to operate, maintain, and expand the
renewable energy systems; (7) Established operation and maintenance
accounts for communities to collect funds to cover operational
expenses.

¶7. Abdulhil Alih, Chairman of the AMORE-established association in
Pababag, Tawi-Tawi said that the lights, the training, and the other
socioeconomic interventions that AMORE has extended to his community
gave them a new sense of security. “The people here are not as
easily convinced anymore to join the Abu Sayyaf (an Al Qaeda-linked
network) or other renegade groups, because they can really see now
how the lives of people here are progressing.”

USAID: Energy and Clean Air Project

MANILA 00001283 002.2 OF 002

———————————–

¶8. The Energy and Clean Air Project (ECAP) was forged in response
to two Philippine policy reforms: the Electric Power Industry Reform
Act of 2001, and the Clean Air Act of 1999. USAID partners with the
Philippine Department of Energy, the Department of Environment and
Natural Resources, and local governments in the cities of Makati,
Cebu, Davao, and Baguio to achieve two goals: (1) Implement policy
reform initiatives designed to avert power crises (2) Support
activities to reduce vehicle emissions. ECAP has a budget of $8.9
million over the period of October 2004 to September 2009. The
primary contractor is PA Government Services, Inc.

¶9. ECAP promotes new investments in the electricity distribution
system, encourages the use of cleaner and indigenous energy
resources, and seeks to improve rate structures to reflect the true
cost of power, production and distribution. In its clean air clean
air activities, USAID supports the Department of Natural Resources,
the Department of Transportation and Communication, and Department
of Trade and Industry. ECAP oversees the establishment of efficient
vehicle inspection and maintenance procedures and educates the
public about how poor air quality can affect health.

USAID: Sustainable Energy Development Project
———————————————

¶10. The Sustainable Energy Development Project assists the
Philippine Energy Regulatory Commission to become a more independent
and credible regulatory agency. SEDP has two components: (1)
technical support to the Energy Regulatory Commission in
implementing power sector reforms; and the (2) Clean Cities
Coalition Program, which promotes the use of clean, indigenous and
alternative fuels in Makati, Marikina, Baguio, Iloilo, and Davao
cities. SEDP’s budget over a ten-year period (1999-2009) is $5.4
million. The project is operating under a Participating Agency
Service Agreement between USAID and the U.S. Department of Energy.

¶11. As the electricity market reforms enter a critical and
challenging phase with the commercial operation of the wholesale
electricity spot market, USAID assists the Energy Regulatory
Commission enhance its technical capability by training its staff;
peer exchange programs between the Commission and its counterparts
in the United States; and orientation seminars for newly appointed
members of the Commission. These activities strengthen the role of
the Commission in ensuring fair and level playing field within a
competitive electricity market.

USTDA Rural Electrification Projects
————————————-

¶12. The Rural Electrification Distribution Improvement and
Financing has given $404,510 worth of technical assistance to the
Philippine Rural Electrification Financing Corporation to improve
distribution systems and implement associated financing plans for
rural electrification operations in the Philippines. The current
project targets electrical system loss reductions through proper
maintenance and loss control mechanisms, made possible through
employing equipment, materials, and construction practices that meet
international standards. USTDA financing plans will help the Rural
Electrification Financing Corporation receive implementation
financing approval. The National Rural Electric Cooperative
Association International Ltd. of Arlington, Virginia is the
sole-source contractor providing the technical assistance.

¶13. In 2003, USTDA provided $446,909 to the Rural Electrification
Financing Corporation to partially fund technical assistance for
forty electric cooperatives in the Philippines. The assistance
identified electric power system infrastructure needs and generated
loan documents for the cooperatives. The primary contractor, NRECA,
provided technical assistance and contributed funds toward the
project’s completion.

¶14. Additional Philippine renewable/clean energy projects currently
under consideration by USTDA for FY09/10 include: 1) GNPower
Mariveles Pumped Storage Hydropower Project (600 MW); 2) First Gen
Timbaban Run-of-River Hydroelectric Project (10-15MW); 3) NPC Island
Electrification Through Renewable Energy – Hydropower (140 MW); and
4) Greenergy IGCC Waste-to-Energy Gasification Project for Morong
Municipality

¶15. USTDA has approved funding for an ASEAN Clean Energy Conference
which will be held early 2010 in a Southeast Asian country.
Philippine government and private sector representatives will be
invited to attend and USTDA will sponsor five of the Philippine
government participants.

KENNEY

   

 

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