Bringing Reliable Electricity to Rural Areas of the Philippines

Abstract

Electric Cooperatives (ECs) in the Philippines are generally undercapitalized, and their operational performance is poor. As a result, the supply of electricity in rural areas is unstable, with frequent outages and fluctuating voltages. International Finance Corporation (IFC) Philippines advisory services found that a principal reason was the ECs' lack of sound capital expenditure (capex) plans, and introduced a new product to address the issue. The results from the pilot training of six ECs in post-conflict areas of Mindanao will be replicated in all ECs in the country and ultimately bring an estimated $274 million worth of investments in capex and power-generation, and reduce greenhouse gas emissions by 600,000 metric tons per year starting in 2015. To get to this point, IFC learned lessons about the importance of building strong relationships to 'sell' ownership of the program to clients and pivotal stakeholders and ensure program sustainability through local consultants and partner organizations.