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