Manila, Philippines, August 19, 2016
- IFC, a member of the World Bank Group, with support from the Government
of Canada and the Clean Technology Fund, announced today an investment
of $161 million in three biomass power plants in Negros Occidental, the
Visayan island. The project is expected to generate 70 megawatts of clean
renewable energy for the country.
The power plants are being built in the towns of Manapla, San Carlos and
La Carlota and will convert sugarcane waste to electricity using a low
carbon-emitting process called circulating fluidized bed boiler technology.
Before it was identified as feedstock for biomass power plants, sugarcane
waste was burned in the fields, a practice that contributed to air pollution.
IFC Country Manager, Yuan Xu said: “Energy is central to the country’s
development, and the Philippines needs to further diversify and secure
its energy sources. Converting agricultural waste to biomass power is a
sustainable way of creating economic value while caring for the environment.”
The Clean Technology Fund as well as the Government of Canada’s contribution
to the project through the IFC-Canada Climate Change Program have helped
make this investment viable. To date, Canada has provided CA$271 million
to the program, to enable climate change investments that are generating
significant environmental and economic benefits in developing countries.
“We are pleased to support innovative projects abroad that help reduce
global greenhouse gases. Through our partnership with the IFC, the Government
of Canada will deliver funds that will enable the growth of renewable energy
while supporting the creation of green jobs,” said Catherine McKenna,
Canada's Minister of Environment and Climate Change.
“We are happy to receive this support from IFC and the development partners,”
said Jose Maria Zabaleta, CEO of Bronzeoak Philippines, one of the shareholders
for the project. “This funding will help utilize agricultural waste to
generate reliable base load power, providing additional income to farmers,
reducing fertilizer costs, and helping contribute to a healthful ecology.”
“ThomasLloyd is delighted that IFC has chosen to participate in these
investments. With its use of local sugar cane waste, this project is an
exciting development for all the stakeholders and especially for the local
community,” said Tony Coveney, Executive Director of ThomasLloyd Group
Ltd. ThomasLloyd CTI Asia Holdings is the principal financial sponsor.
WBE (Hong Kong) International Green Energy Limited, another shareholder,
will provide engineering and construction services.
In addition to loans from Canada and the Clean Technology Fund, IFC is
also mobilizing funding from the Managed Co-Lending Portfolio Program,
a new syndications platform that offers institutional investors the ability
to passively participate in IFC’s future senior loan portfolio.
The three power plants are expected to qualify for the biomass feed-in-tariff
of the Philippine Energy Regulatory Commission. The feed-in-tariff is available
to energy producers with up to 250 megawatts of biomass generating capacity.
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in emerging markets. Working
with more than 2,000 businesses worldwide, we use our six decades of experience
to create opportunity where it’s needed most. In FY16, our long-term investments
in developing countries rose to nearly $19 billion, leveraging our capital,
expertise and influence to help the private sector end extreme poverty
and boost shared prosperity. For more information, visit www.ifc.org.
About the IFC-Canada Climate Change Program
The IFC-Canada Climate Change Program promotes private sector financing
for clean energy projects. It received funding under Canada’s fast-start
financing to catalyze investments in renewable, low-carbon technologies
that would not otherwise happen. The Government of Canada is committed
to support climate change action and will deliver $2.65 billion between
2015 and 2020 to support developing countries’ transition to low-carbon
economies and adapt to the impact of climate change. For more information
on Canada’s investment in global climate change action, visit www.climatechange.gc.ca/finance.
About the Clean Technology Fund
The Clean Technology Fund, a financing instrument under the Climate Investment
Funds, provides developing countries with incentives to scale up the demonstration,
deployment, and transfer of technologies that have high potential for long-term
greenhouse gas emissions savings. The Climate Investment Funds are unique
financing instruments that support low-carbon and climate-resilient development.
For more information, visit www-cif.climateinvestmentfunds.org.