Overview of activities
Transaction Support
ESCO Transaction Support: In
order to make energy efficient lighting technologies such as T-8
linear fluorescent lamps and high-quality, low-loss electronic
ballasts the technology of choice, ELI leveraged its resources
to provide opportunities for the financial and Energy Service
Company (ESCO) industries to stimulate the performance contracting
business in the Philippines.
With the objective of identifying model ESCO transactions
that include lighting retrofit projects, an ESCO symposium, entitled
“e$co 2001: Performance Contracting and Project Finance
Symposium for Energy Efficient Businesses”, was convened
on 09 May 2001 to provide an introductory briefing to lighting
businesses on lighting ESCO business concepts, project financing
and performance contracting methods and financing sources. In
this meeting, the stakeholders learned about the specific business
and project opportunities and barriers facing lighting firms active
in the commercial, industrial and institutional (C/I/I) sectors
in order to effectively design and deliver ELI's technical assistance
program for this market. With that, the participants can begin
to identify specific projects and project sponsors that can utilize
ELI technical assistance and further define the type of technical
assistance that is most needed.
ELI tapped a team of consultants to ensure that
the model ESCO transaction can be developed. Their experience
and expertise in the performance contracting business was crucial
in defining the terms and conditions that will suit the unique
business climate in the Philippines.
A viable opportunity existed for a model ESCO
project involving ELI, the DOE, and the government owned wholesale
bank known as the Development Bank of the Philippines (DBP). The
DOE provided an energy audit of the DBP’s facilities, which
served as an industry benchmark. DBP had a secondary responsibility
in educating retail banks in energy efficiency project financing.
Together with ELI, the consultants were tasked to work with the
different parties and deliver a business plan laying the groundwork
for future ESCO transactions in the Philippines.
