IFC looks at investing $300M in RP power sector

The International Finance Corp., the investment arm of the World Bank, is looking at investing $300 million this year in the Philippine power sector, including renewable energy projects. IFC resident representative to the Philippines, Jesse Ang, told reporters that in the past three years, the company invested around $900 million in the country where $600 million to $700 million went to the power sector. "If we can do more (investments) we would certainly like to do more. The key is to have the opportunity," Ang said, adding that the company is focused on renewable energy projects this year. "Now in the Philippines, when you say renewable energy [it means] solar, biomass and wind. Hydros, there are mini-hydros, but the big hydros are not part of renewable energy. We think hydros are good for the country, because if we have the resource we should use it. Though there is higher capital expenditure, but the operating cost of the hydro is much less," Ang said. Ang said that IFC is talking to companies for investments in mini-hydro, biomass, wind, and solar projects. "The Philippines is one of the lowest in this region, we really need to improve our investment. And the challenge on the investment side, if you ask any survey, is the corruption image. That's the No.1 reason people don't come here; and policy instability, which [are] related actually." In 1977, IFC opened an office in Manila and has been investing in the Philippines for more than 40 years. The Philippines ranked second in IFC's list of countries in the East Asia and Pacific region as of June 2008, with an exposure of about $898 million in 32 projects. The company was appointed as transaction advisor to Napocor' Small Power Utilities Group. It helped the Philippine government attract private sector capital in the remote provinces of Tablas, Romblon, Marinduque, and Masbate that were not connected to the main power grid. —With MR Gavin/VS, GMANews.TV