Manila, Philippines, September 1, 2008—
IFC, a member of the World Bank Group, has helped broker a power supply agreement in the Philippines that will benefit 330,000 people, over half of whom will gain access to electricity for the first time. Services will be improved for those who already have access to electricity.
Under the terms of the agreement between Basilan Electric Cooperative, Inc., a local distribution utility company known as BASELCO, and Coastal Power Development Corporation, a private power producer that won the competitive bid on the project, Coastal Power will supply 11.8 megawatts of dependable electricity to BASELCO, at a cost of 11 pesos per kilowatt-hour from 2010.
“By signing this agreement, we can guarantee that there will be a significant improvement in the quantity and quality of electricity supply for residents and businesses on Basilan Island. The increase will allow BASELCO to meet current and potential demand 24 hours a day, seven days a week at a competitive price,” said Ismael Basa, President of BASELCO’s Board.
“Coastal Power’s price represents annual savings of more than 50 million pesos from the National Power Corporation’s operating cost, because of increased efficiency. This will reduce subsidies and improve our organization’s financial position,” said Cyril Del Callar, President of NPC. “We would like to thank IFC for its advisory services and ongoing support.”
“Once again, IFC is pleased to partner with the Philippine government and the private sector to facilitate a transaction that will help increase efficiency, provide reliable power to remote islands in Mindanao,
and meet the government’s objective of total rural electrification,” said Jesse Ang, IFC Resident Representative for the Philippines. “This is consistent with IFC’s strategy to support sectors identified for their high development impact.”
This initiative was made possible by DevCo, a multidonor program affiliated with the Private Infrastructure Development Group and supported by U.K.’s Department for International Development, the Dutch Ministry of Foreign Affairs, the Swedish International Development Agency, and the Austrian Development Agency.
About IFC
IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC’s vision is that people should have the opportunity to escape poverty and improve their lives. In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through syndications and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries. For more information, visit
www.ifc.org
.
