The Philippine government, through a proposal from the Department of Energy (DoE), will be seeking P10 billion worth of funding to bankroll energy efficiency initiatives being mandated for state-run entities.

In an interview with reporters, Energy Undersecretary Felix William B. Fuentebella indicated that the loan availment has already been raised with the Department of Finance (DOF), so they can seek guidance on a prospective tenor for the credit facility to be availed of.

The energy official highlighted that covered  government entities will need P2.0 billion annually for their energy savings target under the institutionalized Government Energy Management Program (GEMP).

For the propounded credit facility to be secured, he stated that the P10 billion funding will be utilized by the government agencies as well as state colleges and universities (SCUs) to pare energy usage within five-year timeframe that will stretch from 2026 until 2031.

“We already have the strategies in place so what we're working on is the financing.  So we're trying to come up with a facility through the DOF in collaboration with our development partners,” the energy official said.

Fuentebella conveyed exploratory talks had already been pursued with the Asian Development Bank (ADB) on the planned loan procurement; although he qualified that  there are options still being explored.

“We have spoken to ADB and then we will also talk with the others. If it doesn't, we'll have to look for the best,” the DOE official stressed.

He qualified that the credit facility to be availed of could be a combination of official development assistance (ODA) or concessional loans.

“The DOF is studying what is the best blend. But of course, we focus on inflation plus very minimal percentage point of (interest rate),” he expounded.

Typically, concessional loans are offered with the most favorable terms compared to what can be accessed in capital markets; while ODA could take the form of technical assistance to aid governments on implementing specific programs.

As prescribed under Administrative Order (AO) 15 that was issued by President Marcos early this year, government entities are mandated to bring down their fuel and electricity consumption by at least 10% with the enforcement of GEMP-anchored energy efficiency and conservation measures.

Under the State-designed policy, government institutions must pursue comprehensive energy audits in their facilities, as well as sort out retrofitting initiatives on their energy-consuming equipment – be it for lighting or air-conditioning systems; and such must be carried out with clear timelines.

On the sphere of fuel savings, the government-run agencies are being encouraged to shift fleet use to either electric vehicles (EV) or purchase vehicles that are not gas-guzzling.