Philippines

Objective of the project
Develop, professionnalize and consolidate the microfinance sector to the population

Project Manager

Partner
MCPI (Microfinance Council of the Philippines, Inc.)

Expanding access to sustainable energy in the Philippines


ADA supports the Philippines sector. In particular, it has carried out a project aimed to improve access to sustainable energy products for vulnerable populations. These have helped reduce the environmental impact in both countries.


Enhancing the inclusive green finance capacities of the Microfinance Council of the Philippines (MCPI) network and its member MFIs

The so-called GIF (Green Inclusive Finance) project, carried out between 2017 and 2019, followed on from an initial project to develop access to sustainable energy (DevSEA) implemented by MCPI with the support of ADA between 2013 and 2016. To enhance the inclusive green finance capacities of the network and its member MFIs, ADA and MCPI received EUR 200,000 in financial support from the Luxembourgish Ministry of the Environment, Climate and Sustainable Development (MECDD) over 24 months.


MFIs seeking to give vulnerable populations access to green energies

To cater to customers of its member MFIs in rural and urban areas with little or no access to the electricity grid, MCPI has launched a pilot project with five MFIs to improve access to affordable and renewable energy for these vulnerable populations in the Philippines. 20 of MCPI’s 51 MFIs had sufficient financial and human resources to develop green energy credits to meet the needs of their customers and took part in a training course on green finance products. Of these 20 MFIs, five received technical assistance to develop loans coupled with technical solutions to access renewable energies and improve energy efficiency.


A proven methodology for assessing energy needs

The methodology developed by MCPI identifies technical and financial solutions tailored to the profile and needs of MFI customers. Of the 5 MFIs selected for technical assistance, and following an assessment of customers’ energy needs, the one located in an urban area (K-Coop) began to develop eco-energy loans for the construction or modification of housing with a view to minimising energy consumption. The other four MFIs —JMH, USPD Savings and Credit Cooperative, CEVI and SEDP-Simbag—, located in rural areas, introduced loans for the purchase of solar equipment, including solar lamps, chargers and fans.

Read the JMH Case Study

Read the SEDP-Simbag Case Study


Products tested and accepted

The MFI pilot projects were a notable success, particularly for the four MFIs that introduced solar equipment. In total, 2,500 products were sold to 2,425 customers over the duration of the GIF project. Most of them took out an initial loan for solar lamps and then a second loan for fans.

Benard Geroges

Bernard Georges, ADA project manager
“It wasn’t hard to convince the customers. They immediately embraced the product. On the one hand, to access electricity, which is also at a favourable price, and on the other, to save electricity.”

 

Sun King Home 60 solar light kit.
The three lamps can run for eight hours with no additional power.

 

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