The PCFC Micro-Energy Credit Program aims to support reforms and priority investments to improve the quality of life in rural areas through the provision of adequate, affordable and reliable energy services specifically the small-scale renewable energy solar home system/solar lanterns; and, shall be operationalized in partnership with viable microfinance institutions.
It is a program funded by the World bank being implemented under the Investment Support Component of the Department of Energy’s Rural Power Project.
GENERAL POLICY GUIDELINES
PCFC to MFI
| Type of Credit Facility |
Term loan (non-revolving) available within 1 year from approval of credit facility. |
| Eligible Borrowers |
Accredited MFI partners. |
| Loan Purpose |
To finance the MFI’s micro-energy program for its end-clients. |
| Loan Amount |
Based on 85 % of credit needs of end clients as indicated in the Solar Availment Plan (SAP). |
| Loan Maturity |
Up to 5 years PN. |
| Mode of payment |
Quarterly. |
| Interest and Service Charge |
11% interest per yr plus 1 % service fee for up to 1 yr PNs; 12 % interest per yr plus 1 % service fee for > 1 yr PNs. |
| Manner of Availment |
Reimbursement basis (i.e. drawdown against actual loan releases to end clients) or liquidation basis (i.e. drawdown based on projected loan releases); list of borrowers to be submitted within 2 months from drawdown with PCFC. |
| Security Requirement |
Post Dated Cheques
Assignment of (a) all PNs of end - clients or MFI’s receivables from end - clients, (b) credit guarantee proceeds, and / or (c) buy - back proceeds. |
| Additional Availment Requirements |
Submission of Solar Availment Plan (SAP). |
MFI to BORROWER
| Eligible Borrowers |
Low Income families in urban and rural areas. |
| Suggested priority areas |
Households in an un-energized Barangays and Un-energized Households in “Energized” Barangays. |
| Loan Purpose |
To finance the acquisition of small scale renewable energy solar home system/solar lanterns of poor individual households. |
| Loan Amount |
In accordance with MFI’s credit policies and end-clients repayment capacity (cash flow) but shall not go beyond P150,000 inclusive of end-clients other loans with the MFI. |
| Loan Maturity |
Based on MFI’s credit policies and guidelines but not to exceed 5 years. |
| Mode of payment |
Based on MFI’s credit policies and guidelines, i.e. weekly, semi-monthly or monthly. |
| Interest and Service Charge |
Based on MFI’s credit policies and guidelines. |
| Manner of Availment |
Based on MFI’s credit policies and guidelines. |
| Suggestion |
Loan utilization check within 30 days from release. |
| Security Requirement |
Based on MFI’s credit policies and guidelines, i. e. chattel mortgage and insurance for loans above P75,000. |
| Additional Availment Requirements |
Based on MFI’s credit policies and guidelines. The micro-energy loan should be supported by a livelihood project and/or total household cashflow. |
| Suggestion |
Loan Guarantee Fund (c/o RPP-LGF) and Buy Back Scheme (c/o Supplier). |
BASIC IMPLEMENTING GUIDELINES
- MFI partners can use their existing available credit line. If fully utilized, the MFI may request for additional amount subject to the usual evaluation and approving process.
- For CFPs due for renewal, the credit requirements for the loan program shall be considered and included in the amount of credit facility for renewal.
- The MFI shall submit the SAP as supporting document to the CFP.
- Loan releases for micro-energy shall be reported in a separate SOE and separate caption in the PSR.