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Asian Development Bank Funds Renewables

The Asian Development Bank (ADB) will be funding the promotion of Renewable Energy and energy efficiency in both the Philippines and India through new programs.

Manila, The Philippines – January 13, 2003 [SolarAccess.com] A project to expand Indonesia’s Renewable Energy generation capacity will bring more reliable and cleaner power to remote regions with the help of a US$161-million loan approved by the ADB. The Renewable Energy Development Sector Project will connect about 76,000 new consumers to the power grid and benefit over 5 million people, of whom about one-fifth are poor. In addition, ADB will administer a technical assistance (TA) grant of US$800,000 from its Danish Cooperation Fund for Renewable Energy and Energy Efficiency to pilot a plan allowing 10,000 low-income families in Indonesia’s outer islands to defer the start-up costs of connections. The project comprises 12 subprojects that will add a total of 82 MW of capacity to five remote regions of the outer islands. It will also strengthen associated power distribution networks. The total cost of the project is estimated to be US$256 million, of which US$95 million will come from the government and PLN (Perusahaan Listrik Negara), the state electricity enterprise. ADB’s loan will come from its ordinary capital resources and carry a 25-year term, including a grace period of five years. Interest is determined in accordance with ADB’s LIBOR-based lending facility. The ADB has also agreed to provide a US$600,000 technical assistance grant to India to promote more efficient use of energy, especially in industry. India’s demand for energy is among the fastest growing in the world, fueled by rapid industrial growth and a rising population. Investments in power generation, transmission and distribution have not kept up with demand, however, and the gap constrains the growth India has experienced since economic liberalization in 1991.