TTEM Demonstration Loan Fund
Policy measure

In 1986, the Philippine government implemented the Technology Transfer for Energy Management Project (TTEM) with a USD 5 million grant from the US Agency for International Development (USAID). The project aims to introduce technologies that have proven  successful in other countries but are not widely used in the Philippines. (APEC-ESIS, 1998)


“A major component of TTEM is the Demonstration Loan Fund (DLF) which provides soft loans for viable energy efficiency and demand-side management projects including equipment purchase, engineering design and management, as well as contingency spending (e.g. price adjustments).” (APEC-ESIS, 1998)


TTEM-DLF is now part of the regular programme of the Philippine Department of Energy (DOE), as DOE decided to continue the project on its own after the TTEM project came to an end in 1991 (EECE, 1998).

Implementation

According to DOE (2011), “eligible projects involve process modification, boiler conversion and modification, upgrading of electrical supply, steam system improvement, electrical loss reduction, roof insulation, kiln conversion, and waste heat recovery system, and others. Up to 75% of individual project costs but not exceeding PHP 5 million can be funded from this DLF.”


"The maximum amount of the loan is US$125,000 or 5 million pesos. The interest rate is based on the Manila Reference Rate (MRR) plus 1%, with a 1-year grace period and a payback time of 5 years.


Companies receiving the loans must agree to provide open and free access to sites, provide information and present itself as a model for study. ” (APEC-ESIS, 1998)

Challenges
No identified challenges.
Outcomes

The following outcomes have been achieved through the establishment of the Fund in 1985:

  • "Between 1996 and 1998, 11 projects were initiated after the first phase culminated in the implementation of 17 demonstration projected in the 1985-1990 period" (APEC-ESIS, 1998). According to ECEE (1998), “financial payback periods ranged from 0.3 to 2.9 years, with an average of 1.8 years. All $2.4 million set aside in the development loan fund had been loaned, and all loans were repaid. Participating companies saved a total of 109,331 barrels of oil per year. The estimated financial rate of return was greater than 12 percent for all 11 of the firms, and greater than 28 percent for 8 of the firms. Despite these positive impacts, these successful energy saving technologies were not widely replicated because the successes were not widely marketed.”

  • "Between 2000 and 2008, the TTEM programme is expected to mobilize funding for about 130 projects, which will yield an energy savings potential of 1.48 MMBFOE" (DOE, n.d.).

References

APEC-ESIS (Asia Pacific Economic Research-Energy Standard Information System), 1998.  Approved Minutes of the 13th Meeting of APEC Expert Group on Energy Efficiency and Conservation. October 28-29, 1998, Honolulu, Hawaii. Available at: www.apec-esis.org/www/UploadFile/EGEEC13%20Minutes.pdf.


DOE (Department of Energy), n.d. Technology Transfer for Energy Management. Available at: www.doe.gov.ph/efficiency/technology_transfer.htm.


EECE (Export Council for Energy Efficiency), 1998. The Market for Energy Efficiency Technology and Services in the Philippines. Washington, DC: IIEC Publications. Available at: www.ecee.org/pubs/assess/philippines.pdf.