By Ashley Erika O. Jose, Reporter
THE JAPAN International Cooperation Agency (JICA) said government-to-government (G2G) agreements are not a feasible route for investments in Philippine renewables, adding that its preferred approach is to attract investment from Japanese companies.
“We do not have so-called flagship projects because the energy sector is operated and dominated by the private sector. It is difficult for us to create and formulate projects on a G2G basis and ODA (official development assistance) support,” JICA Chief Representative in the Philippines Takema Sakamoto told BusinessWorld.
The Electric Power Industry Reform Act (EPIRA) of 2001 sought to restructure the power industry via deregulation and privatization of most state-owned power generation and transmission assets.
JICA’s role would take the form of facilitating private sector involvement, Mr. Sakamoto said, citing the recently-signed deal between Light Rail Manila Corp. (LRMC) and the Sumitomo Corp. and Hankyu Corp. for technical assistance in the operation and maintenance of the Light Rail Transit Line 1 (LRT-1) system.
“This is our direct intervention to the private sector, not G2G-based support, just like the LRT-1 investment. This is a PSIF (private-sector investment finance) scheme, which could be adaptable to the energy sector,” he said.
Mr. Sakamoto said JICA has been in discussions with the Department of Energy (DoE) about future collaboration particularly in renewable energy.
The DoE and JICA are looking at partnering for offshore wind projects, pumped storage hydropower, grid stabilization and energy projects for off-grid areas, he said.
“This year I have acknowledged the start of a new technical cooperation project to list candidate areas for pumped hydropower generation,” he said.
Grid stabilization is also being studied as a potential area for partnership to better accommodate new renewable energy supply, Mr. Sakamoto said, adding that the possibility of off-grid energization has also been put forward for consideration.
