In the Philippines, over 80% of the total population and more than 95% of all communities have access to modern electricity services. The Philippine Government is currently seeking to improve the efficiency of these services through private sector involvement. The Government's Rural Power Project will support the expansion and improvement of electricity services by:

1. Financing the restructuring of Government agencies
2. Upgrading poorly-performing rural cooperatives to prepare for private management
3. Developing privately operated, isolated electricity systems in parts of the country
4. Identifying options for private sector participation in the operation of the Small Power Utilities Group pf the National Power Corporation.

GPOBA’s Technical Assistance funds were aimed at helping the Government to incorporate OBA approaches into its plans for overall sector reform.

OBApproaches: Output-based aid in Phillippines

The outputs of this Technical Assistance project will assist the Government in its efforts to responsibly incorporate private sector involvement in the power sector in order to enhance services especially for the poorest households in rural areas.

GPOBA co-funded (along with ESMAP) the preparation of model contractual documents along with the details of the proposed OBA scheme.

Selina Wai Sheung Shum