LGUGC has a co-guarantee agreement with the US Agency for International Development (USAID) which effectively expands LGUGC’s capacity to cover water projects of LGUs and Water Districts (WDs) in the Philippines. The USAID reinsurance of up to 50% of LGUGC’s enrolled portfolio is intended to strengthen LGUGC’s ability to mobilize private capital lending for water supply and sanitation facilities.
USAID
Technical Assistance
USAID support of LGUGC’s mission is evident through its provision of a number of technical assistance to LGUGC. In 2000, USAID’s technical assistance on the final review of the LGUGC LCSRS was conducted after the pilot testing of the first 6 LGUs. In 2001, USAID approved a technical assistance for the expansion of the LCSRS database from 120 to 500 LGUs. In 2002, support from legal specialists on policy issues pertinent to bond market development was given through the USAID-AGILE project. A consultant was also tasked to look at LGUGC’s capital adequacy with regard to leverage. In the following year, technical assistance was also given for portfolio risk management and determination of actuarially-sound leveraging ratio for LGUGC.
AusAid-PAGF
Activity Agreement
LGUGC
was the first private sector recipient of a
technical assistance from the Philippines-Australia
Governance Facility(PAGF) of the Australian
Agency for International Development (AusAid).
The activity agreement between LGUGC and PAGF
in 2001 involved the computerization of the
LGUGC Internal LGU Credit Screening and Rating
System and Portfolio Management System to enhance
its credit evaluation and account monitoring
processes.
World
Bank-Global Environment Facility
LGUGC
has a project agreement with the World
Bank Global Environment Facility (WB-GEF).
LGUGC was tapped to manage the US $10 million
WB-GEF-funds by making available a partial
credit guarantee facility for eligible
rural electric cooperatives (ECs), and EC Investment Management Contractors (IMCs). LGUGC’s
role as Guarantee Program Manager will
help achieve significant and sustained
energy efficiency improvements in Philippine
rural electric cooperatives.
UNDP - Capacity Building to Remove Barriers to Renewable Energy Development - Loan Guarantee Fund (CBRED-LGF).
LGUGC was selected as the Guarantee Program Manager (GPM) for the CBRED-LGF program. The program is funded by the Global Environment Facility (GEF) thru the United Nations Development Programme at US$ 1.606 Million. It is intended to provide partial credit guarantee to proponents of renewable energy projects on a credit risk or collateral short basis.
