PROJECTS
Securing Private Participation in Regional Electricity Distribution Cooperatives, Philippines
The problem
Rural electricity cooperatives (ECs) in the Philippines were struggling to improve management and to raise finance for development. To support them, the Government sought to secure private investment. However, since ECs were self-governing and held area franchises under special legislation, the Government needed an innovative model to enable the private sector to invest in and operate ECs.
How we helped
Castalia designed Investment Management Contracts (IMCs), a model for securing private sector participation while keeping the cooperatives as legal, independent franchises. We worked with the association of ECs and individual EC Boards to identify willing participants for pilot transactions. We also marketed the model to private investors. We then ran the transaction process on behalf of the Boards of the willing ECs to ensure open, transparent and competitive procurement of IMCs.
Impact
PELCO II, an EC in the area north of Metro Manila, successfully procured an IMC with a private investor. After an initial contract, in 2014, PELCO II launched a further successful partnership with Comstech-Meralco. PELCO II was able to improve service reliability and invest to meet growing demand.
Our team
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PARIS
+33 (0)1 85 64 10 22
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France
BOGOTÁ
+57 (1) 508 5794
Calle 81 #11-08, Piso 5, Oficina 5-121
Colombia
Thinking for a better world.
WASHINGTON, DC
+1 (202) 466-6790
1747 Pennsylvania Avenue NW, Suite 1200
United States of America
SYDNEY
+61 (2) 9231 6862
Suite 19.01, Level 19, 227 Elizabeth Street
Australia
AUCKLAND
+64 (4) 913 2800
74D France Street, Newton South
New Zealand
WELLINGTON
+64 (4) 913 2800
Level 2, 88 The Terrace
New Zealand
PARIS
+33 (1) 73 44 26 97
6 Rue Duret
France
BOGOTÁ
+57 (1) 508 5794
Calle 81 #11-08, Piso 5, Oficina 5-127
Colombia
Thinking for a better world.