EU's P120-M grant to benefit sugar millers

MANILA, Philippines - The European Union (EU) awarded a P120-million grant to the Philippines for a power efficiency project to benefit sugar millers.

”Europe is supporting long list of projects already in the Philippines also in ASEAN promoting energy efficiency. This is the first partnership with the sugar mill industry,” delegation of the EU Attaché for Environment, Energy and Climate Change Matthieu Penot said. The project, titled 'Switch to High Efficiency Motors' is a three-year EU-funded project that aims more efficient motors and drive systems in the Philippine industries. The sugar mills will be the pilot industry for the project, which will also design a model investment and financing schemes and implement replicable pilot projects. The project seeks to mobilize key stakeholders from both public and private sectors.

Project Director Raymond Marquez said a study of International Finance Corporation in 2012 showed that for 20 companies that invested $8.33 million in high-efficiency motors, a total of $ 4.6 million was saved annually in their operating cost.

”We want to make a case for energy efficiency and renewable of all the equipment. We want to prove that upgrading all the equipment increases profitability, particularly sugar mills” Penot said.

The project is done in partnership with the Institute of Integrated Electrical Engineers of the Philippines, European Chamber of Commerce of the Philippines Asia Society for Social Improvement and Sustainable Transformation, Inc., Association of Development Financing Institutions in Asia and the Pacific  Association Action for Sustainable Development, and International Copper Association Southeast Asia and in association with Philippine Sugar Millers Association, Inc. , Bank of the Philippine Islands and the Department of Energy.