LANDBANK bankrolls P1.15-B waste-to-energy power plant in Nueva Ecija

Green Innovations for Tomorrow Corporation’s (GIFTC) rice husk-fueled power plant in Talavera, Nueva Ecija, recycles around 480,000 kg. of rice husks per day and can supply electricity to around 6,480 households.

TALAVERA, Nueva Ecija – The Green Innovations for Tomorrow Corporation (GIFTC) has
carried out an economical and sustainable solution to address the problem of agricultural
waste in this province—recognized as the ‘rice granary’ of the Philippines—by converting
rice husks as biomass into renewable energy.

With rice production as the major source of livelihood in this palay-producing town, large
volumes of rice husks are regularly being disposed of or burned in open fire, posing both
environmental and health hazards to the community.

GIFTC aspired to recycle and make this agricultural waste useful by establishing a
biomass power plant that would generate electricity for households in the province.
To help make this vision a reality, GIFTC sought financial assistance from the Land Bank
of the Philippines (LANDBANK) and was granted loans in 2013 and 2018 totaling P1.15
billion under the Bank’s Renewable Energy Program.

Part of the LANDBANK loan bankrolled the construction of GIFTC’s biomass power plant
in 2016, which is currently operating at a capacity of 10.8 megawatts electric (MWe).

The rest of the loan was allocated for the reimbursement of cost utilized for warehouses,
dormitories and other structures, replacement or repair of power plant parts, permanent
working capital, including the acquisition of rice husk.

“LANDBANK was the first financial institution that believed in GIFTC’s vision for a
sustainable future for our town, and for the whole country. We wouldn’t be where we are
now if it weren’t for their assistance,” said Engr. Martin O. Vendivil, Assistant Chief
Operating Officer of GIFTC.

Through the services of a grid operator, GIFTC’s biomass power plant can supply
electricity to an estimated 6,480 households in selected municipalities and cities in Nueva
Ecija, including other areas in neighboring provinces.

The GIFTC power plant consumes around 480,000 kilograms of rice husks per day
bought from rice mills in the area, significantly decreasing agricultural waste in the town.

More importantly, the energy corporation helps reduce the emission of greenhouse
gases, while preserving the country’s natural resources by manufacturing a renewable
energy source.

“LANDBANK fully supports projects that harness the potential of renewable and
alternative energy resources. We will continue to work with development partners in
preserving our environment and promoting climate change adaptation,” said LANDBANK
President and CEO Cecilia C. Borromeo.

Through the LANDBANK Renewable Energy Program, the state-run Bank aims to finance
the development of renewable energy sources and increase access to reliable, clean and
sustainable power to help mitigate the effects of global warming and climate change in
the country.

Eligible borrowers such as electric cooperatives, local government units (LGUs),
government-owned and controlled corporations (GOCCs), and government agencies may
borrow up to 90% of the total cost of the project.

Cooperatives, associations and private borrowers categorized as single proprietorships,
partnerships, or corporations may also borrow up to 80% of the total project cost under
the Program.

Term loans for working capital and project preparation are payable up to five (5) years
with a six-month grace period on principal payment, while loans for capital expenditure
are payable based on the borrower’s cash flow up to 15 years, with a three-year grace
period. The interest rate shall be based on the prevailing market rate but not lower than
5% per year.

As of 31 March 2022, LANDBANK has approved loans totaling P20.1 billion to 56
borrowers nationwide under the Renewable Energy Program, underscoring the Bank’s
thrust of promoting sustainable finance and development.

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