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JAPAN FUNDS P2.6-B ILOCOS WIND-POWER PROJECT

Manila, Feb. 24, 2002 - The Japanese government announced the other day it will finance a 40-megawatt wind-power project in Northern Luzon with an estimated budget of 5.8 billion yen (roughly P2.6 billion) in Official Development Assistance (ODA).

The project, which is the first such project in the Philippines, is part of the Special Yen Loan Package pledged by Japan to the Philippines this year.

The Philippines relies on imported oil for its energy needs. In this regard, the Philippine government has adopted a policy to develop non-conventional sources of energy. The wind-power project implements this policy.

The projects involves the harnessing of the strong winds blowing in Northern Luzon. This natural source of power has a potential capacity of generating a total of 120 MW of electric power.

The entire wind project will be developed into three phases. The current assistance will finance Phase I of the project that will generate some 40 MW of power.

The project is environment-friendly because wind is the only primary source of fuel to generate electricity. This non-conventional source of power will also enable the Philippines to save on much needed foreign exchange that maybe used instead for other urgent needs of the government.

The Philippine National Oil Co.-Energy Development corporation (PNOC-EDC) is the implementing agency for the project.