The eradication of poverty remains a top national concern and a daunting challenge to the government. Programs which attempt to close the gap between the rich and the poor are continuously being developed and implemented through an integrated and coherent multi-sectoral approach.

The energy sector, led by the Department of Energy (DOE) shares this vision of economic growth with social equity and believes that provision of electricity is a basic ingredient in national development. The rural electrification program (O-Ilaw) aims to enhance the quality of life of Filipinos, especially those in the rural areas by providing them with adequate and sustainable energy services which would increase their opportunities to engage in livelihood and income-generating activities.

Components & Funding Source

As part of the World Bank’s assistance program to the Philippines to uplift the conditions of the country’s rural areas, a proposed Rural Power Project would support the DOE’s rural electrification program based on effective public private partnerships. The partners of this program are envisioned to include local government units (LGUs), non-government organizations (NGOs), electric cooperatives and private energy service companies.

Presently, there are two on-going projects of which the Village Power Fund provides incubator funds for community-based power service.