JICA seeks power sector resiliency vs. disasters

The Japan International Cooperation Agency (JICA) is pushing for "countermeasures" aimed at boosting the resiliency of the Philippine electricity sector when disaster strikes.

 

The countermeasures include a financial incentive mechanism for electric cooperatives that have outstanding business continuity management plans in place. 

 

JICA is conducting a survey to collect data as a way of measuring how well Philippine electric cooperatives respond to disasters based on Japan's Business Continuity Management rating system. The assessment will determine whether a cooperative can access preferential terms and conditions for loans aimed at optimizing disaster recovery.  

 

The Japanese agency plans to share the survey results with stakeholders including the Department of Energy, Department of Finance, Energy Regulatory Commission and governmental financial institutions, with a view to crafting policy later on.

 

JICA has also held seminars with the National Electrification Administration and member banks of the Association of Development Financing Institutions of Asia and the Pacific to introduce other countermeasures for long-term financial stability of domestic electric cooperatives. 

 

The countermeasures include strengthening network facilities, building up buffer stock, and making a business continuity management plan. The aim is to help reduce the damage and facilitate the early recovery of the distribution network electric cooperatives. 

 

"It is timely to introduce Japan's countermeasures against disasters to address economic and social losses, boost long-term competitiveness and reduce the potential fiscal and financial burden of the central and local governments," JICA Philippines Chief Representative Noriaki Niwa said.

 

When Super Typhoon Yolanda made landfall about two years ago, power distribution infrastructure suffered the most. Twenty-five electric cooperatives collapsed and 12 others were destroyed, JICA noted.

 

The damage done by Yolanda to the electricity sector totaled P6.83 billion, the Japanese agency noted, citing figures from the National Economic Development Authority. The distribution sector accounted for about P5.2 billion of the damages. – Keith Richard Mariano/VS, GMA News