The Private Financing Advisory Network (PFAN) is a multi-lateral public-private partnership initiated by the Climate Technology Initiative (CTI) in cooperation with the United Nations Framework Convention on Climate Change (UNFCCC) Expert Group on Technology Transfer and supported by USAID through the PFAN Global Network. PFAN operates to bridge the gap between investments and clean energy businesses. First implemented from 2008 to 2010, PFAN resulted in the financing of 12 clean energy projects valued at US$120 million worth of investments and an anticipated additional aggregate capacity of 40 megawatts.
The current PFAN project (PFAN Philippines) running from 2012 to 2014 aims to sustain the clean energy development efforts started in the first phase of PFAN. In this partnership, PFAN’s technical advisory and mentoring support to Italpinas led to the financial commitment of $8.5 million for the latter’s Primavera Residences Energy Efficient Building Project in Cagayan de Oro City. This financial commitment started with a $4.3 million loan from the Bank of the Philippine Islands through its Sustainable Energy Finance mechanism.
Taking lessons learned during the first phase of the project, PFAN Philippines adopted an approach of engaging industries or sectors to maximize reach and expedite scaling up or replication. The project has focused on key strategic sectors, namely the sugar milling industry for energy efficiency, the livestock industry for biogas and waste water management, local government units for waste-to-energy initiatives, electric cooperatives and allied private companies for rural electrification, and the real estate industry for energy efficient buildings.