The International Finance Corp. and its local bank, Rizal Commercial Banking Corp. of the Yuchengco, are under investigation for lending millions of dollars to 19 coal projects in the Philippines despite the World Bank’s 2013 moratorium on funding for this dirty fuel.
The Compliance Advisor Ombudsman (CAO), the watchdog of the IFC, will look into a complaint that the WB sister organization broke its social and environmental rules when it become a key financier in the Philippine coal project boom since it made an equity investment in RCBC in 2013 ($150 million or 12 percent in the Yuchengco bank but its total exposure to the bank is pegged at $254 million).
The 19 coal projects, individually and cumulatively, will have devastating environmental and social impacts, including through their contribution to climate change. The Philippines is one of the most vulnerable countries to climate change impacts, including extreme weather events. These impacts affect us both as Filipino citizens and residents, and as a movement fighting for climate justice
The complaint cited how the IFC ignored the a 2013 WB report which noted that the Philippines was “the third most vulnerable country to weather-related extreme events and sea level rise” and and that biggest impact would be felt by coastal populations because of increases in storm surges.
The complaint also said that while the WB has noted with concern the rise in coal in the balance of power despite its $44 million loan effort to catalyze renewable energy, its sister firm IFC “has quietly funneled hundreds of millions into RCBC, which is bankrolling the expansion of the country’s coal sector on its watch.”
“We urge the IFC to use its considerable leverage with RCBC to ensure that it does not finance another dirty coal plant and instead directs its financing to renewable energy projects that ensure energy access for poor Filipinos without accelerating the pace of climate change. If RCBC does not bring its investments into compliance with the IFC Performance Standards and commit to no more coal investments, we urge IFC to divest and exclude RCBC from future IFC investments,” said the complaint.
These are the 19 new and expansion coal projects bankrolled by IFC-RCBC in nearly 10 years:
1) Global Luzon Power Plant in La Union (670 MW) by Global Luzon Energy Development Corp., a subsidiary of Global Business Power Corp. owned by Salim’s Manila Electric Co. (14 percent) and G0kongwei group’s JG Summit Holdings (30 percent) ,
2) Masinloc Power Plant Expansion Project (630 MW) in Zambales. This is owned by Redonod Peninsula Energy, 47-25 partnership between Meralco and Aboitiz Therma
3) Redondo Peninsula Energy Subic Power Plant (600MW) in Zambales owned by Meralco (47 percent) and Aboitiz Equity Ventures Inc through Therma Power (25 percent)
4) GNPower Mariveles Power Plant and Dinginin Power Station Expansion (1800MW) in Bataan. This is owned by Ayala Corp. through AC Energy Holdings (50 percent) and Aboitz’s Therma (40 percent)
5) Limay Power Plant (900 MW) in Bataan by San Miguel Corp. Global Power
6) . Mariveles Power Generation Corp. Power Plant (600 MW) in Bataan by San Miguel Corp. Global Power Holdings Corp. and Meralco with 49 percent each
7) South Luzon Thermal Energy Corp. Puting Bato Power Plant (270 MW) in Calaca, Batangas which is 35 percent owned by Ayala Corp. through AC Energy
8) Merbau Coal-fired Thermal Plant (300 MW) in Batangas by JG Summit
9) San Buenaventura Power Ltd. Co. Project (455 MW expansion) in Quezon which is 51 percent owned by Meralco
10) Central Luzon Premiere Power Corporation Plant Project (150 MW) in Quezon which is owned by San Miguel Corp. Global Power
11) 11. Pagbilao Coal-fired Thermal Power Plant (700 MW) in Quezon. This a venture between Mirant Philippines’ Team Energy and Aboitizs Therma Power
12) Atimonan One Energy (AOE) Power Plant (1,200 MW) in Quezon of Meralco and JG Summit
13) 3. Toledo Power Corp. (TPC) Plant (63 MW) in Cebu which is owned by Meralco and JG Summit through Global Business Power
14) Panay Power Station Expansion Project (164 MW + 150 MW expansion) in Iloilo. This i owned by Global Business Power of Meralco and JG Summit
15) 15. Therma Visayas Energy Project (300 MW) in Cebu by Therma Power of Aboitiz Equity Ventures
16) . Southern Mindanao Coal Fired Power Plant (150 MW +105 MW expansion) in Saranggani. This is owned by Saranggani Energy Corp., a 75-25 venture between Alsons Thermal Energy and Toyota Tsusho.
17) Lanao Kauswagan Power Plant (540 MW) in Lanao del Norte which is 85 percent owned by by Ayala Corp. Energy and Philippine Investment Alliance for Infrastructure Fund (PINAI) and Power Partners Ltd Co.
18) Davao Therma South Power Station I (300 MW) in Davao del Sur by Aboitiz Power
19) SMC Global Power Coal Plant (300 MW) in Davao Occidental