Products & Services

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Guarantee

LGUGC guarantees the indebtedness of local government units (LGUs), water districts (WDs), electric cooperatives (ECs), renewable energy technology providers (RETPs) and medium large enterprises (MLEs). The guarantee fee is a function of the underlying borrower and project risks.  Fees may range from .25% to 2.00% per annum. Guarantee facility, eligibility criteria and documentary requirements. (See file:Eligibility_Reqts or LGUGC Brochure.

Credit rating

LGUGC implements an internal LGU credit screening and rating system (LCSRS) in the absence of a formal stand-alone entity specializing in risk evaluation of LGUs. The LCSRS adopts internationally-accepted standards fit for due diligence requirements of private  Financial Institutions and individual investors as well.  The  system serves as the primary guide for both the LGUGC and Financial Institutions to identify LGUs that are primed for the commercial credit market. More importantly, the credit rating system establishes the LGU’s willingness to honor contractual obligations in addition to its capacity to pay.  It is also a tool for LGUs toward better local governance.

Until such time that an independent and reputable rating agency is established, LGUGC will continue to disseminate screening and rating information to the public  on a regular basis. (See file: LCSRS [Classification Worksheet] )

Project Management

The LGUGC offers program management services. Currently, LGUGC is managing the guarantee funds for Access to Sustainable Energy Project and the Department of Energy-Loan Guarantee Fund Program of the RoP, both through the Department of Energy.

Eligible Projects

LOCAL GOVERNMENT UNITS

  • Agri-business and food production projects
  • Development of industrial estates
  • Hospitals and healthcare centers
  • Power plant and distribution systems
  • Public market
  • Public transportation facilities and government housing development
  • School and day care centers
  • Slaughterhouse
  • Telephone and communication systems

WATER DISTRICTS

  • Water source development and protection
  • Treatment and distribution (Level III)
  • Sanitation
  • System upgrading and reduction of water Losses
  • Support facilities
  • Bulk water supply
  • Slaughterhouse
  • Rehabilitation and expansion

ELECTRIC COOPERATIVES

  • Rehabilitation and capacity upgrades of existing supply system (including purchase of secondhand sub-transmission facility) to improve the reliability, efficiency and safety of supply system and the quality of service to customers
  • Removal of supply system constraints
  • Institutional development
  • Purchase of necessary hardware, software, motor vehicles, tools and equipment to improve employee productivity and customer service efficiency

RENEWABLE ENERGY TECHNOLOGY PROPONENTS (UNDER DOE-LGF)

  • Hydropower (Pico-hydro, Micro-hydro, Minihydro)
  • Biomass- based systems (Biogas, Direct burning for power and non-power applications)
  • Wind (Power and Non-power)
  • Solar (Photovoltaic Systems)