Project Components

The Project has four (4) components. These are:

Component 1:  Investment towards Chiller Replacement;

Component 2:  Measurement, Monitoring and Verification (MMV);

Component 3:  Performance Standards and Technical Assistance; and

Component 4:  Project Management.


Component 1: Investment towards Chiller Replacement

The first component will provide financial incentives (also known as sub-grants) to the COs to encourage them to accelerate the replacement of their inefficient chillers with non-ODS, energy- efficient ones in advance of the natural attrition rate of the existing chiller.

The CO can avail a subsidy equivalent up to fifteen percent (15%) of the ex-works price of new non-ODS based energy- efficient chillers. The subsidy will be paid out through a reimbursement scheme, where the COs will initially shoulder one hundred percent (100%) of the cost of the new chiller. The Project shall reimburse up to 15% of the ex-works price after the new chiller has been installed, commissioned and turned over by the supplier to the CO and after the CO has complied with all the requirements in the Project Protocols.

Chiller owners interested in joining the program will need to comply the eligibility criteria of the Project.

The EMB may enter into one or more agreements, on terms and conditions acceptable to the World Bank, in order to attain a common basis for cooperation with chiller manufacturers/suppliers and energy service companies and facilitate effective market penetration of the Project. This agreement may be in a form of a Memorandum of Understanding (MOU) with chiller suppliers and energy service companies, pursuant to which chiller suppliers and energy service companies may be required to (a) assist in identifying potential Beneficiaries; (b) disseminate Project offerings to potential Beneficiaries; (c) assist them in the preparation of their submissions to the Project Management Unit (PM); (d) implement terms and conditions for baseline power measurement; (e) monitoring of performance of new chillers; and (f) supply new chillers with data loggers/ monitoring equipment in accordance with general specifications established by the Project.

Component 2: Measurement, Monitoring, and Verification (MMV)

This component shall involve the following activities:

a. Assessment of the eligibility of old and new chillers.

b. Contracting of Individual Consultants to carry out the baseline measurement and monitoring requirements of the Project.

c. Contracting of an MIS Consultant by the PMU who will develop, install, and maintain the software to track all the data generated from the individual replacement activities or sub-grants. The MIS shall track energy savings, measure energy consumption of baseline equipment and of the replacement chiller, monitor performance of new chillers according to pre-set performance parameters and analyze the data in accordance with the protocols of this OM.

d. Annual reporting of emission reduction.

Component 3: Performance Standards and Technical Assistance

The objective of this component is to enhance the knowledge and build the capacity of the COs, the chiller suppliers, and the contractors as well as the government regulators on the following:

a. Significant rate-of-return on investment from the new chiller and other potential low-cost and/or no-cost energy conservation measures in large buildings;

b. Policies and regulations on the prohibition of ODS (newly-produced) consumption/ importation;

c. Various requirements of the Protocols of the OM.

d. Financial incentive package of the Project; and

e. Replacement of old chillers and maintenance of new chillers

f. Adoption of environment-friendly, energy-efficient technologies, practices and methods including the implementation of the Environmental Management Framework (EMF).

The following sub-components shall be carried out to ensure the achievement of the above-mentioned objectives:

a. Training, Workshops, and Materials on Project Awareness and for Public Awareness  

b. Recognition Program

Training, Workshops, Materials on Project Awareness and for Public Awareness

The training, workshops and information and education campaign will expand the coverage of energy conservation options on chillers to include other type of systems of large buildings and industries. The Project will utilize experience and expertise of the US Environment Protection Agency’s (US EPA) Energy Star Programs and those of chiller manufacturers and suppliers of ancillary equipment. A financial analysis tool has been developed by the US EPA to support participants in making decisions with regard to the option being offered.  This will be introduced to the Project. The Project shall also develop a tool (IRR tool and other similar tools) to be used by the PMU as part of its marketing strategy to attract prospective participants to enroll in the project.

launch workshop will also be undertaken jointly by the DENR and the World Bank to inform the public of the commencement of the Project and to invite interested parties to participate. This will be followed by project-cycle workshops to be undertaken on a regular basis to inform new participants about the project requirements, processes, eligibility and funding criteria. Technical workshops will also be undertaken to inform participants about proper maintenance of new chillers, measurement, monitoring, and verification of power consumption, energy savings, and accounting of emission reductions.

Lastly, this subcomponent will also finance production of additional tri-media materials to support project implementation that will generate public interest.  Such materials include pamphlets, brochures, print, radio and TV ads, case studies, and any other materials to be determined during project implementation.

Recognition Program

The DENR will give Plaque or Certificate of Recognition to high-performing COs which have generated remarkable energy savings.  This shall serve as an incentive for project participants to regularly monitor the chiller performance in terms of energy efficiency and to ensure proper operations and maintenance of their chillers.

Component 4: Project Management

This component is designed to assist the EMB-PMU and DENR in implementing the Project. This component involves the following:

a.       Selection of experts, who will advise and assist the PMU of the day-to-day project operation  functions, including but not limited to, marketing activities, organizing of events or workshops, coordinating with chiller suppliers and manufacturers, reviewing of sub-grant applications and endorsing them to the PMU, supervising of sub-grants, preparing supporting documents for DENR’s disbursement of GEF and MLF funds, managing of reporting, verification and auditing requirements, and coordinating with other agencies on any policy and regulatory issues that may arise.

b.   Implementation of the Project Implementation Plan (PIP) approved for the Project.

c.      Establishment of a database to track financial data and disbursements of the Project.

d.      Establishment of a grievance/complaints handling mechanism.

For any complaints or grievances related to the implementation of the project, please contact:


Dept. of Environment and Natural Resources

DENR Compound, Visayas Avenue, Diliman, Quezon City

Tel. No. : (+632) 929-6626

                   Legal Department



 Grievance Mechanism
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