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.

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.

PROGRAM
PFAN is an alliance of private sector companies experienced in providing financing and financing services to climate-friendly projects. Participants include specialist investment funds, institutional investors, philanthropic and developmental investors, strategic and industrial investors, banks as well as financing advisory consultants, all of whom are interested in triple bottom line investments that account for social and environmental values along with financial returns.

In order to qualify for CTI PFAN support, a project first undergoes a rigorous review process based on an initial application that includes a detailed project description, underlying project economics and other readily available relevant information. Once accepted into the program, a project is assigned a PFAN advisor or “coach” from the Network who steers the project through further review stages that are designed to guide the project sponsors through the financing process to financial closure. For those clean energy businesses that are selected, CTI PFAN offers a number of specific services, all of which are provided without charge:

• Advice and guidance on overall project structure, financial structuring, sourcing of equity and debt financing, technical project aspects, business growth strategy, preparation and presentation of business plans.
• Technical assistance to selected projects for feasibility and technical studies.
• Matching projects with investors via showcasing at Clean Energy Financing Forums organized by CTI PFAN and by direct introduction to network investors and other potential investment sources.

GOAL
Bridge the gap between investments and clean energy businesses

STRATEGY
Identify promising clean energy projects at an early stage and provide mentoring for developing a business plan, investment pitch, and growth strategy, significantly enhancing the possibility of financial closure for the projects

IMPLEMENTATION PERIOD
August 2012 – August 2014