The Government of Belgium and the Government of the Philippines agree to cooperate in the implementation of the project: "Solar Electrifiction of Remote Areas: Pangan-an Island, Lapu-Lapu City."

The project consists of the supply, installation and start-up of photovoltaic equipment in order to provide electricity to the community of Pangan-an Island, whereby this project and its site are considered as a test and showcase for further policy making on this field. Therefor it includes also activities to build up the management capabilities of the community and s three-year monitoring and follow-up period, with socio-economic impact assessment.

The equipment will consist of one solar power plant, including its accessory infrastracture, distribution grid and related house connections.

In order to support long-term sustainability of the project, the users will contribute financially for their electrical consumption.

At the start of the project, an appropriate tariff policy will be established by the supervising, the executing and the main implementing agencies. The will determine the appropriate kilowatt-hour prices for consumers connected to the grid.

As of the year 2001, the project is owned by the Department of Energy, specifically the Visayas Field Office, and managed by the community-organized Pangan-an Island Cooperative for Community Development (PICCD). Officers of the PICCD are pictured at the right.

The Department of Energy will transmit ownership of the facilities to the PICCD once this cooperative has been fully trained and has proven its reliability and management capabilities. This transfer of ownership is foreseen at the end of the three years follow-up period of the project.