In consonance with Islamic tenets, an institution implementing Light for Peace Project integrates Musharaka and Murabaha, structures in Islamic finance, in the provision of solar-powered lighting facilities and acquisition by Moro beneficiaries.
Light for Peace Project is an initiative that provides affordable lighting to off grid communities in the Autonomous Region on Muslim Mindanao (ARMM).
The project is implemented by One Renewable Energy Enterprise (OREE), Incorporated, an institution that provides supply, integration, design and importation services on Solar Photovoltaic (PV) devices.
OREE implements the undertaking with its grassroots partners, Barangay Renewable Energy Community Development Associations (BREDCAs), to reach out its target households.
The institution shares capitalization with BREDCA to acquire solar-powered lighting facilities then sell those to beneficiaries who will pay the items in monthly installment.
In Musharaka or partnership, the parties involved contribute capital to run the business who mutually agreed to share profit or loss. OREE and BREDCA will be engaging in Musharaka for the procurement and distribution of items.
In the distribution of the devices, BREDCA will employ Murabaha, a scheme wherein the provider procures the item then sell it with disclosed amount of profit to buyers in installment basis.
Installment scheme lighten the burden of debt payment for the lighting facilities which is composed of solar panel, battery and LED bulbs. Its cost varies depending on the wattage. The cost for a 1.5 watt which can light a single bulb is P1,800.
OREE also provided BREDCAs with Training-Orientation on Enterprise Development in strategic sites in Mindanao with the support of Peace and Equity Foundation (PEF).
During the training, the officers of Katiyakap, an organization of peace advocates which piloted Islamic Finance in the Socsargen Area, shared their experience in implementing Islamic Finance.
With one million pesos funding entrusted by PEF, since 2012, Katiyakap have been providing capitalization in cash or in kind to target beneficiaries who wanted to engage in livelihood activities.
http://www.luwaran.com/index.php/welcome/item/1186-stakeholder-integrates-islamic-finance-in-“light-for-peace”-project
The project is implemented by One Renewable Energy Enterprise (OREE), Incorporated, an institution that provides supply, integration, design and importation services on Solar Photovoltaic (PV) devices.
OREE implements the undertaking with its grassroots partners, Barangay Renewable Energy Community Development Associations (BREDCAs), to reach out its target households.
The institution shares capitalization with BREDCA to acquire solar-powered lighting facilities then sell those to beneficiaries who will pay the items in monthly installment.
In Musharaka or partnership, the parties involved contribute capital to run the business who mutually agreed to share profit or loss. OREE and BREDCA will be engaging in Musharaka for the procurement and distribution of items.
In the distribution of the devices, BREDCA will employ Murabaha, a scheme wherein the provider procures the item then sell it with disclosed amount of profit to buyers in installment basis.
Installment scheme lighten the burden of debt payment for the lighting facilities which is composed of solar panel, battery and LED bulbs. Its cost varies depending on the wattage. The cost for a 1.5 watt which can light a single bulb is P1,800.
OREE also provided BREDCAs with Training-Orientation on Enterprise Development in strategic sites in Mindanao with the support of Peace and Equity Foundation (PEF).
During the training, the officers of Katiyakap, an organization of peace advocates which piloted Islamic Finance in the Socsargen Area, shared their experience in implementing Islamic Finance.
With one million pesos funding entrusted by PEF, since 2012, Katiyakap have been providing capitalization in cash or in kind to target beneficiaries who wanted to engage in livelihood activities.
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