Saturday, December 4, 2010

DOE may nix RE deals without work programs

By Donnabelle Gatdula (The Philippine Star) Updated December 04, 2010 12:00 AM


MANILA, Philippines - The Department of Energy (DOE) may cancel the contracts of renewable energy projects that have not been submitting work programs, the country’s top energy official said.
Energy Secretary Jose Rene Almendras told reporters on the sidelines of the Renewable Energy Coalition Forum that the DOE is set to cancel three oil and gas service contracts (SCs).
“We will make the appropriate announcement on the cancellation. This is more a legal process that we have to follow. That’s why I cannot give you details because we have to follow the process,” he said.
But Almendras said the DOE will not renegotiate these contracts.
“There’s no renegotiation, there are contracts that will be canceled,” he said.
He said the DOE is giving ample time to all service contractors to submit their respective work programs.
Almendras had ordered a comprehensive review of all the SCs. He said with the planned cancellation of some petroleum service contracts, the DOE will be able to award more than 15 areas in its next public contracting round.
Among the areas being eyed to be auctioned off by the DOE are: Area 1- 544,000 hectares/ Cagayan; Area 2- 676,000/Central Luzon; Area 3 – 600000/Northwest Palawan; Area 4 - 616,000/Northwest Palawan; Area 5 - 424,000/Northwest Palawan; Area 6 – 840,000/Mindoro Cuyo; Area 7 – 844,000/Mindoro Cuyo; Area 8 – 840,000/East Palawan; Area 9 – 840,000/East Palawan; Area 10 – 640,000/East Palawan; Area 11 – 600,000/East Palawan; and Area 12 - 456,000/Cotabato.
For coal contracts, the DOE will be bidding out areas in Argao, Cebu; Bislig, Surigao del Sur; and Siocon, Zamboanga del Norte.

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