P767-M Power 'Subsidy' Released

Manila Bulletin

By GENALYN D. KABILING

April 23, 2012, 6:51pm

MANILA, Philippines — The Aquino administration has released P767.2 million to local government units (LGUs) for programs that will bring down electricity in their jurisdictions.

Budget Secretary Florencio Abad said the fresh funds for the local governments are part of their 40-percent share in national revenues from energy projects.

“The P767.2-million fund release will not only allow LGUs to fulfill their role in implementing critical programs and projects in their own communities – it will also give local governments enough legroom to lower the cost of electricity across their localities," Abad said in a statement.

The budget chief added that the release of the energy funds was "timely" since energy use is higher during the hot summer season.

The collection came from revenues generated from coal, petroleum, geothermal, and hydrothermal operations in the lgus' respective localities last year.

Under the Local Government Code, at least 80 percent of the proceeds from energy projects should be used exclusively to reduce power costs in concerned LGUs. The remaining 20 percent, on the other, can be utilized to support local development and livelihood initiatives in these localities.

Of the total amount, Abad said P646 million was released to lgus in Region VI, while Region IV-B received a P57.7-million.

Also given their shares from national taxes are Region VIII (P49 million), Region XII (P7.5 million), Region VII (P5.1 million), Region V (P737,575), Region IX (P452,991), Region X (P241,779), and Caraga Region (P208,645).

“The Aquino administration is committed to seeking viable solutions for energy issues in the country. We trust that this release will empower our LGUs and allow them to manage electricity costs in their assigned localities, and in the end, bring direct, immediate, and sustainable benefits to the communities they serve,” Abad said.

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