Friday, June 15, 2012

ADB, DOE aware of fund diversion

Posted  by Christine F. Herrera


THE Energy Department and the Asian Development Bank had confirmed the reallocation of $500 million in funding for solar power projects to electric tricycles or e-trikes and energy-efficient appliances, contradicting the Palace’s claims that no diversion took place, civil society groups said Thursday.
At a three-day meeting with the groups, the ADB’s principal energy specialist Solair Hasnie and Energy Undersecretary Loreta Ayson justified the reallocation of the funds as a national priority, the civil society representatives said.
“The reason a series of consultations was held by the DOE and ADB recently was because the stakeholders complained to the Washington D.C.-based Clean Technology Fund Trust Fund Committee last year that the funding for solar power projects was diverted to e-trikes and e-appliances without proper, transparent and credible consultation,” said Vicky Segovia, executive director of the Partnership for Clean Air.
Segovia and the representatives of other civil society groups slammed presidential spokesman Edwin Lacierda for denying the diversion of funds.
“Are they telling us that Malacañang is clueless about what the departments are doing?” Agham Rep. Angelo Palmones said.
“The government is seeking loans that the taxpayers would be paying for. The P21.5 billion is a huge amount of money and this is no laughing matter. Lacierda should be careful in making pronouncements.”
The solar project loan was first sought by the Arroyo administration and was approved by the CTF Trust Fund Committee in December 2009, Palace documents obtained by the Manila Standard show.
On Nov. 4, 2011, the Aquino administration, through the Energy and Finance departments, presented a revised investment plan to Washington proposing the reallocation from solar to e-trikes and e-appliances.
“The Government of the Philippines proposes to reallocate resources in the Clean Technology Fund  Country Investment Plan which was endorsed by the Trust Fund Committee in December 2009,” the Palace documents that were submitted to the CTF and presented in Washington show.
Segovia, a member of the steering committee that hosted and facilitated the three-day consultation, said a whole-day session on May 22 focused mainly on explaining why the government had to reallocate the funds to e-trikes.
Shortly after the consultations, the ADB and the Energy Department scrapped the $24-million allocation for e-appliances and reverted the funds to solar power projects.
ADB country director Neeraj Jain acknowledged the decision was an offshoot of the three-day consultation held in May. Jain said some P4 billion would be used for the rooftop solar project and P17 million for one megawatt of solar charging for the e-trikes.
Red Constantino, executive director of the Institute for Climate and Sustainable Cities, said the decision was proof that there was nothing wrong with investing in solar power projects.
“This sudden, albeit partial, change of heart or epiphany on the part of the ADB confirms our assertion that the original solar rooftop paneling project is one viable, feasible project that should have never been replaced by this project mix of e-tricycles and e-appliances. Otherwise, why would the bank and the government reconsider the solar rooftop paneling once again?” added Ronni Masayda of the NGO Forum.
The civil society groups continued to question the $400-million diversion of available funds to the e-trike program and criticized the involvement of local government units.
“How do we expect the mayors to collect the daily boundaries [payments for the e-trikes] of P350 and remit them to the national government for debt servicing on election year when some LGUs do not even remit the GSIS payments of their employees?” Constantino said.
Segovia agreed and said the civil society groups would continue to oppose the project if the LGUs would be made to guarantee payments for the loans.
“Let’s face it, it is election year next year and it would be suspect for the government to distribute 20,000 of the 100,000 e-trikes and having the mayors telling them to pay,” Segovia said.
“We have nothing against the e-trikes. We are rejecting the LGU involvement.’’   With Alena Mae Flores
(Published in the Manila Standard Today newspaper on /2012/June/15)   source

No comments:

Post a Comment