Published April 6, 2018, 10:00 PM By Myrna M.
Velasco
At least 34 multi-billion dollars’
worth of energy projects are now lodged with the Department of Energy (DOE),
all seeking fast-track approvals within the ambit of Executive Order No. 30, a
policy streamlining approvals and permitting processes on the so-called energy
projects of national significance (EPNS) being headlined by the Duterte
administration.
According to energy officials, these
are array of projects – ranging from hydro to geothermal and other renewable
energy projects; various power plant ventures and the proposed P52 billion
Visayas-Mindanao grid interconnection project.
The number of EO 30-applicants had
already grown tremendously from the initial 10 projects first hinted to the
media by Energy Secretary Alfonso G. Cusi in February.
Energy Undersecretary Felix William
B. Fuentebella said all applications are “still under evaluation,” with
validation and assessments focused on the proposed projects’ alignments with
the Philippine Energy Plan.
He explained it is deemed
‘contentious’ if the project is still under ‘indicative phase’, “because the
developers or the project sponsors may still have that tendency to flip the
venture eventually.”
Fuentebella noted they are taking “a
very cautious stance on the project flippers…but if there would be flippers, we
have to cancel the approval, so that shall be ‘of no value’ to the prospective
taker.”
For projects in the sector to be
qualified as “EPNS”, the minimum capitalization must at least be R3.5 billion; and
must have “significant contribution to the country’s economic development.”
In an advisory sent out by the
energy department to project applicants, it was prescribed that “for project
proponents with existing service contracts (SC) and certificate of endorsements
(COE), a project revalidation shall be conducted to ensure that they comply
with the EPNS requirements.”
And for new projects being applied
under EO 30, “the validation/evaluation for EPNS qualification shall be
determined in parallel with the processing of appropriate SCs and COEs.”
Following such process, the energy
department indicated that “the certificate of EPNS shall be issued
simultaneously with the SCs or COEs.”
The DOE has institutionalized the
Energy Investment Coordinating Council (EICC) as the central body that shall be
evaluating, processing and to eventually recommend the EO 30-underpinned
projects for the Secretary’s approval.
Fundamentally, that Palace-issued
Executive Order is the Duterte administration’s strategic response to investors’
long-term headache of dragged out and red tape-slammed project approvals and
permitting.
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