| By Donnabelle L. Gatdula (The Philippine Star) Updated November 22, 2010 12:00 AM |
MANILA, Philippines - The Department of Energy (DOE) will cancel three existing but non-performing petroleum service contracts, Energy Secretary Jose Rene Almendras said.
“One of the things we’re pushing in this government is that we will not tolerate service contracts that are not being attended,” he said.
The energy chief warned that the DOE will not hesitate to cancel all contracts which are deemed not working based on their respective programs.
“If you commit to a service contract and there’s a work program that you commit to, then we will certainly encourage you to abide by it. Otherwise we’re going to cancel your service contract and we’ll give it to somebody who’s more serious,” he said.
Almendras said the planned cancellation of some petroleum service contracts will enable the DOE to award more than 15 areas in its upcoming 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 - 600,000/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.
When the new administration stepped in in July this year, the first thing it did was to review all the energy service contracts.
Almendras cited the case of Service Contract 72, once the highly-controversial Geophysical Survey and Exploration Contract (GSEC) 101.
“SC 72 is in court. We have to wait. As far as we’re concerned, they already have the SC so they’re already moving in on it,” he said.
But he said the DOE could not do anything if there are legal issues confronting the SC holders.
“If somebody will want to stop them or prevent us from doing that, there is the SC case that is awaiting decision but they’re getting ready to fulfill,” he said.
Almendras has ordered the review of all service contracts entered into by the department for the past years. He said this move is consistent with President Aquino’s mandate of a “level playing field in all government projects.
He said this will also be compliant with the overall objective of promoting transparency in all transactions entered into by the government, including the energy sector.
The DOE recently signed an agreement with Forum Energy Plc to finally convert its GSEC 101 to Service Contract 72.
Since 2005, the department has engaged in public contracting rounds to make the bidding of energy contracts more transparent.
When the Philippine Energy Contracting Round (PECR) was introduced, no more service contracts were awarded without passing through this process.
So far, there were 13 petroleum service contracts, 19 coal operating contracts and a handful of geothermal exploration development and exploration contracts worth well over P1 billion in investments awarded under the PECR.
Over a 100 renewable energy service contracts were also signed by the DOE the past months.
“One of the things we’re pushing in this government is that we will not tolerate service contracts that are not being attended,” he said.
The energy chief warned that the DOE will not hesitate to cancel all contracts which are deemed not working based on their respective programs.
“If you commit to a service contract and there’s a work program that you commit to, then we will certainly encourage you to abide by it. Otherwise we’re going to cancel your service contract and we’ll give it to somebody who’s more serious,” he said.
Almendras said the planned cancellation of some petroleum service contracts will enable the DOE to award more than 15 areas in its upcoming 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 - 600,000/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.
When the new administration stepped in in July this year, the first thing it did was to review all the energy service contracts.
Almendras cited the case of Service Contract 72, once the highly-controversial Geophysical Survey and Exploration Contract (GSEC) 101.
“SC 72 is in court. We have to wait. As far as we’re concerned, they already have the SC so they’re already moving in on it,” he said.
But he said the DOE could not do anything if there are legal issues confronting the SC holders.
“If somebody will want to stop them or prevent us from doing that, there is the SC case that is awaiting decision but they’re getting ready to fulfill,” he said.
Almendras has ordered the review of all service contracts entered into by the department for the past years. He said this move is consistent with President Aquino’s mandate of a “level playing field in all government projects.
He said this will also be compliant with the overall objective of promoting transparency in all transactions entered into by the government, including the energy sector.
The DOE recently signed an agreement with Forum Energy Plc to finally convert its GSEC 101 to Service Contract 72.
Since 2005, the department has engaged in public contracting rounds to make the bidding of energy contracts more transparent.
When the Philippine Energy Contracting Round (PECR) was introduced, no more service contracts were awarded without passing through this process.
So far, there were 13 petroleum service contracts, 19 coal operating contracts and a handful of geothermal exploration development and exploration contracts worth well over P1 billion in investments awarded under the PECR.
Over a 100 renewable energy service contracts were also signed by the DOE the past months.
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