50 Renewable Energy service deals scrapped

business mirror

TUESDAY, 15 FEBRUARY 2011 21:23 PAUL ANTHONY A. ISLA / REPORTER

“Out of the more than 200 renewable-energy service contracts that have been awarded, we found around 50 to 60 renewable-energy service contractors have not complied with their proposed work program,” Marasigan said.

The energy official said the DOE reevaluated the contracts and found that the contractors failed to fulfill their reportorial requirements.

Energy Secretary Jose Rene Almendras said more than 10 contracts will be canceled this month.

Renewable-energy service contracts to be canceled are those that did not comply with their work program and those not able to submit their documentary and reportorial requirements.

Almendras made it clear that the cancellation of the contracts is consistent with the law.

He said the DOE has given these companies enough time to comply with their work program.

“We have given them up to end-February to comply. And we already have the list of the names of companies [whose contracts will] be cancelled,” he said.

The cancelled RE service contracts, according to Almendras, will be offered to new investors.

Almendras made it clear the companies who used to hold the cancelled contracts will be allowed to join the new bidding process, for as long as they comply with DOE requirements.

He said they must submit proof of financing capability and balance sheets, among others.

Almendras is optimistic the cancellation will not turn off investors.

“In fact, the industry sees this as a step forward. When I entered the DOE, industry players had sought for the review of the contract areas and contracts to see if they are compliant with the laws,” he added.

Almendras said they will ensure there will be no problem in seeking permits from the local government units.

He 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 has. in Cagayan; Area 2-676,000 has., Central Luzon; Area 3-600,000 has., Northwest Palawan; Area 4-616,000 has., Northwest Palawan; Area 5-424,000 has., Northwest Palawan; Area 6-840,000 has., Mindoro Cuyo; Area 7-844,000 has., Mindoro Cuyo; Area 8-840,000 has., East Palawan;  Area 9-840,000 has., East Palawan; Area 10 -640,000 has., East Palawan; Area 11-600,000 has., East Palawan; and Area 12-456,000 has., Cotabato.

For coal contracts, the DOE will be bidding out areas in Argao, Cebu; Bislig, Surigao del Sur; and Siocon, Zamboanga del Norte.