Business World Online
Posted on September 28, 2015 11:22:00 PM
THE GOVERNMENT still hopes to roll out the P10.528-billion Batangas-Manila (BatMan) Natural Gas Pipeline Project this year despite technical concerns that have delayed it, an Energy official said on Thursday last week.
The BatMan -- which is in the government’s pipeline of public-private partnership (PPP) projects -- was approved by National Economic and Development Authority-Investment Coordination Committee (NEDA-ICC) last July.
But prior to the elevation to the NEDA Board headed by President Benigno S.C. Aquino III, the Department of Energy (DoE) raised some concerns that could affect the project. Zenaida Y. Monsada, DoE officer-in-charge, said the concerns -- mostly technical in nature -- have been discussed with Holland-based Rebel Group International BV, the project’s advisor.
“There are certain problematic provisions that have been approved, some of which concern right-of-way,” Ms. Monsada told reporters on the sidelines of a Senate hearing in Pasay City.
“The initial proposal might have conflicts with other expansion programs and road-related activities so we need to present alternative routes.”
Given these concerns, Ms. Monsada said the project will have to revert to the NEDA-ICC, which will meet next month.
“The PNOC will submit recommendations and present the entire pipeline network. So it will not only be one route,” Ms. Monsada said, referring to the Philippine National Oil Co. that is in charge of the BatMan project.
“After that, it will have to pass the NEDA Board. We are still hoping to get that approval so that we can roll out the project before the end of this year,” she added.
“Right now, the target is to award the contract within the current administration.”
The DoE originally targeted to complete the bidding process this year so that project implementation could start next year.
Ms. Monsada admitted that this original timetable can no longer be met, saying it takes time to complete the design and secure permits before the actual construction starts.
But she added that the government is keen on this infrastructure.
“This has been delayed for so long. If we want a balanced energy mix, we have to bring in natural gas to the country and it could not move if we don’t have the necessary infrastructure,” Ms. Monsada explained.
Last July, then Energy Secretary Carlos Jericho L. Petilla had said that more evaluations have to be conducted before the project is offered to investors.
Mr. Petilla had said there were questions on project design and on prospective buyers of the natural gas that will flow through the pipeline.
The project involves construction of a 121-kilometer pipeline that will transport and supply natural gas to markets along its route from Batangas, Laguna and Cavite, and eventually to Metro Manila. It is part of efforts to develop the country’s natural gas industry and reduce dependence on imported fuels.
Ten PPP deals cumulatively worth some P189 billion have been awarded since the infrastructure program was launched in the third quarter of 2010. -- Claire-Ann Marie C. Feliciano source
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