By Danessa Rivera (The
Philippine Star) | Updated January 6, 2017 - 12:00am
MANILA, Philippines – After much
delay, the Department of Energy (DOE) finally awarded renewable energy (RE)
contracts for eight hydropower sites and two geothermal areas auctioned under
the second open and competitive selection process (OCSP 2).
Based on DOE evaluation, six
companies bagged eight hydropower sites while two companies were named winners
for two geothermal areas.
In a text message, DOE Renewable
Energy Management Bureau director Mario Marasigan said service contracts were
already awarded to the winning bidders.
First Gen Mindanao Hydropower Corp.
of the Lopez Group won the most contracts, namely Area 4 Binongan-Tineg in
Abra, Area 15 Cateel in Davao Oriental and Area 16 Cagayan 1N in Cagayan de
Oro.
Cebu-based Vivant Energy Corp.
bagged two RE service contracts, namely Area 12 Tubig and Area 13 Buhid, both
in Eastern Samar.
Area 7 Ilog in Mabinay, Negros
Oriental was awarded to Trans-Asia Oil & Energy Development Corp., now
called Phinma Energy Corp.
Clean N Energy Solution Inc. won the
contract for Area 14 Bugtong in Samar while Marano Energy Corp. was declared
winner for Area 17 Agus III in Lanao del Norte and Lanao del Sur.
For geothermal projects, Repower
Energy Development Corp. was the winning bidder for Area 2 in Southern Leyte
and Energy Development Corp. for Area 3 Amacan in Compostela Valley.
In February 2015, the DOE offered 21
RE sites under OCSP 2, four of which are geothermal sites with aggregate
potential capacity of up to 134 megawatts (MW) and 17 are hydropower sites with
capacity of up to 733.4 MW.
The agency only received eight
offers for two geothermal concession areas and 31 proposals for 14 hydropower
deals in May the same year.
The other hydropower sites with
offers were declared failure of OCSP 2 as bids did not qualify, which are Area
1 Madongan 1, Area 2 Madongan 2 and Area 3 Solsona in Ilocos Norte; Area 8
Binalbagan 1, Area 9 Binalbagan 2, Area 10 Binulog all in Negros Occcidental.
The DOE has also declared failure
for three hydropower projects and two other geothermal sites, which had no bid
proposals.
The hydropower sites are Area 5
Sinambalan 1 in Occidental Mindoro, Area 6 Pagbalan 1 and Area 11 Hilabangan 3
in Negros Occidental. For geothermal, these are Area 1 Acupan-Itogon in Benguet
and Area 3 Balut Island in Davao Occidental.
The DOE said these sites would be
opened for “direct negotiation subject to the compliance of regulatory
requirements.”
Under the service contracts, the
winning bidders will have two years for pre-development for less than 50 MW and
five years for at least 50 MW.
It also covers a 25-year development
stage, which can be renewed for another 25 years.
Winning bidders will also benefit
from perks under RA 9513, or the Renewable Energy Act of 2008, such as a
seven-year income tax holiday (ITH), reduced corporate tax rate of 10 percent
after ITH expires, and duty-free importation for 10 years of equipment,
machinery, spare parts and materials directly, actually and exclusive used for
hydropower or geothermal operation.
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