DOE begins 5th Phil. Energy

Contracting Round in ZamPen

By Dominic I. Sanchez

ZAMBOANGA CITY (ZNS) - The Department of Energy (DOE) is now holding the 5th Philippine Energy Contracting Round (PECR5) for potentially coal-rich areas all over the country. Eight municipalities in region 9 are covered in the areas to be bid out to private companies for exploration. The contracting period will end in September this year. 

In an information-dissemination campaign conducted by the DOE in Garden Orchid Hotel here, it was learned that the eight municipalities are Godod, Baliguian and Siocon in Zamboanga del Norte, and Kabasalan, Alicia, Imelda, Payao and Malangas in Zamboanga Sibugay. Representatives from the local government units of these areas attended the activity, including Zamboanga Sibugay Governor Wilter Palma. 

DOE Undersecretary Zenaida Y. Monsada explained that the PECR “is a mechanism whereby the government bids out areas with potential indigenous energy resources for exploration and possible development and production”. 

“This provides a more transparent and competitive system of awarding petroleum service and coal operating contracts,” Unsecretary Mosada added.  

According to Engr. Nenito Jariel, OIC-Chief of the Coal and Nuclear Minerals Division, applicant private corporations must be Filipino, and must submit the necessary legal, technical and financial documents on or before September 26, 11:00 am Philippine Standard Time. Failure to submit on or before the deadline will cause disqualification. 

“An application fee of P50,000 will be collected and non-refundable,” Jariel said. “Only exploration works will be accepted,” he pointed out. 

The applicants will be screened on criteria including legal qualifications, work program, technical and financial qualifications. 

Winning applicants will be endorsed on November 21. 

In the development, production and sale of coal resources, the host LGUs are entitled to the following shares: 20% to the province, 45% to the municipality and 35% to the barangay. Utilization of these shares include 80% to lower the cost of electricity in the LGUs where such source of energy is located, while 20% will be used for development and livelihood. 

From 2009 to 2013, LGUs have received a total of P22.77 million worth of shares from the coal industry. (PIA) (082914)