media partner of the year
United nations
2015 environmental Media Award leadership award 2008
BusinessMirror
www.businessmirror.com.ph
A broader look at today’s business
n
Sunday, April 16, 2017 Vol. 12 No. 185
2016 ejap journalism awards
business news source of the year
P25.00 nationwide | 2 sections 16 pages | 7 days a week
National govt share in Malampaya fund continueD to decline in 2016
Fuel, power and cash T
By Lenie Lectura
megawatts (MW), equivalent to about 40 percent of Luzon’s powergeneration requirements. The project, located west of Palawan, was launched in 2001. The Malampaya project is a joint undertaking of the Philippine government and the private sector. The project is spearheaded by the DOE, and developed and operated by Shell Philippines Exploration BV (SPEX), with a 45-percent stake on behalf of joint-venture partners Chevron Malampaya Llc.—also with a 45-percent stake—and Philippine National Oil Co.-Exploration Corp. The latter holds the remaining 10 percent. Under the service contract agreement, 70 percent of the gross proceeds from the sale of natural gas would go to the contractor to recover the investment cost. The remaining 30 percent is shared by the government and the consortium on a 60-40 basis, respectively.
HE government’s share from the energy-resource development fund, commonly known as the Malampaya fund, reached P13.43 billion in 2016, slightly lower than the P14.32 billion recorded a year earlier.
Spending habits
During the Aquino administration, former Energy Secretary Carlos Jericho L. Petilla recalled that P15 billion of the government’s share from the Malampaya project was spent. The Arroyo administration, meanwhile, used up almost P20 billion of the Malampaya fund, according to Petilla. The government, Petilla had said, used the funds for the fuel requirements of the National Power Corp. (NPC)-Small Power Utilities Group, for the Pantawid Pasada fuel-subsidy program for jeepneys, and for the cost incurred when it took delivery of a Navy ship donated by the US government. The Malampaya project fuels three natural-gas power plants with a combined capacity of 2,700
Debt payments
₧235.662B
The balance of the Malampaya fund as of 2016, according to the DOE
shell philippines
Based on the Department of Energy (DOE) data obtained by the BusinessMirror, the collection of the government’s share from the proceeds of the Malampaya Natural Gas project operations last year stood at P13,435,503,178.93, of which P5,374,201,272.14 was allocated as “source of assistance to LGUs [local government units], while the net share of the national government stood at P8,061,301,906.79.” In 2015 the total government share amounted P14,320, 625,845.66. Of the total amount, LGU assistance stood at P5,728, 250,338.82, while the remaining net national government share reached P8,592,375,506.84. The balance of the Malampaya fund reached P235.662 billion as of 2016, according to the DOE.
The DOE, which is now led by Secretary Alfonso G. Cusi, strongly urged lawmakers to pass a legislation that will allow the government to tap the Malampaya fund to pay for the debts incurred by the NPC over the years. These debts—in the form
of stranded debts and stranded contract costs—are being passed on to consumers via the collection of universal charge (UC), an item found in the electricity bills. Stranded debts refer to any unpaid financial obligations of NPC that have not been liquidated by the proceeds from the sales and privatization of NPC assets. Stranded contract costs of NPC or distribution utility, meanwhile, refer to the excess of the contracted cost of electricity under eligible contracts over the actual selling price of the contracted energy output of such contracts in the market. The stranded costs are due to onerous “take-or-pay” provisions in NPC contracts with independent power producers (IPPs). In essence, this allowed the IPPs to charge NPC for used and unused power.
Legislated measure
The Malampaya fund could only be utilized for energy development projects. “We cannot utilize it, except for ERD [energy resource development]…. Why not use the ERD fund specifically to address the issues on the universal charges, standard contract Continued on A2
Local execs, fishermen laud PCG patrol in northern waters
Rebirth of Batanes fishing grounds
A sunset scene in the grassland of Vayang, or Rolling Hills, in Basco, Batan Island, Batanes. Richard Balonglong | Dreamstime.com
T
By Rene Acosta
he military will sustain its maritime patrol in the country’s northern waters, as local government officials and fishermen in Batanes note a marked decline in the incursion of foreign poachers in the area.
PESO exchange rates n US 49.6700
The air and sea patrols by the Air Force and the Navy, and even by the Philippine Coast Guard, were being conducted both for territorial operations and for the government’s effort to provide a fishing haven for Filipino fishermen. No less than Batanes Governor Marilou H. Cayco has relayed
to Armed Forces Northern Luzon Command (Nolcom) commander Lt. Gen. Romeo Tanalgo the benefits to fishermen of the frequent maritime patrols by the military. Tanalgo said Cayco extended the gratitude of Batanes fishermen for the continuous maritime patrol being conducted by the Air Force and the Navy in the country’s
northernmost maritime territory. The Batanes governor wrote a letter to Tanalgo, wherein she said she was being flooded with positive feedback, especially from the fishermen who are mostly benefiting from the patrols. “The incessant problem of poaching in our waters took a Continued on A2
n japan 0.4532 n UK 62.0577 n HK 6.3917 n CHINA 7.2087 n singapore 36.3951 n australia 37.2326 n EU 52.6651 n SAUDI arabia 13.2457
Cayco: “The incessant problem of poaching in our waters took a respite after the patrol, and [that], according to our fisherfolk, they can now fish without being in persistent fear of encountering boats with foreign markings.”
Source: BSP (12 April 2017 )