Philippines: DOE seeks Palace intervention on power projects

Philippines: DOE seeks Palace intervention on power projects

The proposed executive order (EO) declaring power projects of national
significance will be critical in boosting supply beyond 2019 and in
connecting the Visayas and Mindanao grids by 2020, Energy Secretary Alfonso
Cusi said yesterday.

"This is so that we can realize our objective of having sufficient power
supply. We need to make power projects as projects of national
significance," he said.

The agency has sought Malacañang intervention in declaring critical energy
projects as priority to expedite the permitting and realization of the
projects.

DOE Undersecretary Felix William Fuentebella said a proposed EO was
submitted to the Office of the Executive Secretary for approval.

"(The EO draft) is with the Executive Secretary's office. The Executive
Secretary is the one we are following up with to call on the other agencies
involved so that we can already have a discussion on the executive order,"
he said.

Among the projects that will be branded as critical projects are power
plants beyond 2019.

"As soon as we get the EO, that will expedite things because we're looking
at requirements 2019 and beyond. We're doing that parallel to Ambisyon
2040," Cusi said.

Another critical project is the Visayas-Mindanao grid interconnection
project.

"We need the EO to realize that. It's been a long-delayed project the
security of power through power sharing has yet to be realized. We want to
make sure that it will not go beyond 2020 so we will include it in the list
of power projects of national significance," the Energy chief said.

The National Grid Corp. of the Philippines (NGCP) has completed the
hydrographic survey determining the viable location for the Visayas-Mindanao
grid interconnection which is along the country's western seaboard –
beginning in Cebu and terminating in Dipolog.

With the hydrographic survey result, NGCP will now proceed with the
preparation of a conceptual design, detailed cost-estimate, and update of
system simulation study using the Cebu-Dipolog route.

Barring unforeseen circumstances and unavoidable delays, the project is
expected to be completed by December 2020, NGCP spokesperson Cynthia
Alabanza said earlier.

The DOE has been pushing for the passage of a law that labels certain energy
projects as "Projects of National Significance" to cut red tape — which is
among the thrusts of the Duterte administration to attract more investors in
the country.

Last October, Sen. Sherwin Gatchalian said he is considering to refile a
bill that would classify energy projects of national significance to
fast-track the processing of critical power projects, which has long been an
issue raised by power developers.

The bill aims to give priority to certain power projects and compel
permit-giving government agencies to work within a specific timeframe.

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Link to Original Article:
http://www.philstar.com/business/2017/02/17/1672884/doe-seeks-palace-interve
ntion-power-projects

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com