Philippines: EO cuts red tape in issuance of permits for power projects

Philippines: EO cuts red tape in issuance of permits for power projects

Industry players will now only need 30 days-from the current 1,340 days-to
secure the necessary permits and licenses to start a big-ticket power
project, thanks to Executive Order (EO) 30 issued by President Duterte on
June 30.

The EO states that concerned government agencies shall act upon applications
for permits involving Energy Projects of National Significance (EPNS) not
exceeding within a 30-day period. If no decision is made within the
specified processing time frame, the application is deemed approved by the
concerned agency.

"It is the policy of the state to ensure a continuous, adequate and economic
supply of energy. Hence, an efficient and effective administrative process
for energy projects of national significance should be developed in order to
avoid unnecessary delays in the implementation of the Philippine Energy Plan
[PEP]," the EO 30 said.

Within the Department of Energy (DOE), permits for all energy projects are
processed within 25 days. Securing a permit from the DOE, however, is only
10 percent of the entire permitting process.

According to Sen. Sherwin T. Gatchalian, chairman of the Senate Committee
on Energy, it takes 1,340 days to secure a permit, 359 signatures needed
for the permits to be signed, and involves 74 different agencies, including
the DOE.

"So that's the amount of complexity. This is only predevelopment stage,
which is apart from building the power plant," Gatchalian said in an
interview.

The private sector welcomed the development. "This is very promising
development. Key is to have the right organization that can execute," AC
Energy President Eric John Francia said.

DOE Director of Renewable Energy Management Bureau Mario Marasigan said
that, with or without the EO, the agency has reduced the permitting process
from 120 days to 45 days, then to 25 days just recently. "Our concern is
energy projects are delayed because of the local permitting process,
including those from national and regional offices like the DENR [Department
of Environment and Natural Resources] and LGUs [local government units],
among others. Under the existing setup, there is no fixed timeline, that is
why permitting process alone takes as long as four years or even more. Add
another three to four years for project construction," Marasigan said in an
interview.

Energy Secretary Alfonso G. Cusi, in a statement, said the longer the
processing of energy projects gets, the more expensive it becomes, which
could also impact on the delivery of energy services and their
affordability.

"Given that energy investors have complete requirements, cutting down the
period of issuance of permits will certainly speed up the realization of
energy projects," Cusi added.

To be considered among the EPNS, power-generation and -transmission projects
must have a capital investment of at least P3.5 billion, significant
contribution to the country's economic development, significant
consequential economic impact, significant potential contribution to the
country's balance of payments, significant impact on the environment,
complex technical processes and engineering designs and significant
infrastructure requirements.

The EO also calls for the creation of an Energy Investment Coordinating
Council (EICC) that will spearhead and coordinate national government
efforts to harmonize, integrate and streamline regulatory processes,
requirements and forms relevant to the development of energy investments in
the country. The council, to be led by the DOE, will maintain a database of
information and a web-based monitoring system for information exchange and
updates, to uphold transparency and accountability.

The EICC shall be composed of representatives from various national
government agencies and relevant energy institutions, such as the
departments of Environment and Natural Resources, Finance, Justice and
Transportation, National Electrification Administration, National Grid Corp.
of the Philippines, National Power Corp., National Transmission Corp.,
Housing and Land Use Regulatory Board, Palawan Council for Sustainable
Development and other relevant government agencies.

Within 30 days from effectivity of the EO, the EICC must prepare rules
governing the resolution of interagency issues affecting the timely and
efficient implementation of EPNS and other energy projects.

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Link to Original Article:
http://www.businessmirror.com.ph/eo-cuts-red-tape-in-issuance-of-permits-for
-power-projects/

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com