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Bidding for $2.1B BatMan 1 project delayed anew


The bidding for the first phase of the $2.1-billion Batangas-Manila (BatMan 1) natural gas pipeline project may be delayed anew as the state-run Philippine National Oil Co. (PNOC) has yet to conduct a study to determine the most feasible mode for the project.

According to Zenaida Y. Monsada, director of the Oil Industry Management Bureau at the Department of Energy, PNOC is now preparing for a feasibility study that will look into the merits of various options being considered by the government.

One option is to bid out the BatMan 1 project, a critical infrastructure that can boost the Philippines’ natural gas industry, under a public-private partnership (PPP).

Another mode being considered, according to Monsada, is through an official development assistance (ODA), which is defined as a “loan or a grant administered with the objective of promoting sustainable social and economic development and welfare of the Philippines.”

Under the law, ODA resources must be contracted with governments of foreign countries with whom the Philippines has diplomatic, trade relations or bilateral agreements, or which are members of the United Nations, their agencies and international or multilateral lending institutions.

“There are prospective volunteers who can conduct the feasibility study and we’re studying [their proposals],” Monsada told the Inquirer.

“Their offers differ in terms of the timetables as to how long the study will be conducted and the scope of the study. There are groups that have offered to conduct the feasibility study for free but we have to look into their proposals first.”

Once the study is completed, PNOC may already be able to proceed with the bidding for the first phase of the BatMan 1 project, which will involve the construction of the 100-kilometer pipeline.

PNOC has yet to announce whether it will still create a separate subsidiary to be called PNOC Pipeline Corp. (PNOC PC) to handle the operations of the natural gas pipeline.

Based on previous plans, the PNOC PC is expected to bid out the engineering, procurement and construction contract, as well as the technical and maintenance agreement this year. It will take about three years to finish the pipeline.

The second and third phases of the Batman 1 project will involve the construction of the receiving terminal and power plant, respectively.

The Philippine government is bent on pursuing the use of alternative fuels, such as natural gas, given the current global oil price volatility, to which the Philippines is highly vulnerable.

The country sources more than 90 percent of its fuel requirements abroad.

Natural gas has been deemed to be among the more feasible alternatives that will allow the Philippines to diversify its energy and transport fuel sources.

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Tags: BatMan 1 project , bidding , delay , Energy , Government , Natural Gas , Philippine National Oil Co. (PNOC) , Philippines

  • http://joboni96.myopenid.com/ joboni96

    YES to pilipino funding of mega projects

    using direct retail of government bonds
    to pilipinos only

    NO to foreign investors and loans

    sipain mga kolonisadong utak economists
    and financial policy makers

  • jurbinsky77

    Delayed anew?

    This is stupid. How can you even plan ahead if there is no feasibility study yet done.

    Filipinos at PNOC, will you stop being stupid?

    Are you just cloning MWSS, doing nothing except fattening the pocketbooks?

    Both the PNOC and MWSS should be revamped., all officials, who are bunch of lazy b_a_s_t_a_r_d_s  should be retired for doing nothing.

    The PNOC during the tenure of Pres Ramos sold the only oil refinery to the Saudis. Even the stocks of ownership were sold in favor of the foreigners to the disadvantage of the Filipinos. What were they were thinking? Styupid. Very corrupt 

  • http://profile.yahoo.com/SYG36KOOLRY47VA3ICPJJ5CQTQ ADD

    Anak ng tipaklong nman yang mga tao sa gobyerno, pati feasibility study pinag peperahan. Puro na lng feasibility study ang ngyayari maka delihensya lng ng pera. Ilang feasibility study na ang nagawa dyn sa hinayupak na BatMan1 na yan.

    Tao sa gobyerno ang tatamad pero kung makapag reklamo kala mo 8-hrs magtrabaho.

  • http://profile.yahoo.com/T352VVK5JNASYHA6GN5ROPTHCY jeric

    Bilisan sana mga Projects.  

    Anu na nangyari sa renovation ng NAIA 1 and 3? Akala ko ba early 2013 matatapos ang NAIA 1 at NAIA 3 sa kalagitnaan ng 2013? Northrail Speedtrains wala din plano, Clark di alam kung gagawin main airport ng Pinas…

  • loyca

    Pipeline for natural gas from Batangas to Manila??????????? What for??????? the first phase is to place the pipiline, 2nd phase is to construct depo, 3rd phase is to construct power plant. If the sole purpose is to supply fuel to the power plants in Metro Manila which are not yet existing, it’s a waste of money. Why not build the power plant in Batangas and bring the power to the Luzon Grid. What is more viable, produce the electricity in Batangas and bring it to Manila through transmission line or bring the fuel to Manila, buy properties and construct the LNG depo and the power plant. Metro Manila is already crowded and the cost of real properties are very high. Where in Metro Manila the depo and the power plant will be constructed? Considering the huge investment, time, environment impact and danger in storing highly volatile fuel at the center of population, this project is a waste of money. The best thing to do is build the power plant in Batangas and bring the power generated to the Luzon Grid. Do you agree?

  • http://twitter.com/ManongBlogger Manong Blogger

    Yung Master Plan nito nabuo na way back 2002 pa. Madami ng studies ang ginawa. Pati World Bank at JICA sumali na sa studies nito. So ano pang hinihintay? Sabi nga ng taga JICA, tapos na ang Feasibility Studies nila para dito way back January 2012 pa at naihand over na sa DOE. Eh ayaw pa rin ituloy ng DOE or simulan. Try nyo umattend sa Trade Show kung saan Guset Speaker and isa sa mga taga DOE, ayaw pa interview regarding dito. Bakit kaya? hmmm

  • trader1nb

    hay naku! maraming study gagawin para maraming mapepera! gumawa na lang kaya sila ng pa contest sa mga top engineering students sa mga top schools. Im sure quality pa ang study, sound engineering, at mabilis pa dahil using the latest tools

    alam na natin kung  ano yung ma approve.  ang mas  expensive at mas matagal gawin ay yun ang  naapprove dahil the longer it takes and the expensive it costs, the more dripping juice you can extract… systematic corruption.

    cguro ang totoong feasibility study ay yung feasibility study how to do systematic corruption without the public knowing it

  • http://www.facebook.com/profile.php?id=100003516764413 Jean Claude

    walang kwenta! study ng study hanggang kelan kaya yan magtatagal!? siguro 1 taon pa para matapos ang study na yan! PALPAK! PURO DELAY!!! WALANG KWENTA ANG ADMINISTRATIONG ITO SA INFRASTRUCTURE! Pinagmamalaki pa ang PPP tapos ngayon pinag-aaralan kung mag-PPP ba o uutang nalang sa ibang bansa!? Walang kwenta!

    • ramelatilano

      hindi ang administrasyong ito ang problema kundi ang situation behind….ha ha ha

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