On BatMan 1, DOE still waiting for someone to say ‘Swiss challenge’

The Batangas-Manila (Batman 1) natural gas pipeline may be completed only after 2016 as the Department of Energy (DOE) still awaits proposals from the private sector.

“Definitely, [BatMan 1] will not be completed under [President Aquino’s] term,” Energy Secretary Carlos Jericho L. Petilla told reporters.

Saying the studies involved in designing the project would take time, Petilla said the DOE would be willingly stop the ongoing government studies to fast-track implementation once a private company comes up with a proposal.

“What am I waiting for? For somebody to say ‘Swiss challenge’ … for somebody to say we will make the initial study, we will spend for it, government will have a 10-percent participation, free carry, and then we will construct in 12 months’ time,” Petilla said.

The government will then publicly invite other firms to beat that initial proposal, he added.

In 2010, the government announced that the pipeline would be completed by 2014.

An ongoing extended study in coordination with the PPP Center, which explores the public-private partnership or PPP mode, may take about 15 months to complete.

Petilla said the DOE would consider the PPP route because it would entail strong private sector participation.

This will ensure continuity, he said.

A parallel study involving development assistance is being done by the Japan International Cooperation Agency (Jica) for free.

Once the technical and feasibility studies are done, the government will auction off the project.

Batman 1 is meant to help curb the country’s dependence on oil imports by making natural gas from the Malampaya field available for industrial customers in Metro Manila. The country sources more than 90 percent of its fuel requirements abroad, making it vulnerable to price shocks.