Gov’t moves to boost Bangsamoro’s energy sector
The national government aims to boost the energy sector of the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), with the signing by the Department of Energy (DOE) of a circular outlining the standards for petroleum and coal operations in the region.
According to the DOE, it signed the Intergovernmental Energy Board circular on the joint award of petroleum service contracts (PSCs) and coal operating contracts with the BARMM Ministry of Environment, Natural Resources and Energy (Menre).
The agency added that the circular would attract foreign investments in BARMM and facilitate the growth of the energy sector.
“This is an important step toward progress in Mindanao, and possibly the establishment of another energy resource capital in the Philippines,” Energy Secretary Raphael Lotilla said in his speech.
Under the circular, a local or foreign company authorized to engage in petroleum exploration and development may apply for PSCs. For coal contracts, however, an applicant must be a corporation or partnership with at least 60 percent Filipino-owned capital and registered with the Securities and Exchange Commission.
An applicant may nominate an area of interest for exploration and development “at any given time,” the DOE said. Once the nominated areas are published, the interested companies may submit their application to the Menre for approval.
Lotilla has repeatedly said that Mindanao had vast, untapped energy potential, owing to the 800-megawatt excess power capacity that it could lend to the Visayas and Luzon.
Mindanao has been relying on hydroelectric and coal-fired power plants as well as barges, or floating power facilities that are easy to deploy during emergencies, to energize homes for the longest time.
The energy chief noted that by leveraging Mindanao’s energy resources, the island group would be able to “generate employment opportunities and foster sustainable development, and ultimately improve the quality of life of its residents.”
Lotilla also told President Bongbong Marcos, who witnessed the signing ceremony, that both the DOE and the BARMM were looking for ways to upgrade electricity infrastructure in the provinces.
