Malampaya fund scope expanded to include post-disaster repairs

• Source: http://www.bworldonline.com/app_content.php?title=Malampaya-fund-scope-expanded-to-include-post-disaster-repairs&id=108943
• Monday, June 1, 2015 10:49:00 pm

By Melissa Luz T. Lopez (Reporter)

A MEASURE which expands the coverage of the Malampaya gas fund to include repairs to power lines and structures damaged by calamities has been approved by a House of Representatives panel.

The House Committee on Energy on Monday unanimously approved a bill that amends Presidential Decree 910 which outlines the types of projects that may be charged to the special fund.

The new draft consolidates 13 bills and resolutions filed by House members related to the use of Malampaya funds.

Under the measure, the special Malampaya fund can also be used to “finance the rehabilitation or replacement of energy infrastructures, including but not limited to generation, transmission and distribution facilities in preparation for and response to natural and man-made calamities.”

If enacted into law, this would be an addition to the authorized use of the government’s royalties from oil firms for energy exploration, development, and exploitation programs in the Philippines.

The Supreme Court in its November 2013 ruling said the Malampaya fund can be solely spent on “energy-related” projects and should not be placed under the discretion of the President.

Some P168.2 billion is available from the Malampaya gas fund as of April 30, according to Robert Dominick E. Mariano, research service director of the Bureau of the Treasury. The components of this balance are remittances of P210 billion less incurred expenses of P42 billion for the operations of the Malampaya natural gas project.

The royalties come from private oil firms exploring and operating in the Palawan natural gas fields.

Former President Ferdinand E. Marcos created the special energy fund in 1976 to finance resource development in the local energy sector.

1-CARE party-list Rep. Edgardo R. Masongsong, who represents rural electric cooperatives, said the rule change would allow the Energy department to use the existing funds for continuing sitio and barangay electrification projects in the country.

After securing committee approval, the bill heads to the House plenary for further debates and voting.