8 accessing funds from er 1-94 - leo carias
DESCRIPTION
Taken from the "National Conference on Environment & Natural Resources (ENR) Financing" Sept. 23-24, 2009, Crowne Plaza Hotel, Quezon City, PhilippinesMore at http://ecosolutionsmanila.blogspot.com/TRANSCRIPT
BRIEFING/ORIENTATION ON
By:Mr. Leo S. Carias/Ms. Lenny B. Del Rosario
Rural Electrification Administration and Management Division
Electric Power Industry Management Bureau
Department of Energy
Legal & Operational Basis
Attendant Rules and ProceduresEnergy Regulations No. 1-94Department Circular No. 95-11-009Energy Regulations No. 1-94-ADepartment Circular No. 96-08-009Department Circular No. 98-05-007Department Circular No. 98-11-010Department Circular No. 2000-03-003Department Circular No. 2000-10-011Rule 29, Part A of EPIRA-IRRDepartment Order No. 2002-06-007
Section 5 (i) R. A. No. 7638, “DOE Act of 1992”
Section 66 of R. A. No. 9136, “EPIRA of 2001”
Policy Objectives
To recognize the contributions made by the communities and people affected;
SEC. 5 (i), R.A. 7638
To lessen conflict of rights; and
To promote harmony and cooperation among the LGUs/Region and the energy resource developers and/or power producers.
What is Energy Regulations No. 1-94?
It is the implementing rules and regulations of Section 5 (i) of R. A. No. 7638, or the “DOE Act of 1992”Sec. 5(i) of R.A. 7638 provides,
That the Department shall ”devise ways and means of giving direct benefits to the province, city, or municipality, especially the community and people affected, and equitable preferential benefit to the region that hosts the energy resource and/or energy-generating facility:Provided, however, that the other provinces, cities, municipalities, or regions shall not be deprived of their energy requirements”.
Sec. 66 of R.A. 9136 provides,That the provision of financial benefits to host communities and the obligations of the power generating facilities and/or energy resource developers as defined in R.A. 7638 and its IRR shall continue.
ER 1-94 is part of the rate imposed on the electricity end-users, duly approved by the ERC.
Who are the entitled to avail of this benefit?
A local government unit (barangay, municipality, city or province) where the energy resource and/or energy generating facility is physically located.
EPIRA-IRR
A region where the energy resource and/or energy generating facility is physically located.
What is the “obligation of the power generating facilities and/or energy resource developers to host communities?”
SEC. 4, RULE 29 (A) EPIRA-IRR
The Generation Company and/or energy resource developer should set aside one centavo per kilowatt hour (P0.01/kWh) of the total electricity sales as financial benefits to host communities.
What agency will administer the “P0.01/kWh financial benefits?”
The administration of EF, DLF, and RWMHEEF shall be undertaken by the DOE.
Sec. 7 of EPIRA-IRR provides,The administration of EF, DLF, RWMHEEF shall be undertaken by the DOE. All funds administered by NPC with regard to DLF and RWMHEEF shall be transferred to DOE for administration within 120 days from the effectivity of these Rules.
Item 2.2.4 of the Joint DOF-DBM-COA Circular No. 1-97Exempts from the coverage cash accounts owned by government-owned and/or controlled corporations and local government units.
COA Decision No. 2002-240The DOE is only allowed directly to apply the Trust and its income for the purpose for which it was created.
SEC. 7, RULE 29 (A) EPIRA-IRR
How shall the P0.01/kWh financial benefits be monitored?
Trust accounts shall be established specific for EF, DLF, and RWMHEEF in the name of DOE and the Generation Company.
Sec. 5 of the EPIRA-IRR provides,The DOE shall establish trust accounts specific for EF, DLF and RWMHEEF in the name of DOE and the Generation Facilities or Generation Company and/or energy resource developer.
Sec. 8(a) of the EPIRA-IRR provides,The DOE shall review and audit the source of fund, particularly on the total electricity sales of the Generation Facility to determine the financial benefits due to the host LGUs and host Regions.
SEC. 7, RULE 29 (A) EPIRA-IRR
Establishment of Trust Accounts
GC DOE
•Shall provide DOE the Financial Documents fromwhere the ElectricitySales shall be validated
GC and DOE GC
•Shall enter into a MOA on theEstablishment of EF, DLF, and RWMHEEF
•Shall remit 31K toDOE as Initial Depositand Checkbook Fee•Only 30K shall formpart of AFB
•Shall inform the GCof the Account Name And Number
Actual Generation
Station Use
Systems Loss
Electricity Sales/kWh
Other Relevant Documents
What are the nature of this P0.01 financial benefits?
SEC. 4, RULE 29 (A) EPIRA-IRR
ElectrificationReforestation,
Watershed Management, Health and/or Environment
Enhancement
Development & Livelihood
What is “radiating order of application” on Electrification Fund (EF)?
This means that the EF shall be applied in the following manner:
Designated resettlement area/s;
Host barangay/s;
Host municipality/ies of city/ies;
Host region/s
And other areas as maybe determined/prioritized by the DOE
Host Region/s
Host Province/s
Host City/ies
Host Barangay/s
Resettlement Area/s
Non-Highly Urbanized Area
25%
25%50%
RWMHEEF
DLFEF
Note: EF – Electrification Fund DLF – Development and Livelihood Fund RWMHEEF – Reforestation, Watershed Management, Health and/or Environment Enhancement Fund
Application Scheme for
DLF & RWMHEEF
Allocation Scheme of
P.01/kWh
30%
20%
10%
35%
5%
Host Provinc
e
Host Baranga
y
Host Municipalit
y
Host Region
Resettlement
Role of the CRO
Designation of Community Relations Officer (CRO)Coordinate with the LGUs/Region on the preparation
of annual work program;Assist in the preparation of all work
programs/project proposals prior to the release of project fund/s;
Monitor and report to DOE the implementation/status of work program/project implementation;
Shall provide the LGUs/Region updated status of accrued financial benefits;
Act as liaison officer to all concerned government agencies relative to project implementation.
DC 2000-03-003All power producer and/or energy resource developer is hereby required to designate one ComRel for each power plant.
SEC. 6a, RULE 29 (A) EPIRA-IRR
Process of Availment - EF
HOST LGU/PP DU DOE
Note: * MOA is entered into by and between the DOE and FDU * The project fund to be released shall be based on the result of public bidding/canvass by FDU * All project funds shall be subject to liquidation prior to the approval of succeeding project/s
Submits project proposal/s
•Reviews/submits proposal/s•Implements project
Case 1 DU DOE
•Submits proposal/s•Implements the project
•Evaluates/Process proposal/s•Releases Fund•Audits disbursement•Inspects project
•Evaluates/Process proposal/s•Releases Fund•Audits disbursement•Inspects project
Case 2
Process of Availment on DLF & REFOThe Host Communities submits project proposal/s duly supported by a
Resolution from the Sanggunian with the necessary documents and endorsed by the Power Plant and/or energy resource developer to DOE for evaluation/approval.
HOST LGU/Region Power Plant DOE
Note: * MOA is entered into by and among the DOE, P/P, and LGU/Region * The project fund to be released shall be based on the result of public bidding/canvass (under R.A. 9184) * All project funds shall be subject to liquidation prior to the approval of succeeding project/s
Submits project proposal/s
•Evaluates proposal/s•Coordinates with the LGUs & Region/s•Endorses proposal to DOE
•Process proposal/s•Forges MOA with the LGUs/Region & P/P•Facilitates release of project fund
Approval of Proposal and Release of Project
Fund
Approving Authority
Previous ProcedureOn the approval of project proposal and approval on the release of project fund are classified according to project cost:
P1M and below = Bureau Director
P1M > P5M = Undersecretary
P5M and above = SecretaryDOE 2002-06-007 “MEASURES ADOPTED TO REDUCE RED TAPE IN THE DEPARTMENT OF ENERGY”
Approving Authority
Approval of project proposal regardless of amount shall be undertaken by the Office of the Secretary
Current Procedure
MEMORANDUM FROM THE SECRETARY DATED AUGUST 29, 2007 “SIGNING OF CONTRACTS, MEMORANDA OF AGREEMENT/UNDERSTANDING, PERMITS, DEEDS, ETC.”
Approving Authority
Current Procedure
MEMORANDUM FROM USEC. KYAMKO DATED 16 JULY 2008 “DELEGATION OF AUTHORITY”
On the release of project fund, the level of approval are as follows:
P5.0M and aboveP3.0M -below P5.0M P1.0M -below P3.0M
Below P1.0M
Concerned Usec.Concerned A.Sec Concerned Bu Dir/Service Dir Concerned Div. Chief
SecretarySr. Undersecretary Concerned Usec.
Concerned Bureau/Service Dir
AMOUNT Recommending Official Approving Authority
Release of Project Fund to LGUs/RDC (DOE
Administered Funds of IPPs)
DOE/COALGUs/RDC
DOE
•LGUs Resident COA audits utilizationof funds•DOE-IAS validates disbursements•DOE-REAMD conductsTechnical inspection
Implements the project
DOE LGUs/RDC
Informs projectProponent on the
approval of proposal thru NTP
Submits bid result& supporting documents
as a basis for therelease of
project fund
Facilitates remittance of
project fund directlyto LGUs account as
provided in the MOA
Release of Project Fund to LGUs/RDC (NPC-Administered Funds of NPC
IPPs)
DOE/COALGUs/RDC
DOE
•LGUs Resident COA audits utilizationof funds•DOE-IAS validates disbursements•DOE-REAMD conductsTechnical inspection
Implements the project
DOE LGUs/RDC
•Informs projectproponent on the approval ofproposal thruNTP•Notifies NPC to remit theproject fund directly to DOE
Submits bid result& supporting documents
as a basis for therelease of
project fund
Facilitates remittance of
project fund directlyto LGUs account as
provided in the MOA
Criteria on Projects to be Funded under DLF & REFO
Availability of Funds
Has the capacity to increase income levels and generate employment opportunities Uplift the living condition of the beneficiaries No adverse environmental effects Promote a more equitable share of benefits
Demonstrate the capacity for effective and successful implementation
ER 1-94 UPDATES
ER 1-94 UPDATESGenerating Facilities Generating Facilities
NationwideNationwideIncorporated in E.R. 1-94 ProgramIncorporated in E.R. 1-94 Program
(As of 06 July 2009)(As of 06 July 2009)
T o t a l 136
NPC 36 IPPs 88 Joint NPC and PNOC-EDC (incl. CALENERGY BOT w/ PNOC-EDC)
12
Establishment of Trust Accounts (on-going)
14
Active 76 Inactive 57
Note:NPC – National Power CorporationIPPs – Independent Power ProducersPNOC-EDC – PNOC Energy Dev’t Corp.CALENERGY – California Energy Int’l ltd
ER 1-94 UPDATESHost CommunitiesHost Communities
Incorporated in E.R. 1-94 ProgramIncorporated in E.R. 1-94 Program ( As of 06 July 2009 )( As of 06 July 2009 )
T o t a l 680 NPC Owned Facilities 481* Joint NPC-PNOC-EDC Facilities 34 IPP Facilities 165
*AGUS 1, 2, 4, 5, 6, 7 HEPs (300) Facilities Resources
Barangays 30 242
Municipalities/Cities 5 19
Provinces 2
Regions 2
Trust Accounts EstablishedTrust Accounts Established (As of 06 July 2009)(As of 06 July 2009)
T o t a l 384 DOE Administered Trust Accounts 346
(Land Bank of the Phils.) 279
(Dev’t. Bank of the Phils.) 67
NPC Administered Trust Accounts* 38
Note:* The DLF and RWMHEEF are still with NPC but subject for transfer of administration to DOE pursuant to Section 7, Part A, Rule 29 of EPIRA-IRR
ER 1-94 UPDATES
ER 1-94 UPDATES
Total No. of
Projects
Type of Project (PhP)Billio
n
2,018 Electrification* 1.70
980 Development and Livelihood 0.83
845 Reforestation, Watershed Management, Health and/or Environment Enhancement
1.02
Note: * Excluding MIRANT, SARO, KEPHILCO & PNOC-EDC Projects and among other advanced financial assistance
Summary of Approved ProjectsSummary of Approved Projects( As of 06 July 2009 )
TYPES OF PROJECTS
What are the specific types of projects being funded under EF, DLF, and RWMHEEF?
Electrification Projects (funded under EF)
Missionary Electrification Projects- Extension/expansion of distribution lines-Upgrading of distribution
lines
What are the specific types of projects being funded under EF, DLF, and RWMHEEF?
Development Projects (funded under DLF)
StreetlightingFarm to Market RoadMulti-Purpose Pavement Farm produce collection & buying stationRice/Corn MillingCommunal Irrigation
SystemSmall water impounding
Projects
Fish portsSeawallsDay Care CenterSchool BuildingPublic marketSlaughter houseBridgeFlood control measuresPublic drainage/sewerage
system
What are the specific types of projects being funded under EF, DLF, and RWMHEEF?
Development Projects (funded under DLF)
StreetlightingFarm to Market RoadMulti-Purpose Pavement Farm produce collection & buying stationRice/Corn MillingCommunal Irrigation
SystemSmall water impounding
Projects
Fish portsSeawallsDay Care CenterSchool BuildingPublic marketSlaughter houseBridgeFlood control measuresPublic drainage/sewerage
system
What are the specific types of projects being funded under EF, DLF, and RWMHEEF?Reforestation, Watershed Management, Health and/or
Environment Enhancement Projects (funded under RWMHEEF or REFO)
ENVIRONMENT ENHANCEMENT PROJECTS
Fire TruckGarbage/Dump TruckSanitary Landfill Development of MRFConstruction of ConcreteSanitary Waste WaterCollection Facility
Waste Management Equipment:
Garbage TruckDumptruckBulldozerBuckhoe / Loader
What are the specific types of projects being funded under EF, DLF, and RWMHEEF?
Reforestation, Watershed Management, Health and/or Environment Enhancement Projects
(funded under RWMHEEF or REFO)
HEALTH RELATED PROJECTS
Water supply system
Municipal Hospital
Health Center
Medical equipment/facilities
Medicinal plant gardens
Ambulance
REFORESTATION, WATERSHED MANAGEMENT RELATED PROJECTSImprovement of forest cover
Vengineering measures
Community-based forestry
management
Agro-forestry
Conservation of Mangroves
Seedling nursery
DOEDOE
NPC/PNOC/ IPP
OTHER GOVERNMENT AGENCIESOTHER GOVERNMENT AGENCIES
DENR/DOH/DA/DPWH/DSWD/DECS
FINANCIAL BENEFITS (EF, DLF, RWMHEEF)
TECHNICAL ASSISTANCE / CONSULTANCY &COORDINATION/PARTNERSHIP
1. PLANNING: PROJECT ID, PRIORITIZATION, CONSULTATION, PROPOSAL PREP.; 2. IMPLEMENTATION; MONITORING & EVALUATION.
INTEGRATED/WHOLISTIC & INTEGRATED/WHOLISTIC & SUSTAINABLE APPROACHSUSTAINABLE APPROACH
ELECTRICITY
LIVELIHOOD
INFRASTRUCTURE
OTHER SUPPORT SERVICES
INTEGRATED & SUSTAINABLE PROGRAM APPROACH UNDER E.R. 1-94
INTEGRATED & SUSTAINABLE PROGRAM APPROACH INTEGRATED & SUSTAINABLE PROGRAM APPROACH UNDER E.R. 1UNDER E.R. 1--9494
LGU & CROLGU & CRO
PROGRAM MONITORING AND
EVALUATIONCAPABLE GROUP
Maraming Salamat Po!