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Philippine Government to Handle Energy Programs, Investments

Posted on: Tuesday, 20 December 2005, 09:00 CST

Philippine government to handle energy programs, investments

MANILA, Dec. 19 (Xinhua) -- President Gloria Macapagal-Arroyo is set to set up an office to specifically handle programs and possible investments in alternative and renewable oil and energy sources, the government said Monday.

President Arroyo issued an executive order to create the Philippine Strategic Oil, Gas, Energy Resources and Power Infrastructure Office (PSOGERPIO) to promote, assist and fast track crucial private sector-led oil, gas, energy resources, power and other energy projects to avert the fast approaching energy crisis.

The office will be headed by a presidential assistant but will be based at the Department of Energy, according to the Order.

Citing the need for such an office, President Arroyo said that major foreign banking and international financial institutions expressed interest to enter into financing agreements with the Philippine government to assist the private sector in the development of the country's energy resources for alternative fuels and power that would be considerably cheaper and cost effective in the long run.

"Given the crisis situation that has dawned upon our economy, there is an urgent need, and it is so imperative for government, to focus and intensify all efforts to promote, develop and fast track crucial private sector-led oil, gas, energy resources, power and energy projects," the order read.

"With the constraints of time, there is a need to create an office for the purpose of coordinating the efforts of the Department of Energy and other departments and agencies in attracting investors and in promoting the use of indigenous and renewable energy resources and other energy sources to reduce dependence on imported energy and reduce energy cost to the consuming public," it adds.

Under the Order, the new office shall develop the five-year Philippine Energy Crisis Strategic Plan, which shall outline the plans, projects and strategies in averting any approaching energy crisis.

It also tasked to aggressively promote, develop and fast track crucial private sector-led oil, gas, coal and other energy resources and power projects under the Strategic Plan, certify energy projects as "national priority" based on the plan.

The new office shall also undertake agreements with private entities in accordance with and in realization of strategic and " national priority" projects within the scope of the Strategic Plan, undertake project development from project conceptualization, feasibility study and detailed design preparation, project management and construction supervision.

It shall also arrange and negotiate financing from public finance, bilateral and multilateral official development assistance institutions and from the private sector, subject to existing procurement, accounting and auditing rules and regulations.

Source: Xinhua News Agency - CEIS

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