(Davao City, 07 August 2023). The Regional Development Council (RDC) of Davao Region and Aboitiz Power Corporation, through its subsidiaries Therma South, Inc., Therma Marine, Inc., and HEDCOR Group, simultaneously inked Memoranda of Agreement (MOA) for the implementation of projects to be proposed by Provincial Local Governments Units for funding under the Energy Regulations (ER) No. 1-94 Program as per Department Circular (DC) Nos. 2018-08-0021 and its Supplemental Policy Issuances.
The ER 1-94 issued by the Department of Energy (DOE ER 1-94) is the implementing rules and regulations of Section 5 (i) of the DOE Act of 1992 (RA 7638) which provides that the DOE 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”. The objectives of this policy are to recognize the contributions made by the affected people and communities, lessen the conflict of rights, and promote harmony and cooperation among the LGUs/Regions and the energy resource developers and/or power producers.
As host to several energy resource and/or generating facilities, Region XI is bestowed with its share of the benefit of the P0.01/kWh of the total electricity sales collected and set aside by the generation companies and/or energy resources developer. The available ER 1-94 Funds are only the Region’s share from the Development and Livelihood Fund (DLF); and Reforestation, Watershed Management, Health and/or Environment Enhancement Fund (RWMHEEF). The share of Davao Region as Host Region shall be used by the RDC XI that will give priority consideration to areas with no ER 1-94 benefits for equitable distribution of the funds.
Contingent to the MOA signing are the call for project proposals to select LGUs, evaluation of submitted proposals and its subsequent endorsement during the CY 2023 3rd Quarter Regular Meeting of the Infrastructure Development Committee XI, and onward approval by the RDC XI during its CY 2023 3rd Quarter Meeting, among others.
Aboitiz Power Group of companies has been an active partner of the RDC XI in the past years, and remains committed to delivering its mission of not just providing reliable, reasonable, and responsible energy solutions but also in reaching out to and providing for the communities’ needs, thereby improving the welfare of the people and environment.
-Arniel A. Alderite, NRO XI