Despite ongoing purge, Philippines continues to award energy contracts

January 31, 2012

Philippines Energy Secretary Jose Rene D. Almendras said this week that the government was still awarding renewable energy service contracts to “deserving” companies and that 268 projects had been approved as of January 9, according to a report in the Philippine Daily Inquirer.

However, the minister said the federal government had “chosen not to make public” the names of the companies involved until they had been cleared by local government units and secured other environmental related permits.

The statements come just months after the Philippines Department of Energy (DoE) cancelled a rash of energy-related contracts for a variety of “noncompliance” issues particularly on meeting program schedules.

According to Almendras, the cancellation of non-performing projects was continuing.

“There are a lot of service contracts that are not moving. We are sending letters to those that are not complying with their work commitments—they need to explain to us. If the excuse is acceptable, we will agree on a new scheduled. If not, the contract will be revoked,” Almendras warned.

Based on documents from the DoE, the 268 existing contracts for renewable energy projects have the potential capacity to generate 4,763 MW of power. Hydropower projects comprised the bulk of the approvals at 133 contracts, followed by wind projects with 52 contracts.