Terminal Report - United States Agency for International ...

Terminal ReportDECEMBER 15, 2017

ONE-STOP SHOP FACILITATION AND MONITORING CENTER FOR RENEWABLE ENERGY PROJECTS IN MINDANAO

Terminal ReportDECEMBER 15, 2017

ONE-STOP SHOP FACILITATION ANDMONITORING CENTERFOR RENEWABLE ENERGY PROJECTS IN MINDANAO

This document was produced for review by the United States Agency for International Development (USAID). It was prepared by the Building Low Emission Alternatives to Develop Economic Resilience and Sustainability Project (B-LEADERS) implemented by IRG, a subsidiary of RTI International.

DISCLAIMER

The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government. This document is intended to comply with Section 508 Standard of the Federal Acquisition Regulation. If you have any difficulties accessing this document, please contact [email protected].

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TABLE OF CONTENTS

TABLE OF CONTENTS

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Terms and Acronyms...............................................................................................................

Overview of the Project ........................................................................................................

Executive Summary ..............................................................................................................

Assistance to Priority Projects ...........................................................................................

Biomass Project …………………….………….............………….……………………...............

Uprating of Agus VI …...........................................................................………………..

Asiga Hydroelectric Power Plant............………………...............................................

Enfinity Solar Farm Project ...........................................................………………………

Euro Hydro Power Plant ………………………….............................................................

Manolo Fortich Hydro Power Project ……………………….........................................

Success Stories …………………….............................................................................................

RE Application Made Easy ………………...............................................................……

Lamsan Power’s Biomass Plant; Harnessing Potential of Farm Wastes ............

OSFMC Offering Solutions to RE Investment Barriers .......................................

Attracting more Investments..............................................................................................

Reccommendations..............................................................................................................

Conclusions.............................................................................................................................

Annexes...................................................................................................................................

Sources of Informations...............................................................................................

Letter of Cooperation..................................................................................................

Post Activity Reports....................................................................................................

01

04

07

09

09

11

12

13

13

13

18

18

20

23

25

29

30

31

31

33

39

TERMS AND ACRONYMS

TERMS AND ACRONYMSBIR

B-LEADERS

COC

COE

DANECO

DAR

DENR

DOE

DTI

EPIRA

EPRRI

ERC

EVOSS

FIT-COE

FIT- COC

LEDS

LGU

MEDCo

MinDA

MKC

MPMC

MW

Bureau of Internal Revenue

Building Low Emission Alternatives to Develop Economic Resilience and Sustainability

Certificate of Compliance

Certificate of Endorsement

Davao del Norte Electric Cooperative

Department of Agrarian Reform

Department of Environment and Natural Resources

Department of Energy

Department of Industry

Electricity Power Industry Reform Act

Enfinity Philippines Renewable Resources, Inc.

Energy Regulatory Commission

Energy Virtual One Shared System

Feed-in-Tariff Certificate of Endorsement

Feed-in-Tariff Certificate of Compliance

Low Emissions Development Strategies

Local Government Unit

Mindanao Economic Development Council

Mindanao Development Authority

Mindanao Knowledge Center

Mindanao Power Monitoring Committee

megawatt

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TERMS AND ACRONYMS

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National Commission of Indigenous People

National Grid Corp. of the Philippines

National Power Corporation

National Water Resources Board

One-Stop-Shop Facilitation and Monitoring Center

Philippine Agroforestry Education and Research Network

Power Sector Assets and Liabilities Management

Regional Development Council

Renewable Energy

Renewable Energy Supply Agreement

Regional Board of Investment

Road Right of Way

South Cotabato Electric Cooperative II

United States Agency for International Development

NCIP

NGCP

NPC

NWRB

OSFMC

PAFERN

PSALM

RDC

RE

RESA

RBOI

RROW

SOCOTECO II

USAID

OVERVIEWOF THE PROJECT

Mindanao’s power sector is identified as one of the enablingfactors of the region’s overall socioeconomic development.It is a sector considered critical to achieving the goals setby the Mindanao 2020 Peace and Development FrameworkPlan, or Mindanao 2020 – considered as the island-region’ssocioeconomic roadmap for 2011 to 2030. In order to achievethe goals set by the plan, the Mindanao Development Authority(MinDA) emphasized the importance of the increased nationalgovernment focus on the region’s power supply, with the endgoal of facilitating Mindanao’s socioeconomic turnaround.

While the region used to enjoy clean, affordable, and reliablepower supply for nearly half a century, an increasing demand forenergy, coupled with the declining capacity of the Agus-Pulangihydropower complex - the region’s main source of energy resultedto deficiencies in power supply and eventually caused massivepower interruptions among the region’s key cities and provinces.After the passage of the Electricity Power Industry ReformAct (EPIRA) in 2001, and as the government was starting toprivatize its power assets, investors decided to embark on newprojects in Mindanao’s power market, as the island-region is notinterconnected with Luzon and Visayas power grid.

The EPIRA, a law intended to make the industry competitive, prohibits the government to continue investing in the industry owing to its ballooning loan portfolio brought about by the implementation of power programs particularly during the time of then President Ferdinand E. Marcos. The same also mandates the government to privatize its power assets. In Mindanao at present, the only notable power-generating assets that have yet to be sold to the private sector are the Agus and Pulangi Hydroelectric Power Complex, as reports said there has been clamor to have them be placed under government control so that Mindanao’s power pricing will not spike.[1]

As Mindanao’s economic performance continued to growannually, owing to the strong performance of its agribusiness,manufacturing, and services sectors, the region’s need forelectricity also increased at an annual rate of 4.7 to 5.28 percent.The region then faced a daily average shortage of 100 to 300

1 Philippine Daily Inquirer, “Mindanao stakeholders against privatization of hydropower plants.” April 13, 2012, http://newsinfo.inquirer.net/176203/mindanao-stakehold-ers-against-privatization-of-hydropower-plants

megawatts (MW) of power caused by thelow output of its main power source andthe increasing demand for power.

A Mindanao Power Summit wasorganized by MinDA on April 12, 2012which facilitated the discussion of theregion’s power situation with PresidentBenigno S. Aquino III meeting with theregion’s key business leaders, powersector representatives, governmentofficials, and members of civil societygroups. One of the key results of thesummit was the creation of the MindanaoPower Monitoring Committee (MPMC),designed to facilitate and address theregion’s power problems.

Created through Executive Order 81,signed by President Aquino, the MPMCis tasked to coordinate the efforts ofnational, regional, and local governments,and power industry stakeholdersto improve the power situation inMindanao. MinDA spearheads thecommittee which is composed of theDepartment of Energy (DOE), EnergyRegulatory Commission (ERC), NationalElectrification Administration (NEA),National Power Corporation (NPC),Power Assets and Liabilities ManagementCorporation (PSALM), Mindanao PowerAlliance (MEPA), and the Association ofMindanao Rural Electric Cooperatives(AMRECO).

Since its creation, the MPMC hasidentified several measures ranging fromshort-term up to long-term solutionsthat will contribute to solving the energycrisis and ensure stable and sustainablepower which aim to avoid a cyclicalrepetition of power crises within theisland-region. Among the long-termsolutions identified by MPMC is the OneStop Facilitation and Monitoring Center,which aims to hasten the applicationof 231 pending Renewable Energy (RE)projects in Mindanao through monitoring,

facilitation, and consultation. TheOne-Stop Facilitation and MonitoringCenter (OSFMC) was created to speedup the approval of application permitsfor Renewable Energy (RE) projectsin Mindanao. Through the center, theMPMC aims to achieve a seamlessintegration and interfacing between andamong permitting agencies to facilitateand accelerate the processing of REapplications. The center is also designedto cut down the processing and approvalof RE power projects to one or two yearsfrom the average of three to five years.

A total of 231 RE projects in Mindanaoare being facilitated by MPMC throughthe OSFMC with targeted completion ofpermits by year 2016. This batch of REpower project applications comprises2,419.17 MW of potential capacities.

The OSFMC, in collaboration withUnited States Agency for InternationalDevelopment (USAID) Building LowEmission Alternative to DevelopEconomic Resilient and Sustainability(B-LEADERS) Project, has (i) facilitatedPending RE Project applications inMindanao to include the Rehabilitation ofthe Agus Hydroelectric Power Complex;(ii) development and management of the OSFMCWeb Portal; (iii) conduct documentationand policy study on RE streamliningprocess; (iv) facilitate promulgation ofpolicy instruments at the local levelthat will support RE Initiatives; and (iv)Capacitate Power Industry Stakeholdersand other related initiatives;

The succeeding sections of thisdocument will present the case studiesand lessons learned of the USAID-MinDApartnership for the One Stop Facilitationand Monitoring Center for RE Projects inMindanao.

OVERVIEW OF THE PROJECT

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OVERVIEW OF THE PROJECT

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MinDA and USAID partnered in 2012 to facilitate the operationalization of the One Stop Shop Facilitation and Monitoring Center (OSFMC) for RE Projects in Mindanao, a center tasked to assist companies in their Renewable Energy projects as well as monitor the progress of these projects.

Through the Joint Memorandum Circular No. 2014-01 issued by the Department of Energy (DOE), the OSFMC would augment the strategies of the government in ensuring that the potentials of Renewable Energy (RE) sector in Mindanao will be developed.

In parallel to the setting up of the center, a web-based monitoring system was also established to allow Mindanao Power Monitoring Committee (MPMC) to effectively monitor the status of all pending RE power project applications in Mindanao and accelerate its eventual construction/development.

Through the USAID partnership, it helped the country in general to achieve both the reduction of greenhouse gases as well as generate new sustainable energy sources with the OSFMC in operations.

EXECUTIVE SUMMARYWith the goal of balancing the power mix in Mindanao, MinDA, with the support of the USAID, initially identified five priority projects that will be assisted by OSFMC to accelerate the construction/development of the RE plant.

In addition to the five (5) RE projects for facilitation, OSFMC will take steps in ensuring that there is cooperation among agencies in the implementation of Executive Order 81 particularly in providing interventions so that project applications are acted swiftly.

It will also come up with assessments on how the applications for Renewable Energy (RE) projects are undertaken and what possible processes are needed to streamline these processes.

OSFMC will also monitor the progress of the rehabilitation of the Agus VI Power Plant.

The five projects that were identified include;

• The 15-megawatt (MW), USD 20.46 million Biomass Energy project of Lamsan Power Corp. located in

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Sultan Kudarat, Maguindanao. The company was seeking (i) support for the facilitation of its transmission concerns with the National Grid Corp.; (ii) processing of its remaining permits and licensing requirements, especially on its application for FIT-COC (Feed-in-Tariff Certificate of Compliance) with the Energy Regulatory Commission (ERC) and Certificate of Endorsement for FIT Eligibility with the Department of Energy; (iii) following up with the ERC on its point-to-point limited transmission system; and, (iv) support in the signing of its Renewable Energy Supply Agreement (RESA) with South Cotabato Electric Cooperative II (SOCOTECO II).

• The 2.4-megawatt (MW) New Bataan Hydroelectric power plant of Euro Hydro Power (Asia) Holdings, Inc. in New Bataan, Compostela Valley with an estimated project cost of USD 10.82 million. OSFMC is assisting Eurohydro on its application for FIT-COC with the Energy Regulatory Commission (ERC) and Certificate of Endorsement (COE) for FIT Eligibility with the Department of Energy (DOE); and, facilitation of its application for a Certificate of Pre-Condition with the National Commission for Indigenous People (NCIP).

• The 68.8-megawatt (MW) Manolo Fortich Hydroelectric power project of Hedcor Bukidnon, Inc. a subsidiary of Aboitiz Power Corp., in Manolo Fortich, Bukidnon. The company requested for assistance in obtaining pertinent documents from various permitting agencies to include Department of Environment and Natural Resources (DENR), Department of Agrarian Reform (DAR) and among others. The estimated total project’s cost of the

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Manolo Fortich Hydroelectric Power Projects is Php 12.6 billion.

• The 25-megawatt (MW) Digos solar power plant of Enfinity Philippines Renewable Resources Inc. (EPRRI) in Digos City, Davao del Sur. The estimated project cost is USD 4 million. The company was requesting assistance in coordination with the Registry of Deeds in the annotation of land titles including its application for Feed-in-Tariff.

• The 8-megawatt (MW) Hydroelectric power plant of the Asiga Green Energy Corp. in Santiago, Agusan del Norte. The USD 32 million project is expected to provide additional power to Agusan del Norte Electric Cooperative (ANECO) franchise/service area. The company was requesting assistance in facilitation of its power transmission project with Agusan del Norte Electric Cooperative (ANECO) particularly Road Right of Way (RROW) concerns; and, its request of technical data to National Grid Corp. of the Philippines (NGCP) for the development of its transmission facility.

• The monitoring of rehabilitation of the Agus VI Hydroelectric power plant. The OSFMC facilitated coordination between concerned agencies to fast-track uprating of the power plant. The project cost is about P1.6 billion, uprating the capacity of the plant from 50 megawatts to 69 megawatts.

• The successful implementation of

these projects is expected to result in the sequestration of about 738,973.46 tons of carbon dioxide annually.

EXECUTIVE SUMMARY

LAMSAN BIOMASS PROJECT

In the emerging power center that is Mindanao, an alternative source of energy is making its way into the mainstream power grid.

The Lamsan Power Corporation has managed to generate power through a biomass facility that uses rice husk as a primary source of energy.

Lamsan ingeniously tapped an energy source from a sustainable means. The project will support the economic development of the Bangsamoro Region on the premise that demand for energy can be readily addressed.

It is the first time for the company to run a commercial plant with the establishment

of a 15MW biomass-fired power plant. The company initially implemented a 5.5MW/57tph steam co-generation plant for their cassava production (own use).

ASSISTANCETO PRIORITYPROJECTS

While the biomass facility is already part of the Department of Energy (DOE) and Regional Board of Investment (RBOI) - Autonomous Region in Muslim

Mindanao (ARMM) list of power generation facilities, the plant is already in the early stage as a fully

registered and commissioned biomass plant.

The OSFMC has continued to assist the company fast-track the approval of its application for a FIT-COC which was already

submitted to the ERC. At the same time, the OSFMC also assisted the company on their transmission requirements before the

National Grid Corporation of the Philippines.

With both the plant and transmission lines completed, DOE/ERC already inspected their facility as part of the FIT-COC application. It also signed

a Renewable Energy Supply Agreement (RESA) with the South Cotabato Electric Cooperative II (SOCOTECO II). The plant, once in operation, is estimated to

mitigate 72,638.55 metric tons of CO2 annually.

From (L) to (R): Dr. Alexander Campaner, Engr. Emerald Gabatilla, and Engr. Rolando Faraon

during the site visit of the 15MW Biomass Project of Lamsan Power Corporation.

At present, the One-Stop Shop Facilitation and Monitoring Center (OSFMC) is helping the company to facilitate the approval of its application for a Feed-in-Tariff Certificate of Compliance(FIT-COC)

ASSISTANCE TO PRIORITY PROJECTS

UPRATING OF AGUS VI

Aside from being a site to behold, the Maria Cristina Falls is also among the biggest sources of energy in Mindanao, with the Agus VI Hydroelectric power plant, a two-unit-plant, which taps the Agus river as its source of power. The plant was originally known as the Maria Cristina Falls Hydroelectric Power Plant.

Built in the 1950s, the plant, with its two 25-megawatt generating units, is located in Iligan City and was commissioned in 1953. Due to its age, the Regional Development Council (RDC) of Northern Mindanao pushed for its uprating to extend its lifespan and operating capacity.

The uprating was to increase its capacity from 50 megawatts to 69 megawatts.

Among the steps that the OSFMC took was to facilitate the coordination between stakeholders to include NPC-Mindanao, PSALM, NGCP and the contractors. It also facilitated the coordination among the involved entities in reconnecting the plant to the Mindanao Grid.

A new generator of Agus V

The assistance of OSFMC was crucial in the smooth transition for the uprating of the facility. The involvement of the center include bridging the coordination gap between the contractors of the project as well as implementing agencies

such as the National Grid Corp. of the Philippines (NGCP) and National Power Corporation (NPC)-Mindanao.

Commissioning and Synchronization of the uprated plant to the grid is crucial which is why the NGCP, being the systems operator, had to conduct several verification activities. It was necessary for the OSFMC to monitor and facilitate the activities of the involved agencies in the testing/commissioning process to ensure that the plants are to be operated at the soonest possible time.

OSFMC facilitated the coordination between PSALM and NGCP particularly the readiness of the transmission facility to where Units 1 and 2 of Agus VI will be connected.

Unit 2 was synchronized to the grid last February 2, 2017 while Unit 1 was on March 15, 2017.

On April 4, 2017, the 168-hour reliability tests for Units 1 and 2 was completed, with the rated load of 34.5-megawatt (MW) attained.

ASIGAHYDROELECTRIC PLANT

The OSFMC facilitated Asiga Green Energy Corp. concerns on the Road Right of Way (RROW) issue of its 8-megawatt (MW) Hydroelectric power project in Brgy. Pangaylan, Santiago, Agusan del Norte.

The power plant is embedded with Agusan del Norte Electric Cooperative (ANECO). The project, once in operation, is expected to sequester 35,575.41 metric tons of carbon dioxide annually and provide employment opportunities for approximately 300 locals.

The project suffered some setbacks after some parts of its structure was damaged from typhoon Auring in early part of 2017. Company officials said that its completion is expected in June 2018.

With CEO Hendrick Manegdeg (2nd from Left), Asiga Project Team Members and OSFMC.

ENFINITYSOLAR FARM PROJECT

Enfinity Philippines Renewable Resources, Inc. developed a solar photovoltaic power plant in Brgy. San Roque, Digos City.

Engr. James E. Doldolia with Engr. Ruben Macansantos, Project Manager of Enfinity Digos Solar Project.

In an energy mix comprising mostly non-renewable energy sources such as coal, the 25-megawatt (MW) Solar PV Power Project is a welcome development. In fact, the project, once in operation, is expected to mitigate at least 37,000 metric tons of CO2 annually.

While the plant is already operational, it is still undergoing Feed-in-Tariff (FIT) application before the ERC.

The One-Stop Facilitation and Monitoring Center (OSFMC) has been assisting Enfinity to fast-track the annotation of land titles with the Registry of Deeds, on a 34.8 hectare property to where the Solar PV Project is currently located.

At the same time, Enfinity is renewing its certification requirements before the Bureau of Internal Revenue (BIR) and Department of Agrarian Reform (DAR).


MANOLO FORTICH HYDRO POWER PROJECT

The 68-megawatt Manolo Fortich Hydroelectric power project of Hedcor Bukidnon, Inc. is located in the boundaries of Manolo Fortich and Impasug-ong in Bukidnon.

The power project is located within a protected ancestral domain and the OSFMC was able to facilitate the meeting between the company, the government and the host barangays of Guihean, Guilang-guilang, Maluko, and Santiago through their respective tribal councils, resulting in the signing of memorandum of agreement with these host villages.

OSFMC is currently assisting the company with its application for Feed- in-Tariff Certificate of Compliance (FIT-COC) which is still pending before the Energy Regulatory Commission.

Hedcor Bukidnon, Inc. has also signed Renewable Energy Supply Agreements (RESAs), with Zamboanga del Norte Electric Cooperative, Zamboanga del Sur Electric Cooperative, Misamis Occidental II Electric Cooperative, Inc., Siargao Island Electric Cooperative, Inc., Zamboanga del Sur Electric Cooperative II, and the Bukidnon Second Electric Cooperative.

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EURO HYDRO POWER PLANT

Located in Barangay Andap, New Bataan, Compostela Valley, the 2.4-megawatt Run-of-River Hydroelectric power plant of Euro Hydro Power (Asia) Holdings Inc. is expected to provide additional power to the franchise areas of the Davao del Norte Electric Cooperative (DANECO).

Conveyance line of New Bataan Hydro power plant.

The OSFMC is assisting the company in the processing of their Certificate of Precondition (CP) before the National Commission of the Indigenous People (NCIP).

The center also assisted the company in the preparation of its financial as well as its technical documents as part of the requirements for the Feed-in-Tariff Certificate of Compliance (FIT-COC) by regulatory agencies.

Once completed, the facility is aimed to contribute to the energy requirements of the francise/service area of Davao del Norte Electric Cooperative (DANECO) following the signing of the Renewable Energy Supply Agreement (RESA) in 2015.


Courtesy call with Mayor Geraldford Balbin of New Bataan Compostela Valley together with Engr.

Ignacio Guinid, Jr., Project Manager of Euro Hydro Asia.

Ongoing tunnel construction for conveyance line from Power house 1 to Power house 2 of Hedcor

Manolo Fortich


The RESAs that the buyers have signed with the company are among the requirements for its FIT-COC application which will provide it with a fixed rate for a longer period, thereby assuring it to recover its investment in a timeline as approved.

Moreover, OSFMC assisted the company with its application for a land rezoning of about five hectares of land in Brgy. Lingion, Manolo Fortich where a transmission and substation facility will be built.

The center was also involved in bringing to the attention of the Department of Agrarian Reform and the Regional Center for Land Use Policy, Planning and Implementation the issues in the land conversion that resulted in the fast-tracked approval of the company’s application in 2016.

But the biggest challenge that the company was facing was its application before the NGCP, with the approval of the ERC, of its point-to-point transmission facility.

At first the NGCP was hesitant to the proposal of the company to set upits own substation facility instead of tapping into an existing substation in the Municipality of Tagoloan which is

about 25 kilometers away from power plant. With the assistance of OSFMC to discuss the matter before the Energy Regulatory Commission (ERC), the merits of HEDCORs proposal of a substation facility in Brgy. Lingion was approved.

The OSFMC was also instrumental in the fast-tracked approval of the Department of Environment and Natural Resources (DENR) to grant or allow Hedcor to clear various tree species in the project area with the end-view that it commits to do the re-greening of some areas identified and agreed by both institutions.

Manolo Fortich HPP Site Visit.

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the United States Agency for International Development-funded Building Low Emission Alternatives to Develop Economic Resilience and Sustainability (B-LEADERS) Project. The center was established to increase clean energy projects by addressing bottlenecks in the permitting processes, and facilitate other matters affecting the project. It is also tasked to come up with actionable policy recommendations to improve legal and governance frameworks and attract Renewable Energy (RE) investors.

MinDA stated that the good thing about the creation of the OSFMC, aside from being backed by USAID, is that government agencies, particularly those in the national government, have been cooperating with it. This is evident in the signing of the Joint Memorandum Circular No. 2014-01.

As an example, the DOE has even decided to replicate it in the national level with the Energy Virtual One Shared System (EVOSS) which was supported as well by USAID.

Project Location

SUCCESS STORIESRE APPLICATIONS

MADE EASYAboitiz Power Corporation through its subsidiary, Hedcor Bukidnon Inc., was in the thick of planning for its Hydroelectric power project in the province of Bukidnon when it faced the complexities of the permitting process. Its P12.6-billion project in Manolo Fortich, Bukidnon is a two-unit-plant 68-megawatt run-of-river Hydroelectric power system. Its operations would result in an estimated sequestration of about 308,000 tons CO2 annually. The power plants are to be completed in December 2017.

Recalling the issues that the company has been wading through since the start of the project, Hedcor Bukidnon Inc. said it helps that there is a government program that saves them the burden of processing and tracking application while they set up their investment. The company was specifically referring to the One-Stop Facilitation and Monitoring Center (OSFMC).

The OSFMC has been instrumental in making the project easier to implement given the challenges that the company had been facing. “Securing timely approval for our application was like walking on a long and winding road”, the company said. HEDCOR had no one to consult to or appeal for help from as there was no government agency offering to assist.

Created in 2012 as a result of the Power Summit in Mindanao that aimed at addressing the shortage of power supply, the OSFMC is an initiative of the Mindanao Development Authority (MinDA)/Mindanao Power Monitoring Committee (MPMC) with the support of

• Expediting Regulatory Approvals

MinDA said that one of the goals of the committee was to help companies shorten the gestation period of their projects, particularly those venturing into Renewable Energy (RE) like Hedcor Bukidnon, Inc.

“We must remember that in the past, it was not only hard to set up power projects, how much more if these were Renewable Energy.” MinDA said.

In a study conducted by MinDA showed that for Renewable Energy projects, as these are location dependent, it would take an average of seven years to complete and operate a Run-of-River Hydroelectric power project owing to regulatory requirements and other matter related to permitting.

In that study, a company needs to secure 157 signatures until development/ construction of the RE Project. The study pointed out that a company will take a total of 619 days before it could start constructing, a lengthy period that also requires a huge logistical support.

There are various instances that pre-requisite documents from other government agencies are needed when applying for a certain permit in another

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SUCCESS STORIES

agency. For example, even if the National Water Resources Board (NWRB) gives its approval of a water rights permit, the project’s implementation can still be delayed if the company fails to convince other concerned agencies like the Department of Agrarian Reform (DAR) or Department of Agriculture (DA) for related permits on the use land for energy generation projects.

“The OSFMC has helped us fast-track approval of permits from agencies like the DAR and the DENR. This we are grateful,” said Hedcor Bukidnon, Inc. whose plant is scheduled to be completed on December 2017.

The company said, based on their experience, it would have taken at least six months longer had they not sought the help of the OSFMC in the facilitation of various permits. “It would have been costlier on our part had we not sought the help of the center,” HEDCOR said, referring to the money and time spent in securing the approvals.

• Improving Private Sector-Interagency Coordination

One of the issues confronting Hedcor’s project is the delayed action of the Department of Environment and Natural Resources (DENR) on its application to cut trees within its project area.

At first, the company decided to do it on its own, but six months into the application, there was no movement. Hedcor then sought OSFMC’s assistance.

“It was the MinDA Secretary who brought up the issue with the DENR Secretary and finally our application was approved,” said the company.

Another challenge that the company was facing was in the setting up of its

157Signatures

619

Days

In that study, a company needs to secure 157 signatures in order for it to proceed with its projects.

The study pointed out that based on the citizen charter, a company needs 619 days before it could proceed with its project, a lengthy period that also requires a huge logistical support.

transmission system to connect the power plant to the Mindanao Grid.

Two options were presented for the tapping to the Mindanao Grid: (1) building its own transmission substation and connecting its project to the grid’s transmission system eight kilometers away; or (2) directly connecting its project to the NGCP transmission system in Tagoloan, Misamis Oriental which is 25 kilometers away from the power plant.

The company opted to build its own transmission substation even if it was costlier – but there was a hesitance on the part of NGCP because it will serve as precedent for other companies to also build their respective substations.

Hedcor contended that connecting its project to the NGCP transmission substation that is very far from the power plant would result in systems loss of 1,100 kilowatt/hour. The proposal is a direct contradiction to the Energy Regulatory Commission (ERC) ruling that calls for companies to connect directly to existing substations.

The center, taking note of the viability of the proposal as well as the efficiency of the system, took efforts in helping the company convince the concerned agencies, using its resources in holding meetings among the representatives of the company, the NGCP and the ERC. On July 25, 2016, the company successfully obtained the approval.

Another issue that the company needed to confront was the conversion of a 5.5-hectare agricultural land for industrial use in Brgy. Lingion, Manolo Fortich. The said land is being primed as the transmission/ substation facility.

Unknown to Hedcor, DAR and DA started allowing its local offices to implement

a moratorium on the land classification and conversion making it difficult for the company to have the identified area converted for industrial use. The center facilitated the fast-tracked approval of the land classification and conversion before DA and DAR on December 12, 2016. DAR approved the conversion of 4.5 of the 5 hectares acquired by HEDCOR.

Regained Trust

The company has so far contracted 23 megawatts of 68.8 megawatts generating capacity of the power plant. One huge impact of the company particularly those in the immediate impact area, is the employment opportunity as well as the resulting allied businesses.

From (L) to (R): Mr. Wilson Mabale (MinDA-AMONM), Engr. Jun (HEDCOR), Mr. Rene James Villarente

(Business Development Manager of HEDCOR Bukidnon Inc.)

Rodolfo Laguna Jr., Hedcor’s project manager, said that during the construction phase, 80% of the workforce were hired from the local community.

“We have provided them not only employment but also skills training that will even provide them better opportunities when they want to work in other projects,” Laguna said.

The setting up of the project, he added, that the economic activities outside the construction site has improved because small businesses or so-called sari-sari

SUCCESS STORIES

SUCCESS STORIES

stores started flourished providing the needs of the workers of the said power plant.

The project also hired woman as part of gender and development programs. On the top tier employees, particularly the engineers, 24 of them are woman.

“These women perform like their male counterparts. They are better in doing their assignments thereby tasks are completed on-time and above expectations.” said Laguna, a veteran civil engineer.

The company said that OSFMC did a big help. Had we been left on our own, with the challenges that we needed to face, it would be delayed.

He added that HEDCOR will continue to engage the help of the center for as long “we continue to implement projects here (Mindanao).”

LAMSAN POWER’SBIOMASS PLANT:

HARNESSING POTENTIALS OF FARM

WASTES

15MW Biomass Project of LamsanPower Corporation

• Climate-resilient Power Source

As early as 2009, the push for Renewable Energy (RE) has been intensified with First World countries pushing for carbon emission cap. In these countries, the use of Renewable Energy has significantly increased that in 2013, based on available documents, the European Union sourced about 26% of its power from Renewable Energy sources with biomass getting about 11% in annual growth between 2005-2012.

In the Philippines, because of its desire to entice companies to explore the possibility of developing Renewable Energy projects, the government passed in 2008 the Republic Act 9513 also known as An Act Promoting the Development, Utilization and Commercialization of Renewable Energy Resources and for other purposes. Aside from key incentives to companies that will venture into these environment-friendly projects, the law also offers better project profitability by providing them with mechanisms like the Feed-in-Tariff (FIT) system for electricity

produced from wind, solar, ocean, run-of-river hydropower, and biomass. This provides green power plants with fixed rates for their projects and the first to dispatch protocol in a market concept.

One of the pioneering companies employing Renewable Energy technology is Lamsan Power Corporation, which recently completed its second biomass power plant project.

Lamsan Biomass Inc., the mother company, was established in the 1970’s as a wet corn miller that produces cornstarch, corn gluten feed, corn gluten meal and corn germ. In the 1980s, the company decided to set up its first biomass-fired power plant. Biomass energy is derived from biological sources like wastes from plants and animal.

The new 15-megawatt Biomass-fired Lamsan power plant will create job opportunities and is set to increase sustainable power supply to households in South Cotabato, Sarangani ang General Santos City which are the franchise areas of the South Cotabato Electric Cooperative II (SOCOTECO 2). The USD 20.46 million plant also augurs well for Mindanao at present, in view of increasing the footprint of sustainable energy in the island.

“The management invested in Biomass power plant because it was easier to source the plant’s fuel from agricultural wastes from farms nearby. It is helping Mindanao combat the impact of climate change as, based on its design, it can sequester 72,638.55 metric tons of greenhouse gases annually. Aside from supplying sustainable clean energy, the plants also provide new jobs for our communities as well,” said Lalao, one of the supervising engineers.

SUCCESS STORIES

The cooperative, through general manager Crisanto Sotelo, informed the team that the cooperative was to approve the RESA, although the members of the board wanted to know the impact of the plant on the bills of their consumers. Convinced with the positive impact that the power plant would bring to its service areas, the cooperative eventually signed the agreement the following month.

• Next Steps

The center has also helped the company to link up with the Mindanao Knowledge Center (MKC), a consortium of educational institutions in Mindanao whose general function is to assist MinDA and other partner agencies on development and policy research.

Linking up with the MKC is necessary for the company so that it can coordinate and/or commission the conduct of researches on other uses of farm wastes as well as going into engaging the communities where it sources its raw materials.

• Appreciation

Lamsan expressed its gratitude to the OSFMC for being instrumental in ensuring that the company is able to hurdle the challenges on its way of setting up the power plant.

“The (OSFMC) initiative has helped us speed up the setting up of the plant. We

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SUCCESS STORIES

LAMSAN and NGCP joint meeting with OSFMC team

OSFMC assisted LAMSAN Power Corp. in the permitting process of their 15-megawatt Biomass power plant.

Among the initial intervention conducted by OSFMC is the coordination and fast-tracked approval by the permitting agencies on the limited point-to-point transmission system of the power plant.

Representatives of the company, OSFMC, the NGCP, as well as the Maguindanao Electric Cooperative met and discussed the transmission system concerns which were eventually resolved on May 17, 2016.

Two months later, as part of the intervention of the center, the local office of the NGCP in Nuling approved the transmission plan.

LAMSAN Power Corp is currently applying for Feed-in-Tariff (FIT) Certificate of Compliance (COC). One major requirement for the approval of the certificate is the Renewable Energy Supply Agreement (RESA) wherein the company is already in discussion with SOCOTECO 2.

Last January 17, 2017, the OSFMC sent a team, which was joined by representatives of Lamsan Power Corp., to meet with the officials of the electric cooperative to discuss and agree upon the conditions of the RESA.

might even seek their help soon,” said the company.

The company has also been busy building a smaller 3.5-megawatt plant, using the same concept, but will use Napier grass for its fuel. To ensure that it will have sustained supply of fuel, the company’s sister, the Maguindanao Energy Farm, has developed farm land for Napier grass.

SUCCESS STORIES

2.4-megawatt run-of-river Hydroelectric power project. EuroHydro has also signed an agreement with the Davao del Norte Electric Cooperative as embedded power-generating source to the said utility.

All three projects are expected to sequester annually 84,518.45 metric tons of carbon dioxide. Despite the prospective significant benefits of these plants, the companies aired their concerns on the long and arduous application process.

• Strengthening the RE Sector

MinDA has been working closely with USAID’s B-LEADERS Project, in addressing Mindanao’s “power shortage” without compromising business interests and the natural environment.

“Economic development requires sustainable power supply. Most of the time, however, lack of access to information and bureaucratic obstacles drive away investors. We are here to guide prospective and existing energy stakeholders by actively tracking their applications to hasten their approval and reduce the burden on energy stakeholders,” said MinDA, being the agency overseeing the operations of the OSFMC.

• Environmental Resilience Improved

Based on the report of the news agency Agence France Presse quoting the Nature Climate Change journal on June 20, the Philippines is among those facing the danger of potential lethal heatwave days due to the greenhouse gas emissions. Lethal heatwave days, the journal said, will become more frequent even if the world is able to fulfill the Paris Agreement cap of two degrees Celsius by 2100.

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SUCCESS STORIES

OSFMC:OFFERING SOLUTIONS

TO RE INVESTMENT BARRIERS

As a result of long periods of drought caused by the El Niño phenomenon in the 1980s and the subsequent years that followed, several farms in Davao Region and other areas in Southern Mindanao became unproductive. A clear impact of climate change, the drought scenario was also true in some parts of the province of Davao del Sur where coconut and mango farms became arid and parched. Because of this situation, some landowners started looking for new use of their farms.

Among those companies that saw the potentials of these large tracts of land was Enfinity Philippines Renewable Resources, Inc., which established a 28.6-megawatt (MW) solar photovoltaic power plant in a 35-hectare contiguous area in Digos City, Davao del Sur.

With CEO Hendrick Manegdeg (2nd from Left), Asiga Project Team Members and OSFMC.

Another project is the 8-megawatt (MW) Hydroelectric power project of Asiga Green Energy Corp. in Santiago, Agusan del Norte, which is embedded with the Agusan del Norte Electric Cooperative (ANECO) after its completion.

On the other hand, the EuroHydro Power (Asia) Holdings, Inc., is building a

In Mindanao, Renewable Energy (RE) is badly needed because the power mix is leading towards conventional or fossil-based power generating plants such as coal and oil. Based on government data, from 45% in 2015, fossil fuel plants are expected to accumulate 67% of the total energy produced by end 2017 due to the increase in the number of coal-fired power plants.

To avert this scenario, the OSFMC provides facilitation assistance to hasten the implementation of Renewable Energy (RE) projects as well as to support government agencies, including local government units, in crafting sound policies targeted at expanding the pool of clean energy investors.

“By providing energy stakeholders with a supportive policy environment, we will be able to slowly balance the power mix in Mindanao,” MinDA explained.

Based on the study commissioned by MinDA, a company who is into pre-development stage of its project, needs endorsement of local government units – barangay, municipal or city and province – even before it can step into its identified area. “We need a harmonized policy in order for companies not get tired of waiting for the approval of their applications,” said MinDA.

Because of the interest that it has generated, the setting up of the OSFMC has resulted in 257 more applications as since its inception in 2015 with a potential capacity of 3,400 megawatts of power. “In the past, some projects were only applied for because companies that proposed them were on speculation mode; now, many of them have made initial headway in the implementation of their projects,” said MinDA.

MinDA aims to balance the mix by 2030 by

ensuring that the committed 257 projects, which have a total potential of about 3,878.62 megawatts, will be realized by then. Of these, 177 are hydroelectric, 59 are solar, 14 are biomass and seven are geothermal.

To ensure that these projects are realized, OSFMC will assist proponents on various aspect to include permitting process, networking financial institutions and capacity building to name a few.

Aerial view of the 25MW Digos Solar Power Project

SUCCESS STORIES

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are already in pre-development stages in varying levels.

See Graph 2. Data as of June 30, 2016

ATRACTINGMORE INVESTMENTSOne of the goals of OSFMC is to attract more investors to the Renewable Energy sub-sector as the energy mix in Mindanao is leaning toward fossil-based or conventional sources.

As of the first half of 2017, the energy mix in Mindanao, indicated 59.2% coming from fossil/conventional sources while 40.8% are supplied from Renewable Energy Source. Investments in conventional energy generation (i.e. coal, diesel) are not faced with various permitting requirements similar to RE technologies thereby conventional-based energy generation are able to operate the project at a lesser time.

See Graph 1. Data as of June 30, 2017

To fast-track these projects, the OSFMC will assist proponents take steps in the realization of their project, although it will also look into how serious these proponents are because there is the “use it or lose it” policy – a company will lose its pre-development contract unless it starts substantial progress in project milestones within a 2-year period.

So far, the OSFMC has been assisting 36 RE projects to include already the five project mentioned earlier. These projects

Graph 2. Data as of June 30, 2016Graph 1. Data as of June 30, 2016

A Mindanao Hydropower Assessment Study points out that nearly all Mindanao provinces have huge potentials in terms of Hydroelectric power generation.

The study identified 141 potential projects that will have a combined power of 1,308.2 megawatts as most of these are mini-hydroelectric run-of-river projects.

On the other hand, the Biomass Resource Assessment in Mindanao reported that of the 15 provinces identified, accumulated biomass fuel could reach to about 11 million tons annually that when the percentage share for power is factored in, this could result in 1,316 megawatts in gross capacities and about 4.3 million in greenhouse gases reduction.

Biomass resources include sugarcane

bagasse and canetrash; husk, shell, coir dust of coconuts; cassava residues, banana wastes, pineapple wastes, rubber wastes; oil palm empty fruit bunch, husk and shell; and biomass from emerging energy crops like sweet sorghum, bamboo and napier grass.

The OSFMC has been providing proponents the results of the two studies, including details on how they can effectively implement their projects.

• Advocacy for Streamlining Policies

As pointed out, one reason for the delay in the implementation of the projects is the bureaucratic red tape. This became the point of action for the OSFMC as it wanted to find ways to collaborate with concerned agencies, including the Local

Graph 3. Data as of June 30, 2016

ATTRACTING MORE INVESTMENTS

will handle RE projects so that there is consistency in focus. The center is also proposing standard steps and other documentary requirements in securing LGU endorsements. It is also seeking for a cap on local fees.

Page 27

Government Units (LGUs), in streamlining the processes as requirements have been overlapping among them.

Upon assumption of the new administration last year, the OSFMC initiated meetings with these agencies like the Departments of Agriculture, Interior and Local Government, Department of Environment and Natural Resources and their attached agencies in its attempt to come up with a harmonized policy that the agencies and the LGUs have to follow in dealing with Renewable Energy project applications.

The challenges in relation to permitting process at the LGU level (local) is that laws or policies are not consistently implemented. Proponents of RE-based Power Projects shared that permitting requirements differ between LGU’s even though they implement the same RE power generation technology (in the case of Run-of-River) in two or more different areas. (i.e. Municipal Level).

Most often, LGUs use as their shield the Local Government Code as they are empowered to draft their policies. The national government is embarking on a better set of rules that will help lessen the burden of companies that want to invest in their localities.

But even with these challenges, the center has continued to engage them in its desire for the immediate crafting of the harmonized policy. In May 2017, it submitted to DILG a proposal to enhance the Business Licensing and Permitting System to prioritize/fast-track permitting requirements of Renewable Energy generation projects.

Among the initial revisions in the BPLS that the center has been pushing is that for LGUs to adopt or assign standard Sanggunian Committees that


RECOMMENDATIONS1) Make the center a permanent office – This is to ensure that its operations become efficient as this will provide it with a personality that will convince government agencies and private entities to cooperate without reservation.

2) Strengthening cooperation among government agencies – With recommendation number 1 in place, the center will be in a better position to collaborate with the agencies through regular meetings and fora.

This will also pave the way for an enhanced interaction among agencies.

On this note, it is important to acknowledge that the national government, through the Department of Trade and Industry (DTI), is pushing for a streamlined policy in doing business as it wants to ease the burdens of the investors.

3) Identifying champions – This is to push for the advocacy and that there can be no better champions.

4) Coming up with baseline data for the next segment of its operations – This is to track the developments particularly the engagements between the center, the stakeholders and the entire government bureaucracy. The generated data - which must showcase the cost efficiency as well as its tangible impact - will serve as the main takeoff point in the lobbying efforts for the intensified implementation of key laws like the Anti-Red Tape Act, executive orders on Renewable Energy investments as well as other relevant laws.

5) Enhance the lobbying - This is to intensify implementation of key laws like the Anti-Red Tape Act, executive orders on Rewable Energy investments as well

as other relevant laws.

6) Need to level the playing field - There must be a stronger push for the establishments of policies intended to level the playing field in the setting up of power plants, unlike at present when the fossil-fueled plants are favored. This can be done through the implementation of key laws like the Renewable Energy Act of 2008, the Renewable Energy Portfolio Standards, the Green Energy Option Program and the Retail Competition and Open Access provision of the Electric Power Industry Reform Act and net metering.

7) Implementation of the Wholesale Electricity Spot Market (WESM) - Government agencies and the private sector must also immediately implement the WESM as Mindanao has a surplus of power and the implementation of a reliable transparent market will allow the forces, not the generators, to dictate the prices.

8) Lead Agency - The Mindanao Development Authority, being at the forefront of this endeavor, must intensify its advocacy in pushing for the full implementation of the Renewable Energy Act, Republic Act 9513, and other policies, among them the Renewable Portfolio Standards and the Green Energy Option Rules.

9) New studies - New comprehensive studies must also be conducted on all Renewable Energy sources, aside from Hydropower and biomass, like solar, wind and ocean. Pieces of information that will be derived from these studies will guide investors on where to locate in Mindanao and provide the island with more Renewable Energy power.

10) Information drive - Government

that with a body that is ready to provide assistance to a company when needed, better business climate can be achieved with better cost efficiency.

agencies and private sector groups must also embark on a wide and comprehensive information activities to educate the public about the advantages of Renewable Energy power.

With the attention of not only the local investors, but also foreign capitalists in Mindanao, experts said that its economic growth will be inevitable [1].

It is, therefore, not surprising that this year, Mindanao registered the highest demand for electricity, a commodity of choice for analysts who want to examine the growth potentials of an area[2].

In Mindanao, as in the rest of the country, major industry players go for easier ways and that is to set up projects that do not entail much requirements, as well as can be set up anywhere.

To ensure that the growth is achieved as well as at least mitigate the impact of the growth to the environment, the government and private sector must work together to find ways to ease the burden of companies venturing into setting up Renewable Energy project.

The institutionalization of the OSFMC will help the two sides come up with policies as well as actions that are necessary to achieve the goal.

The brief existence of the center has slowly shown the convincing evidence

1 Philippine Daily Inquirer, “World Bank: Fixing Mindan-ao economy key to PH progress,” July 18, 2017, http://newsinfo.inquirer.net/914735/world-bank-fixing-mind-anao-economy-key-to-ph-progress

2 Sunstar Davao, “Mindanao records high-est power demand at 1,760 MW,” December 6, 2017, http://www.sunstar.com.ph/davao/busi-ness/2017/12/06/mindanao-records-highest-power-de-mand-1760-mw-578559

Page 30

CONCLUSION

CONCLUSION

ANNEXES

1) Philippine Star, “Acute power lack blamed for outages in Mindanao,” February 26, 2012, http://www.philstar.com/nation/780726/acute-power-lack-blamed-outages-mindanao

2) Philippine Daily Inquirer, “Mindanao stakeholders against privatization of hydropower plants.” April 13, 2012, http://newsinfo.inquirer.net/176203/mindanao-stakeholders-against-privatization-of-hydropower-plants

3) Department of Energy, “DOE all set for Mindanao power summit,” April 12, 2012, http://www.officialgazette.gov.ph/2012/04/12/doe-all-set-for-mindanao-power-summit/

4) Rappler, “Aquino creates Mindanao Power Monitoring Committee,” August 2, 2012, https://www.rappler.com/nation/9714-aquino-creates-mindanao-power-monitoring-committee

5) Philippine Daily Inquirer, “World Bank: Fixing Mindanao economy key to PH progress,” July 18, 2017, http://newsinfo.inquirer.net/914735/world-bank-fixing-mindanao-economy-key-to-ph-progress

6) Sunstar Davao, “Mindanao records highest power demand at 1,760 MW,” December 6, 2017, http://www.sunstar.com.ph/davao/business/2017/12/06/mindanao-records-h ighest-power-demand-1760-mw-578559

ANNEXES

ANNEX A: SOURCES OF INFORMATION

ANNEXES

LETTER OF COOPERATION

ANNEX C: POST ACTIVITY REPORTSSUMMARY OF ACTIVITIES

Date Activity Venue

September 5, 2017 MinDA-PAFERN presented the OSFMC Initiatives to the Sangguniang Panlalawigan Board Members in Bukidnon

Bukidnon Provincial Capitol

July 11, 2017MinDA-PAFERN meeting with Gov. Jose Ma. Zubiri, Jr. and Provincial Planning Development Officer (PPDO) in Bukidnon

Bukidnon Provincial Capitol

June 13, 2017 Meeting with MINDA, DANECO and EURO HYDRO at DASURECO Office Digos City, Davao del Sur

January 17, 2017 Meeting with Engr. CRISANTO 'BONG' SOTELO of South Cotabato Electric Cooperative II. General Santos City

December 8, 2016 Meeting with Department of Agriculture Regional Field Office IX Zamboanga City

November 2016Coordination Meeting with the Department of Energy (DOE) and Department of Interior and Local Government (DILG).

Quezon City

October 26, 2016 Facilitation of Five (5) RE Projects with Zamboanga City LGU Zamboanga City

October 25, 2016, Meeting with RE Proponent for Biomass held in Zamboanga City Zamboanga City

September 20-21, 2016 Site visit and coordination meeting with Lamsan Power Corporation to discuss the permitting process in LGU Level.

Lamsan Power Corporation, Sultan Kudarat

August 25, 2016 Meeting with EuroHydro on various concerns of their Hydro Power Projects MinDA Office, Davao City

August 16-18, 2016 Meeting with Zamboanga City LGU on the LEDS Mindanao Program Zamboanga City

July 29, 2016 Meeting with Global Sibagat Hydro Power Corporation

Mindanao Development Authority (MinDA) Office

July 18, 2016 Site Verification of 15MW Lamsan Power Corporation Biomass Power Project

Lamsan PowerCorporation, Sultan Kudarat

July 15, 2016 Site Verification of 2.4MW New Bataan Hydro Power Project by EURO HYDRO POWER (ASIA) HOLDINGS, INC.

Purok 6 and 7 of Brgy. Andap, Municipality of New Bataan, Compostela Valley

POST ACTIVITIES REPORT

May 26, 2016

Coordination meeting with representatives from Philippine Council for Industry, Energy and Emerging Technology Research and Dev't-DOST, Taguig City, for the Small Grants Research Program for Community Energization under OSFMC

Taguig City

May 26, 2016 Coordination Meeting with FirstGen (Lopez Group), Ortigas, for their RE Projects in CARAGA and in the Province of Bukidnon Ortigas City

May 26, 2016 Coordination meeting with PhilCarbon Inc., Makati City, for their RE Projecs in Zamboanga Peninsula Makati City

May 23, 2016Coordination Meeting with Renewable Energy Management Bureau (REMB)-Department of Energy, Taguig City, for the One-Stop Facilitation of RE Project in Mindanao

Taguig City

April 28, 2016Coordination meeting with representatives from EuroHydro Asia Holding Ltd. and actual site inspection the 2.4 MW New Bataan HPP

New Bataan, Compostela Valley

April 27, 2016Coordination meeting with representatives from Asiga Greenergy Devt Corp. and actual site inspection of 8 MW Asiga HPP

Santiago, Agusan del Norte

April 26, 2016Coordination Meeting with AMO-Northeastern Mindanao on MPMC-OSFMC and schedules for RE Project Monitoring and Facilitation

Butuan City

April 25, 2016 Coordination meeting with Greenergy Dev’t Corp for the 150MW Bulanog-Batang HPP and the 300MW Pulangi V HPP Cagayan de Oro City

April 23, 2016Coordination Meeting with AMO-Northern Mindanao on MPMC-OSFMC and schedules for RE Project Monitoring and Facilitation

Cagayan de Oro City

April 22, 2016Coordination meeting with representatives from HEDCOR Bukidnon and actual site inspection of 68.8 MW Manolo Fortich

Manolo Fortich, Bukidnon

April 12, 2016 Hands-On Training on ENERGY VIRTUAL ONE-SHARED SYSTEM (EVOSS)

Shangri-La at the Fort, Manila

April 5-8, 2016MPMC-One Stop Facilitation and Monitoring Center (OSFMC) Interface Meetings with various agencies under the Energy Sector

Manila

March 18, 2016 Demand Side Management (DMS) – Capacity Building Activity N-Hotel, Cagayan de Oro City

March 17, 2016 RE Investment Forum N-Hotel, Cagayan de Oro City

January 21, 2016 Coordination Meeting with DOE-Investment Promotion Office PNOC Complex, Fort Bonifacio, Taguig

January 21, 2016 Coordination Meeting with WENERGY Global Corporation 55 Bayani Road, GPI Building, Taguig

PHILIPPINE AGROFORESTRY EDUCATIONAND RESEARCH NETWORK, INC. (PAFERN)

POST-ACTIVITY BRIEF REPORT

Activity Brief Information

MINDA PRESENTATION ON OSFMC INITIATIVES TO THE SP BOARD MEMBERS HELD IN BUKIDNON

Date and Venue SEPTEMBER 5, 2017

PROVINCIAL CAPITOL OF BUKIDNON

Discussions/Highlight Meeting(September 5, 2017)

• The undersigned along with the Sangguniang Panlalawigan Board Members representative Mr. Melchor Maramara together with other Board Members Atty. Oliver Owen L. Garcia, Board Member Ranulfo E. Pepito and Board Member Benito Q. Baguio with MinDA Team led by Mr. Raymond R. Tejano and Mr. Wilson Jan R. Mabale of AMO-NEM and from PAFERN, Ms. Ivy Glend Abrenica.

• MinDA has an initial presentation/ coordination with Sangguniang Panlalawigan Board Member Committee Head for Infrastructure Mr. Melchor Maramara, Philippine Counselors League President Atty. Oliver Owen L. Garcia, Board Member Ranulfo E. Pepito and Board Member Benito Q. Baguio on the updates of the One-Stop Shop Facilitation and Monitoring Center (OSFMC) for RE Project development and List of Pending RE Projects in the province of Bukidnon with a total of 65 Projects with an approximately a combined capacity of 633.22MW, (93.3MW for Biomass, 527.43MW for Hydro and 12.49MW for Solar based on updated DOE record.

• The agenda of the meeting is mainly the presentation on One Stop-Shop Facilitation and Monitoring Center (OSFMC) updates for Renewable Energy projects in Mindanao.

Suggestions/Next

• In light of the presentation to the committee of SP Board Members commit to whatever assistance they can give to be able to harmonize the processes, more or less can have a standards on the endorsement process of Renewable Energy projects in the locality.

PHILIPPINE AGROFORESTRY EDUCATION AND RESEARCH NETWORK, INC. (PAFERN)POST-ACTIVITY BRIEF REPORT

• Per Atty. Oliver Owen L. Garcia, all proponents of RE projects presented their concepts and structures to the Sangguniang Panlalawigan and for them to secure approval of their project.

• The provincial government is in favor of renewable energy projects.

• Bukidnon province has a Social Acceptability Ordinance (SAO) serve as their guide for any project that needs endorsement.

• SP Board Members committed to assist MinDA-OSFMC regarding harmonization of processes and standards on the endorsement process for RE projects especially for the province of Bukidnon.

• Moreover, the four (4) Board Members advised the team to present the OSFMC updates to the committee of Sangguniang Panlalawigan Board Member.

• They are also interested to pursue the effort to streamline the LGU Endorsement Process while a policy is being work out at the national level.



MEETING WITH GOV. JOSE MA. R. ZUBIRI, JR. AND PROVINCIAL PLANNING DEVELOPMENT OFFICERS MR. JESREL B. MANGUBAT AND MR. GENARO LESWE, JR. TOGETHER WITH OSFMC AND PAFERN TEAM AT BUKIDNON PROVINCIAL CAPITOL

Date and Venue JULY 11, 2017

PROVINCIAL CAPITOL OF BUKIDNON

Discussions/Highlight Meeting(July 11, 2017, PM)

• Last July 11, 2017, Tuesday. Ivy Glend Abrenica of PAFERN together with Mr. Reymond Tejano of MinDA and Hon. Jose Ma. R. Zubiri, Jr. provincial Governor of Bukidnon with Mr. Jesrel B. Mangubat and Mr. Genaro Leswe, Jr. of Provincial Planning Development Officer (PPDO).

• In relation to the ongoing efforts to improve the power situation in Mindanao thru the support of MPMC, It is being observed that most of the investments in the energy generation are leaning towards fossil-based generation technology (ex., coal, diesel), Per MPMC study by year 2020, 80% of the total energy generations portfolio in Mindanao will be coming from fossil-based power sources.

• So, MinDA thru MPMC an equitable and increased development for RE in terms of installed capacity for Mindanao in view of a sustainable and eco-friendly solution to the undeniably growing demand for power.

• One of the objectives of this meeting is to lobby and facilitate the formulation and crafting of local ordinances with the support of Local Government Units (LGU) that will result to increase share and/or adoption of local RE to the generation mix or result to energy savings due to energy efficiency measures.

Suggestions/Next

• Make a formal letter address to Hon. Jose Ma. Zubiri, Jr. provincial Governor of Bukidnon for whatever undertaking that MinDA and PAFERN team wants to lobby.


• Moreover, the province of Bukidnon is one of the province of Mindanao with the most number of potential RE Projects. In the pipeline, there are 65 RE projects in Bukidnon with a combined capacity of 633.22MW. We discussed the possible complementation or cooperation with respect to the development of the power sector in Mindanao.

• The main agenda of this undertaking is to complement and streamline the general processes and proper coordination of agencies/LGU’s mandated to issue permits/ clearances for RE based power projects proponent in Mindanao, piloting the Bukidnon province in issuing permits in a short period of time possible imposed by the council or committee assigned in their respective premises. In the idea with both the community, local government units and RE proponents would surely benefit.



MINDA WITH DANECO, DASURECO AND EURO MEETING HELD IN DIGOS CITY

Date and Venue JUNE 13, 2017

By-Pass Road, Digos Ciy, 8002 Davao del Sur

Discussions/Highlight Meeting(June 13, 2017, AM)

• The undersigned along with the representative from DANECO task force Duterte led by Mr. Erico Bucoy and legal consultant for special cases Atty. Allan Gaviola and from Euro Hydro, Engr. Rogelio Habaradas, Jr. and MinDA reps Mr. Raymond R. Tejano and from PAFERN, Ms. Ivy Glend Abrenica at DASURECO office.

• The meeting in relation to the 2.4MW New Bataan Hydro Power Project. Euro Hydro believes that the reckoning date of the RESA should be April 2015 when it was approved by the late Board of Directors (BOD), President and the late General Manager and the submission date. Since the said New Bataan Hydro power project started its construction in January 2016. Euro hydro power understands that the processing for FIT Registration should be upon 80% completion of the Electro mechanical works of the said project. However the new members of BOD of DANECO, as well as the new established TASK FORCE DUTERTE assisting the DANECO in its various operational concerns are hesitant to sign the said MOA due to ERC Resolution No. 13, series of 2015; directing all DU’s to conduct CSP in the procurement of their supply to the captive market.

Suggestions/Next

In light of the meeting with EURO HYDRO and DANECO, Raymond Tejano and PAFERN Team will get in touch with the ENERGY REGULATORY COMMISSION (ERC).


• DANECO would like to clarify that if the submission of the said RESA between DANECO and EURO HYDRO did not meet the deadline for CSP, therefore, the RESA should be declared void and a CSP has to be conducted first before a Bilateral Power Supply Agreement will be signed.

• Euro Hydro would like to request for assistance to help clarify this matter with MinDA and DANECO for guidance.

• The said project was proposed to be embedded with the renewable energy supply agreement (RESA) was signed in April 2015. Euro Hydro are currently compiling the necessary documents for submission to DOE for them to endorse to ERC.

• Among the documents they need to comply is the Memorandum of Agreement (MOA) for the transmission line they constructed from the power plant to DANECO’s nearest tapping substation and a requirement to NGCP. The said transmission line, which extends to 7kms, was already 90% complete.



Meeting with Engr. CRISANTO ‘BONG’ SOTELO of South Cotabato Electric Cooperative II

Date and Venue January 17, 2017

Jose Catolico Sr. Ave, General Santos City, 9500 South Cotabato

Discussions/Highlight Meeting

• Last January 17, 2017, Tuesday, Engr. James E. Doldolia of PAFERN Team together with Karen Joy M. Calsena of MinDA’s KM Division and Engr. Renato Buhat, Jr. of MinDA’s Area Management Office in Southern Mindanao met with Engr. Crisanto Sotelo of the South Cotabao Electric Cooperative at SOCOTECO’s office in General Santos City.

• The agenda of the meeting is mainly to follow-up on the status of the Renewable Energy Supply Agreement of Lamsan Power Corporation (LPC) with SOCOTECO II on its 15MW Biomass Power Project in Sultan Kudarat and to encourage the management of SOCOTECO to sign the RESA as the plant is considered with national significance and the RESA is necessary for the application of LPC for FIT. Aside from this, the team also presented updates of the One-Stop Facilitation and Monitoring Center of Mindanao Development Authority.

• According to Engr. Sotelo, the concern of Lamsan has been presented already to the board and the board had a meeting last January 14, 2017 to discuss this concern. As per GM Sotelo, the board is already positive on signing the RESA, however they want to see figures on the impact of the entry of LPC to the consumers of SOCOTECO through the Rate Impact Study. As per GM Sotelo, if the RESA will be signed this will last until the establishment of the Mindanao Spot Market. GM Sotelo also made follow-up on the status of the proposed Spot Market.

Suggestions/Next

The team will be in constant communication with both SOCOTECO II and LPC management on updates of the supply agreement.


• GM Soetelo also mentioned that SOCOTECO already received power from LPC during its Testing and Commissioning for two weeks. During the meeting, GM Sotelo made a call to Mr. Christopher Lu, the COO of LPC to discuss this requirement.

• At present, there is a surplus of power in SOCOTECO due to the high water level of the Agus-Pulangi Hydro Complexes. GM Sotelo also mentioned that SOCOTECO II has an application in ERC for the Phase 2 of its Bunker Oil Standby power which is to add another 2 engines that will increase its standbye power to 32MW from the existing 3 engines of 20MW.

• According to GM Sotelo, the household electrification level in SOCOTECO area is low compared to national average. This is because in the city squatter area are included in the inventory however those areas could not secure permit from the building official.

• Aside from LPC, Astronenergy-a solar power plant has a bilateral (embedded) agreement with SOCOTECO for its proposed 20MW Solar Power Plant. However, Astroenergy requested for extension until August since the company could not start the construction due to issues with land titles.



Meeting with Department of Agriculture Regional Field Office IX

Date and Venue December 8, 2016

Gen. Vicente Alvarez Street, Zamboanga City


• Last December 8, 2016 Engr. James E. Doldolia of PAFERN Team met with Mr. Constancio G. Alama, DA Region IX Director and Ronaldo Maravilla, RTD for Research & Regulations to discuss the concern of MacKay Green Energy Inc.(MGEI), a private company that focuses on the development of various Renewable Energy Systems.

• The agenda of the meeting was the Memorandum of Agreement between MGEI and Department of Agriculture-Zamboanga Peninsula Integrated Agricultural Research Center (DA-ZAMPIARC) Region IX.

• According to MGEI, (DA-ZAMPIARC) Region IX and MGEI already signed a Memorandum of Agreement (MOA) to jointly undertake applied research and set-up a model techno-demo farm of bana grass on a five (5) hectares idle/marginal land in ZAMPIARC in Ipil, Zamboanga Sibugay and another 10 hectares in San Ramon Prison and Penal Farm in Zamboanga City for their 3MW Biomass Power Plant. Both DA-ZAMPIARC and MGEI signed a Memorandum of Understanding (MOU) last January 2012 to establish and develop applied research and setup a model Techno-Demo Farm of MacKay Bana Grass Plantation in Region IX.

Suggestions/Next

OSFMC with the help of MinDA Western Mindanao Field Office will follow-up the office of Mr. Alama of DA Region IX on the result of the review of the proposed MUA between DA and MGEI.


• However, according to Mr. Alama and Mr. Maravilla, the said MOU is still under the legal department of DA-Region 9 for review. Also, as per DA-Region 9, the supposed MOU is only to help MGEI on conducting the research in the viability of Bana Grass as pellet feeds and this does not include the viability of Bana Grass as feedstock for Biomass Plant since this is not anymore part of DA’s scope. However, the research will still have data that might be helpful in the energy viability of Bana like its growth rate, etc.

• When the proposal is finalized that’s the only time that DA will enter into agreement with Mackay for the propose conduct of the research.



Coordination Meeting with the Department of Energy (DOE) and Department of Interior and Local Government

Date and Venue Department of Energy-Office of Usec. Benito RanqueNovember 24, 2016

Department of Interior and Local Government (DILG) – Office for PlanningNovember 25, 2016, DILG-NAPOLCOM Center, Quezon City


Coordination Meeting with Department of Energy-Office of Usec. Benito RanqueNovember 24, 2016Power Center, Taguig City

• The MinDA-OSFMC had a meeting with Usec. Benito Ranque and Col. (Datu) Guiono Guiamelon, his Executive Assistant, last November 24, 2016 in relation to our assistance to Greenergy’s 300MW Pulangi V Project. Earlier, Mr. Donggay forwarded various technical information regarding (technical) and his correspondence with DOE (thru Usec. Ranque and Usec. Fuentabella) reiterating the release of Service Contract for the said project.

• Moreso, we discussed other matters pertaining to the 8th MPMC Principals’ meeting particularly agenda items that MinDA was being proposed to assist and/or facilitate issue(s) like the Ailing Electric Cooperatives. Col. Guiamelon highlighted their on-going work with LASURECo thru the Task Force which Usec. Ranque is currently leading. Usec. Ranque shared to me that he is now getting threats of being involved on the matter.

• LASURECo’s overall debt stands at Php 11 billion instead of Php 7 billion as reported last MPMC meeting. The task force wanted to focus on building the trust of the LASURECO community to the latter by provisioning them with electricity particular the 2nd District of the Franchise Area.

Suggestions/Next

In relation to LASURECO, it would be strategic if Sec. Alonto and/or representative from MPMC can participate in the said Task Force meeting (tentatively set on Dec. 8, 2016) and be updated on the activities and/or plans to resolve the various issue(s) one of which is proposed electrification of the 2nd district of their Franchise Area.


• Usec. Ranque requested MinDA’s help if it can lobby and/or request PRRD’s intervention regarding a Php 600M budget to fund the electrification program for the said district (2nd). Resolving the debt and/or governance of LASURECO (into three areas) will take time.

• Col. Guimelon requested if MinDA-MPMC can also participate in the Task Force Lasureco Meeting tentatively on December 7/or 8. (Venue to be determined).

• Mr. Tejano briefly presented the OSFCMC initiative and he would like to get details of the proposed Policy fast-tracking permitting process at the LGU. (a detail info will be emailed to his office). The same was presented DOE-IPO for support. He requested to have a copy of the proposed policy for his appreciation.

Coordination Meeting with Department of Energy-Office of Usec. Benito RanqueNovember 24, 2016Power Center, Taguig City

• MinDA-OSFMC and PAFERN Team had meeting with DILG last November 25, 2016 with the representatives from the Bureau of Local Government and Development (under the office of Usec. Panadero) and Planning Bureaus (under the Office of Usec. Castriciones) particularly Ms. Virna V. Sta. Mina, Ms. Lilibeth Masangkay, Ms. Lucita Dela Pena, Ms. Belinda F. Castro and Ms. Virginia S. Clavel.

• The Mindanao Power Development Program was presented briefly and highlighted the initiative to streamline the RE permitting processes with the LGUs. It was an eye-opener for both bureaus regarding the challenges on the permitting process for the Energy Sector both at the National and Local.

MinDA-OSFMC and PAFERN Team to conduct a follow-through meeting with DILG on the updated JMC on Business Permits and Licensing as suggested the aforesaid Bureaus.


• Ms. Castro said that Sec. Sueno’s current mouthpiece is to streamline business processes and they are interested to review and adopt the salient points of the proposed policy for the RE permitting at the LGU. They recently released a JMC on Business Permit and Licensing Processes last September 2016 but it did not include relevant findings done by OSFMC.

• The Bureau’s (thru Ms.Clavel) would like to get in touch further on this initiative as they intend to amend the JMC next year in relation to other findings they got from other sectors. They requested MinDA if it can write and/or to Sec. Sueno for him to take a lead in pursuing a harmonized effort on the permitting process across the bureaucracy.

• The aforesaid Bureaus also requested me to participate on their on-going activity re: consultations with the sectors on the newly released JMC on the business permitting process.

• Mr. Tejano also presented the Learning Management System for Mindanao Topographic Mapping Project wherein the target participants are the Local Government Units (LGUs).

• They are amenable and supportive to the said project since many LGUs in Mindanao don’t have such capacities on spatial management and the perennial concern on administrative disputes should be resolved thru this program.



Meeting with RE Proponent for Biomass

Facilitation of Five (5) RE Projects with Zamboanga City LGU

Date and VenueZamboanga City


Meeting with Proponents of MacKay Green Energy Inc.October 25, 2016 / Zamboanga City

• The PAFERN Team with MinDA-AMO of Western Mindanao met with Mr. James MacKay, the Principal and Founder of MacKay Green Energy Inc. (MGEI), Mr. Rex Jamilarin, the Chief Technology Officer of MGEI, and Ms. Remilio Chiong, their Liaison Officer based in Zamboanga City.

• MGEI focuses on the development of various Renewable Energy Systems designed to efficiently convert Biomass to Energy and/or Bio-Fuel. MGEI currently holds proprietary Technologies for a.) Bana Grass – a biomass energy crop, b.) Torrefaction – production of green coal and gas, c.) Externally-Fire Gas Turbine Engine (EFGT) and d.) High Protein Silage Production for Animal Feed.

• MGEI has a “bana” grass plantations in Agusan del Norte, Iloilo, Misamis Oriental, Nueva Ecija, Leyte, Rizal, Cagayan and Zamboanga del Sur. They have a total of 350 personnel employed among these municipalities. They are currently exporting bana grass to Japan and South Korea.

• With respect to their project in Zamboanga City, they intend to build and operate a 3MW Green-Coal Power Plant, where gas from the torrefied Bana Grass will provide fuel to run the power plant and at the same time, it will produce green coal as feed-stock to conventional coal-fired power plants.

Suggestions/Next

PAFERN along with MinDA-OSFMC is currently coordinating the said concern with Mr. Carlos Cerezo and his AMO-WM team.

The bana grass variety can also be lobbied under MinDANOW program as part the National Greening Program as river-bank protection solution.


• MGEI is currently coordinating with the Department of Agriculture-Zamboanga Peninsula Integrated Agricultural Research Center (DA-ZAMPIARC) Region IX on a Memorandum of Agreement (MOA) to jointly undertake applied research and set-up a model techno-demo farm of bana grass on a five (5) hectares idle/marginal land in ZAMPIARC in Ipil, Zamboanga Sibugay and another 10 hectares in San Ramon Prison and Penal Farm in Zamboanga City for their 3MW Biomass Power Plant.

• Both DA-ZAMPIARC and MGEI signed a Memorandum of Understanding (MOU) last January 2012 to establish and develop applied research and setup a model Techno-Demo Farm of MacKay Bana Grass Plantation in Region IX.

• MGEI is requesting assistance from MinDA-OSFMC if it can coordinate with DA-ZAMPIARC for them to firm-up their commitments to the said project. MGEI is concerned that the project for the techno-demo farm is still on the planning stage ever since they both supported the concept since 2012.

Facilitation of Five (5) R.E. Projects with Zamboanga City LGUOctober 26, 2106

• The MinDA-OSFMC and PAFERN Team along with Mr. Carlos Cerezo, Mr. Rogelio Visitacion and Ms. Erica Pabalinas attended the Watershed Management Council (WMC) meeting last October 26, 2016 at the Zamboanga City Hall to review/deliberate their “Request for Project Endorsement” and/or “Letter of No Objection” for two (2) run-of-river projects in Zamboanga City.


• The Watershed Management Council (WMC) was reconstituted thru an Executive Order by the City Government of Zamboanga to spearhead the management and protection of various watersheds and natural parks in Zamboanga City. The WMC is currently chaired by the City Mayor Ms. Ma. Isabelle G. Climaco and Co-Chaired by Dir. Arleigh J. Adorable Director of DENR-Region IX. The committee members include the a.) Zamboanga City Planning and Development Office, b.) Mines and Geosciences Bureau – Region IX, c.) Office of City Agriculturist, c.) Office of City Councilor Charlie Mariano, d.) Office of the City Environment and Natural Resources, e.) Zamboanga City Water District, f.) Brgy Captains from Brgy. Tulungatung, Manicahan, Baluno, Ayala, Victoria, Lamisahan and Tolosa.

• PhilCarbon Inc. is the proponent of a 1.7MW Run-of-River HPP in Brgy. Manicahan while the Ayala Run-of-River HPP is being operated by EverHydro Inc. located in Brgy. Ayala, Zamboanga City.

• The meeting was called into order by CENR Officer Pilarito Montebon with the presence of the City Mayor. A technical representative from EverHydro and Philcarbon presented the technical details of their Run-of-River Hydro Power Projects. They both underscored that the design of the Hydro-power Project is not the conventional impounding hydro and it will not diminish the source any amount of water. Run-of-River System diverts a substantial volume of water to the power plant and returns the same volume of water back to the river system.

• Both PhilCarbon and EverHydro requested the expeditious approval and release of the “Certificate of Endorsement and/or Certificate of No-Objection” from the City Government of Zamboanga since it is also


a requirement before they can be issued with Environmental Compliance Certificate (ECC) from DENR.

• During the deliberation, Council Jimenez, chair of the Committee on Environment, informed the body that it would be prudent for WMC to seek the Sanggunian’s approval provided that the Watershed Plan of Zamboanga City has not been approved yet. There is no basis for WMC to approve the RE projects if the Watershed Plan has not been approved by the City Council since it the plan provide critical reference if the RE projects would affect the ecological balance of the area.

• Mr. Montebon informed the body that with the motion raised by Council Jimenez, WMC may still issue a “Certificate of No Objection” but subject to the full Council approval in light of the pending Watershed Management Plan. The WMC agreed that they will issue the Certificate of No Objection on the interim so the proponents can perform other permitting requirements.

• Mr. Tejano presented updates on the OSFMC and various pending projects in Zamboanga City. No less than Mayor Climaco requested MinDA-OSFMC if can help expedite the various concerns of the proponents of RE Projects in Zamboanga City so that a fair share of sustainable power source are supply their city. A total of 35MW Pending RE projects are currently located in Zamboanga City.

• Zamboanga City LGU will be having a full council meeting after November 8 and it will invite MinDA on various matters.

Mr. Tejano and Mr. Cerezo both agreed that AMO-WM team will further coordinate with PhilCarbon and EverHydro to touch-base with Watershed Management Council (WMC) OIC Head, Mr. Bisquerra for them to provide the necessary inputs on RE Projects in preparation for the Full Council Meeting.

Mr. Cerezo will be in Zamboanga City next week (from Nov. 7-11, 2016) to discuss the matter with his team and prepare plan of action for RE Projects and gather various updates on the GHG implementation with USAID-BLEADERS.

Suggestions/Next

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Site visit and coordination meeting with Lamsan Power Corporation to discuss the permitting process in LGU Level

Date and Venue September 20-21, 2016

Lamsan Power Corporation, Sultan KudaratDiscussions/Highlight Meeting

As part of USAID B-LEADERS Technical Assistance to Renewable Energy Power Project Proponent, a site visit and coordination meeting was conducted.

Meeting with Mr. Emerald Gabatilla, Utilities Manager of Lamsan Power Corporation.

The activity aims to gather the following information.

• Determine the LGU process for Renewable Energy. I.e. list of LGU permits reflected in the Investors Guide Book. Number of days before the permit or endorsement is released, committees handling applications for Renewable Energy.

• Gather recommendations from proponents on how to fast-track permitting at the LGU level.

• Determine the processes with NGCP at the District and National level, in view of Connection Agreement (CA), Metering Services Agreement (MSA), Transmission Service Agreement (TSA) and processes with Distribution Utility (DU) on the transmission.

• Gather experience or comments from proponents regarding Distribution Utilities now being obliged to perform Competitive Selection Process (CSP). Understand the effect to the Generation Company that applied for FIT after April 29, 2016 (effectivity of CSP). And determine the point person handling DU/EC relations.

• Gather updates from proponents as to their


FIT application; determine point person handling the FIT application; Updates on Renewable Energy Supply Agreement (RESA) with DU/EC.

Results/ Highlights

• PAFERN Team already contacted Mr. Christopher Y. Lu, regarding the process of LGU permits. He stated that they have engaged a lawfirm in Manila to handle the LGU permitting matters. According to him, they just followed the procedures stated in the Energy Guide Book. Mr. Gabatilla only provides all the documents needed and explained it to them. In the context of timeline, the process has been streamlined since the LGUs were responsive.

• There were no recommendation on LGU level for the permitting process but for the National level, LPC recommended to renew the contract and standardization of NGCP. They’re complaining on the delayed response on their request though it is NGCP’s responsibility.

• Engr. Emerald A. Gabatilla, stated that there were no issues encountered during the processes of NGCP in the district and national level since they complied all the documents needed.

• Engr. Emerald A. Gabatilla said, they were not affected by the new ruling of ERC since they will apply for FIT-COC Application and the Generation Company has already a verbal communication/ arrangement with DU, specifically SOCOTECO II as their prospect client. Mr. Gabatilla requested for a copy of FIT presentation.

• Mr. Christopher Y. Lu, Vice President of Lamsan Power Corporation is responsible for handling the 15MW BIOMASS project for FIT Application. The 15MW Biomass Project of LPC is expected to be commissioned on October 2016, but due


to some delays of NGCP, commercializing is on hold. This leads to an unclear project timeline for LPC on NGCP level. For instance, LPC already submitted the specifications for the installation of cable wire, however there has been no confirmation from the engineering department of NGCP.

• Currently, the status on Limited Point to Point transmission application of LPC’s 15MW Biomass Project has approximately 95% generation and 85% transmission.

Suggestions/Next

Mr. Habaradas already provided a copy to PAFERN Team the notice of termination from DOE for the 1.2MW Sawaga HPP and EuroHydro’s Motion for Reconsideration for the said case.

OSFMC shall coordinate with the Hydro-Division of REMB for other details of the case and discuss ways forward with Mindanao Power Development Program Team.

Mr. Habaradas also provided MinDA-OSFMC and PAFERN with the list of eighty-three (83) sites that they are proposing for equity financing thru JVA. OSFMC team shall market the list to potential equity financing groups. (Attached is the list of Projects).

In relation to the assistance being requested by EuroHydro for their FIT-related permits, PAFERN has agreed to involved/embed Engr. James Doldolia, one of their technical staff, to EuroHydro as a strategy to develop expertise of OSFMC in actual FIT document requirement preparation and submission to ERC and other agencies (DOE, NGCP) alongside building relations with technical points persons

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Meeting with EuroHydro on various concerns of their Hydro Power Projects

Date and Venue August 25, 2016


• Mr. Rogelio Habaradas, the RE project manager of EuroHydro, met with PAFERN Team to discuss the termination of their Renewable Energy (RE) Service Contract of their 1.2 MW Sawaga Hydropower Project in Malaybalay, Bukidnon by the Department of Energy (DOE) for failing to meet their milestone activities as indicated in their RE service agreement. He added that they are also being penalized for Php 1.5M for failing to meet their workplan.

• Mr. Habaradas further stated that they failed to comply certain milestones because there were delays on the approval of permits/endorsements from the Local Government Units and Permitting Agencies (at the National Level) and this affected all related activities/plans. The company made manifestations to DOE expressing their serious intent to develop the site despite having challenges in getting the necessary permits and other endorsements.

• He requested if MinDA can intervene and perhaps discuss with DOE regarding their predicament since they also manifested a motion for reconsideration after having received the notice of termination. EuroHydro is true in its intent and that they will develop the site if they are given consideration and extension in their timelines.

• With respect to the other projects, EuroHydro has partnered with Megawide and REPower (thru JV) in developing twenty two (22) hydropower sites with

of the aforesaid agencies. PAFERN will also tag-along with James and EuroHydro on case-to-case engagements with the Permitting Agencies and at the LGU level.

The said strategy is also being practiced by Full Advantage, thru the leadership of Dr. Bernard Tadeo. Full Advantage is one of the service providers of B-LEADERS in the facilitation RE projects for Luzon and Visayas.

PAFERN Team is currently preparing a concept note/proposed framework on fast-tracking LGU processes for RE Projects. The concept shall be presented to MPDP Team for further discussion/deliberation.

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R.E. Service Contracts and in advance stage of development. One of their projects, the Ruparan HPP in Digos, a JV with DASURECO, is still in the early stage of development pending Final Joint Venture Agreement with DASURECO and SB Resolution endorsing the same.

• With regards to the 2.4MW New Bataan HPP which is already 57% complete, they are requesting MinDA-OSFMC’s assistance in their Feed-in-Tariff (FIT) Permitting-related preparations to include NGCP requirements related to FIT. The same assistance is also being requested to other sites already in the advance stages of permitting.

• Mr. Habaradas provided OSFMC a copy of the remaining eighty-three (83) sites, mostly with pending RESC applications, that may require equity investments (domestic/foreign). He also asked detailed information on the Competitive Selection Process (CSP) that took effect last April 29, 2016. How will it affect FIT-based Generation Projects with CSP in effect?

• Mr. Tejano also took note of EuroHydro’s experience in the permitting process at the LGU level which will be used as one reference in coming up with a policy initiative to fast-track/prioritize RE projects.

Suggestions/Next

MinDA-OSFMC and PAFERN Team to coordinate with City Administrator on the Official Communication from LGU on the IMC and details on PPP Projects requiring endorsement or support form MinDA.

MinDA-OSFMC will discuss the Concept Note on Clean Energy Program in Zamboanga City with USAID B-LEADERS. Currently, the standing workprogram of PAFERN in terms of LGU Support is to comeup with Resolutions that shall fast-track the permitting process or reelase of endorsement for RE Projects that operate in the area.

More so, the OSFMC team will also closely coordinate with the WAQMA Board, tasked to issue endorsement for RE Projects in Zamboanga City.

A meeting will be schedule this month with RD Callanta on the LEDS Mindanao Initiative.

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Meeting with Zamboanga City LGU on the LEDS Mindanao Program

Date and Venue August 16-18, 2016Zamboanga City


Meeting with Office of the City Administrator RE: Investment Management Contract of ZAMCELCO

• MinDA-OSFMC and PAFERN Team met with Ms. Marie Angelique C. Go, the Assistant City Administrator for Operations and Economic Enterprise of the City of Zamboanga to discuss the concern of various sector groups regarding the dissolution of the Multi-Sectoral Technical Working Group (MSTWG) that supposed to conduct an evaluation/review of the proposed Investment Management Contract (IMC) of the Zamboanga City Electric Cooperative, Inc. (ZAMCELCO).

• The Investment Management Contract (IMC) is one of the options or alternatives of Private Sector Participation (PSP) Program being offered National Electrification Administration (NEA) to ZAMCELCO in hope of enhancing/improving the Operations of the Cooperative. The IMC shall allow a Private Sector entity to take over operations and management of the cooperative for an agreed time period.

• The Office of the Mayor per se wanted transparency on the IMC process thru the MSTWG however it was unilaterally dissolved by the ZAMCELCO Board despite the TWG was created thru a Resolution by the Member-Consumers of ZAMCELCO during its Annual General Membership Assembly (AGMA) last 2015. In addition, they have requested a full copy of Terms of Reference of the IMC since last year but they were not provided such document.


• Ms. Go asked for MinDA’s stand or official response on the matter. Mr. Tejano responded that MinDA knew of the situation thru its channels in the power sector but it did not received any official communication regarding the matter. Ms. Go, thru the Office of the City Mayor, shall communicate officially to MinDA and shall provide a copy of the manifesto of the private sector regarding the IMC concern.

• Ms. Go also asked if there is a list of PPP Projects identified for Mindanao already. They assumed that the Mindanao Railway System will be one of the Priority PPP Projects for Mindanao but they are hoping that some projects in Zamboanga City can be considered for PPP (i.e. Zamboanga Airport, etc). They are also looking at MinDA of assisting them on this matter.

Meeting with the City Mayor Beng Climaco on the LEDS Mindanao Initiative

• MinDA-OSFMC and PAFERN Team along with Mr. Rogelio Visitacion of AMO-WM, Ms. Marian Cruz Navata, Urban Planning Specialist and Mission Environmental Officer of USAID Philippines, Mr. Voltaire Acosta, Deputy Chief of Party of USAID B-LEADERS Project, Mr. Dan Escudero, Technical Staff of USAID B-LEADERS Project, and representatives from the USAID SURGE Project had a courtesy visit with Mayor Beng Climaco and to discuss the LEDS Mindanao initiative.

• Ms. Navanta represented the USAID team and shared to the Mayor the project goals of USAID Cities Development Initiative (CDI), and the USAID Building Low Emission Alternatives to Develop Resiliency and Sustainability (B-LEADERS) Project which generally provide capacity and deveopment assistance to host LGU on Climate Resiliency.

• Ms. Navanta added further that the


B-LEADERS Project is partnering with the Mindanao Development Authority on Lowering Emission Development Stragegy (LEDS) Mindanao Initiative wherein Zamboanga and Davao City are the initial host commmunities identified for capacity assistance and development support on Green-House-Gas Accounting and Sequestration.

• Mr. Acosta, the Deputy COP of B-LEADERS also shared that they are currently coordinating with the EMBs’ Water Quality Management Board (WAQMA) regarding Mangrove Area Accounting. They have already identified a Multi-Sectoral Technical Working Group to assist in the GHG accounting and its related activities. The outputs of the GHG Accounting will serve as a baseline information in planning GHG sequestration/ mitigation activities. On matters of data development, B-LEADERS will also coordinate with various Bureaus of the LGU.

• Mayor Beng shared that Zamboanga City has a large coastal area and the areas of Mariki, Talon-Talon and Maseta are appropriate target zones for assessment of the USAID activities on mangrove development or rehabilitation as mechanism to reduce GHG as well as protection zones in case of Storm Surge. She also added that as part of their City Land Use Plan they intend to develop Parks and large Walk Spaces in support of reducing carbon footprint and USAIDs best practices on GHG implementation can also be incorporated to their CLUP.

• Ms. Navanta said that the USAID Projects’ CID and BLEADERS will work closely with the LGU and that focal persons can be identified in the immediate term to jumpstart the activities and coordination. Mayor Beng responded that her Office would like to receive first the Project


Concept Notes,Terms of Reference (TOR) or thru a Memorandum of Understanding (MOU) before they can appropriately assign focal persons on sub-project basis or perhaps per activity. But on the interim, she endorsed Mr. Rey Gonzales from the Office of the City Environment and Natural Resources (OCENR) as their representative in the succeeding meetings.

• Mayor Beng also shared that her office is currently supporting investments on sustainable energy development one of which is the BioEthanol Facility in Brgy Panubigan and a Solar Power Project in Zamboanga Ecozone which is still in the early stages of development. Perhaps this can be an another area of collaboration with USAID. She also requested if USAID can assess their Sanitary Landfill in terms of sustainably managing the facility.

• The meeting ended with the Mayor expressing her thanks to USAID and to MinDA for their usual support to Zamboanga City.

Meeting with DENR IX-Enivronmental Management Bureau (EMB) Representative.

• Per original schedule, MinDA-OSMC and PAFERN Team along with Mr. Olie Dagala were supposed to meet with DENR IX Regional Director Callanta who is also the newly designated WAQMA Board Chairperson last August 16, 2016 and present to him the LEDS Mindanao Initiative. However the meeting was moved on another date on short notice due to an equally important matter that the Regional Director should attend.

• Instead, the team met with Engr. Joselito Ventura of EMB-IX who is also assisting RD Callanta on WAQMA Board matters. He said that it would be best that USAID B-LEADERs along with MinDA can set


another schedule with RD Callanta and present/discuss to him the LEDS Mindanao initiative and from that meeting draw next steps/workplan supporting various activites under the said initiative, be under GHG or the Clean Energy Program. He can coordinate with the RD’s assistant on the proposed meeting.

Suggestions/Next

Global Sibagat will officially write to MinDA requesting assistance on the RE projects in CARAGA.

They have also requested MinDA-OSFMC if it can arrange for a meeting with DORECO. This is in relation to their project in Davao Oriental concerning RROW of their transmission facility.

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Meeting with Global Sibagat Hydro Power COrporationMindanao Development Authority (MinDA) Office

Date and Venue July 29, 2016


• The Mr. Tejano and Engr. Doldolia along with Engr. Makmod Pasawilan, Ms. Karen Calsena and Ralph Cosare (PPP Unit) met with representatives from Jowood Industries Inc. and its affiliate Global Sibagat Hydro Power Corp led by Lyndon Acuzena, Project Manager of Global Sibagat

• Jowood Industries Inc. specializes in the trading of metals and structural steel acting as an importer, wholesaler, retailer and as well as exporters. Along with its affiliates, it is also engaged in mining, logistics and power generation, thru the Global Sibagat Corp.

• Mr. Azucena shared to the group that Global Sibagat has currently three (3) Hydro Power Projects in CARAGA, two (2) in Davao Oriental and mostly in the pre-development stage. They are planning to add more but they are interested to partner with existing Solar Power Projects in Mindanao given the intricacies they have experienced in the permitting process for hydro-power projects.

• Global Sibagat is seeking assistance with MinDA-OSFMC particularly their RE projects in CARAGA. Peace and Security is one of the issue that hindered the development of their projects.

• Mr. Tejano requested Mr. Azucena and his team if they can provide a brief profile of their projects indicating issues/concern they are facing. MinDA-OSFMC will provide a template on this matter.


• Moreover, their company is also interested to participate in the Mindanao Railway System (MRS) project since it is a priority project for the Duterte Administration. Engr. Pasawilan provided a basic briefing about the status of the MRS and the plan to have the projects under PPP arrangement.

• Mr. Rene Mabalot and Mr. Jay Cabrera of Jowood added that their company can work on the MRS and Power Generation projects supporting the rail system. They will also participate in any forum relating to the project for them to better understand MRS plan. Engr. Pasawilan informed that an LGU consultation for the MRS will start in August 2, 2016

The meeting ended with an exchange of information on MRS, list of RE projects in Mindanao and profile of Jowood and some RE Projects of Global Sibagat.

Suggestions/Next


They have also requested MinDA-OSFMC if it can arrange for a meeting with DORECO. This is in relationto their project in Davao Oriental concerning RROW of their transmission facility.

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Site Verification of 15MW Lamsan Power Corporation Biomass Power Project

Date and Venue 18 July 2016


• As requested by Lamsan Power Corporation, the PAFERN team facilitated the coordination meeting between LPC and NGCP District 6 last July 18, 2016 held at NGCP Nuleng Substation in Sultan Kudarat, Maguindanao. The meeting aimed to secure a “Permit to Work” from NGCP District 6 that has not been released since LPC requested this last July 14, 2016. The meeting was attended by Engr. Patrick Kevin Cang of LPC, Engr. Joselito Talde of NGCP Nuleng Substation, and some of the contractors. During the meeting MinDA-OSFMC team presented the One-Stop Facilitation and Monitoring Center and stressed the importance of the 15MW LPC Biomass Power plant in the whole Mindanao Power situation.

• LPC and NGCP agreed to just follow the plan that was approved by NGCP Main Office. LPC and the contractors were also oriented on the Safety Procedures on the construction of the transmission line. Engr. Joselito Talde then give clearance to LPC to commence the construction of the transmission line the following day, July 19, 2016.

• The PAFERN Team conducted a site verification of the progress of the 15MW Biomass Power Project of Lamsan Power Corporation. The plant is almost complete at 80% completion. Delay is due to the pending construction of the transmission line and delivery of the Disconnecting Switch for the transmission facility which is expected to be delivered on September from ABB Sweden.


Right now, the plant is conducting testing and commissioning of the plant’s auxiliary equipment. The transmission line is expected to be completed on the last week of August. However, due to the delay on the delivery of the Disconnecting Switch the plant could not operate even if the transmission line will be completed on August.

Suggestions/Next


They have also requested MinDA-OSFMC if it can arrange for a meeting with DORECO. This is in relationto their project in Davao Oriental concerning RROW of their transmission facility.

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Site Verification of 2.4MW New Bataan Hydro Power Project by EURO HYDRO POWER (ASIA) HOLDINGS, INC.

Date and Venue 15 July 2016; Purok 6 and 7 of Barangay Andap, Municipality of New Bataan, Compostela Valley


• The PAFERN Team meet with Engr, Jun Guinid, the Project Manager of the New Bataan Hydro Power Project for a site visit of the plant. Prior to our visit, the team had a courtesy call with the new Mayor of New Bataan. During the courtesy call, the team had the opportunity to introduce OSFMC and explained how LGUs can be of support in the development of future RE Projects in New Bataan specifically permitting concerns.

• The hydro power plant is now 54% complete and is expected to be operational on the 2nd quarter of 2017. Euro Hydro will meet with DANECO on the drafting of MOA for the transmission line which will be advanced by Euro Hydro. Securing ROW might delay the transmission line and Euro Hydro is requesting the assistance of OSFMC after the MOA between Euro Hydro and DANECO will be finalized.

• Also, as per Engr. Guinid, Euro Hydro had already complied the documents for the pending Certificate of Precondition from NCIP. Current, the team is coordinating with Mr. Agustin C. Panganiban, Resource Management Division Chief of the Ancestral Domain Office for the release of the Certificate of Pre-Condition.


Suggestions/Next

The team will be in constant communication with the Asiga Green Energy Corporation as well as with Agusan del Norte Electric Cooperative (ANECO) regarding the development of the hydropower plant and its transmission facility.

MinDA-AMO of CARAGA Region will also assist the team on the follow-ups.


Site Verification of 8MW Asiga Hydro Electric Power and Meeting with Agusan del Norte Electric Cooperative (ANECO)

Date and Venue 14 July 2016; Brgy. Pangaylan, Santiago, Agusan del Norte


OSFMC and PAFERN Team visited the 8MW Hydro Electric Power Project of ASIGA Green Energy Corporation to conduct site verification for status updates of the construction. The team met with Engr. Amaelo Pineda and Engr. Hendrick Manegdeg of ASIGA Green Energy Power Corporation. The following were discussed during the meeting:

• 8.0MW Asiga Green Energy HPP is now at 58% completion and is 3% delayed. Heavy rains in the area caused the delay of the construction.

• As per Engr. Amaelo Pineda, the Project Manager, they can cope the delay and will be 70% completed at the end of July.

• The plant is expected to be operational by December 2016.

• Power house will be finished by August and installation of electro-mechanical will start on September upon the delivery of the equipment.

AGEC is embedded to ANECO under a PSA of a period of 25 years signed last June 18, 2013 at Php6.50/KwH.

The PAFERN Team had a meeting with Horacio Santos of ANECO to discuss the status of AGEC’s transmission line. According to Mr. Santos, ANECO just conducted the survey for the transmission line last July 13, 2016. Securing of the RROW will commence after ANECO finalized the locations of the electric post. Mr. Horacio Santos of ANECO will contact MinDA if issues will arise upon securing the RROW for potential support.

Suggestions/Next

Ms. Punzalan committed to provide an updated list of RE Project in Mindanao per technology to include contact information of the proponents. She initially provided that list of updated Committed and Indicated RE Projects in Mindanao (as of April 2016).Their group shall also provide the list to Affiliated Renewable Energy Centers (AREC) in Mindanao.

OSFMC to coordinate with ARECs in Mindanao

OSFMC shall coordinate with REMB on the RE Projects with Pending COEs for FIT the 1st week of June 2016.

• Enfinity Solar

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Coordination Meeting with Renewable Energy Management Bureau (REMB)-Department of Energy, Taguig City, for the One-Stop Facilitation of RE Project in Mindanao May 23, 2016

Coordination meeting with PhilCarbon Inc., Makati City, for their RE Projects in Zamboanga Peninsula May 26, 2016

Coordination Meeting with FirstGen (Lopez Group), Ortigas, for their RE Projects in CARAGA and in the Province of BukidnonMay 26, 2016

Coordination meeting with representatives from Philippine Council for Industry, Energy and Emerging Technology Research and Dev’t-DOST, Taguig City, for the Small Grants Research Program for Community Energization under OSFMCMay 26, 2016

Date and Venue 14 July 2016; Brgy. Pangaylan, Santiago, Agusan del Norte


May 23, 2016Renewable Energy Management Bureau (REMB)Department of Energy, Taguig City

• The MinDA-OSFMC and PAFERN Team met with members of the Renewable Energy Management Bureau (REMB) of the Department Of Energy, particularly Mr. Romeo M. Galamgam and Maria Adeline L. Pagauitan from the Biomass Energy Management Division, Ronaldo T. Angeles from the Solar and Wind Energy Management Division and Ms. Liza Pangilinan, Supervising Officer from the TWG of National Renewable Energy Board. Representatives from the Hydropower Management Division was not available during the said activity.

• Mr. Tejano presented a brief background about the Mindanao Power Monitoring Committee (MPMC) and the One-Stop Facilitation and Monitoring Center initiative

OSFMC will coordinate with Mr. Adil for the technical information of their RE projects in Zamboanga City. An OSFMC Common template for RE Project Monitoring shall be provided.

OSFMC to coordinate with AMO-WM relating to Zamboanga City Watershed Management Council’s endorsement of the 1.7 Manihican HPP. A site visit will be scheduled.

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that is to fast-track RE development projects in Mindanao. A case-scenario was presented wherein a Hydro Power project will take 5-7 years until commissioning. Ms. Pangilinan shared to the group that DOE implemented a similar mechanism to OSFMC wherein Secretaries of various agencies committed to fast-track RE-based projects but was never sustained in the long term.

• Moreover, Mr. Tejano requested the support of REMB in the conduct of OSFMCs data buildup of Committed and Indicative RE projects particularly the I.) Contact Information of the owners of RE projects, ii.) Location Description of RE projects, and iii.) Name of Power Source of RE Projects (i.e. name of river source, transfer certificate of title, etc.). The said information shall supplement the coordination and facilitating work of OSFMC.

• Mr. Tejano also shared a project concept by OSFMC about Community Energization that seeks to provide practical and sustainable energy solutions to unserved communities. The said concept shall strengthen the capacities of State Universities and Colleges (SUCs)/Higher Education Institutions (HEIs) to conduct research and develop energy prototypes/solutions to communities.

• Mr. Angeles responded that they have the Affiliated Renewable Energy Centers (AREC) which generally involves accredited SUCs/HEIs as the extension arm of DOE in the implementation of Household Electrification Program (HEP) and the Barangay Electrification Program (BEP). He suggested to coordinate with ARECs in Mindanao with respect to the proposed project. REMB will provide MinDA with the list of ARECs for the said purpose.

OSFMC to follow-up with Ms. Roque technical information of FirstGens HPP Projects in Mindanao.

OSFMC to arrange a meeting with AMO-Northeastern and AMO-Northern Mindanao with respect to RE projects of First Gen (2nd week of June) in Mindanao

OSFMC to secure meeting with principals of MinDA-MPMC and FirstGen (3rd week of June)

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Coordination Meeting with PhilCarbon Inc. for their RE Projects in Zamboanga PeninsulaMakati CityMay 26, 2016

• MinDA-OSFMC met with Ms. Ruth Yu-Owen, President/CEO of PhilCArbon Inc., and Mr. Brezhdee Adil, Technical Head and presented to the group about MinDA, the Mindanao Power Monitoring Committee and One Stop Facilitation and Monitoring for RE Projects.

• PhilCarbon is a company that provides full-cycle and integrative service from project conceptualization, formulation of project feasibility study, project finance packaging, strategies formulation in the development of renewable energy sources for power generation as well as the related transaction documentation for projects eligible under the CDM and trading of carbon credits following the rules and practices under the Kyoto Protocol.

• The company will be implementing eight (8) RE projects, 6 in the Visayas (2 Biomass, 2 Solar, 1 Wind and 1 Hydro) and 2 in Mindanao (2 Hydro), all located in Zamboanga City. The company is currently in partnership with Megawide, Upgrade Energy, Megawatt Clean Energy Inc., Mogana Biomass Corp.

• Mr. Adil shared to Mr. Tejano that PhilCarbon was awarded to rehabilitate the 500kw Pasonanca Mini-Hydro, built by the Americans in 1916. They are also in the predevelopment stage of their 1.7MW Manihican River Hydropower plant. With respect to the 1.7 MW HPP, they are currently awaiting endorsement/or certificate of no-objection from the Watershed Management Council which is also being asked by DENR, NWRB, and NCIP before they can issue related permits.

OSFMC to draft project proposal on community energization and will provide copy to PCIEERD for comments. (ETA: end of June 2016)

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• Ms. Owen expressed her support and PhilCarbon’s interest in engaging MinDA in terms of being able to facilitate the early release of the Council’s endorsement of their Manihican HPP. Philcarbon will provide the necessary information to Minda-OSFMC with respect to their project in Zamboanga City.

Coordination meeting with FirstGen Power Corp (Lopez Group) for their Hydropower Projects in CARAGA and Province of BukidnonMay 26, 2016

• MinDA-OSFMC and PAFERN Team met with Ms. Getrude Roque, Project Manager for the FirstGen’s 30MW Puyo HPP in Jabonga, Agusan del Norte and shared to her briefly about MinDA, MPMC and One-Stop Facilitation and Monitoring initiative for RE Power Project.

• Per Ms. Roque, FirstGen is currently pursuing four (4) hydropower projects in Mindanao namely a) 30 MW Puyo HPP in Jabonga, Agusan del Norte, b) 23 MW Bubunawan HPP in Jabonga, Agusan del Norte, c) 9.8 MW Cabadbaran HPP in Cabadbaran, Agusan del Norte, d) 9MW Tumalaon HPP in Baungon, Bukidnon.

• Ms. Roque said of the four (4) projects, the Bubunawan HPP is on the advance stage of dev’t while the other HPP projects are still pending mainly due to Peace and Security in the area. With respect to Puyo, they had their ground-breaking in 2013 but eventually postponed the devt after elements from the New People’s Army took their equipment. They can only commence their project if they talk to the said group. Following the event, FirstGen applied for Force Majeure with DOE and had to modify their project timetable.

• Moreover, FirstGen formed SCAA (Special Civilian Armed Forces Geographical Unit


Active Auxiliary) last August 2015 with the military hoping to help them secure the area. This was recommended by Provincial Government of Agusan del Norte but the Municipal Govt. of Jabonga suggested otherwise.

• Ms. Roque, having worked with EDC-PNOC before in the Mt. Apo Geothermal Project, said she is not agreeable on involving armed groups like SCAA which likely increase tension in their project area. Ms. Roque and FirstGen is keen in seeking the assistance of MinDA regarding possible facilitation of the various project concerns of their projects.

• Mr. Tejano requested technical information about the project to include prevailing issues similar to what has been shared earlier (i.e. Puyo). Moreover, Mr. Tejano will arrange a meeting with AMO-Northeastern Mindanao and representatives from FirstGen the month of June 2016 (2nd week).

• Ms. Roque would also like to present and coordinate officially to MinDA-MPMC group about FirstGen RE Projects in Mindanao. All RE Projects of FirstGen is headed, Mr. Dennis Gonzales who is currently in the US and supposed to meet with the Mr. Tejano. They can arrange a meeting with the Principals of FirstGen (Mr. Lopez, Gonzales, et. al.) along with the head of MinDA-MPMC.

Philippine Council for Industry, Energy and Emerging Technology Research and Dev’t-DOST, Taguig City, for the Small Grants Research Program for Community Energization under OSFMCMay 26, 2016

• Mr. Tejano of MinDA-OSFMC met with PCIEERDs Senior Science Research Specialist Mr. Patrick Montero and


discussed with him briefly about MinDA, Mindanao Power Monitoring Committee and One-Stop Facilitation and Monitoring Initiative particularly elaborating on the project concept “Small Grant Research for Community Energization” in Mindanao.

• Mr. Tejano is seeking inputs from PCIEERD regarding how the proposed concept can be strengthened and make PCIEERD a permanent collaborator for the said project being eyed for EU funding.

• Mr. Montero said that PCIEERD-DOST has regional energy/industry consortia that involves the Academe, Local Government Units in the development of energy sources in the locality. This is similar to the Affiliated Renewable Energy Center (AREC) implemented by DOE in the academe but they are more focused on R&D and not just plain implementation of energy technologies to a potential site. AREA and PCIEERD Regional Consortia seldom coordinate with each other in terms of energy development and this area should be strengthened to streamline efforts.

• PCIEERD provides funds for R&D and prototyping for energy potentials. They can engage a SUCs to do further research on how to tap energy potentials and build prototypes for commercialization. The have implemented micro-grid systems before with combination of solar, wind and battery for storing energy. The have also received proposals for the development of a few pico-hydro (<5kw) project from USM before but they haven’t received any further communications.

• Mr. Tejano also described briefly on the Mindanao Knowledge Center, a consortia of 32 SUCs and HEIs in Mindanao with the intent of making MKC the Mindanao Think-Thank for Policy Development and


Planning. He further added that PCIEERD will be in the best position to provide technical assistance to MKC in terms of technology incubation for community electrification.

• PCIEERD has expressed its support for the concept and they would like to collaborate with the same. The MPMC-OSFMC will be one to draft the proposed project concept and this will be forward for PICEERD for comments/improvement. Mr. Montero also suggested the engagement of Private Sector industries/association in RE development. He suggested the Renewable Energy Association of the Philippines as one entity that can be engaged for the said program.

Suggestions/Next

The OSMFC shall conduct follow-up coordination with ERC on the Limited Point-to-Point Transmission Facility application of the MF-HPP after the elections (generally 3rd week of May)

AMO-NM shall do a follow-up with the Sangguniang Bayan of Manolo Fortich on the Status of SB Resolution for the Land Conversion of the MF-HPP.

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Coordination meeting with representatives from HEDCOR Bukidnon and actual site inspection of 68.8 MW Manolo Fortich HPP in Manolo Fortich, BukidnonApril 22, 2016

Coordination Meeting with AMO-Northern Mindanao on MPMC-OSFMC and schedules for RE Project Monitoring and Facilitation, Cagayan de Oro CityApril 23, 2016

Coordination meeting with Greenergy Dev’t Corp for the 150MW Bulanog-Batang HPP and the 300MW Pulangi V HPP, Cagayan de Oro CityApril 25, 2016

Coordination Meeting with AMO-Northeastern Mindanao on MPMC-OSFMC and schedules for RE Project Monitoring and Facilitation, Butuan CityApril 26, 2016

Coordination meeting with representatives from Asiga Greenergy Devt Corp. and actual site inspection of 8 MW Asiga HPP in Santiago, Agusan del NorteApril 27, 2016

Coordination meeting with representatives from EuroHydro Asia Holding Ltd. and actual site inspection the 2.4 MW New Bataan HPP in New Bataan, Compostela ValleyApril 28, 2016

Date and Venue April 22-April 28, 2016


April 22, 2016HEDCOR, 68.8MW Manolo Fortich HPP

• The MinDA-OSFMC, Area Management Office of Northern Mindanao, and PAFERN Team conducted a site inspection of HEDCOR’s 68.8MW Manolo Fortich Hydro Power Plant in Manolo Fortich, Bukidnon last April 22, 2016. Mr. Rene James Villarente, the Business Devt Manager of HEDCOR Bukidnon, accompanied the team at their project base camp located at Barangay Maluko, Manolo Fortich.

• AMO-NM will assist in the updating of Local Contact Information on the List of RE Projects in Region X.

• OSFMC shall coordinate with REPower on the Proposed Ground Breaking of Pulanai HPP in Bukidnon on May 2016. Final date will be determined and coordinated with RePower. SRLA might be invited in the said activity.

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Mr. Rudy Laguna, project manager for HEDCOR Bukidnon Inc., provided a short briefing on the progress updates of the 43.4MW Unit 1 and 25.4MW Unit 2.

• Mr. Laguna shared the Manolo Fortich HPP is cascading run-of-river plant design. Both Units have a high head system and low head system. The tail water from unit 1 is diverted to unit 2 via 8km conveyance line.

• He added that they are currently facing delays particularly in the installation of the 8km conveyance line since they have to dig a 7km tunnel on a mountain between two units. Per report, they are only able to dig around 2.1km for Tanaon. The remaining tunnel construction will take around 2 years.

• The two powerhouse units are connected by is a 138KV tie-in system connecting both power plant units.

• The Unit 1 Project is already 45% complete. Its water flow is supplied by weirs, a head pond and conveyance lines constructed in the Amusig, Tanaon and Guihean rivers.

• Unit 2, downstream of Unit 1 Power house. Current progress is around 27% and delay is caused by tunnel construction.

• With respect to the required permits, they mostly secured the permits for the generation plants except the transmission project which require ERC approval and the site for the said facility required DAR conversion.

• HEDCORs presented Options on the Transmission design one of which is the development of a substation in Brgy. Lingion to connect the power plants with a distance of 8km (OPTION 1) and the option of to connect direct the existing


Tagoloan Substation with a distance of 25KM (OPTION 2).

• HEDCOR is proposing Option 1 on the premise that it will shorten their implementation time (around 7 mos. for the transmission facility) and offers a lesser systems loss. The 2nd Option that is to connect directly to Tagoloan SS cost lesser than Option 1 but it will take 2 to 3 years to implement due to RROW issue and more permits to secure (tree cutting, etc.). More so, NCIP permits may take longer since there is no unified IP groups that represent the lands affected.

• HEDCOR is also waiting for the SB resolution for the land conversion of a 5.5 hectare land at Brgy. Lingion for the substation area.

April 23, 2016AMO-Northern Mindanao Coordination Meeting

• Prior to the coordination meeting, Mr. Mabale, technical staff of AMO-NM accompanied the OSFMC and PAFERN team in the conduct of RE site verification of HEDCOR Bukidnon’s 68.8MW Hydro Power Project in Brgy. Santiago, Manolo Fortich last April 22, 2016.

• Mr. Tejano then met with the Area Management Office Northern Mindanao to discuss updates on the One-Stop Facilitation and Monitoring Center (OSFMC) and strategic role of the office in the future activities of MinDA-MPMC in the promotion and development of Renewable Energy Projects in Northern Mindanao.

• Agenda items of the meeting include a.) assistance and roles of USAIDs B-LEADERS to the MinDA-OSFMC Initiative, b.) Updating of contact information on the

• OSFMC shall re-coordinate the case to DOE on matters shared by Mr. Donggay in May 2016 (after the elections)

• Conduct of CSW on the progress of permitting phase of the Pulangi V.

• Conduct Investment Facilitation for the Pulangi V Project.

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Latest List of Committed and Indicative RE Projects in Northern Mindanao, c.) Conduct follow-up coordination/monitoring on the Land Conversion for the Transmission Facility of HEDCOR Manolo Fortich HPP, d.) follow-through coordination with REPower for their Pulanai HPP in Bukidnon, and GREENERGY for Pulangi V and e.) Assistance of AMO-NM in the conduct of consultation with LGUs and Industry Stakeholders on Local Policy Support on RE Development.

April 25, 2016Coordination meeting with Greenergy Dev’t Corp. for the 150MW Bulanog-Batang HPP and the 300MW Pulangi V

• The MinDA-OSFMC (Mr. Tejano) and PAFERN Team along with Ms. Lordelie Enjambre and Mr. Wilson Mabale of AMO-Northern Mindanao met with Mr. Cereal Donggay the President and CEO of Greenergy Dev’t Corporation to discuss concerns on their proposed project particularly the Bulanog-Batang HPP and the Pulangi V HPP.

• The team and AMO-NM discussed briefly about the current OSFMC initiative one of which is the conduct of one-on-one consultation with proponents of RE projects and facilitate their concerns either in the predevelopment and development stages of the project.

• Mr. Donggay shared to the team that he had an earlier meeting with a Chinese group that are into Solar PV dev’t that happens to supply Elon Musk’s Solar PV projects in States of Nevada and California USA. These are the same group that their company, AstroEnergy, is coordinating for the 45MW Solar PV project in General Santos City. The said project is currently ongoing construction and will likely operate by 2017.

• AMO-NEM to Conduct Coordination with ANECO on Transmission RROW and Area for Transmission Facility for the 8MW ASIGA HPP

• AMO-NEM to assist in updating of Local Contact Information on the List of RE Projects in CARAGA

• OSFMC and AMO-NEM to coordinate with ANECO on RROW for the transmission facility of ASIGA.

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• He also added that Greenergy 150MW Bulanog-Batang HPP is now under the Bukidnon Hydro Energy Devt Corporation (Frabelle Group) after they have sold the rights last October 2014 for the Development of the site. The BHDC are now assuming RROW, acquisition of priority area for dam, powerhouse and switchyard and this will likely be completed this year.

• Mr. Donggay also presented a scheme on Hybrid Economic Dispatch Energy Trading that is an interplay of Solar and Hydro Generation. The said scheme shall maximize the dispatch of Solar Energy sources during day time while allowing a very minimal dispatch of Hydro Power so that it can store more water for night time dispatch.

• He then presented briefly on historical information on the Pulangi V project which was supposedly implemented in 1991 while on his term as VP for Mindanao of the National Power Corporation (NPC). Their company got a Hydro Electric Service Contract for this matter. However, Fr. Tiongco, the Mayor of Damulog that time opposed the development of the project with information that around 80,000 hectares will be submerged or affected.

• When the power crisis happened in 2004, provided that there were no additional projects (in the case of Pulangi V) to supplement the energy demand for Mindanao, NPC secured shore-based Diesel Power Barges (117, 118 and other power barges) and Land Based plants (Lugait, WMPC, SMPC.)

• In 2005, Mr. Donggay took the initiative of acquiring the Pulangi V feasibility study of NPC so he can pursue pre-development of the site on private capacity. Prior to the RE Law, his group already secured necessary

• OSFMC to coordinate with NCIP on the CP status EuroHydro after the elections (3rd week of May 2016)

• OSFMC to conduct CSW with ERC to verify progress on FIT COC as well as with DANECO on the RESA arrangements

• AMO-NEM to coordinate with DANECO on RROW for the transmission service of 2.4MW New Bataan HPP.

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permits for predevelopment. However, their groups’ progress of securing equity investment came to stand still following the Asian Financial Crisis (2008), and unstable peace and order situation in parts of Mindanao (i.e. Zambo Siege, series of Bombings, Ampatuan Massacre).

• Generally, when RE Law went into effect in 2008, his group has to reacquire Renewable Energy Service Contract despite being granted with the Hydro Electric Service Contract (HESC). This by far led to a series of delays in securing equity investment to start construction/development of the project and also attributed to the delayed release of other permits. The current administration of DOE now classified the Pulangi V as a non-frontier project which should be open for competitive exploration and dev’t.

• Mr. Donggay requested the assistance of OSFMC if their case can be facilitated by the group provided that there are several entities were provided with RESC but has not complied with documentary requirements.

• Ms. Embraje expressed that potential foreign investors from Holland that are interested in RE development in Mindanao and she wanted for Mr. Donggay to touch base with them in June.

April 26, 2016AMO-Northeastern Mindanao Coordination Meeting

• The MinDA-OSFMC and PAFERN Team then met with the Area Management Office Northern Mindanao to discuss updates on the One-Stop Facilitation and Monitoring Center (OSFMC) and strategic role of the office in the future activities of MinDA-MPMC in the promotion and development of Renewable Energy Projects in North


Eastern Mindanao.

• Agenda items of the meeting include a.) assistance and roles of USAIDs B-LEADERS to the MinDA-OSFMC Initiative, b.) Updating of contact information on the Latest List of Committed and Indicative RE Projects in Northeastern Mindanao, c.) Joint Conduct of RE site-visit and coordination meeting ASIGA Greenergy Corporation in the Municipality of Santiago, Agusan del Norte, and EuroHydro’s in New Bataan, Compostela Valley, and e.) assistance of AMO-NEM in the conduct of consultation with LGUs and Industry Stakeholders on Local Policy Support for RE Development.

• The Mr. Tejano highlighted a proposed collaboration of AMO-NEM in support of a pre-feasibility studies to be conducted to potential energy sources thru a partnership with SUCs and HEIs under the Mindanao Knowledge Center. The OSFMC team is eyeing the Natural Gas Potential in the Municipality of Magallanes, Agusan del Norte.

April 27, 2016Coordination meeting with Asiga Greenergy Dev’t Corp. for the 8MW Asiga HPP in Santiago, Agusan del Norte

• The MinDA-OSFMC along with Ms. Raquel Aguaviva, OIC of AMO-NEM and James Doldolia and Dr. Alexander Campaner of PAFERN met with Mr. Hendrick Manegdeg, CEO of Asiga Greenergy Dev’t. Corp. and Project team currently working on the Asiga River Project at Brgy. Pangaylan, Santiago, Agusan del Norte.

• Mr. Manegdeg shared that the community preparation, development and support has been central to the success of the 8MW ASIGA Hydro Electric Power Project which has now drawn stronger support by the locality community. The project paved


way to various support service to local community which include newly-built barangay roads, provisions for community electrification, a community town-hall and other infra-facilities.

• As a support mechanism, they have also established multi-partite monitoring team composed of the office of the governor, office of the mayor, DENR, NGO, and representatives from the Barangay. The group will conduct their first site visit on May 4, 2016

• Mr. Manegdeg shared to the team if they can coordinate with ANECO on the status of RROW for the transmission facility for the Asiga HPP. Their company will initially fund for the construction/design of transmission facility and in return ANECO will reimburse on a 10 year period. The transmission facility shall connect to Santiago Substation with a straight line distance of 5-6kms.

• Per Mr. Manegdeg, the overall progress to date is already 46% (civil works) and the electro-mechanical is already purchased and stored at the stock house.

• The Asiga Project team facilitated the conduct of the site inspection including the progress of the construction of the Weir, Conveyance Lines, and the Power House.

April 28, 2016Coordination meeting with EuroHydro Asia Holding Ltd. for the 2.4MW New Bataan HPP in New Bataan, Compostela Valley

• The MinDA-OSFMC along with Ms. Raquel Aguaviva, OIC of AMO-NEM and James Doldolia and Dr. Alexander Campaner of PAFERN met with Engr. Ignacio “Jun” Guinid, the project manager of EuroHydro Asia’s 2.4MW New Bataan


HPP at Barangay Andap, Municipality of New Bataan, Compostela Valley. The New Bataan Hydro Power Project is an electric generating plant using the hydro resource from Ma-a River.

• The main market for the New Bataan Hydro Project generated electricity shall be the Davao del Norte Electric Cooperative, Inc. (DANECO), which has exceeded its drawdown of its electricity from its contracted power supply from the National Power Corporation and PSALM.

• PM Jun facilitated a tour of the site allowing the OSFMC team to see the progress on the civil works of the weir, fabrication and installation of the conveyance lines and penstock, and ongoing construction of the power house. The overall progress is already 40% complete with an expected date of completion around the 2nd quarter of 2017.

• He further added that their current concerns include a.) Fast-tracked release of the Certificate of Precondition from NCIP and b) RROW for their transmission facility which DANECO is currently spearheading. PM Jun asked OSFMCs’ assistance particularly the release of Certificate of Precondition which has a bearing in the RROW for the Transmission Facility.

• EuroHydro recently signed a Renewable Energy Suppy Agreement (RESA) ensuring that the more than 13,700,000 kw-hrs. energy to be produced by the Project shall be absorbed by DANECO at Feed-in-Tariff (FIT) Rate of PhP5.90/kw-hr.


Suggestions/Next

• At the second quarter of the year 2016, the DOE-IPO planned to implement the EVOSS portal.

• As per DOE, In 2030 the emission target is 70% this will be accomplish through power sector.

• Final validation on different projects of RE developers.

• Signing of Memorandum of Understanding.


Hands-On Training on ENERGY VIRTUAL ONE-SHARED SYSTEM (EVOSS)

Date and Venue 12 APRIL 2016; at Shangri-La at the Fort Manila


• A short overview/introduction of what is Energy Virtual One Shared System all about, as discussed by DOE Sec. Zanaida Y. Monsada; EVOSS is a system conceptualized and developed by DOE-IPO with different partners B-LEADERS, stakeholders, government agencies.

• As per DOE, the government agencies should have an access on EVOSS, which having a database full of documents.

• Brief training on the usage/application of the Energy Virtual One Shared System portal/walkthrough, and was led by Mr. Dino Cavestany, USAID B-LEADERS personnel.

• Focal persons of each RE developers did an actual Hands-On Training on EVOSS; updated the status of their RE projects and were perfectly received and recognized by the system.

Suggestions/Next

The MinDA-OSFMC and PAFERN Team shall arrange a meeting with Engr. Silvano and the team from ORED, in 2nd week of May, to discuss matters on the RE program of NEA. Furthermore, the case of nominating IGACOS as a potential area for RE development (with the case of Solar PV) will also be discussed

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Coordination meeting with representatives from HEDCOR MPMC-One Stop Facilitation and Monitoring Center (OSFMC) Interface Meetings with various agencies under the Energy Sector

Date and Venue April 5-8, 2016Manila


National Electrification Administration (NEA)April 5, 2016 (AM)

• The MinDA-OSFMC and PAFERN Team met with NEA Administrator Edith Bueno, Deputy Administrator Ed Piamonte, Mr. Federico Villar Jr. from the Executive Department, Butch Silvano and Jayson Corpuz under the Office of the Renewable Energy Development (ORED).

• Mr. Bryan Diosma shared that the One-Stop Facilitation is pursuing the development of a comprehensive database on the power industry particularly the profile of Electric Cooperative in Mindanao. Administrator Bueno responded that such information is available in the NEA website or it can be coordinated with their respective division handling database and information.

• Mr. Diosma requested updates on DANECO/IGACOS submarine cable upgrading. Deputy Administrator Piamonte responded that it is still under evaluation and since the current submarine cable setup have been spliced 7 or 8 times already, they are considering the Pantukan to IGACOS, following the NGCP’s Study, to prevent vessels from hitting the said cable due to its depth and location.

• Administrator Bueno also shared the previous issues with DANECO CDA and NEA wherein a similar issue with Agusan Norte is surfacing. Though there is already a new NEA Law that puts all electric

The Team has already requested detailed information on RE Incentive Scheme with the UCAD group. It will also do a followup on the request for an update on the Agus VI unit 1, 2 and 4 rehabilitation.

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cooperative under NEA, the case presents various operational and organizational problems in the locality. Other ECs have their own issues and NEA keeps tab on these concerns.

• On the specific case of ZAMCELCO particularly on investment management of its general operations, the Terms of Reference and the General Assembly Resoultion is still underway. The said investment management scheme pertains to the Operations and Management by a third party group (private) of the said cooperative.

• Administrator Bueno added further that with respect to renewable energy development, NEA has a dedicated office called the Office for Renewable Energy Development (ORED) wherein they are enticing ECs to have their own generation facilities, as embedded.

• Engr. Butch Silvano shared to Dr. Campaner that they have an on-going renewable energy development program for Electric Cooperative that is to put a Solar PVs within the ECs premises. The ORED group would like to discuss further with MinDA-OSFMC on how both offices can collaborate on RE development.

Power Sector Assets and Liabilities Management (PSALM) CorporationApril 5, 2016 (PM)

• The MPMC and PAFERN Team team met with Mr. Ronald Conquilla, Acting Division Manager of the Corporate Planning Department, Ms. Rose A. Ramos, Division Manager of the Universal Charge Administration Department (UCAD), Ms. Zenaida Uiquino, Sr. Finance Specialist of UCAD.

• Mr. Conquilla presented the general


mandates of PSALM and specific information on RE Cash incentive for Missionary Areas of PSALM for SPUG/Missionary Areas.

• Mr. Diosma underscored MinDA priority on the establishment of the Mindanao Power Corporation Mr. Conquilla reaffirmed that there have been several discussions on MinPoCor Bill and they are also waiting for directions from their board and eventually with the congress. Moreover, when the new congress comes in, PSALM shall resume consultation on the proposed bill.

• Engr Reston shared there is an inter-agency task force on securing transmission facilities and PSALM is a member of the said group though he hasn’t seen a representative from PSALM attending their meetings.

• From PSALMS presentation on the privatization of NPC-owned assets, they have already privatized more than 8000 MW of installed capacity mostly from GenCo or owned-plant (4500MW) and IPP contracts (3600 MW). Around 3800MW of installed capacity that are still up for privatization. As of December 2015, they have already privatized assets with a total value of USD 19.88 Billion

• Mr. Conquilla stressed that the RE Cash Incentive is a generation-based incentive specific to RE developers that will operation in SPUG areas wherein the true cost per KWH will be subsidized by the said incentive scheme.

• Mr. Conquilla add that they are currently profiling all other assets particularly real-estate of NPC which can be used as assets for generation. These can be offered for rental, ie in the case of Pulangi which some of the real-estate assets have been rented/or leased.


• The team also requested updates on Agus VI units 1, 2 and 4 rehabilitation project which include actual site visit of these plants.

Philippine Electricity Market Corp. (PEMC)April 6, 2016 (AM)

• The team made a courtesy visit with Pres. Melinda L. Ocampo and some members of technical group to introduce the new team members of MPMC.

• In the course of the discussion, Mr. Diosma shared with Ms. Ocampo MPMC’s push for WESM in Mindanao to be able support the growing RE projects and for them to participate in the FIT incentive scheme.

• Ms. Ocampo suggested the DOE should settle issues with IMEM before WESM can get into the picture. She further added the DOE should fast-track the Renewable Energy Portfolio Standard (RPS) so that it would add to the support mechanisms for RE development in Mindanao.

• The team then proceeded to the training center to listen to a briefing about Whole Sale Electricity Spot Market (WESM). Ms. Katrina G. Amuyot, Training Assistant Manager provided the WESM 101 briefing.

Energy Regulations Commission (ERC)April 6, 2016 (Afternoon)

• The team met initially with Ms. Ellen C. Ebcas, Director III for Finance and Administration and discuss with her the purpose of the visit. Mr. Tejano highlighted the role of the One-Stop Facilitation and Monitoring Center that is assist in fast-tracking the development of Renewable Energy Projects in Mindanao.

• Engr. Reston shared that his unit is in-charge of the technical oversight of


all power concerns in Mindanao be it conventional or renewable-based energy projects. Currently he is monitoring the Power Supply Agreements (PSAs) in Mindanao and he is also interested in getting the contractual status of Electric Cooperatives (ECs) in Mindanao.

• Mr. Tejano further added that OSFMC team is also interested in getting inventory of stakeholders in Mindanao having Certificates of Compliance (recent) and list of DU/ECs with PSAs.

• Mr. Diosma requested updates on the Competitive Selection Process (CSPs) being implemented by ERC. Ms. Ebcas responded that the final guidelines on CSP is still underway and its implementation is put on hold until the end of April 2016. Operators that will apply for PSA prior on or before April 31, 2016 are exempted from CSP.

• The team was then directed to the Standards and Compliance Monitoring Division to discuss a particular project with HEDCor on the Manolo Fortich HP Project. Engr. Erwin Christopher C. Asuncion provided updates on the transmission application wherein HEDCor is presenting 2 options for the said transmission application. One is the advance construction of transmission facility in Brgy. Lingion, Manolo Fortich and will bus-in the Maramag-Tagoloan 138KV line and the direct connection of the MF HPP to the Tagoloan Substation. Engr. Asuncion and his team are currently assessing the cost-benefit of both options following the detailed presentation of HEDCor before they will present it to the Commission.

• Per information from Mr. Asuncion, if HEDCOR will take the option 2 that is to connect directly to Tagoloan substation, it will take them more time to process

Director Ebcas has already provided the point persons handling COCs and PSAs. The OSFMC and PAFERN Team shall coordinate further with the aforesaid point persons.

The OSFMC and PAFERN team shall further coordinate with the Standard and Compliance Division on the updated of the Manolo HPP Project

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RROW issues. On the other hand, Option 1 which is to construct in advance a substation in Manolo Fortich will generally be reimbursed by NGCP. The said cost will be transferred to the consumers in Mindanao as part of the transmission cost. He also said that their Grid Management Committee (GMC) recommended the option 2 that is connect directly to 69KV line to Tagoloan.

• Moreover, Mr. Asuncion stressed that under the EPIRA law proponents should seek first approval from ERC they pursue advance construction of switchyard or limited transmission point-to-point facility.

• After the technical meeting with Mr. Asuncion, the team proceeded to meet Commissioner (Atty.) Gloria Victoria C. Yap-Taruc and Commissioner (Atty.) Particia Josefina M. Asirit for a courtesy visit.

Transmission CorporationApril 7, 2016 (AM)

• The team met with the president of Transco Mr. Generoso M. Senal to introduce the new team members of MPMC. Mr. Diosma reiterated that the new structure of MPMC shall provide focus on the Renewable Energy Development in Mindanao thru the auspice of the One-Stop Facilitation and Monitoring Center (OSFMC).

• Mr Diosma added the partnership with Transco thru MPMC is critical in support of RE development in Mindanao given that TRANSCo is the Administrator of the Feed-in-Tariff Allowance (FIT-ALL).

• Mr. Senal shared that with the absence of a Sport market, Generators should go in to Renewable Energy Supply Agreement (RESA) as mechanism under FIT-ALL. With RESA, generators should deal with the


Distribution Utilities which will now form part of the Renewable Energy Payment Agreement (REPA) that is being handles/monitored by Transco. ERC provides the guidelines in the establishment of the RESA between the DU and the generator. Transco implements the guidelines under the RESA.

• Per Mr. Senal, the slow paced development or commercialization of RE projects in Mindanao with purview of FIT-ALL, can be attributed to the restrictive design of RESA. Moreover, with RESA there is already the consideration of the existence of Renewable Portfolio Standard (RPS). RPS provides a minimum standard as to percentage share that DU/EC must contract their power source from Renewable Energy (RE). Up to now, RPS is still being discussed under the National Renewable Energy Board (NREB).

• Mr. Senal then introduced Mr. Christopher Serrano to provide a standard presentation about Transco and Ms. Dinna O. Dizon, Head of the Fit-ALL Team, on updates on FIT-ALL implementation in (see attached presentation)

National Grid Corporation of the PhilippinesApril 7, 2016 (AM)

• The MinDA-OSFMC and PAFERN Team met with a representative from NGCP and introduced the new secretariat team for MPMC. Mr. Diosma highlighted the slow paced development of RE projects in Mindanao provided that there is limited support to RE operators due to the absence of a spot market that could have provided them a means to sell their excess capacity. He further added that the plan of connecting Mindanao to the Luzon and Visayas grid should spur the development of the energy spot market for Mindanao.


• The representative responded that Hydrographic Survey for Western Route is still on-going. He further added that if interconnection will happen, the question on transmission cost is still subject to further discussion.

• Mr. Diosma also asked some updates on the transmission lines of the 300MW Coal Fired Power Plant of San Miguel Corp in Malita, Davao del Sur. Target commissioning of the Malita-Matan-ao transmission project is the 1st quarter of 2016 and substation handling the said plant is already energized. This line is considered as a regular “transmission line” per ERC decision and SMC shall pay charges to NGCP by the month.

• The representative also requested forecasted information on energy requirements in Mindanao which may not have been captured by Dus/EC. They were able to collect these types of information previously but mostly only show development in the agriculture sector. They were also able to get demand forecast of the mining sector in Caraga region.

• Mr. Reston also requested updates on the transmission concerns of the 15MW Lamsan Biomass Energy Project. NPC

National Power CorporationApril 7, 2016 (PM)

• Mr. Urbano C. Mendiola Jr, the Vice-President for Corporate Affairs of NPC welcomed the MPMC Secretariat team and facilitated the courtesy meeting with NPC President Ms. Gladys Cruz-Sta. Rita. Mr. Diosma introduced briefly the new secretariat team of MPMC and PAFERN Team highlighting the focused work on Renewable Energy Development in Mindanao.


• VP Mendiola presented updates about NPC highlighting their Missionary Electrification Program and SPUG Program, and Tariff and Funding Sources (see attached presentation). Mr. Mendiola appreciated the work of MinDA-MPMC OSFMC in promoting renewable energy development in Mindanao and stressed that both agencies can collaborate on the missionary electrification program, particularly the SPUG areas. NPC/PSALM has this Cash Incentive Program for RE development that would entice proponents to operate in these SPUG areas.

• He added further that they have existing PSAs with RE developers to supply power to electric cooperative however they are faced with ECs credibility of being able to attend to their financial obligation (PSAs). The Competitive Selection Process (CSP), which was initially implemented in the SPUG areas, will generally facilitate the issues credibility.

• An RE developer has the potential to operate wholly in a SPUG area in the assumption that the rate is equal or lower than the Subsidized Approved Generation Rate (SAGR) of NPC. However, the RE operator should ensure the system should be able to handle high variability RE supply (in the case of Solar, Wind), though there are already hybrid technologies that implement both renewable and fossil-based.

• He also shared that there are also modalities under NPC that a private entity can buy-out the assets and operations of SPUG following certain processes and assessments (i.e. ERC, etc.). Further discussions were focused on RE development/support in the SPUG Area

Dr. Campaner met with Mr. Aaron Paguio, handling transmission application for Visayas and Mindanao. Mr. Paguio shared updates that they have requested additional

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Enfinity Asia Philippines LimitedApril 8, 2016 (AM)

• The MinDA-OSFMC along with Dr. Alexander Campaner and Engr. James Doldolia of PAFERN met with the Chief Operating Officer of Enfinity Asia Philippines Limited, Mr. Sonny Navarro, to inquire status updates on the various RE projects of Enfinity in Mindanao.

• Dr. Campaner added that the team is currently coordinating with the proponents of RE Projects particularly those that will be commissioned within 2016 to 2018 to determine if these projects are on schedule and how OSFMC can facilitate to fast-track development of these projects.

• Mr. Navarro appreciated the initiative of OSFMC to touch-base with the proponents of RE projects which are seldom being done by government institution under the energy sector. He further added that Enfinity is more focused on Solar PV Projects and currently they have an operational Solar PV project in Digos, and other upcoming projects in Hagonoy and Butuan City.

• He mentioned that their Digos project is already operational but they are facing an issue with land registration in one of their leased land. He is hoping that OSFMC can look at their concern and if the agency can help in identifying potential sites for Solar PV (i.e. Ecozones)

REPower Development Corp.April 8, 2016 (AM)

• The MinDA-OSFMC and PAFERN Team met with Mr. Harald Tomintz, Chairperson of Coal Asia Holdings, Mr. Johnson Sanhi, Chief Operating Officer of REPower, and Mr. Dexter Tiu. The team provided a background of the visit and some

information from Lamsan on the transmission site like soil study, etc. Mr. Paguio is willing to coordinate with PAFERN anytime on matters of the Lamsan Project. Dr. Campaner will coordinate further with Mr. Paguio after PAFERNs site visit with LAMSAN.

PAFERN Team shall further coordinate with NPC for detailed profile of the SPUG area which may include geographics, marco-economic situtation, power development profile. The team also requested

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updates on the One-Stop Facilitation and Monitoring Center (OSFMC) initiative.

• Mr. Tomintz appreciated OSFMC’s work of coordinating directly with the proponents since they have not seen DOE or similar agency doing a similar action of visiting the proponents for issues and concerns of their project. He added that they have an outstanding on and off collaboration with the National Power Corporation with their proposed an implementation of a run-of-river Renewable Energy Project that utilizes innovative technology applied at Head and/or Tailrace of Pulangi IV. The said project shall add 10 to 14 MW additional power to the grid.

• Mr. Tomintz frustration is on NPCs slow paced response in getting concrete directions how to go about the project considering that this concept has been presented to them 10 years ago. At the moment, NPC and REPower are still working on the Memorandum of Agreement since the concept was presented at the time. He really wanted OSFMC to intervene with their case.

• Mr. Sanhi relayed to Dr. Campaner that their current project is with the Pulanai HPP in Bukidnon and they will likely have the ground breaking ceremony on May 2016. They will invite Sec. Antonino for the ground breaking ceremony once they have finalized the dates.

LAMSAN Power Corp.April 8, 2016 (Afternoon)

• MinDA-OSFMC Team, Dr. Alexander Campaner and Engr. James Doldolia met with Mr. Christian Lu, the Chief Operating Officer of the LAMSAN Holding Corp. at their Makati Office to discuss updates on the OSFMC initiative and to request permission from their office for the

updates on the Agus VI uprating project which include units 1, 2 and 4.

The MinDA-OSFMC and PAFERN Team shall coordinate with Mr. Dion Gumarang, the project manager for the Digos Project to be able to determine details of the issue. It will schedule a site visit of their Digos Solar PV Project on April 12, 2016.

Dr. Campaner already requested a copy of the MOA drafted by REPower Corp including correspondence with the National Power Corp related to the said project. A CSW shall be conducted by the OSFMC and PAFERN Team with NPC to determine additional details related the project.

PAFERN Team shall schedule a visit of their Biomass Plant on April 13, 2016. VP Lu has already confirmed the team’s visit and relayed his instruction to Engr. Emerald Gabatilla assist the team.

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conduct of actual site inspection of their 15MW Biomass Project in Sultan Kudarat, Maguindanao.

• VP Lu shared that their current concern is with their Transmission facility which NGCP has not yet responded/or provided directions/approval on their proposed facility specifically civil works and specification for the switchyard relays and panels.

Suggestions/Next

• A Chamber of Commerce representative suggested for OSFMC not to limit its monitoring to pre-development and development/investment stages of RE projects but also cover those after their approval and start of operations. This is because there are still many issues and problems which hampers RE implementation e.g. various permits and fees arising during the construction and operations stages.

• She noted that even if they (in STEAG) are now in the operations stage, they still have to contend with 156 signatures annually. The facilitation center might also wish to study this and help streamline the process further.

• She recalled that most of the fees or signatures required in the post-investment stages are those that emanate or are required by the local institutions – LGUs, etc. Consequently, because

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RE Investment ForumMarch 17, 2016

Demand Side Management (DMS) – Capacity Building ActivityMarch 18, 2016

Date and Venue March 17-18, 2016; N-Hotel, Cagayan de Oro City


March 17, 2016

• The Regional Dialogue on the Mindanao Power Situation is a regular info-sharing session being conducted MPMC on matters affecting the Power Industry in Mindanao

• The info sharing session involved a presentation by DOE and MinDA on the current Mindanao Power Situation and updates on the MPMC-One Stop Facilitation and Monitoring Center.

• DOE, represented by Engr. Noriel Reyes presented the power supply and demand outlook for Mindanao upto 2020 including a list committed and indicative RE projects in Mindanao. He highlighted a substantial power supply in the years to come for Mindanao.

• MinDA OSFMC presented updates on the status of facilitation and monitoring of RE Power projects in Mindanao. The presentation highlighted the need to fast-track approval and development of RE Power Projects to reverse or generally pursue a 50/50 energy mix for Mindanao (50% RE and 50% fossil-based). From the report of DOE, Mindanao will generally get an energy mix dominated by fossil-based at 70% by 2017.

• Mr. Brian Diosma, MPMC Technical Head, presented highlights on the Mindanao Power Situation particularly the effects of

many issues emanate from the ground, it was suggested that DILG becomes part of the OSFMC.

• Mr. Donggay of Greenergy also suggested to look at their Pulangi V HPP and the Bulanog-Batang HPP if OSFMC can assist them in their permitting concerns.

• A PhileEXport rep also raised the following queries: Considering the fact that NGCP is responsible for the maintenance and upkeep of the power lines and the towers thereof, does this mean that transmission charges may increase if the trouble with the security of the lines and towers persist.

• Aside from Mr. Pitlock, Mr. Maximo G. Marquez of the Department of Energy discussed the significance of DMS in the power sector while Engr. Glenn Jay A. Reston of MinDA discussed the current power situation in Mindanao.

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the El Nino phenomenon to the total RE Generation for Mindanao. He also shared updates on the Agus Transmission Towers that were sabotage last December 2015 that have affected Agus 1 and Agus 2 power plants and unable transmit power to the grid for almost 3 mos. The affected towers were already repaired after the issuance of a TRO to the landowners to allow NGCP personnel to conduct necessary repairs. Both Agus 1 and Agus 2 are now able to transmit power to the grid since March 17, 2016.

March 18, 2016

• The capacity building activity was organized by Mindanao Development Authority in partnership with USAID’s Building Low Emission Alternatives to Develop Economic Resilience and Sustainability (B-LEADERS) which aims to enhance the capacity of the electric cooperatives and distribution utilities on demand side management in light of the challenges being faced by the Mindanao power sector.

• Representatives from different electric cooperatives and distribution utilities in Northern Mindanao attended the event with Mr. Michael Pitlock from USAID B-LEADERS as the main resource speaker who discussed energy conservation measures for electric cooperatives (ECs) and distribution utilities (Dus). Attached to this report is the attendance sheet for the said activity.

• The core technical training provided by the USAID Resource Person, Mr. Michael Pitlock is on the importance of Energy Demand Side Management and how EC can implement such scheme in their francise areas. He also highlighted that implementing DMS may entail cost but this can recovered through rate adjustments in


their franchise area. Rate adjustment to recover DMS is supported by EPIRA law.

• Mr. Pitlock also presented several option for determing Cost-Benefit Analysis whenever Ecs/Dus decides to implement a DMS scheme (i.e. technology driven, policy, behaviour changes, etc)

Suggestions/Next

OSFMC Team recently had meeting with the Vice Mayor of the Island Garden City of Samal, Mr. Uy and a representive from a Solar PV solution provider last December on the putting up of a Hybrid Solar Project in Island of Talicud, Samal. From their proposal, they are looking at a proposed rate of Php 15/kwh.

In light of the meeting with Wenergy, Mr. Raymond R. Tejano, Engr. Glenn Jay A. Reston and PAFERN Team will get in touch again with the Vice Mayor hope to provide him initial information on WENERGYs portfolio hoping to get his interest of getting in touch with the group provided they have successfully implemented a Solar PV project in Palawan which can be implemented similar in Talicud.

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COORDINATION MEETING WITH WENERGY GLOBAL CORPORATION AND DOE-INVESTMENT PROMOTIONS OFFICE

Date and Venue January 21, 2016

Gigawatt Power, Inc.55 Bayani Road, GPI Building, Taguig

Investment Promotions Office (IPO)Department of EnergyPNOC Complex, Fort Bonifacio, Taguig

Discussions/Highlight Meeting(January 21, 2016, AM)

• WENERGY Global PTE LTD is one stop-solution provider of renewable energy systems and technologies for energy-efficiency in buildings. They also design, procure and build power plants such as Solar PV, Biomass, Small Hydro Power and Wind. They also build, own and operate renewable energy power plants and work together with equity financers and investors.

• Raymond R. Tejano, Engr. Glenn Jay A. Reston and PAFERN Team met with the principals of WENERGY Global particularly their Chairperson Atem S. Ramsundersingh and Ms. Anne-Marie Bakker, Head of WENERGY Philippine Office following their request for a meeting with representatives from MinDA so that they can introduce their company and how they can be involved in the power development program in Mindanao . They have heard of MinDA and the Mindanao Power Monitoring Committee/Power Development from their local partners and from the social media.

• Mr. Ramsundersigh shared to the group that they consider their company a new entrant in the Philippine-RE development scene. On the other hand, their RE development engagements in Europe


have successfully implemented 9 Solar PV Projects with combined installed capacity of 55MW.

• In the Philippines, they have successfully implemented and operated a 2.4 MW Hybrid Power Plant and 15km microgrid in Barangay Cabayugan, Puerto Princesa, Palawan in 2014. The said project called “Sabang Project” incorporates 1.4 MW Solar PV, a clean battery pack of 1.7MW and 1MW diesel generator and 15km smart grid power 24/7 to 650 small and large-off takers in their area.

• The said project is in QTP (Qualified Third-Party) scheme and is a Joint Venture of WENERGY PTE LTD, Gigawatt Power Inc. (local-tech partner), and Vivant Corp (Cebu). Currently the project is charging at a rate of Php 10/kwh.

• He highlighted the company’s big desire to become a major solutions provider/player in Mindanao particularly targeting undeserved areas in the region (off-grid/SPUG sites). He wanted to explore RE opportunities in Mindanao with MinDA’s direction/assistance and network.

• The Mr. Raymond R. Tejano shared to WENERGY a short background about MinDA and its mandate, the Power Development Program highlighting the MPMC platform, and OSFMC as one of the project. Mr. Reston underscored in his presentation various opportunities in RE development with the growing demand for power. MinDA’s advocacy of increasing the RE energy mix which will be predominantly operated by fossil-based sources in 2 to 3 years time. Mr. Raymond R. Tejano also shared that a study has been commissioned by USAID-CYNERGY identifying potential development sites for Biomass, and Hydropower.


Meeting with DOE-IPO

• The Mr. Tejano met with Ms. Hazel Ocenar and Ms. Lisa S. Go of DOE-Investment Promotions Office to discuss concerns on database development of RE projects in Mindanao in relation to OSFMC and EVOSS initiative.

• The Mr. Tejano shared to Ms. Go on lack of technical information in the RE Project list provided by IPO which hinders OSFMC group to effectively monitor/facilitate RE project concerns.

• Ms. Go and Ms. Ocenar shared their sentiments that they too are presented with these concerns having to rely with the another group for basic/detailed data, which is the Renewable Energy Management Bureau (REMB). They are currently having challenges with REMB of extracing project information.

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