In a report, covering the first quarter this year, the DOE said it approved the funding for electrification of 52 barangays in provinces that host power projects amounting to P50.4 million. The amount, will come from the Electrification Fund, which is sustained by contributions from energy developers and power producers.
The fund, which was established in 1994 and made operational by Energy Regulations (ER) 1-94, is under the stewardship of the DOE. Under the law that created the DOE, energy proponents are mandated to contribute one centavo for every kilowatt they sell.
Half of the fund is poured into missionary electrification. The balance is shared by development projects, which include livelihood development watershed management, reforestation and health and sanitation.
"We have to make sure that communities that host energy projects share in the bounty of their natural resources and directly benefit from these power projects," Energy Secretary Jose Isidro Camacho said.
"What we are doing now is looking at ways and means to hasten the release of funds so that we can provide more of our people in the countryside electric power to support their development needs," he said.
Last week, Camacho met with heads of independent power producers to encourage them to help the DOE in accelerating the rural electrification program. Last year, four IPPs entered into a memorandum of agreement with DOE to advance their contributions so that electrification funds can be made available sooner.
State-owned Philippine National Oil Co.-Energy Development Corp. committed funds to energize 129 barangays in Leyte; Mirant (formerly SEPHI), 90 barangays in Quezon and Camarines Sur; Salcon Energy-30 barangays in Cebu and Keilco-60 barangays in Mindoro.
Since 1994, DOE has released a total of P842.71 million from the ER 1-94 funds for 1,127 community development projects, half of which were for missionary electrification projects. Last year, ER 1-94 was amended to increase the allocation of the fund for electrification.