CEBU, Philippines — The Cebu Provincial Government is set to have another source of revenue to its coffers, through its legal share from the Camotes Island Power Generation Corporation (CAMPCOR).
Governor Gwendolyn Garcia has signed a memorandum of agreement (MOA) with Engr. Jose Rommel Orillaza, CAMPCOR president, for the opening of trust fund account where share of the Province from the electric sales will be deposited.
Under the agreement, CAMPCOR is required to remit the revenue share of the Capitol quarterly.
“The establishment of trust accounts ensures that these funds are managed transparently, with Province of Cebu responsible for maintaining them in accordance with the guidelines set by the DOE” according to the Capitol Information Office, through its Sugbo News Facebook page.
The revenue share is provided under the Internal Rules and Regulations (IRR) of Republic Act 9136 or the Electric Power and Industry Reform Act of 2001.
Under Section 29 (a) of the said law, host local government unit (LGU) are entitled of the financial benefit equivalent to one centavo per kilowatt hour (P0.01/kWh) from generation facilities like CAMPCOR.
In the same IRR, the Province is entitled of the 30 percent share from the 25 percent of one centavo per kilowatt-hour (P0.0025/kWh) of the total electricity sales as a development and livelihood fund (DLF), and Reforestation, Watershed Management, Health and/ or Environment Enhancement Fund ( RWMHEEF).
It said that the designated resettlement area gets 5 percent; host barangay (20 percent); host municipality or city (35 percent) and host region (10 percent).
CAMPCOR is currently supplying 8.41 megawatts of power to Camotes Island comprised of the towns of Poro, San Francisco, Tudela and Pilar.
The generation facility is providing power to Camotes, through its diesel and generating unit, under the agreement with Camotes Electric Cooperative Inc. (CECI) for 15 years.
It is under the power group of Prime Asset Ventures Inc., (PAVI). –/ JG (FREEMAN)