About P2 trillion in value projects, mainly in the field of renewable energy (RE), seek accelerated processing through the One-Stop Action Center for Strategic Investments (OSACSI), a Board of Investments (BoI)ffcially said.
BoI Investment Assistance Service and OSACSI Director Ernesto C. Delos Reyes, Jr. said there are about P2 trillion projects in the pipeline that will apply for green lane processing.
“I think there are more than 90 projects, and most of them are renewable energy. Some will apply before the end of the year, but some of them said they will apply next year,” he told reporters on Friday on the sidelines of a renewable energy forum organized by the Economic Journalists Association of the Philippines and Aboitiz Power Corp.
The government has established green lanes across all government agencies to speed up the approval and registration process for priority or strategic investments.
Mr Delos Reyes said the center is now focusing on streamlining the processes. He said a joint Memorandum Circular (JMC) on the simultaneous processing of permits among 38 members of government agencies of the Investment Facilitation Network is expected to be released this year.
Currently out of FIn its final draft, the circular aims to avoid delays in granting permits and licenses that hinder the construction and commercial operation of strategic projects.
Since September, the BoI has approved €4.3 trillion in investments for 158 projects to the OSACSI. Of the total, 128 projects worth P3.91 trillion involve renewable energy.
Investments in RE projects increased after the government allowed full foreign ownership in the sector, which was previously limited to 40%.
Mr. Delos Reyes said the BoI is working to increase the number of investments in manufacturing.
Only two manufacturing projects worth P29.61 billion were given green track status.
“Most projects are in RE. So we are working on bringing in more production projects. Although RE will support these manufacturing projects,” he said.
A Thai Fnot involved in production FIbercement will be approved for green lane treatment this week, Mr Delos Reyes said.
“They will produce their product here, and that will create jobs,” he said. “And they will be a pioneer for that product.”
However, Mr Delos Reyes said the OSACSI will need more manpower to deal with the increasing interest in green lanes.
“We have a shortage of manpower. And while the executive order says we can add more people, we need more budget,” he said.
“That is why the Strategic Investment Priority Plan board and the BoI have limited the activities that can qualify for green lanes,” he added.
Green Lane treatment can be given for strategic investments in clean energy sources, green metals, electronics, defense related projects, aerospace, electric vehicles, pharmaceuticals, liquors.FThis included natural gas storage, public-private partnerships and infrastructure projects, specialized hospitals, water treatment, new products and other new technologies.
Mr Delos Reyes said they are now considering putting a threshold on the investments that green lane services can secure.
He said the initial plan is to align the threshold with the Energy Ministry’s National SigniFiance project.
“I think their threshold is P3 billion… because there are some small projects that are applying for green lanes,” he said.
Having a threshold will allow the agency to focus on strategic investments, he added.
“But this still needs to be approved by the BoI board,” said Mr. Delos Reyes.
FAST LANE
Meanwhile, the Securities and Exchange Commission (SEC) aims to accelerate the introduction of securities registration of power generation companies next year to entice more investment in the energy sector.ffcially said.
SEC Commissioner Javey Paul D. Francisco said the initiative, called Securing and Expanding Capital for PowerGen Operators and Wholesale Electricity and Retail Services (SEC Powers), simplyFi.e. the registration of securities for energy generation companies and distribution companies.
“SEC Powers is a kind of fast lane where we will prioritize the registration of investments in the energy sector. We plan to launch that early next year,” Mr. Francisco told reporters on the sidelines of a renewable energy forum on Friday.
“Under the guidelines, the SEC Markets and Securities Regulation Department will complete the review of the registration statement of power generation companies and distribution companies within 45 days of filing, in accordance with the requirements of the Securities Regulation Code; the Revised Corporate Code of the Philippines; and relevant SEC issuances,” he added.
Mr. Francisco said the guidelines are in accordance with Republic Act No. 9136, or the Electric Power Industry Reform Act of 2001 (EPIRA), which directs power generation companies and distribution companies to oFoffer and sell at least 15% of their shares to the public.
He noted that SEC Powers are granted under SEC Memorandum Circular No. 4.
“We will soon officially launch these guidelines, together with our counterparts at the Energy Regulatory Commission, to further promote the initiative to the companies involved,” Mr. Francisco said.
“The fast lane will have a dedicated staffFf to view the registration instead of going through the regular process. The general concept we have is to make it easier to comply with the rules and to make processing faster,” he added.
According to Mr Francisco, the guidelines will also waive the minimum audience requirement of 20% FSalary requirement for listed companies in favor of the minimum requirement of 15% under EPIRA.
“The simplified procedure is expected to increase private capital inflows and broaden the ownership base of the power generation, transmission and distribution sectors as provided for in EPIRA,” Mr. Francisco said.
“Access to capital and promoting investment FLows are critical to allowing companies to expand and transition to more renewable energy sources. This allows companies to reach greater distances and provide electricity.Flung areas in the Philippines,” he added.
Renewable energy currently comprises 22% of the country’s energy generation mix. The government aims for renewable energy to contribute 35% by 2030 and 50% by 2040 under the Philippine Energy Plan 2023-2050.
The Energy Department expects that more than 4,000 megawatts (MW) of energy projects will come online this year, of which 2,000 MW will come from conventional plants and 2,000 MW from renewable energy sources. — Justine Irish D. Table And Revin Mikhael D. Ochave