DOE releases guidelines for new lending program

The Department of Energy (DOE) released yesterday the guidelines for the implementation of the Gasoline Station Training and Loan Fund (GSTLF) which aims to provide technical and financial assistance to those intending to establish and operate their own gasoline stations.

These guidelines are consistent with a provision of the Downstream Oil Industry Deregualtion Act of 1998 which calls for the release of a P300-million fund from the Philippine Amusement and Gaming Corp. (Pagcor) to help promote competition in the oil industry.

Bulk of the fund or some P282 million will be used for lending to interested entrepreneurs who want to start their own business of retailing petroleum products.

Under the guidelines, individuals, partnerships, cooperatives, associations, non-government organizations and corporations may enter into joint venture/supply agreements with the new industry players for the establishment, management and operation of gasoline stations including liquefied petroleum gas (LPG) retailing.

Interested parties will be entitled to a loan equivalent to 50 percent of the total project cost but not exceeding P5 million with an annual interest rate of only six percent.

"We are very pleased to announce that the DOE will now be ready to accept applications for technical and financial assistance for the establishment of gasoline stations. To promote stiffer retail competition in this sector, joint ventures with the newer oil industry participants for the supply of petroleum products will be given preferential treatment for the training and loan fund," Energy Secretary Vincent S. Perez said.

The eligible project expenditures for financial assistance include: payment for purchase of equipment to be used for the operation of gasoline station, payments for the purchase of equipment related to safety and environmental protection, payments for purchase for the actual installation costs of equipment and construction and payment for the initial purchase of petroleum products.

But prior to the actual availment of the loan, the applicant must complete a two-fold training program on management and skills training that will be conducted by the Technology and Livelihood Resource Center (TLRC) and the Technical Education and Skills Development Authority (TESDA). – Donnabelle Gatdula