The PEP said the government will be providing counterpart funding of P279.1 billion for the implementation of programs and projects such as rural electrification and promotion and development of indigenous energy resources.
Based on the PEP, the capital-intensive sectors – power and energy resource development – will jointly account for P1.3 trillion or 70 percent of the required investment. This amount will cover putting up of additional power plant capacity and the implementation of transmission/substation projects (P817.9 billion) as well as the exploration and development of indigenous sources of energy (P497.8 billion).
The balance – P563.5 billion – will be needed to finance projects in electrification, downstream, new and renewable energy, energy efficiency and environmental protection.
According to the PEP, the private-sector-denominated activities in resource development (oil, gas, hydropower, geothermal and coal sub-sectors) will require some P497.8 billion to implement
Of this amount, P292 billion or P58.7 percent will be required for the production of oil and gas from Nido, Matinloc, Cadlao, San Antonio and Malampaya oil and gas fields.
Expected to come on stream within the next five years are Galoc Oil Field and the Libertad Gas Field. To further expand the country’s oil and gas reserves, the sector will drill 50 wells during the period.
Under the PEP, the exploration and development of geothermal steamfields from the areas of Mambucal, Montelago, Rangas and Cabalian in three to four year’s time and from seven other areas in the next five to 10 years will cost P96.4 billion.
The hydropower development program will require P84.3 billion or 16.9 percent of the total energy resource development financial program. Of this, the government will provide for 56 percent or P47.2 billion. The balance of P37.1 billion will be sourced from the private sector.
The coal development program, on the other hand, will require P25.2 billion solely from the private sector. The program will lead to increased production of indigenous coal, for use mainly in mine-mouth coal-fired power plants.
The investment for the oil downstream sector will amount to P132.4 billion or seven percent of the total investment required in the PEP, which will be sourced solely from the private sector.
Capital investment for the development, promotion and commercialization of NRE will amount to P44 billion, or 2.3 percent of the PEP’s total financial requirement.
The rest of the financial requirement will be utilized for the development programs in the area of rural electrification, energy efficiency and energy-environmental management.