DBM releases P2.6B as share of Palawan from Malampaya

The Department of Budget and Management has approved the release of P2.6 billion for the initial tranche of the Palawan government’s share in the royalties from the $4.5-billion Malampaya gas project.

Palawan has been pursuing its claim for its 40-percent share from the Malampaya proceeds which is still pending in court.

The release of the fund, however, was made possible through an interim agreement with the National Government and an Executive Order issued last year.

Based on the interim agreement, the provincial government of Palawan, the first and second congressional districts, will each get a third half of the 40-percent government share of the Malampaya proceeds to fund projects and programs from the annual investment plan that has been approved and ratified by the Palawan Provincial Board.

 “This is a win-win solution for Palawan,” Palawan governor Joel T. Reyes said. 

Reyes explained that since it would take time before the Supreme Court decides with finality the pending petition for declaratory relief, the provincial government and the National Government agreed to utilize the proceeds of the government share without prejudice to the case. 

 “With the Malampaya proceeds, we can now start to fast track the medium term development plan and seize current economic opportunities towards the leapfrogging of the province to achieve our desired economic goals,” Reyes said.

According to Reyes, the provincial government has already identified projects to be funded out of the Malampaya proceeds.

Palawan provincial information Officer Rolando E. Bonoan, Jr. said the list of projects has to pass the scrutiny of the Department of Energy (DOE) for approval and later submitted to the Department of Budget and Management as basis for the release of the funds.

Nearly half of the share of the province amounting to about P960 million is allocated for intermodal transport and other infrastructure program. 

Other projects include the concreting of several provincial roads in 10 municipalities in northern and southern Palawan; the installation of solar home systems under the Barangay Electrification Program in about 4,000 households in 36 barangays in 11 municipalities amounting to P116 million; improvement of South Palawan Provincial Hospital facilities and equipments; construction of Northern Palawan Provincial Hospital under the Health Care and Services Program worth P80 million; construction of more than 80 classrooms in different municipalities with a budget of P110 million and the Teachers Pool Program and scholarship program with a P20- million fund each under the Educational Enhancement Program with total funding of P150 million.

Also included in the Malampaya-funded projects are 33 day care centers under the Early Childhood Care and Development Program for construction in different municipalities amounting to P30 million. 

Bonoan said except for some programs, the allocated funds for infrastructure projects will come in tranches depending on the status of implementation.

He said the DOE will monitor project implementation and the department’s assessment will serve as basis for the release of additional funds earmarked for the project.