DOE expects more Korean investments

MANILA, Philippines – The Department of Energy (DOE) expects to corner more investments from Korea especially in the area of renewable energy.

Energy Secretary Angelo Reyes told reporters that they are looking forward to forging new investment contracts with Korean businessmen. 

“In Korea, we will, of course, explore further cooperation in the area of energy and renewable energy technology and investments,” he said.

Reyes is part of the official delegation that accompanied President Arroyo to Korea.

The Energy chief said he would be aggressively promoting the development of RE projects in the Philippines with the recent signing of the RE Act of 2008’s implementing rules and regulations (IRRs) which will take effect on June 12 this year. 

“Definitely, we are all encouraged by the passage of the RE Act of 2008 – and that’s the way forward, a picture of the future, everybody will be going towards that direction, and the Act provides the legal framework for achieving this now we have the policy and mechanism for it with the completion of the IRR. We have published that in the newspaper and that will become effective on June 12,” he said.

Over the weekend, it was announced that Korea East West Power Co., Ltd. (EWP), a wholly owned subsidiary of Korea Electric Power Co. (Kepco), has committed in principle to invest $50 million into Alternergy Philippine Holdings Corp., for investments in wind power projects in the Philippines. 

This was announced by Undersecretary Elmer C. Hernandez, managing head of the Board of Investments, who signed the memorandum of understanding along with Lee Gil-Gu, CEO of EWP, Vincent Perez, president of Alternergy and former Philippine Energy Secretary, and Kim Dong-Soo, chairman of the Export Import Bank of Korea (KEXIM) in a ceremony held at the Blue House on May 30, 2009 on the occasion of the official visit of President Arroyo to Korea.  KEXIM for its part has committed to provide up to $150 million in project loans to finance wind power projects that EWP and Alternergy will be undertaking in the Philippines.