Almendras wants to speed up review of all service contracts

MANILA, Philippines - The Department of Energy (DOE) has yet to complete a review of all its energy service contracts Energy Secretary Jose Rene Almendras, however, was quick to point out that they would want all those contracts with legal issues be threshed out at the soonest possible time.

“My intention is to speed up all exploration so I’m trying to weed out those legal problems,” he said.

For one, he cited the case of Service Contract 72 formerly the highly-controversial Geophysical Survey and Exploration Contract (GSEC) 101.

“SC 72 in now in court. We have to wait. As far as we’re concerned, they already have the SC so they’re already moving in on it,” he said.

But he said the DOE could not do anything if there are legal issues confronting the SC holders.

Almendras has ordered the review of all service contracts entered into by the department for the past years.

He said this move is consistent with President Aquino’s mandate of a “level playing field, Walang Lamangan” thrust on all government projects.

He said this will also be compliant with the overall objective of promoting transparency in all transactions entered into by the government including the energy sector.

“We are reviewing all the service contracts. I have announced [to] the agencies already. I want to understand all the awarding of the service contract. I am reviewing all the contracts, even the geothermal,” he said.

The DOE recently signed an agreement with Forum Energy Plc to finally convert its GSEC 101 to Service Contract 72.

Since 2005, the department has engaged in public contracting rounds in an aim to make the bidding of energy contracts more transparent.

When the Philippine Energy Contracting Round (PECR) was introduced no more service contracts were awarded without passing through this process.

So far, there were 13 petroleum service contracts, 19 coal operating contracts and a handful of geothermal exploration development and exploration contracts that are worth well over P1 billion in investments that were awarded under the PECR.