EDC inks MOA with host communities
By Lenie Lectura -February 25, 2020
from Business Mirror
ENERGY Development Corporation (EDC) has committed to set aside one centavo per kilowatt-hour (P0.01/kWh) of its total electricity sales to its host communities.
A memorandum of agreement (MOA) was signed recently between EDC and its beneficiaries in compliance with the Department of Energy’s (DOE) Circular DC2018-08-0021 that requires energy generation companies and energy resource developers to directly provide their Energy Regulation (ER) 1-94 benefits.
Under Rule 29(A) of the Electric Power Industry Reform Act of 2001’s Implementing Rules and Regulations (Epira–IRR), 25 percent of the P0.01/kWh of the total electricity sales shall be set aside for Development and Livelihood Fund (DLF) and another 25 percent shall be set aside for the Reforestation, Watershed Management, Health and Environment Enhancement Fund (RWMHEE) for use by the host region, province, city or municipality and its barangays, which are required to establish the corresponding trust accounts.
The funds used to be released by the DOE. While the exact amount is still being computed, EDC will be able to directly remit this benefit to its beneficiaries on a quarterly basis beginning this year once they have opened the trust accounts.
Ormoc City Mayor Richard Gomez and Municipality of Kananga Mayor Manuel Vicente M. Torres were present for the ceremonial MOA signing held at the Ormoc City Government’s Multipurpose Hall.
Signatories to the memorandum included: barangay captains Eric Gonzaga of Lim-ao, Kananga, Leyte; Angelito Napoles of Tongonan, Kananga; Wilma Taneo of Tongonan, Ormoc City; Hilario Singson of Milagro, Ormoc City; Richard Impas of Lake Danao, Ormoc City; and Rodelito Cantay of Cabintan, Ormoc City.
These barangays are hosts of EDC’s 711-megawatt (MW) Leyte Geothermal Project, the company’s biggest geothermal facility that also possesses the world’s largest geothermal steamfield.
“Being able to directly disburse our partner communities’ benefits as hosts of our geothermal facilities will also help us strengthen our relationship with them as we provide them with the necessary guidance on the use of the funds for community projects” said Atty. Allan V. Barcena, head of EDC’s corporate social responsibility (CSR) and public relations group.
The MOA specifies that the host barangays are to submit their annual work program for the tangible projects where the funds will be used, as well as report on the status of the said projects at the end of each year.
EDC’s Leyte geothermal facility that straddles Ormoc City and the Municipality of Kananga currently supplies more than 30 percent of the country’s installed geothermal capacity. It is also responsible for putting EDC and the Philippines on the map as the world’s third largest geothermal producer.
