The government’s share in the Malampaya fund now stands at roughly P124 billion, the Department of Energy (DOE) said.
DOE-Energy Utilization Management Bureau Director Patrick Aquino told lawmakers last week during deliberations on the agency’s proposed 2022 budget that the total collection from the Malampaya Deep Water Gas-to-Power project from January 2002 to June 30 amounted to P332,061,684,842.47.
Of which, P208 billion is being utilized for the payment of Universal Charge-Stranded Contract Costs (UC-SCC) and UC-stranded debts (UCSD) transferred to and assumed by the Power Sector Assets and Liabilities Management Corp. pursuant to Section 49 of Republic Act 9136 or the Electric Power Industry Reform Act (EPIRA) of 2001.
This is in accordance with the Murang Kuryente Act which mandates that the Malampaya fund would be used to pay the debts of the National Power Corp. (NPC) being charged to consumers as reflected in their monthly electricity bill.
UC-SCC is the excess of the contracted cost of electricity under eligible independent power producer contracts over the actual selling price of the contracted energy output.
UCSD are the unpaid financial obligations of the NPC that have not been liquidated by the proceeds from the sales and privatization of its assets.
During the hearing, lawmakers pressed the DOE to be transparent in providing details as to how the Malampaya fund is being spent.
DOE Assistant Secretary Gerardo Erguiza, Jr. explained that whatever DOE collects from the Malampaya gas field is turned over to the National Treasury.
“This goes directly to National Treasury….The total collection is about P300 billion. More or less, what is left is P100 billion. It is only through Congress that the Malampaya fund can be used. Whatever Congress wants, whatever you pass, whatever purpose you want this to be used then that’s where it will go,” said Erguiza.
DOE officials said they would formally submit a report on the disbursement of the Malampaya funds. Under Service Contract (SC) 38, 70 percent of the gross proceeds from the sale of natural gas would go to the contractor to recover the investment cost. The remaining 30 percent is shared by the government and the Malampaya consortium on a 60-40 basis, respectively.
SC 38 was awarded to the Malampaya consortium, which is currently composed of UC38 LLC, a subsidiary of Udenna Corp. (UC), 45 percent; state-owned PNOC Exploration Corp., 10 percent; and Shell Philippines Exploration B.V. (SPEX), 45 percent.
However, a deal was sealed between SPEX and another UC firm controlled by Davao businessman Dennis Uy. Malampaya Energy XP Pte. Ltd. had signed a deal with SPEX to sell its 45-percent operating interest in SC 38, which includes the Malampaya gas field. The turnover to Malampaya Energy is expected to be concluded in December this year.
