Implementation of the Coal Development and Utilization Program

October 16, 1978

LETTER OF INSTRUCTIONS NO. 752

WHEREAS, the accelerated coal development program has shown the suitability and adequacy of coal for use in industry, particularly the cement manufacturing sector. cd

WHEREAS, the decision on the timing of the development and utilization of these resources as well as attendant logistic support must now be made in relation to the government's definite programs to convert oil-fired industrial plants into coal-fired plants.

WHEREAS, the Ad Hoc Committee constituted pursuant to Letter of Instructions No. 718 has prepared and submitted a report on the "National Plan on the Development, Production and Utilization of Coal," which I have approved, prescribing the timetable for the conversion into coal-fired plants of suitable industrial plants, particularly the cement plants, the sources of financing and other government assistance. cdt

Accordingly, to define the component implementing actions to carry out an over-all integrated approach to the coal program, you are hereby ordered to implement the following directives: acd

1. The Ministry of Energy shall coordinate and oversee implementation of the coal development and utilization program embodied in the national plan and shall ensure a continuous and adequate supply of coal as well as the distribution of the same consistent with the country's economic growth and taking into consideration the participation of the private sector. Pursuant to this directive, it shall, among others, continue to judiciously conclude coal operating contracts under the terms and conditions of the Coal Development Act of 1976, as amended; undertake vigorously the exploration and development of new coal areas and known coal areas not otherwise explored and developed; institute measures upgrading the transfer of relevant coal technology to Filipino nationals; promulgate a limited coal export program; and ensure the installation of coal storage and transport facilities to supply the users, and oversee the programmed construction/installation of coal-fired power plants. cd i

2. The Ministry of Industry shall support the government coal development and utilization program, particularly the shifting from oil to coal usage in cement plants; shall adopt measures to encourage new industrial projects to design and construct plants geared to coal burning whenever feasible; shall also enforce optimum operating efficiency standards and undertake studies to establish reliable measures of rated production capacities which may be an important input to the technical evaluation of each project.

3. The Ministry of Economic Planning, pursuant to the overall national economic development plan, shall ensure that the development in other sectors of the economy in accordance with priorities set forth by the government are at least compatible, if not directly supportive, of, the thrust and timetables of the national coal development production and utilization program; and shall also coordinate with the budget, fiscal and monetary sectors of the government to ensure support and timely availability of funds to implement the program.

4. The Development Bank of the Philippines shall be responsible for providing funds to finance the program of conversion to coal burning; and shall undertake financial evaluation of each project.

This Letter of Instructions shall take effect immediately. cd

DONE in the City of Manila, this 16th day of October, in the year of Our Lord, Nineteen Hundred and Seventy-Eight.