Release of Funds for Implementation of PNOC and NPC Critical Energy Projects

January 22, 1986

LETTER OF INSTRUCTIONS NO. 1512

 

There are two critical energy projects for implementation by the Philippine National Oil Company (PNOC) and the National Power Corporation (NPC) respectively, that have a significant impact on our energy substitution program which have been held in abeyance due to lack of counterpart funding.

The PNOC project involves the development of the Tara field in Northwest Palawan in order to yield an additional 2,000 barrels of oil a day. On the other hand, the NPC project entails the construction of three major transmission lines in order to maximize utilization of the Magat Hydroelectric Power Plant, the Cebu Coal Thermal Power Plant and the Palimpinon Geothermal Power Plant and to bring the benefits of geothermal power to the island of Panay. cd

In order to allow PNOC and NPC to immediately prosecute these priority projects, the Treasurer of the Philippines is hereby directed to release to NPC the amount of P150,000,000 and to PNOC the amount of P50,000,000 out of the Special Fund created under Section 8 of P.D. 910 to partially cover the counterpart requirements of the above named projects.

The NPC and PNOC are also directed to submit to the President of the Philippines through the Minister of Energy a report accounting for the disbursement and use of the foregoing funds.

This Letter of Instruction takes effect immediately.

DONE in the City of Manila, this 22nd day of January, in the year of Our Lord, Nineteen Hundred and Eighty-Six.