Philippine E-Journals

Policy Lapses and Gaps on the Formulation of Energy Laws of the Philippines: The Case of Iligan Diesel Power Plants

Ariel P. Anghay

 

Abstract:

Independent Power Producers are energy suppliers contracted by the Philippine government to avert the power crisis in the 1990’s. The study analyzed the policy lapses and gaps on the energy laws as a framework in the analysis of the Iligan Diesel Power Plants. The study used the descriptive design involving documentary analysis of existing energy laws and IPP contracts supported by triangulation of records with interviews and onsite inspection. The results of the study showed that the Buil-Operate-Transfer scheme lacks clear provision of ownership transfer. The Iligan local government had difficulty disposing of the BOT project due to land project issue. The LGU lacks the logistics and manpower capability to maintain a confiscated property that is incurring heavy loss. The study concludes that the energy laws had serious lapses and gaps traceable to the formulation and implementation of BOT and IPP in the 1990’s. The provisions of the BOT program insured the profitability and sustainability of the IPP contractors at the expense of the welfare of the Filipino people. Viewed on a long term perspective, the BOT program spawned problems than solutions to the power crisis. The issues triggered the problems hounding the Iligan Diesel Power Plants today.