AMBUSH INTERVIEW | EO 43, DOE BUDGET, TRANSCO BROADBAND, JOINT DEVELOPMENT EXPLORATION, PALAWAN BROWNOUTS, CARBON TAX, ERC & NCIP | 2ND FLOOR SENATE OF THE PHILIPPINES

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ANTI- CORRUPTION COMMISSION

Q: Nabasa yung EO 43 Presidential Anti-corruption commission? Supportado?

SEN WIN: Hindi ko pa nabasa pero I was briefed about it. I support any mechanism to fight corruption. Hangang ngayon, there is corruption in all levels meron tayong corruption in many of our departments. Makikita natin sa Bureau of Customs ang corruption controversial corruption doon. Ang mga nasa pinaka mababa doon hangang sa pinaka mataas kumokolekta ng TARA. I don't think any government office can claim na walang corruption sa kanila. Any mechanism and in this case, the Anti-Corruption Commission will have a team o group of people that will help the President or the Malacanang to investigate, meaning bibilis yung investigation process bibilis ang pag fi-file ng case. We have to understand that this is investigating and fact-finding, iba pa yung prosecution. We welcome any mechanism to fight corruption kasi ang gusto ho natin mawala ang kultura ng corruption.

Q: Sinsabi ng iba yung ibang iimbestigan ng commission nab ago sa Ombudsman rin naman ifi-file yung case?

SEN WIN: Well depende yan for example, local government pwedeng Ombudsman pwedeng CSC, pwedeng courts. Depende dito kung sino ang i-imbestigahan dahil iba-iba yung kanilang prosecutorial venue. Yung importante dito maimbestigahan mabuti, malaman kung sino yun at ma-prove na corrupt yung taong yun para mabura na talaga nating yung kultura ng corruption.

DOE BUDGET

Q: Bakit po ang bilis? (interpellation of DOE)

SEN WIN: May mga submissions pa na hindi na bibigay, specifically yung LNG project in which yun yung pinaka malaking request, half a billion pesos. So we would like to see some pre-feasibility studies so that we would be enlightened on this project.

Q: So on that aspect hindi ka pa cleared on what they want to do-

SEN WIN: Yung mga ganitong mga malaking project especially project finance, you have to have pre-feasibility and the details para before you invest on the details meron ka nang idea kung anong project yung profitable. We also have to look into who should make in the sense because this is government versus private sector and the money being requested is quite substantial, half a billion pesos. I think they have some in-house studies, I gave in detail earlier yung manifestations nila, yung mga in-house studies nila and kung ano yung mga information na nakuha nila-meron silang na-mention na Austrailan shipper ng LNG na sinabi na possible yung ideas nila, we want to know them.

Q: Aside from facilities, you have an LNG terminal, then power plants the other part of question is who is the off-taker of the capacity?

SEN WIN: I think the basic question is who should build the terminal? that should be number one. Number two, do we have the framework to build the terminal? the LNG industry in general? Right now we have an LNG industry off-takers, dalawang off-takers yun, yung isa Malampaya so meron kang industry. Ang problema lang naman is yung supply, so ngayon the question is should the terminal be built by our government or the private sector? Kung government, mas mahal babayaran natin were going to spend taxpayers money here. With the private sector naman there is the risk. So we really have to look at that angle dahil we don't want to our government to carry a lot of risks because we might end up holding the bag later on. Kahit marami ang pera ng gobyerno ngayon, we still have to fund others in the government so it's very scarce. We really have to be prudent weather the government should spend for this or the private sector, a policy question that we will leave for the DOE. All we need right now is a pre-feasibility study that will guide that in the budgeting process.

TRANSCO BROADBAND

Q: Proposal ng TRANSCO is to get into broadband?

SEN WIN: I think dahil ang taas ng cost ngayon ng telecommunications tapos mabagal pa yung internet. We're always the last in the region, at the same time the cost is also the most expensive in the region. I'm amendable in looking at building broadband in using transmission lines. May need tayo ngayon, were all being punished with slow internet and high cost. Im amendable to looking at other solutions including the TRANSCO proposal and other infrastructure to build a broadband network.

Q: Ang Malampaya fund daw is at zero now?

SEN WIN: We have to remember we have two components here, first is the actual cash and the second is the accounting. Yung accounting may special account siya yung actual cash, commingled siya but the special feature of this fund kung kailangan niya gamitin, DBM can allocate money to fund Malampaya. In a sense hindi siya nawawala e, it's just a matter of putting in the cash. Madaming uses ang Malampaya, yung isa para bayaran yung stranded debts and stranded costs and yung isa gumawa ng interconnection. What we want right now is a strategic use of the fund, when I say strategic we have to look into the future saan ba pwede gamitin itong pondo para ma-secure yung energy needs natin sa future at the same time hindi magmahal ang presyo ang kuryente natin. I think this is the intention if you look at the law itself the intention is for energy development for the future.

Q: What exactly do you have in mind?

SEN WIN: Ako im thinking of the long -term which is to make sure we have enough energy weather upstream or we have enough power from the GENCOS. Alam natin we are very blessed with renewable energy, we have solar, wind, hydro and geothermal. Ang problema ang hydro malayo, so maybe we can use the fund to help develop yung mga hydro power plants natin at yung geothermal natin na malayo and mahihirap i-develop, but by developing this we will ensure we have enough power in two years so yun yung strategy na iniisip ng committee.

JOINT DEVELOPMENT ON OIL EXPLORATION

Q: Oil exploration on gas right now kasi di ma na li-lift yung moratorium, pero condition is with China dapat joint development?

SEN WIN: I think if we focus on the commercial aspect, it will be a joint development kasi wala tayong capability. Regardless of china or other countries, talaga magiging joint development siya ang importante ngayon yung negotiations. Who will be majority and who will be minority? at kung magiging Tripartite dahil hindi lang naman China ang claimant marami na. So we have to make sure na fair yung magiging sharing nito.

Q: Policy will prevail especially in conflicted area?

SEN WIN: I think it will really depend how much the cost no, if we look at the Malampaya model, 40% sa developers 60% sa atin so we look at the model. Depende to sa lalim at makukuha but definitely it will be a sharing.

Q: Yung green energy option there were some complaints kasi from stakeholders that theyhave to go to the DU's they don't have much incentives?

SEN WIN: Actually we have to clarify this no yung kanina doon sa interpellation natin, direct contracting. So kung ako si captive customer, ako pipili ng supplier tapos derecho tayo mag-uusap. pero pano mo tra-transmit yung kuryente? Wala kang choice kung hindi dumaan sa TRANSCO- Q: So pag blended hindi sigurado na RE ang blend?

SEN WIN: Hindi, yung kontrata mo is RE pero babayad ka lang ng willing charge, so if tra-transmit mo yung kuryente from the solar to my plant, babayaran ko lang sayo yung willing charge hindi pwede si DU ang mag di-dicta kung saan ka bibili ako mag di-dicta kung saan bibili. Direct contracting, willing charge is fixed naman niyan per kilowatt hour naman yan.

Q: What are the case na kailangan ng registration with the DU?

SEN WIN: It has to be consistent and accordance to the RE law, meaning we are giving more power to the consumers to choose. It's my power to choose where I want to buy, in this case its RE so ako pipili saang RE developer ako bibili. If analogy natin is highway bibili ako sa supplier ko pero sa highway magbabayad sa toll pero hindi si toll ang mag di-dicta kung saan ako magbabayad.

PALAWAN BROWNOUTS

Q: Palawan brownouts?

SEN WIN: Yung Palawan brownouts we asked for documents dahil may mga short-term solutions doon. For example, papalitan lang nila yung kanilang merit orders. Ibig sabihin uunahin lang nila yung exisiting. We ask for a resolution to change the merit order o yung pagbili nila ng kuryente. For medium-term we also ask some strategy to address the vegetation problem nila dahil yun yung complaint nila. the short-term strategy is to address inefficient suppliers such as DMCI dahil sila parati yung nasisiraan ng generators --- ma-sosolve yan.

Q: Timeline?

SEN WIN: Timelines we divided into short-term and long term. I think within three months ma-sosolve na yan, even shorter and the long-term within six months to a year.

Q: RPS on RE and green energy option is adding up to the uncertainty that RE market is not there yet, is there any proposal to shorten it kasi 2019 yung RE law?

SEN WIN: Yes we will review that in the JCPC. lahat ng implemented provisions we will review and put timetables. Nakakahiya na 10 years na ito tapos 2 years na uncertainty. You know if business as usual it will lead to more coal because they are the cheapest so we have to have some form of mitigating measures para maka laban yung RE in the meantime, not for long-term. These are the green energy option for the RPS and others.

Q: Proposal for auction could that be like an interim arrangement?

SEN WIN: Pwede rin yun were also looking at carbon trading and carbon tax. These are the mechanism we can already implement here para at least mabigyan ng chance ang RE maka-compete with coal. We have to take into account yung externalities, nagkaka sakit, hika, pneumonia dahil sa pollution. Ito yung mga externalities na hindi nakikita.

CARBON TAX

Q: Stand on carbon tax?

SEN WIN: We're studying that I think it's about time to look at that and make it a law so we will have some form of carbon trading. Also, importante din may financial mechanism para maging financially viable for generators.

Q: ARCOA?

SEN WIN: We will give you that soon.

Q: When is your next JCPC meeting?

SEN WIN: Hopefully before the end of the year, we will cover all RE provisions. Q: Any thoughts on WESM baka daw di pa mag IMO this year?

SEN WIN: Actually from my conversation with them that's on top of their agenda. So I support that because that is in the EPIRA but we have to make sure that the consumer interest is in the forefront, hindi interest ng GENCO and DU's dapat consumer interest. Yun ang aking nasabi sa kanila and that is my guiding principle. Accordingly, I think they would have to adjust in terms of the number of board sharings, ilang ang independent doon sa industry players? I think meron naman doon sa meeting of the minds na dapat ilagay ang consumers as the guiding principle.

ERC

Q: ERC the continuing SAGA ang daming pending cases- SEN WIN: Well approved na yung budget dito, di na sila 1000 pesos. In fact, meron 15 million confidential funds that were realigned for training and travel expense para makatulong sa kanila. We're now hearing the Governance Act to strengthen the government principles of ERC. Q: 15 million on top of their budget?

SEN WIN: No it's already included.

Q: Ilan yung employees na pwede hire?

SEN WIN: Actually dalwang components lang yun, travel expenses and training. Walang new employees for now.

Q: They promised that they will act on the Meralco PSA in three months, nag lapse na, may pressure ba to approve?

SEN WIN: I will leave that to ERC because they also have to look at the impact the competitive impact we have to make sure na itong approval na ito ay hindi magiging sagabal sa mga bagong GENCO's na gusto pumasok dahil malaki to 3,500 megawatts to and we don't want this to be uncompetitive strategy of the suppliers, of the GENCO so we have to make sure. Again the guiding principle here is more competition is better for the consumers. We don't want these contracts to be a hindrance to competition.

NCIP

Q: You asked pala NCIP for their flowchart because it takes years for them?

SEN WIN: If you look at the complaint, out of the 4 years na permitting process 2 years NCIP na. We already requested them to submit to us an improved flowchart for their process.

Q: And that improvement should be at least feasible? SEN WIN: In our estimate dapat in 75 days tapos na yan. NCIP yan so that's 2 months, that is our estimate.

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