DOE receives PE2 inputs for GEEP template contracts in consultative meeting with ESCO sector
MAKATI CITY, 15 July 2020 – The Department of Energy (DOE) Energy Utilization Management Bureau (EUMB) confirmed that they have received and are closely reviewing the 14 July 2020 letter of the Philippine Energy Efficiency Alliance (PE2), which transmits the Alliance’s comments on the draft Template Energy Savings Performance Agreement for Solicited Build-Operate-Transfer (BOT) Projects under the BOT Law and the draft Template Joint Venture Agreement (JVA) for Government Energy Efficiency Projects (GEEPs) under the National Economic Development Authority (NEDA) Joint Venture (JV) Guidelines. EUMB Director Patrick T. Aquino announced this as he opened the consultative meeting held earlier today with the energy service company (ESCO) sector to discuss these draft template contracts. The meeting was organized with the support of the EU Access to Sustainable Energy Program (ASEP) and the European Chamber of Commerce of the Philippines (ECCP).
PE2 was represented by its officers Alexander Ablaza, Theresa Acedillo-Lapuz and Raymond A. Marquez, trustees Bienvenido C. Gonzales and Ronaldo R. Torres, and representatives of PE2 member firms, which include Beyond Energy Solutions Technology, Climargy, Concepcion-Carrier Air Conditioning, EconoServ Solutions International, Filairco Technical Services (Trane Philippines), Hi-Cool Engineering, Meralco Energy (MServ) and Total Renewable and Energy Efficiency Solutions.
The draft BOT and JVA templates were presented to the ESCO industry participants by EU-ASEP legal expert Sheryl F. Balot.
Ablaza expressed PE2’s appreciation of DOE-EUMB’s momentum in the formulation, consultations, and issuance of specific guidelines and codes under the Energy Efficiency and Conservation (EE&C) Act Implementing Rules and Regulations, as made evident by the DOE approval of at least five guidelines in the first half of 2020.
It was clear to PE2 that the drafting of template BOT Contract and JVA Contract for GEEPs is a clear step toward enabling innovative financing modalities for EE&C projects in the public sector.
Ablaza clarified during the open forum that while templates have been prepared for contracts governed by the BOT Law and the NEDA JV Guidelines, it observes that no similar template has been drafted for contracts governed by the Government Procurement Reform Act (GPRA).
The Alliance suggested that a broader team of contract specialists be mobilized by DOE, not only to draft the template Terms of Reference (TOR) under GPRA, but also to prepare template annexes for both the BOT Contract and JV Contract.
PE2 was pleased that DOE will review its position letter, which includes comments on specific provisions of the draft template BOT Contract and JVA Contract.
