PE2 bats for expanded EE procurement for public buildings in EU ASEP forum

MAKATI CITY, 16 May 2018 -- The Philippine Energy Efficiency Alliance (PE2) pushed for expanded procurement, budgeting, contracting and investment modalities to support energy efficiency (EE) projects in the public sector as it actively participated in the European Union-assisted Access to Sustainable Energy Programme (EU ASEP) forum “Navigating Procurement Regulations to Support Government Buildings Energy Efficiency (EE) Projects” held in the Dusit Thani hotel earlier today. PE2 officers shared the possibility that EE in public buildings alone could have the same impacts as a virtual 500 MW power plant and recommended more policy reforms such as:

• Enabling procurement of ESCO performance contracts under the government procurement reform act, possibly through a review of R.A. 9184
• Establish a procurement template through a pilot for the first life cycle cost-based procurement for EE projects in public facilities, possibly with the grant-financed resources of a foreign-assisted project
• Enable multi-year contracting for outsourced EE technologies and services
• Ease budget planning procedures for general appropriations allocations to pay for EE technologies and services
• Expand the coverage of build-operate-transfer (BOT) and public-private partnership (PPP) policy frameworks to include bundled EE projects in the public sector, possibly through a review of the BOT/PPP laws and its implementing rules and regulations
• Reclassification of EE projects as infrastructure, especially in the way that government plans, programs, budgets, finances, approves and implements this new project type

PE2 was however quick to say that its current discussions with the Department of Energy (DOE) and EU ASEP were “encouraging” indications that policy- and non-policy based solutions would be feasible within the short term.

PE2 was invited by EU ASEP to share its insights on the procurement of EE technologies and services for government buildings, as well as to learn from the success of some government agencies to implement their own EE measures for both new construction and existing retrofit scenarios.

Representatives from the Philippine Government included officials and staff of DOE, the Office of Senator Sherwin T. Gatchalian, the National Economic and Development Authority, Bangko Sentral ng Pilipinas (BSP), the Bureau of Internal Revenue, the Government Procurement Policy Board – Technical Services Office, the Development Bank of the Philippines, the Laguna Lake Development Authority (LLDA), the National Electrification Administration, the Philippine National Oil Company, the Department of Health, and other national government agencies and government-owned and controlled corporations. The City of Pasig represented the local government unit sector. A few private sector and civil society market stakeholders participated in the forum as well.

The DOE delegation was led by Assistant Secretary Robert B. Uy, Director Jesus T. Tamang of the Energy Utilization and Management Bureau (EUMB), EUMB Assistant Director Jesus C. Anunciacion and Division Chief Artemio P. Habitan of the Energy Efficiency and Conservation Division. The Alliance was represented by its president Alexander Ablaza, treasurer Theresa Acedillo-Lapuz and member services and communications manager Luigi Eusebio.

The forum opened with messages from DOE Asec Uy, EU Ambassador Franz Jessen and Senator Gatchalian. The LLDA, through its consultants and previous head, shared its experience in incorporating EE in the design and construction of a new government building, while the BSP offered lessons in implementing EE retrofits in an existing public building. The City of Pasig showcased the replication of rooftop solar and solar-assisted air-conditioning project across its city-owned buildings under its climate change mitigation program.