Circular on BARMM energy deals among ‘dividends’ of peace

ENERGY EXPLORATION. President Ferdinand R. Marcos Jr. (center) applauds as Energy Secretary Raphael Lotilla (left) and Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) Ministry of Environment, Natural Resources and Energy Minister Akmad A. Brahim show the signed Inter-governmental Energy Board (IEB) Circular on the Joint Award of Petroleum Service Contracts and Coal Operating Contracts in the BARMM, at the President’s Hall in Malacañan Palace on Thursday (July 6, 2023). The IEB circular aims to operationalize the provisions of the Bangsamoro Organic Law that empowers the national and Bangsamoro governments to jointly grant rights, privileges, and concessions for the exploration, development, and use of fossil fuels, such as petroleum, natural gas, and coal, within the BARMM. (PNA photo by Joey O. Razon)

MANILA – The signing of the Intergovernmental Energy Board (IEB) Circular on the Joint Award of Petroleum Service Contracts (PSCs) and Coal Operating Contracts (COCs) in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) is “among the dividends of peace” that will help fast-track the growth of the region, the country’s peace adviser said on Friday.

“(The IEB Circular) is among the dividends of peace that is expected to help position the BARMM not only as a leading energy supplier, but also a premier tourism, trade and investment hub,” Office of the Presidential Adviser on Peace, Reconciliation and Unity (OPAPRU) Secretary Carlito Galvez Jr. said in a statement.

The IEB Circular operationalizes the provision in Section 10, Article XIII of Republic Act 11054 or the Organic Law for the Bangsamoro Autonomous Region to jointly grant rights, privileges, and concessions for the exploration, development and utilization of uranium and fossil fuels such as petroleum, natural gas and coal within the territorial jurisdiction of the Bangsamoro.

It aims to boost economic development and draw foreign capital into the region.

The framework also outlines the requisite requirements, procedures and standards for companies seeking to apply for and operate PSCs and COCs, and ensures that exploration and development activities will adhere to stringent rules and regulations, and best practices.

“We have always known that the BARMM has a vast potential to become one of the leading sources of energy not only in Mindanao but in the country. The national and Bangsamoro government, through the IEB, must work closely together to unlock this tremendous potential,” Galvez said.

He also added that the BARMM is in fact one of the fastest-growing regions in the country, recording a 7.5 growth rate in 2021, which was the second-fastest growth rate among all regions nationwide during the said period.

“Undoubtedly, the BARMM is now getting ready for the big investments. Both local and international investors are looking at the region with a fresh eye. The Bangsamoro government must seize this opportunity and take full advantage of it,” Galvez said.

In his speech during Thursday’s signing rites in Malacañan Palace, President Ferdinand R. Marcos Jr said the country would not be as dependent on external fuel sources, as the IEB Circular will help unleash BARMM’s energy potential and attract vital investments to the area.

“Let us, therefore, wholeheartedly embark on this journey with determination and goodwill. We must recognize that through our unity and our commitment — we wield the ability and the power to shape our nation’s destiny,” he added.

Marcos also highlighted the key role that the Bangsamoro Region is now playing in the country’s economy.

“And finally, we see very much that the Autonomous Regions of Muslim Mindanao are part of the development process of the Philippines,” he added.

“We have heard the expression many many times that Mindanao is the ‘Promised Land,’ except for the peace and security situation that prevailed in the past. Well, this is the beginning of that fulfillment, of that promise,” he said.

“And the reason why this is, is because in a very real sense, we are inventing a new system of government between the national government and the autonomous region,” Marcos added.

For his part, BARMM Chief Minister Ahod Ebrahim said the signing of the IEB Circular shows the unwavering commitment of the Philippine government and the BARMM to work together to sustain the dividends of the peace process.

“This endeavor will indeed mark a new age of development for the Bangsamoro people at a time when we are sailing across the transition period,” he added.

Ebrahim also called the signing of the IEB Circular a “milestone” as it not only advanced the energy security of the Bangsamoro but also the region’s growing economy.

He also thanked the Department of Energy (DOE), the BARMM’s Ministry of Environment and Natural Resources (MENRE) and Intergovernmental Relations Body (IGRB) and the people behind the joint circular as their “joint efforts in realizing this document are noteworthy.”

“Indeed, your service in materializing this blueprint in the energy sector is a very important step in transforming the lives of all Bangsamoro [people], as you are all aware this undertaking is part of the 12-point priority agenda of the government of the day in ensuring that there is adequate, clean, environment-friendly, and secured energy across the Bangsamoro,” he said.

Ebrahim also lauded the Chief Executive for his support to the Bangsamoro people in realizing “our fullest potential and in the realization of our long-held determination to attain peace, secure development, and ensure progress in the Bangsamoro Autonomous Region.”

“As we witness the ceremonial signing of this circular, let us renew our commitment to continue building a cohesive, empowered, and progressive Bangsamoro Autonomous Region. One that is centered on moral governance. I am hopeful that after this, the concerned agencies will carry on fulfilling the deliverables of the board circular,” he said.

Meanwhile, DOE Secretary Raphael Lotilla noted that the signing of the IEB Circular is another major leap for the region.

“This is an important step towards progress in Mindanao and possibly the establishment of another energy resource center in the Philippines. I am optimistic that the strong collaborative relationship between the DOE and MENRE, we will continue as we move forward with the implementation of this joint circular,” Lotilla said.

The DOE chief also told Marcos during the event that the national government’s next priority is the upgrading of electricity infrastructure and services in the BARMM provinces.

“We are confident that as you pursue your diplomatic initiatives in the energy capitals of the Middle East, the energy development needs of the BARMM will form part of your agenda. We commit ourselves to work towards the success of energy development in the BARMM, and in the rest of the Philippines under your leadership,” Lotilla said.

He also acknowledged the support given by Ebrahim, Executive Secretary Lucas Bersamin, Department of Budget and Management Secretary Amenah Pangandaman and Minister Mohagher Iqbal.

Pangandaman and Iqbal co-chair the IGRB, which is tasked to strengthen the relations between the national and BARMM governments, resolve pressing issues brought before it, and facilitate the creation of other intergovernmental relations bodies.

The IEB is one of the bodies under the IGRB.

The IGRB is considered a major step forward in realizing the substantial and functional autonomy envisioned in the Bangsamoro Organic Law (BOL), as it provides an institutional mechanism for sustained cooperation and coordination between the bodies established by the BARMM and the national government.