THE Department of Finance (DOF) plans to tap funding from the Organization of the Petroleum Exporting Countries (Opec) and other Middle East countries to provide cheaper electricity for the Bangsamoro Autonomous Region in Muslim Mindanao (Barmm).
Finance Secretary Carlos G. Dominguez III said in a statement on Thursday that this is just one of the measures to be undertaken by the DOF to help the growth and development of the BARMM.
DOF said Dominguez recently met Barmm Chief Minister Al Hajj Murad Ibrahim and other officials regarding this and their plan to involve the private sector in infrastructure projects.
“This is an opportunity for [the Middle Eastern countries] to assist in providing funding for infrastructure projects in the BARMM area,” Dominguez told Murad and other BARMM officials present at the meeting at the DOF office in Manila. “Power generation is crucial to you especially in the island-communities and some communities that are off the [power] grid.”
During the meeting with Murad at the DOF, Dominguez also broached the possibility of approaching the Development Bank of the Philippines (DBP) and other state-lending institutions to help finance BARMM’s electrification program.
Murad said providing electricity is one of their challenges, particularly in far-flung areas. He agreed with Dominguez that partnering with the private sector would be one way to solve this problem.
Naguib Sinarimbo of the BARMM Ministry of the Interior and Local Government said the lack of power supply prevents the region from expanding its rubber and coconut production.
“As of now, they cannot process these products because electricity is very expensive,” Sinarimbo said.
To help BARMM residents, private firm Powersource Philippines Inc. has proposed the use of renewable-energy sources, such as stand-alone microgrids in remote places in the BARMM.
The BARMM officials welcomed the proposal and suggested that the electrification program start in the provinces of Basilan, Tawi-Tawi and Sulu, and Bongo Island in Cotabato City.
Murad said Powersource can also discuss its proposal with the BARMM Ministry of Environment, Natural Resources and Energy.
Sinarimbo said that BARMM will also study ways to cut red tape and simplify the processing of permits for potential investors like Powersource to speed up the implementation of the electrification program.
This was after Powersource pointed out that it takes around 146 permits for every area before his firm can set up microgrids.