INQUIRER FILES
The Department of Energy (DOE) teamed up with state-run Landbank of the Philippines (LBP) to accelerate the establishment of trust accounts for communities that host power projects.
In a statement Tuesday, the deal with the bank was pursued after the DOE learned that “numerous” barangays, including indigenous people in remote areas, had no trust accounts yet, which was required under the Energy Regulations 1-94 (ER 1-94) Program.
Article continues after this advertisementThe ER 1-94 Program mandates energy players to provide financial compensation to areas that cover their facilities. According to the DOE, generation companies contribute one centavo per kilowatt-hour of generated power to the communities, and the collated funds can be tapped to support social, economic, and environmental initiatives in the areas.
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“Setting up a trust account is a crucial step for these host communities to access and utilize these funds. Without an operational trust account, these communities may miss out on valuable support for local projects that could enhance infrastructure, education, health, and livelihood opportunities,” DOE undersecretary Rowena Cristina Guevara said.
Article continues after this advertisement“With LBP as our partner, assisting local leaders and community representatives in understanding the account setup process and requirements is essential to ensure that they can manage and use the funds effectively for sustainable development and social welfare,” she added.
Article continues after this advertisementUnder their agreement, the bank would waive service charges for accounts falling below the maintaining balance. Doing this, the DOE said LandBank ensures “financial services are equitable and accessible to all, particularly those communities who may face challenges in maintaining a minimum balance.”
Article continues after this advertisementLandBank vowed that the deal would be honored across its 607 branches and branch-lite units across the country.
“With LBP’s extensive reach, we are confident that this initiative will lead to a more efficient and effective use of our ER 1-94 funds,” Guevarra said.
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