Tuesday, September 11, 2007 Geothermal sites declared as special economic zones By Ben O. Tesiorna
PRESIDENT Gloria Macapagal-Arroyo declared seven geothermal sites in the country as industrial economic zones thru an executive order she signed Monday.
Dubbed as Generating Investments in Geothermal Areas (Giga), Arroyo in her order directed all local government units in areas near or adjacent to the geothermal-producing sites to create special economic zones.
The declaration stemmed from the clamor by investors for lower power rates. The economic zones will have open access to the geothermal power source.
With the establishment of the economic zones, geothermal host areas are expected to attract investments, spur employment, increase productivity and income, and boost the development of improved technologies and infrastructures.
Paul Aquino, president and chief executive of the Philippine National Oil Company/Energy Development Corporation, said the executive order would mean foreign and local investors would have the best viable option to invest in the contemplated geothermal ecozones.
"Low power cost means low cost of doing business, which in turn means profit. Our host communities have been benefiting from stable power supply. Our geothermal projects also help in poverty alleviation and countryside development by providing means to stimulate local economy," Aquino said.
The seven geothermal sites named under the declaration are the Mt. Apo in Kidapawan, North Cotabato; Bago City in Negros Occidental; Palinpinon in Negros Oriental; Bacon-Manito in Sorsogon; Albay and Tongonan in Leyte which are operated by the PNOC-EDC; and the geothermal sites in Tiwi, Albay and Makban in Laguna that are operated by Chevron.
The signing of the executive order was supposed to be made at the Mt. Apo Geothermal Plant but President Arroyo was not able to fly in the area due to bad weather. The ceremonial signing was instead done in Davao City.
