
Last week, President Ferdinand R. Marcos Jr. put his foot down on the practice of some local government officials dragging their feet in issuing permits, licenses and other documents needed to set vital energy projects in motion.
Marcos said simultaneous processing is key to easing the flow of paperwork since this is the usual reason that projects stall.
He took the Department of Energy (DoE) to task for failing to give other agencies and local officials a heads up on the permits and clearances needed for the endorsement of energy projects ahead of the implementation phase.
“We try to get as close as possible to simultaneous processing,” Marcos directed the DoE.
There is already a law through the Energy Virtual One-Stop Shop (EVOSS) to address the concern of the President but this is not well implemented considering that Mr. Marcos had to issue a reminder.
Based on the Palace timetable, energy-related clerical processes should be integrated by June 2028.
Despite the EVOSS, most energy projects move at a snail’s pace due to the lethargic municipal actions.
Realizing the benefits of the EVOSS System depends primarily on the readiness of the agencies and entities to be incorporated or integrated into it.
In his third State of the Nation Address last July, Marcos directed the DoE to fast-track the integration of all applications and permit processes for energy projects.
A major hurdle for renewable energy (RE) investors is the intricate web of permits and licenses that one potential proponent affected by the never-ending chain of documents said was contingent on securing one permit after another.
Requirements for licenses can vary not only from one project to another but even within different offices of the same agency. This lack of uniformity and consistency causes needless delays, inefficiencies and lost opportunities.
The complex land classifications adds another layer of intricacy to RE projects. Different requirements for ancestral lands, protected areas and forest lands present a challenge in determining the regulatory framework and financial obligations for investors.
One example of this is when a project operating in forest lands necessitates rental payments to the government, while projects in ancestral domains require adherence to the Free, Prior and Informed Consent process.
In cases where a project intersects both an ancestral domain and forest land, investors must navigate the requirements for both. Furthermore, gaining approval for renewable energy projects within protected areas involves extensive consultations and negotiations with the Protected Area Management Board.
Another hurdle for investors is the often unpredictable political terrain at the local level. Securing permits and licenses from LGUs involves political maneuvering, requiring investors to navigate local dynamics and courting favor with local officials.
Despite promises of efficiency and transparency, there are instances where permits that should take days or weeks to process remain unresolved for months.
Such inconsistencies undermine investor confidence and add to the frustration over an already arduous process.
EVOSS would have been the solution since it is an innovative web-based platform, initiated during the term of former energy secretary Al Cusi and designed to facilitate energy-related applications, monitor progress and ensure transparency among the various government agencies involved.
It represented a collaborative effort to promote ease of doing business in the energy sector and mitigate the complexities that plagued the permit process.
The paradox of the scheme was that some agencies opted out since it shortened processing time, which was an incredible excuse that only pointed to the deeply ingrained culture of graft in government.
Reform’s biggest enemy is the entrenched system of dishonesty that permeates the public service.