THE Department of Energy (DOE) and the Land Bank of the Philippines last month signed a memorandum of understanding (MOU) for the effective and efficient utilization of funds aimed at supporting host communities, particularly those benefiting from the Energy Regulations (ER) 1-94 program.
DOE said in a statement on Tuesday, the MOU signed by Undersecretary Rowena Cristina Guevara and Land Bank senior vice president Althon Ferolino, establishes a dedicated trust account to streamline access by host beneficiaries of energy projects to essential funds.
DOE said there are numerous barangays, as well as indigenous peoples (IPs) or indigenous cultural communities (ICCs) in remote areas particularly those located near small hydropower plants and newly established generation facilities that have yet to establish the required trust accounts under the ER 1-94 program.
Through the ER 1-94 program, energy generation companies contribute one centavo per kilowatt-hour of generated power to support and fund communities hosting their projects to drive social, economic and environmental progress in their areas.
“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,” Guevara said in the statement.
“With Land Bank 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,” Guevara added.
Under the MOU, Land Bank will also waive service charges for accounts falling below the maintaining balance to ensure that financial services are equitable and accessible to all, particularly those communities who may face challenges in maintaining a minimum balance.
