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INVESTMENT projects approved under the green lane in the first quarter of 2024 amounted to P1.4 trillion, largely occupied by Renewable Energy projects, according to the Department of Trade and Industry (DTI).
DTI, the mother agency of the Board of Investments (BOI), said it approved 36 projects in the three-month period, of which 35 projects are under the Renewable Energy sector and one is on Digital Infrastructure.
This brings the number of approved projects under green lane to 59 projects, amounting to P1.9 trillion. Of the 59 projects, the BOI noted that 51 are under the RE sector. The remaining projects are in the digital infrastructure, manufacturing and food security sectors.
In relation to this, Trade and Industry Secretary Alfredo E. Pascual awarded on Tuesday, through the BOI’s One-Stop Action Center for Strategic Investments (BOI-OSACSI), the certificates of endorsement for green lane services to Prime Infrastructure Inc.’s two largest pumped storage hydroelectric power projects.
The DTI chief co-chairs the BOI.
BOI said these two projects are the 1400 MW Pakil Pumped Storage Hydroelectric Power Project of Ahunan Power Inc. and the 600MW Wawa Pumped Storage 1 Hydroelectric Power Project of Olympia Violago Water & Power, Inc., both subsidiaries of Prime Infrastructure under the Razon Group.
“These projects’ exceptional capacity and reliability make them crucial players in the Philippines’ transition to a clean energy future,” the BOI said in a statement on Tuesday.
With a project investment of $5.03 billion or over P296 billion, the 1400 MW Pakil project is expected to be among the largest pumped storage power plants in Asia.
The investment promotion agency said the Pakil project’s capacity and reliability make Ahunan Power a crucial player in the Philippines’ efforts to transition to a clean energy future.
Once operational, it will be able to supply 10 to 12 hours’ worth of 1200MW power daily to as much as 2 million households, BOI said.
“Ahunan Power is slated to initiate operations by 2030, thereafter serving as essential infrastructure to facilitate the Philippines’ transition to an expanded renewable energy mix by 2030 and 2040,” the BOI said.
Meanwhile, BOI said the Wawa Pumped Storage Power Project, situated in Rizal, is poised to bolster the ancillary, energy supply, and storage needs of the power grid.
“With a storage capacity of 6,000MWh/day and a generating output capacity of 600MW, this project represents an investment of over $2.57 billion or over Php 143 billion,” said the BOI.
Scheduled to commence operations by 2030, it will serve as “vital infrastructure” for the Philippines for a duration of 35 years, ensuring sustainable energy solutions until 2064, the BOI noted.
The investment promotion agency explained that the pumped storage hydroelectric power projects are primarily designed to address the anticipated influx of variable renewable energy by storing excess capacity in the grid when there is an oversupply from renewable energy projects and releasing the same back to the grid when needed.
The “Green Lane for Strategic Investments” scheme was established through Executive Order 18, which was approved by the Office of the President on February 24.
The BOI noted that green lanes aim to expedite, simplify, and automate the permit and license application processes for strategic investments.
At the Ceremonial Awarding of Green Lane Certificates of Endorsement on Tuesday held in Parañaque City, Pascual underscored the importance of this measure as this aims to “address investor pain points.”
“This whole-of-government approach tackles the bureaucratic hurdles across different agencies, specifically targeting Clean Energy, Infrastructure, Green Metals, Electric Vehicles, and Pharmaceutical industries,” Pascual said in his speech.
This initiative aims to reduce the cost of doing business and the cost of power for industries. “We strive to streamline and expedite the RE permitting process among concerned government agencies through the Green Lanes,” Pascual noted.
In awarding the green lane certificates to Prime Infra, the core infrastructure arm of Enrique K. Razon Jr., Pascual acknowledged the private sector, calling it the “true engine of economic growth.”
“You generate employment opportunities, empower families, and drive progress nationwide. Therefore, the Green Lane initiative goes beyond a whole-of-government approach; it fosters a whole-of-nation strategy toward economic prosperity. Through collaboration, we can identify areas for continuous improvement and refine government reforms to meet the evolving needs of our times,” Pascual said.
Pascual also noted that DTI will ensure that complex requirements and processing times are reduced, particularly regarding the approval of strategic investments.
“The DTI stands firmly as your partner in building value together. We prioritize investments that deliver transformative impacts on our economy and national profile. We also remain dedicated to establishing an environment that will enable the success of such investments,” said the trade chief.
Image credits: Rey Baniquet/PNA
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