Question & AnswerQ&A (EXECUTIVE ORDER NO. 683)
The parties involved are the Republic of the Philippines, represented by the Department of Energy (DOE), and a consortium composed of Shell B.V., Shell Philippines LLC, Chevron Malampaya LLC, and PNOC-Exploration Corporation as contractors.
Section 8 of Presidential Decree No. 910 authorizes the use of these funds as may be directed by the President of the Philippines.
There is a pending dispute on whether the Camago-Malampaya Reservoir is within the territorial boundaries of the Province of Palawan, which would entitle the province to 40% of the Net Government Share from SC 38 proceeds under Section 290 of Republic Act No. 7160.
Section 25 allows the President, upon request from the LGU concerned, to direct national government agencies to provide financial, technical, or other forms of assistance.
The PIA is an agreement between the National Government and the Province of Palawan, with consent from Palawan's Congressional Districts, allowing 50% of the disputed 40% Net Government Share from SC 38 to be used immediately for development projects in Palawan.
Funds can be released upon endorsement by DOE or PNOC based on: a directive or written request from relevant Palawan authorities; certification that projects align with provincial or national development programs; and Bureau of Treasury certification of fund availability from the disputed 50% share.
The Implementing Agencies (IA) to whom DBM releases the funds are accountable and must adhere to applicable laws and budgeting, accounting, and auditing rules.
The DBM may authorize IAs to open and maintain special accounts specifically for the amounts released pursuant to this Executive Order.
Yes, Section 3 allows Palawan, its Congressional Districts, and the City of Puerto Princesa to securitize their shares in the 50% of the disputed 40% Net Government Share pursuant to the PIA.
No, Section 4 states that amounts released are without prejudice to ongoing discussions or final judicial resolutions of the legal disputes.
Section 5 authorizes the DBM to promulgate guidelines necessary to ensure orderly implementation of Sections 1 and 2.
The Executive Order took effect fifteen (15) days after its publication in a newspaper of general circulation.