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LETTER OF INSTRUCTIONS
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LETTER OF INSTRUCTIONS NO. 752 |
Minister, Ministry of Industry
Minister, Ministry of Economic Planning
Chairman, Development Bank of the Philippines
WHEREAS, the accelerated coal development program has shown the suitability and adequacy of coal for use in industry, particularly the cement manufacturing sector.
WHEREAS, the decision on the timing of the development and utilization of these resources as well as attendant logistic support must now be made in relation to the government's definite programs to convert oil-fired industrial plants into coal-fired plants.
WHEREAS, the Ad Hoc Committee constituted pursuant to Letter of Instructions No. 718 has prepared and submitted a report on the "National Plan on the Development, Production and Utilization of Coal, "which I have approved, prescribing the timetable for the conversion into coal-fired plants of suitable industrial plants, particularly the cement plants, the sources of financing and other government assistance.
Accordingly, to define the component implementing actions to carry out an over-all integrated approach to the coal program, you are hereby ordered to implement the following directives:
1.
The Ministry of Energy shall coordinate and oversee implementation of
the coal development and utilization program embodied in the national
plan and shall ensure a continuous and adequate supply of coal as well
as the distribution of the same consistent with the country's economic
growth and taking into consideration the participation of the private
sector, Pursuant to this directive, it shall, among others, continue to
judiciously conclude coal operating contracts under the terms and
conditions of the Coal Development Act of 1976, as amended; undertake
vigorously the exploration and development of new coal areas and known
coal areas not otherwise explored and developed; institute measures
upgrading the transfer of relevant coal technology to Filipino
national; promulgate a limited coal export program; and ensure the
installation of coal storage and transport facilities to supply the
users, and oversee the programmed construction/installation of
coal-fired power plants.
2. The
Ministry of Industry shall support the government coal development and
utilization program, particularly the shifting from oil to coal usage
in cement plants; shall adopt measures to encourage new industrial
projects to design and construct plants geared to coal burning whenever
feasible; shall also enforce optimum operating efficiency standards and
undertake studies to establish reliable measures of rated production
capacities which may be an important input to the technical evaluation
of each project.
3. The
Ministry of Economic Planning, pursuant to the overall national
economic development plan, shall ensure that the development in other
sectors of the economy in accordance with priorities set forth by the
government are at least compatible, if not directly supportive, of, the
thrust and timetables of the national coal development production and
utilization program; and shall also coordinate with the budget, fiscal
and monetary sectors of the government to ensure support and timely
availability of funds to implement the program.
4. The
Development Bank of the Philippines shall be responsible for providing
funds to finance the program of conversion to coal burning; and shall
undertake financial evaluation of each project.
This Letter of Instruction shall take effect immediately.
DONE in the City of Manila, this 16th day of October, in the Year of Our Lord, Nineteen Hundred and Seventy-Eight.
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