The Department of Public Works and Highways (DPWH) and Department of Energy (DOE) signed a joint circular on Monday, July 10, 2017 providing the uniform guidelines for the payment and relocation of Electric Cooperative (EC) facilities affected by government projects.
The joint circular, signed by DPWH Secretary Mark A. Villar represented by Undersecretary Karen Olivia V. Jimeno and DOE Secretary Alfonso G. Cusi, will have a positive development that will have impact in the program to accelerate infrastructure development under the President Rodrigo R. Duterte administration.
Secretary Villar said that by addressing issues causing delay and preventing road works from proceeding such as presence of utilities and right-of-way problems can accelerate project implementation.
The goal is to strictly observe and maintain easements and to relocate and/or compensate improperly located electric cooperative facilities within government’s right of way (ROW).
“The joint circular with DOE is just and systematized way of addressing ROW conflicts between two (2) entities that promote development. We aim for timely implementation of government projects at the same time aid electric cooperatives that play critical role in household electrification,” added Secretary Villar.
Under the guidelines, programming or planning of upcoming DPWH projects like roads, bridges, flood-control structures, and government buildings will have to be coordinated with the National Electrification Administration (NEA) and electric cooperatives to address ROW concerns.
The DPWH prior to the preparation of its budget for a proposed government project will have to inform in writing the concerned electric cooperatives that their facilities will be affected with copy furnished to DOE and NEA, and to be followed by a joint survey and assessment of both parties.
Within 30 days after the joint survey, electric cooperative shall submit to the DPWH the proposed program of work for the affected facility with cost estimate duly certified by NEA, and bill of materials.
The DPWH will determine within ten (10) calendar days the proper compensation or relocation cost which amounts to present value of relocation of facility based on the NEA equipment and materials price index, less depreciative cost, plus dismantling/removal and disposal cost.
Upon determination of compensation, DPWH and electric cooperative shall execute a “Relocation Agreement” with terms of payment of compensation for the affected facility; details of affected facility and approved relocation site; project implementation schedule; target date of completion; and remedy in case of disagreement.
After the Relocation Agreement, DPWH is tasked to prepare a final program of work for its project with the amount of compensation for the electric cooperative affected.
The electric cooperative shall receive 50 percent of the cost of compensation prior to the removal of an Affected Facility and in case of disagreement or failure to execute Relocation Agreement within 15 days, DPWH shall deposit the 50 percent cost of compensation to NEA.
DPWH shall then notify the electric cooperative in writing of a “Deposit Notice”, which entails the EC to remove the affected facility within seven (7) day “Removal Period”.
Failure of electric cooperative to remove the affected facility will permit DPWH to immediately relocate the affected facility and in case the electric cooperative causes the delay in removal, DPWH can deduct 10 percent per day of the relocation cost until the removal of the affected facility.