5MW SOLAR + 8MWh ENERGY STORAGE PROJECT RAISES PROCUREMENT AND PPP QUESTIONS
August 11, 2026 | CAMARINES SUR
A ₱2.419-billion, 25-year energy agreement proposed for Camarines Sur is now drawing public scrutiny after an official endorsement was forwarded to the Sangguniang Panlalawigan (SP).
CCWI Chairman/President Carlo Batalla, Ph.D. said he reviewed the 1st Endorsement dated August 7, 2026, issued by the Office of the Provincial Legal Officer, Atty. Janis Ian B. Cleofe, which forwards to the SP a proposed resolution authorizing a 25-year Lease of Equipment Agreement, the establishment of a Commitment Trust Account, and an advance payment.
The project reportedly involves a 5MW solar facility with 8MWh Amber Kinetics energy storage.
THE BIG QUESTION: WHAT PROCUREMENT AND LEGAL FRAMEWORK APPLIES?
CCWI is asking the provincial government and the SP to clarify several issues before any final approval:
1. IS DIRECT CONTRACTING THE PROPER PROCUREMENT MODE?
Under the New Government Procurement Act (RA 12009), Direct Contracting is a specific procurement modality subject to defined conditions, including proprietary goods and other circumstances provided by law and its IRR. GPPB guidance describes Direct Contracting primarily in relation to proprietary goods and specific suppliers.
CCWI is therefore asking whether the proposed entire energy project and long-term lease arrangement properly qualify for the selected procurement method.
2. DOES THE 25-YEAR ARRANGEMENT FALL UNDER THE PPP CODE?
The PPP Code (RA 11966) and its IRR provide processes for PPP projects involving local government units. The PPP Center also recognizes that certain lease agreements may fall within the PPP framework, depending on their structure and whether they contain the essential elements of a PPP.
CCWI is calling for a formal determination of whether the proposed arrangement should undergo the applicable PPP process and approvals.
3. WHAT IS THE LEGAL AND ACCOUNTING BASIS FOR THE ₱241.9-MILLION TRUST ACCOUNT?
The proposed Commitment Trust Account, reportedly equivalent to approximately 10% of the project value, also warrants clarification regarding its legal basis, purpose, funding source, accounting treatment, and safeguards for public funds.
CCWI CALLS FOR TRANSPARENCY BEFORE APPROVAL
CCWI said it supports renewable-energy projects but maintains that large, long-term public financial commitments should undergo full legal, procurement, financial, and public-interest review.
Before the SP acts on the proposed agreement, CCWI is urging the provincial government to:
🔎 Publish the complete project and procurement documents;
🔎 Make the BAC evaluation and supporting studies available for public review;
🔎 Obtain written guidance from the appropriate procurement and PPP authorities where necessary;
🔎 Clarify the legal basis and safeguards for the proposed trust account and advance payment; and
🔎 Conduct appropriate public consultation before entering into a 25-year commitment.
RENEWABLE ENERGY, YES. BUT TRANSPARENCY MUST COME WITH IT.
The project may provide a long-term energy solution for the province, but the public also deserves to know how the ₱2.419 billion commitment was structured, why the chosen procurement method was used, and what protections exist for taxpayers over the next 25 years.
CCWI said it will continue monitoring the transaction and may pursue appropriate legal remedies if its review establishes grounds for such action.
“We support renewable energy. But every long-term public commitment must be lawful, transparent, competitive where required, and protective of public funds.”
CARLO BATALLA, Ph.D.
Chairman/President | Crimes and Corruption Watch International (CCWI)
The concerns raised above are matters for legal and procurement review. They do not, by themselves, establish that the proposed transaction violates any law. The applicable authorities and approving bodies remain responsible for making the appropriate legal determinations.
