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LESSONS:

Philippines: Electricity Market and Transmission Development Project

sector: Energy | country: Philippines

Time needed to deal with rights-of-way. Projects such as this one need to allow sufficient time to assess and address the issues in acquiring right-of-way. The project’s compensation and resettlement problems could have been resolved more quickly if those affected had been made better aware of the property valuation process and the impact the project would have on them. The project could have established a mechanism to deal with disputes, and local government institutions could have been engaged to help resolve them. The project could also have activated its external monitoring group earlier to give it enough time to prepare for assisting those affected.

Reassessment and careful choice of independent marker operator. The government should look carefully again at the need for an independent market operator. As far as the evaluation could ascertain, use of the Philippine Electricity Market Corporation, which is not an independent market operator, has had no obvious adverse repercussions to date. This finding suggests that it could be counterproductive to force the pace of change to establish the independent market operator that the Electric Power Industry Reform Act and project design called for, and the government undertook to create but did not.

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