Philippine Energy Policy Wiki

RA 11054 — Bangsamoro Organic Law (BOL)

Status
operative
Confidence
high
Effective date
2018-08-11

Full title: An Act Providing for the Organic Law for the Bangsamoro Autonomous Region in Muslim Mindanao, Repealing for the Purpose Republic Act No. 6734, Entitled “An Act Providing for An Organic Act for the Autonomous Region in Muslim Mindanao,” As Amended by Republic Act No. 9054, Entitled “An Act to Strengthen and Expand the Organic Act for the Autonomous Region in Muslim Mindanao”

Signed: July 27, 2018 | President: Rodrigo Roa Duterte

Ratified by plebiscite: January 21, 2019 (in former ARMM provinces and Cotabato City)

Scope note: This page covers energy-relevant provisions only. RA 11054 establishes the entire Bangsamoro Government structure; non-energy provisions are not covered here.

Energy Powers of the Bangsamoro Government (Article IV §3)

The BOL grants the Bangsamoro Government authority over [RA 11054, Art. IV §3, 2018-07-27]:

  • (oo) Power sector investments
  • (pp) Public utilities’ operations — includes electricity distribution
  • (d) Ancestral domain and natural resources — surface and subsurface rights
  • (gg) Inland waters — with exception for energy-producing waters (see Art. XIII §22)

Intergovernmental Energy Board — IEB (Article VI §7)

The IEB is created under the Intergovernmental Relations architecture (Article VI) to resolve energy matters specified in Article XIII §36 and other energy issues referred by the Intergovernmental Relations Body (IGRB). Composed of representatives from the energy regulatory commissions and electrification administrations of both governments [RA 11054, Art. VI §7, 2018-07-27]. See Intergovernmental Energy Board (IEB) .

Natural Resources Authority and Preferential Rights (Article XIII §8, §11, §13)

General natural resources authority (§8): The Bangsamoro Government has the power, authority, and right to explore, develop, and utilize natural resources — including surface/subsurface rights, inland waters, coastal waters, and both RE and non-RE resources — and to declare nature reserves, aquatic parks, forests, watershed reservations, and protected areas [RA 11054, Art. XIII §8, 2018-07-27].

Preferential rights (§11): Bangsamoro bona fide residents have preferential rights, all other conditions being equal, in the exploration, development, and utilization of all natural resources — including fossil fuels and uranium. Existing rights are respected until expiration [RA 11054, Art. XIII §11, 2018-07-27].

Mines and minerals (§13): The Bangsamoro Government has authority and jurisdiction over exploration, development, and utilization of mines and minerals, and may grant related permits, licenses, and contracts, subject to environmental protection and ecological balance considerations [RA 11054, Art. XIII §13, 2018-07-27].

Natural Resource Revenue Sharing (Article XII §24, §34–36)

All revenues from exploration, development, and utilization (EDU) of natural resources within BARMM fully accrue to the Bangsamoro Government, with one exception:

Uranium and fossil fuels (petroleum, natural gas, coal) — co-managed with revenues shared 50/50 between the National Government and Bangsamoro Government, subject to constitutional limitations [RA 11054, Art. XII §24, 2018-07-27].

Within the Bangsamoro share: 30% to Bangsamoro Government proper; 20% provinces; 15% cities; 20% municipalities; 15% barangays [RA 11054, Art. XII §34-35, 2018-07-27]. Indigenous peoples and communities are also entitled to an equitable share in revenues from resources within native title areas, with details to be enacted by Parliament [RA 11054, Art. XII §36, 2018-07-27].

Fossil Fuels and Uranium Co-Management (Article XIII §10)

The National Government and Bangsamoro Government jointly exercise the power to grant concessions over EDU of petroleum, natural gas, coal, and uranium. Process:

  1. DOE and Bangsamoro Government jointly adopt a competitive and transparent concession process
  2. DOE and Bangsamoro Government jointly identify prospective contract areas
  3. Bona fide Bangsamoro residents receive higher evaluation ratings as proponents, all other conditions being equal
  4. Service contracts jointly awarded by DOE and Bangsamoro Government

Renewable energy shall be promoted for power generation to achieve sustainable development goals and low-carbon policies [RA 11054, Art. XIII §10, 2018-07-27].

Inland Waters and Energy (Article XIII §22)

Bangsamoro Government has exclusive powers over inland waters except those providing energy to power generating plants outside BARMM. Waters serving power plants outside BARMM fall under the fossil fuel co-management principle, applying particularly to Lake Lanao / Agus Hydropower Complex [RA 11054, Art. XIII §22, 2018-07-27].

Energy and Power Generation (Article XIII §36)

Power Generation and Distribution Utilities

  • Bangsamoro Government may build power generation and distribution utilities operating exclusively in BARMM through a Ministry of Energy to be created by Parliament
  • 25-year mandatory divestiture — BG must divest ownership 25 years after creation
  • National Government must be notified of power generation investments
  • Distributed power generation aggressively promoted to reduce transmission costs
  • BARMM power plants/DUs may interconnect with and sell/buy from national transmission grid, subject to EPIRA (RA 9136) — surplus only (after all customers served) may be sold over the grid
  • BG may assist electric cooperatives exclusively in BARMM via debt restructuring, rehabilitation, and efficiency improvement programs [RA 11054, Art. XIII §36(a), 2018-07-27]

Agus Hydropower Complex (Article XIII §36(b))

In the event of privatization of the Agus Hydropower Complex:

  • BARMM has preferential rights to acquire hydroelectric plants within its territorial jurisdiction
  • National Government and BARMM coordinate through the IEB on Lake Lanao water utilization
  • NPC/PSALM obligations to the former ARMM accrue to BARMM

[RA 11054, Art. XIII §36(b), 2018-07-27]

Implementation Notes

MENRE as transitional energy ministry: Art. XIII §36(a) references “the Ministry of Energy it shall create” — MENRE (Ministry of Environment, Natural Resources and Energy) currently carries the energy mandate as a combined portfolio. Parliament may create a dedicated Ministry of Energy.

IEB activation: Established October 2020 — over two years after RA 11054’s signing, reflecting the complexity of operationalizing the intergovernmental framework. Eight Technical Working Groups (TWGs) established under DO2022-07-0010 and DO2023-05-0013. First joint conventional energy bid round: February 26, 2024 [PEP 2023-2050 Vol. I, p.42-44, 2023].

Coal operating contracts in BARMM: The SSCMI-TWG handles small-scale coal mining, consistent with Art. XII §24’s 50/50 fossil fuel revenue share. The IEB Circular on Joint Award of PSCs and COCs was signed at Malacañang on July 6, 2023 [PEP 2023-2050 Vol. I, p.44, 2023].

Full text: Cleaned copy