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38.6.

38.7.

38.8.

38.9.

38.10.

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After due evaluation, the DOE may withdraw the COA if the
Hydropower/Ocean Energy Developer is unable to show, through proper
documentation, reasonable efforts to undertake the activities. If the
DOE, through REMB, finds that the COA should be withdrawn, it shall
give the Hydropower/Ocean Energy Developer written notice within
fifteen (15) working days that it has forfeited the benefit of the COA and
shall direct the Hydropower/Ocean Energy Developer to pre-sign the
HSC/OESC in accordance with Section 39.2.

The decision of the DOE to withdraw the COA shall be final and non-
appealable.

The validity of the COA shall not be extendible. Any reconnaissance
activity and other pre-feasibility studies that is not conducted and/or
permit or certification or tenurial instrument that remains unissued upon
the lapse of the COA, despite the due diligence of the
Hydropower/Ocean Energy Developer, shall be procured and the
necessary activities therefor conducted, as part of the Pre-Development
Stage.

The Hydropower/Ocean Energy Developer shall have the option to
waive, shorten or utilize maximum period of validity of the COA.

38.9.1. If the Hydropower/Ocean Energy Developer opts to shorten
the period of validity, it shall give written notice to the DOE
with a request to execute the HSC/OESC, a proposed Work
Program and a terminal report on the permits, certifications or
tenurial instruments procured and/or reconnaissance and
other activities needed for pre-feasibility studies conducted.

38.9.2. If the Hydropower/Ocean Energy Developer opts to utilize the
full term, it shall give written notice to the DOE with a request
to execute the HSC/OESC, a proposed Work Program and the
terminal report mentioned in Section 38.9.1 not earlier than six
(6) months but not later than three (3) months prior to the
expiration of the validity of the COA.

38.9.3. Failure of the Hydropower/Ocean Energy Developer to give
written notice to the DOE within the period mentioned in the
preceding paragraph shall be deemed an abandonment of the
HSC/OESC Application, following the procedure set forth in
Section 37.10.2.2.4.

Within three (3) calendar days from notice, HOEMD shall prepare
REMB’s memorandum for the DOE Secretary endorsing the execution
of the HSC/OESC in accordance with Section 39.2.
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39. Award of Hydropower or Ocean Energy Service Contract and Registration of
Hydropower/Ocean Energy Developers.

39.1.

39.2.

Issuance of Certificate of Authority. After the approval of an
HSC/OESC Application and before the execution of an HSC/OESC, the
DOE shall issue a COA: Provided, That the COA may be waived in
accordance with Section 38.9.

Signing of the Hydropower or Ocean Energy Service Contract. The
following procedure shall govern the awarding of HSC/OESC:

39.2.1.

39.2.2.

Notification of Award. The DOE shall notify the selected
(under the OCSP) or qualified (under Direct Application)
HSC/OESC Applicant of the award of the HSC/OESC.

Signing of the Hydropower or Ocean Energy Service
Contract. The signing of the HSC/OESC shall be divided into
two stages, namely: a) pre-signing by the HSC/OESC
Applicant; and b) signing by the DOE Secretary.

39.2.2.1. The REMB Supervising Assistant Secretary shall review

the recommendation and endorse the same to the
REMB Supervising Undersecretary through LS within
two (2) calendar days from receipt thereof. LS shall act
on the endorsement within two (2) calendar days from
receipt of the documents. The Undersecretary shall act
on the endorsement within two (2) calendar days from
receipt of the documents. Within one (1) calendar day
from the concurrence of the Undersecretary with the
REMB’s recommendation, the REMB Director shail
require the HSC/OESC Applicant to pre-sign the original
copies of the HSC/OESC following the prescribed
template. The HSC/OESC Applicant is then required to
pre-sign the HSC/OESC within thirty (30) calendar days
upon receipt of the notice. Failure to comply within this
timeframe shall result in the HSC/OESC application
being deemed abandoned. Notifications will be sent
through EVOSS System at ten (10)-day intervals within
this thirty (30)-day period to the HSC/OESC Applicant.

39.2.2.2. The HSC/OESC Applicant shall submit the pre-signed

HSC/OESC to HOEMD. Within one (1) working day, the
HOEMD shall check the completeness of the pre-signed
HSC/OESC, and, if the same is in order, shall forward
the pre-signed HSC/OESC, along with the endorsement
and all its attachments to the Office of the DOE
Secretary one (1) calendar day thereafter. Incomplete
pre-signed HSC/OESC shall be returned to the
HSC/OESC Applicant for rectification.
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39.3.

39.4.

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39.2.2.3. The Office of the DOE Secretary shall receive the pre-
signed HSC/OESC and ail its attachments, and the DOE
Secretary shall act on the documents within seven (7)
calendar days from receipt thereof.

39.2.3. Payment of Signing Fee. The HOEMD, through the EVOSS
System, shall issue the order of payment within one (1)
calendar day.

The HSC/OESC Applicant shall pay the signing fee and upload
the proof of payment thereof within fifteen (15) calendar days from
receipt of the order of payment. Failure of the Hydropower/Ocean
Energy Developer to do so shall cause the HSC/OESC to be
deemed void.

39.2.4. Posting of Performance Bond. Subject to Section 91, the
HSC/OESC Applicant shail post the performance bond
covering the first Contract Year in accordance with Section 65
within the sixty (60) calendar days from receipt of notice.
Failure of the Hydropower/Ocean Energy Developer to do so
shall cause the HSC/OESC to be deemed void.

39.2.5. Delivery of the Signed Hydropower or Ocean Energy
Service Contract. Within one (1) calendar day from receipt of
the proof of payment of the signing fee within the prescribed
period, HOEMD shall, after due validation thereof, upload in the
EVOSS System the signed and notarized copy of the
HSC/OESC and COR, as applicable.

The Hydropower/Ocean Energy Developer shall personally
receive the original copies of the HSC/OESC and COR, as
applicable, after submission of the proof of posting of the
performance bond within the prescribed period. Simultaneous
with the receipt of the HSC/OESC, the Hydropower/Ocean
Energy Developer shall surrender to the DOE the COA issued
pursuant to this Circular.

Duty to Maintain Records. The HOEMD shall maintain a record of all
LOIs received, pending HSC/OESC Applications, and signed
HSC/OESC in the EVOSS System.

Reopening of the Area of Interest. The ITMS shall make the area
available to other applicants only when: (a) the HSC/OESC Applicant
failed to qualify and the period under Section 37.10.2.2 has lapsed; or
(b) withdraws or abandons its LOI or HSC/OESC Application, as the
case may be, and only after due notice is given to the concerned
interested participant/ HSC/OESC Applicant of such information by the
REMB Supervising Assistant Secretary, copy furnishing the ITMS with
the said notice. Such information shall be posted on the DOE website
and previously denied applicants shall be notified through the EVOSS
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39.5.

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System. Once an area is declared to be available, subsequent RE
Applications covering the same may be allowed, and only on a first-
come, first-served basis.

Registration of Hydropower or Ocean Energy Developers. The DOE,
through the REMB, shall issue a COR to a Hydropower/Ocean Energy
Developer holding a valid HSC/OESC for purposes of entitlement to the
incentives under the RE Act, subject to Chapter XII of this Circular, upon
the issuance of the COCOC. Notwithstanding the foregoing, the
issuance of a COR may be availed of upon the award of the HSC/OESC,
at the option of the Hydropower/Ocean Energy Developer.

40. Types of Hydropower Projects. Hydropower projects shall include, but not be

limited to:

40.1.

40.2.

40.3.

Run-of-River (ROR) — diverts a portion of a river through a canal and/or
a penstock, to spin a turbine which activates a generator to produce
electricity. ROR hydropower plants utilizes a weir and does not require
the use of a large dam or reservoir;

impoundment — uses a large dam to store or impound river water in a
reservoir. Water may be released to serve as base load to meet
changing electricity demand for weeks or even months; and

Pumped Storage — stores and generates power by moving water
between two or more reservoirs at different elevations. When the
demand for electricity is low, a pumped storage facility pumps water from
a lower reservoir to the upper reservoir for later use. During periods of
high electrical demand, the water is released back to the lower reservoir
in order to generate electricity.

41. Terms of Hydropower or Ocean Energy Service Contract. The development of
hydropower/ocean energy resources shall be covered by an HSC/OESC following the
prescribed template (Annexes “F” or “G”, respectively).

41.1.

41.2.

The Hydropower/Ocean Energy Developer shall be given the following
periods, reckoned from the date of execution of the HSC/OESC, to
determine the existence of hydropower/ocean energy resources in
Commercial Quantities, which shall be called Pre-Development Stage:

41.1.1. Run-of-River - three (3) years extendible for a period of two (2)
years;

41.1.2. Impoundment/Pumped Storage/Ocean Energy - five (5) years
extendible for a period of two (2) years;

The Hydropower/Ocean Energy Developer may file a request to extend
the term of the Pre-Development Stage for justifiable reasons not earlier
than six (6) months but not later than three (3) months prior to its
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41.3.

41.4.

41.5.

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expiration, which shall be decided by the REMB Supervising
Undersecretary.

The Development/Commercial Stage shall commence immediately upon
the expiration of the Pre-Development Stage and upon the issuance of
the COCOC, and shall continue for the remainder of term of the
HSC/OESC.

The HSC/OESC shall have a term of twenty-five (25) years from the date
of execution, which shall include the Pre-Development Stage and
Development/Commercial Stage but shall exclude the period covered by
the COA.

Not earlier than six (6) months but not later than three (3) months prior
to the expiration of the twenty-five (25)-year period, the HSC/OESC may
be renewed for another twenty-five (25) years, subject to the terms and
conditions of the HSC/OESC.

42. Stages of Hydropower or Ocean Energy Service Contract. An HSC/OESC
shall cover two (2) stages of the hydropower/ocean energy project, namely:

42.1.

42.2.

Pre-Development Stage. It involves the conduct of preliminary
assessment and feasibility study up to Financial Closing and approval of
DOC of the hydropower/ocean energy project, including the identification
of the proposed Production Area; and

Development(Commercial Stage. It involves the development,
construction, and commercial operation of the hydropower/ocean energy
project, and the production and utilization of hydropower/ocean energy
resources.

43. Investment.

43.1.

43.2.

New Investments. Hydropower/Ocean Energy Developers undertaking
discovery, exploration, development and/or utilization of new
hydropower/ocean energy resources within the Contract Area distinct
from the originally registered operations may qualify as new projects,
subject to setting up of new separate books of accounts. The
Hydropower/Ocean Energy Developer may, upon its discretion,
relinquish the Contract Area and apply for a new HSC/OESC over the
area of new investment, subject to constitutional term limits.

Additional Investments. Additional investment may cover investment
for improvements, modernization, rehabilitation, or expansion duly
registered with the DOE, which may or may not result in increased
capacity, subject to the conditions to be determined by the DOE, such
as, but not limited to, the following:
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43.2.1. Identification of and investment in sequential phases/stages of
production, or undertaking scheduled modernization or
rehabilitation; and

43.2.2. Improvements such as reduced production/operational costs,
increased production, improved operational efficiency, and
better reliability of the hydropower/ocean energy facilities.

If, by reason of the additional investment, the capacity of the hydropower
project is increased by at least twenty percent (20%), or thirty percent
(30%) in the case of an ocean energy project, as validated by REMB,
the Hydropower/Ocean Energy Developer shall have the option to avail
of an additional COR indicating the type of additional investment. Upon
the issuance of the additional COR, the applicable incentives under the
RE Act shail be reset.

In cases where the period to avail of duty-free importation has lapsed
and the additional investment involves the importation of RE machinery,
equipment and/or materials, the DOE, upon the request of the
Hydropower/Ocean Energy Developers, may issue an additional COR
indicating the type of additional investment prior to the actual increase
of the capacity based on the following:

43.2.2.1. Full and detailed feasibility study showing that upon installation
of the RE equipment, machinery and/or materials specified
therein, the capacity of the hydropower/ocean energy project
will be increased by at least twenty percent (20%) or thirty
percent (30%), as applicable;

43.2.2.2.Binding agreements for the purchase of RE equipment,
machinery and/or materials with the same specifications
mentioned in the feasibility study;

43.2.2.3. Detailed timeline of activities to implement the improvement,
modernization, rehabilitation or expansion; and

43.2.2.4. Subject to Section 91, proof of posting of performance bond as
provided in Section 65.

CHAPTER VII - ONSHORE WIND ENERGY RESOURCE

44. Eligibility of Onshore Wind Energy Service Contract Applicant. Any Person
may apply for an Onshore Wind Energy Service Contract (OnWESC), subject to the
provisions in this Chapter.

44.1. The OnWESC Applicant may be a Filipino and/or a foreign citizen, or a
Filipino- and/or foreign-owned corporation or association which is
authorized by its articles or deed of incorporation to engage in the
exploration, development, and utilization of onshore wind energy
resources: Provided, That in case the OnWESC Applicant is a joint
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44.2.

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venture or a consortium, the partners of the joint venture or members of
the consortium shall organize themselves as a corporation under the
Revised Corporation Code or secure the appropriate license from the
SEC, in case the joint venture or consortium was incorporated outside
of the Philippines.

An Applicant which applies for an OnWESC that involves activities
reserved to Filipino citizens or corporations or associations at least sixty
percent (60%) of whose capital is owned by Filipinos shall comply with
the nationality requirements under applicable laws, including the Anti-
Dummy Law on the appointment of officers of the corporation.

45. Modes of Awarding Onshore Wind Energy Service Contract. OnWESC shall
be awarded through (a) an OCSP, or (b) Direct Application.

45.1.

45.2.

45.3.

The OCSP shall be adopted for the selection and award of OnWESC for
PDAs covering onshore wind energy resources for commercial
purposes. This shall be governed by Section 46 and such guidelines as
may be issued by the DOE pursuant to Section 47.

Direct Application shall be available for the selection and award of:

45.2.1. OnWESCs covering PDAs, following a failed OCSP pursuant to
the guidelines issued under Section 47; and

45.2.2. OnWESC in an area identified by an OnWESC Applicant and
verified with or confirmed by the ITMS as available for
exploration, development and/or utilization of onshore wind
energy resources.

Onshore Wind Energy Projects for Own-Use and/or for Non-Commercial
Purposes shall not require the issuance of OnWESC but shall comply
with the registration requirements provided under Chapter XI of this
Circular.

46. Pre-Determined Areas. Interested parties may apply for OnWESC for PDAs
offered by the DOE during a prescribed period.

46.1.

46.2.

46.3.

Selection of PDAs. The REMB shall identify and submit a list of PDAs
for OnWESC Application, with the respective location maps, technical
descriptions, and wind resource data thereof, to the DOE Secretary,
through its Supervising Assistant Secretary and Undersecretary, for
approval.

Launch and Publication. PDAs approved by the DOE Secretary shall
be scheduled for launch and shall be publicly announced by the DOE for
submission of OnWESC Applications.

Data Packages and Promotional Activities. The REMB shall arrange
for the availability of data packages for the approved PDAs that can be
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purchased by interested parties in support of their applications. The
REMB shall conduct promotional activities to promote the OCSP and the
corresponding data packages so as to ensure maximum participation
and awareness of prospective investors and stakeholders.

47. Procedure for Awarding of Onshore Wind Energy Service Contract under the
Open and Competitive Selection Process. The DOE shall issue specific guidelines
for the conduct of, and award of OnWESCs under, OCSP.

If an OCSP is declared a failure with respect to any or all PDAs included therein, all
the affected PDAs shall be opened for Direct Application.

48. Procedure for Awarding Onshore Wind Energy Service Contract under Direct
Application.

48.1. Coverage. Direct Application shall be observed in processing OnWESC
Applications for: (a) onshore wind energy resources located in PDAs
which the DOE shall declare as available under this mode pursuant the
guidelines issued under Section 47, and (b) onshore wind energy
resources in areas other than those included in the PDAs, subject to the
procedures provided herein.

Part 1. Pre-Application Process

48.2. Registration in the EVOSS System. If the interested participant has no
EVOSS System account yet, it shall submit a request for registration in
the EVOSS System with the WEMG. The list of requirements necessary
for registration is detailed in Annex “J”.

48.3. Submission of Letter of Intent. All interested participants shall submit
through the EVOSS System an LOI to develop a certain area (Annex
“K”), in accordance with the mapping requirements (Annex “N”). The LOI
shall be addressed to the REMB Director and shall indicate whether the
interested participant will avail of the COA referred to in 49 and 50.1. If
the interested participant opts to avail of the COA, its LOI shall include a
list of all permits and activities to be procured/conducted during the
validity of the COA: Provided, That the list must cover the minimum set
of permits and activities mentioned in Annex H.1. The submission of the
LO! shall not be considered as a filing of an OnWESC Application and
shall not commence the application process.

48.4. Pre-Application Orientation of Interested Participant. The orientation
is intended to inform the interested participants about the OnWESC pre-
application and mapping requirements and processes.

Any interested participant may request for an orientation by signifying
such intent in its LOI; otherwise, it shall be presumed that the interested
participant is aware of the OnWESC pre-application and mapping
requirements and processes.
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Part 2, Area Verification and Technical Guidelines

48.5. Configuration of Area of Interest. The AOI for the OnWESC
Application shall either be polygonal or in blocks following the Blocking
System or a combination of both. ITMS shall check the completeness of
the mapping requirements within three (3) working days.

48.6.

Area Verification. Within eighteen (18) calendar days from receipt of
the LO! with complete documents, ITMS shall complete the area
verification and determine whether the AOI is:

48.6.1.

48.6.2.

48.6.3.

48.6.4.

Covered by an existing PDA under the OCSP, OnWESC,
Offshore Wind Energy Service Contract (OsWESC), or
OnWESC or OsWESC pending application, or other energy
resource assessment activities as submitted by the concerned
DOE unit and verified by ITMS;

Within or overlaps with the area of an existing energy service
or operating contract such as PSC, COC, SSCMP or RESC,
other than OnWESC or OsWESC;

Within or overlaps the area of an existing energy service or
operating contract application such as PSC, COC, SSCMP or
RESC, other than OnWESC or OSWESC Application;

Within the protected and environmentally critical areas under
the ENIPAS, i.e., within or outside the strict protection zones,
ancestral domains with Certificate of Ancestral Domain Title
or Claim, areas with tenurial instruments from other
government agencies, areas prohibited, reserved, or used for
national defense, navigation, irrigation, and other
development projects, zones identified under the MSP of the
DOE, safety and exclusion zones under Proclamation No. 72,
Series of 2001, titled “Establishing Safety and Exclusion
Zones for Offshore Natural Gas Wells, Flowlines, Platform,
Pipelines, Loading Buoy and Other Related Facilities for the
Malampaya Deep Water Gas-to-Power Project over Certain
Waters and Submerged Lands Adjacent to Batangas, Mindoro
and Palawan’, and other areas covered by significant
geospatial data that will be identified as necessary in the
evaluation of the OnWESC Application based on available
data on file with ITMS and NAMRIA’s Philippine Geoportal
Project website.

Pursuant to the mandate of the DOE to supervise and control
all government activities relative to energy project under the
EPIRA, concerned government agencies and entities shall
provide the DOE the list of abovementioned areas with
technical descriptions and corresponding geospatial data;
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48.6.5. Covered by the COA of other energy resource;
48.6.6. Covered by the COA of the same energy resource; and/or
48.6.7. Subject to Section 48.9.4, open for OnWESC Applications:
48.6.7.1.Covered by AOI of the same/other energy resource; or
48.6.7.2.Not covered by AOI of the same/other energy resource.

Area Verification Results. ITMS shall provide WEMG with the results
of area verification through the EVOSS System. Within five (5) calendar
days upon receipt of the verification results, WEMG, through the REMB
Assistant Director, shall endorse the final verification results and upload
the letter containing the results of area verification in the EVOSS
System.

The REMB Assistant Director shall issue a Notice to Apply if the AO! falls
under Section 48.6.7. If the AO! falls under Sections 48.6.1 to 48.6.5, the
OnWESC Applicant shall be issued a Notice to Apply only after
complying with the succeeding paragraph.

If the OnWESC Application cannot proceed based on the final
verification results, the interested participant may either (a) reconfigure
the AOI; (b) file a request to allow the development of multiple resources
in the area; or (c) comply with Section 48.7.3, as applicable.

48.7.1. Reconfigured Area of Interest. Within ten (10) calendar days
from uploading of the final verification results or from receipt of
notice that multiple resource development in the overlapping
area is not feasible under Section 48.7.2, the interested
participant and WEMG may conduct an assessment if the AOI
may be reconfigured without material adverse effect on the
feasibility of the proposed onshore wind energy project. The
interested participant may reconfigure its AOI to cover only such
portion as may allow the ONWESC Application to proceed. After
confirmation by ITMS that no portion of the reconfigured AOI
falls under Sections 48.6.1 or 48.6.6 (for same energy
resource), and Sections 48.6.2, 48.6.3, 48.6.5 (for other energy
resource) or 48.7.3.1 (for strict protection zones, exclusion and
no-build zones), or if authority and consent is granted under
Section 48.7.3.6, if applicable, WEMG shall upload in the
EVOSS System a Notice to Apply to the interested participant
for the filing of the OnNWESC Application.

48.7.2. Multiple Resources in an Area. If the AOI of the interested
participant overlaps with the area of an existing energy service
or operating contract or an application therefor, or of the COA
of another RE Developer not affiliated to the interested
participant as provided under Sections 48.6.2, 48.6.3 and
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48.6.5, the interested participant may still pursue the OnWESC
Application, subject to the following provisions:

48.7.2.1. The interested participant shall:

48.7.2.2.

48.7.2.3.

48.7.2.4.

48.7.2.1.1.Explain in writing why the proposed onshore
wind energy project will not be feasible
without the overlapping area, with justification
on the technical viability of the project; and

48.7.2.1.2.Submit a notarized acknowledgment and
undertaking that the interested participant
recognizes and shall continue to recognize
the prior rights of the existing developers of
other energy resources within the overlapping
area; that the design of the proposed onshore
wind energy project will ensure safe and
optimal development of onshore wind energy
and other energy resources in the
overlapping area; and that all costs needed
therefor shall be borne by the interested
participant.

WEMG shall inform the existing applicant or energy
contractor/developer of the intent to develop the
onshore wind energy resources within the overlapping
area. Copies of the interested participant’s LOI, the
written explanation, and their supporting documents
shall be furnished to the existing applicant or
contractor/developer.

If no objection is received from the existing applicant or
energy contractor/developer within ten (10) working
days from receipt of notice, WEMG shall upload in the
EVOSS System a Notice to Apply to the interested
participant for the filing of the OnWESC Application.

If the existing applicant or energy contractor/developer
objects to the proposal, the said applicant or energy
contractor/developer shall notify WEMG thereof and
provide a copy to the interested participant within ten
(10) calendar days from receipt of notice, citing the
impracticability of multiple resource development as to
additional costs, safety, substantial decrease in the
utilization of the energy resource, and other relevant
factors. Copies of the written objection shall be
furnished to the DOE Division processing the
application or administering the energy project. A
statement that multiple resource development in the
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overlapping area is impracticable without technical
basis shall not be considered as an objection.

48.7.2.5. Within five (5) calendar days from receipt of an

objection, WEMG and the concerned DOE Division
shall jointly determine whether exploration of onshore
wind energy resources within the overlapping area may
be conducted without material adverse effect on the
activities of the existing energy contractor/developer.
Such determination shall consider the interested
participant’s proposal, the objection and the technical
bases cited therein. The evaluation shall be endorsed
to the REMB Director.

48.7.2.6. Upon receipt of the endorsement, the REMB Director

48.7.3.

may, if he concurs that the onshore wind energy project
will not cause material injury, issue a recommendation
to the DOE Secretary based on the feasibility of
multiple resource development in the overlapping area,
taking into account the most beneficial use of the
resources.

48.7.2.7. The DOE Secretary shall decide whether to allow
multiple resource development in the overlapping area.
If the DOE Secretary allows the same, the REMB
Assistant Director shall issue a Notice to Apply to the
interested participant.

Other Areas. If the AOI of the interested participant overlaps
with the area as provided under Section 48.6.4, the interested
participant may still pursue the OnWESC Application if there is
no material adverse effect on the feasibility of the proposed
onshore wind energy project after applying the provisions
below:

48.7.3.1. If the AOI overlaps with areas within strict protection
zones under the ENIPAS and exclusion and no build
zones under the MSP of DOE, the interested
participant shall submit a revised AOI net of the said
areas.

48.7.3.2. If the AOI overlaps with areas outside strict
protection zones under the ENIPAS, the REMB
Assistant Director shall issue a Notice to Apply for
the said AOI: Provided, That the Contract Area may
be reduced subject to the ENIPAS and its IRR.

48.7.3.3. If the AOI overlaps with ancestral domains with
Certificate of Ancestral Domain Title or Claim, the
REMB Assistant Director shall issue a Notice to
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Apply for the said AOI: Provided, That the Contract
Area may be reduced subject to the IPRA and its
IRR.

48.7.3.4. If the AOI overlaps with areas with tenurial
instruments from other government agencies, the
REMB Assistant Director shall issue a Notice to
Apply for the said AOI: Provided, That the Contract
Area may be reduced subject to the relevant rules
and regulations of the concerned government
agency.

48.7.3.5. If the AOI overlaps with areas prohibited, reserved,
or used for national defense, navigation, irrigation,
and other development projects, and other areas,
the REMB Assistant Director shall issue a Notice to
Apply for the said AOI: Provided, That the Contract
Area may be reduced subject to the relevant rules
and regulations of the concerned government
agency.

48.7.3.6. If the AOI is within the safety and exclusion zones
for offshore natural gas wells, flowlines, platform,
pipelines, loading buoy and other related facilities for
the Malampaya Deep Water Gas-To-Power Project
over certain waters and submerged lands adjacent
to Batangas, Mindoro and Palawan, the interested
participant shall secure a prior authorization from the
DOE and the DND, and prior consent from the SC
No. 38 Service Contractor pursuant to Section 1 of
Proclamation No. 72, Series of 2001.

Part 3. Filing and Evaluation of Onshore Wind Energy Service Contract
Applications

48.8.

48.9.

Orientation of OnWESC Applicant. The orientation is intended to
inform OnWESC Applicant about the OnWESC application
requirements, and to guide them through the process for evaluation
thereof, awarding of OnWESC and the registration of an onshore wind
energy project.

The Notice to Apply uploaded in the EVOSS System shall include the
schedule of the mandatory orientation for OnWESC Applicants,
facilitated by representatives from the LS, WEMG, and FS. The
OnWESC Applicant shall ensure the attendance of legal, technical, and
financial staff during the orientation.

Receipt of Onshore Wind Energy Service Contract Applications.
After the Notice to Apply is uploaded in the EVOSS System, the
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48.10.

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interested participant may file its OnWESC Application by complying
with the procedures and requirements, as follows:

48.9.1. The OnWESC Applicant shall submit through the EVOSS
System the complete set of documentary requirements based
on the Checklist of Requirements (Annex “M’).

48.9.2. WEMG shall check the completeness and consistency of the
submission and ITMS shall validate the area applied for the
onshore wind energy project within three (3) working days.

48.9.3. If the submission is complete and the AOI is still free for
development, WEMG shall upload a copy of the order of
payment for the application and processing fees. The EVOSS
System shall notify the OnWESC Applicant through a system-
generated email to pay the application and processing fees
within three (3) working days. Failure to do so will result in the
abandonment of the application. Within one (1) working day
from uploading, DOE shall validate the proof of payment.

48.9.4. The AOI is not reserved for the OnWESC Applicant until the
submission of complete application documents and proof of
payment of application and processing fees.

48.9.5. The EVOSS System shall notify LS, FS and ITMS of the
complete submission.

48.9.6. In case the AOI is no longer free for development, the
OnWESC Applicant shall be notified through the EVOSS
System and the Application shall be denied accordingly.

48.9.7. To ensure the orderly processing of OnWESC Applications,
the EVOSS System shall be modified such that ITMS must
input its confirmation therein that the AOI is available before a
OnWESC Applicant can upload the documentary
requirements. Pending such modification, WEMG_ shall
revalidate with ITMS whether the AOI is open for application
before issuing the order for the payment of application and
processing fees mentioned in Section 48.9.3.

Evaluation of Onshore Wind Energy Service Contract Applications.

48.10.1.After the payment of the processing fee, WEMG, LS, and FS
shall conduct the simultaneous technical, legal, and financial
evaluations within five (5) calendar days from uploading of the
proof of payment of application and processing fees in the
EVOSS System.

48.10.2. WEMG shall consolidate all the evaluation results and proceed
with the processing:
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48.10.2.1.

48.10.2.2.

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If the ONWESC Application passes the evaluations,
WEMG shall, within two (2) calendar days from its
receipt of the evaluation documents, prepare
REMB’s memorandum for the DOE Secretary
endorsing the award of OnWESC Application; the
draft COA, as applicable; and the draft OnWESC.
The endorsement must include the original copy of
the results of area verification and the legal,
technical and financial evaluations with all their
attachments, and the project area map and its
technical descriptions. Upon concurrence of ITMS,
FS, REMB and LS on the endorsement, the DOE
Secretary shall act on the OnWESC Application in
accordance with Section 50.

If the OnWESC Application does not pass the legal,
technical, and/or financial evaluations, WEMG shall
notify the OnWESC Applicant through the EVOSS
System to rectify the submission within ten (10)
working days. WEMG shall check the completeness
of the submission within three (3) working days.
Such period for rectification and checking of
completeness of the rectification documents shall
be deemed outside of the EVOSS timeframe.

48.10.2.2.1. Failure of the OnWESC Applicant to submit

supplementary documents within the
prescribed period shall be deemed an
abandonment of the OnWESC Application.
WEMG shall notify the OnWESC Applicant,
LS, FS, and ITMS of the disqualification
through the EVOSS System.

48.10.2.2.2. If the OnWESC Applicant submits

supplementary documents’ within the
prescribed period above and WEMG
determines that the submission is
incompiete, the OnWESC Applicant shall
have the remainder of the rectification
period, if any, to submit the lacking
documents. Upon receipt of the said
documents, reevaluation shall proceed in
accordance with the next succeeding
subparagraph.

48.10.2.2.3. WEMG, LS and FS shall be notified by the

EVOSS System of the submission. WEMG,
FS and LS shall finish the simultaneous
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technical, legal, and financial evaluations
within three (3) calendar days.

48.10.2.2.4. Should the OnWESC Application still fail to
pass any of the subsequent legal, technical,
or financial evaluations, the REMB Assistant
Director shall recommend the
disqualification of the OnWESC Application
to the Supervising Assistant Secretary who
shall then issue a formal notice to the
OnWESC Applicant stating the basis of the
disqualification. WEMG shall notify the
OnWESC Applicant, LS, FS, and ITMS of
the disqualification through the EVOSS
System. After five (5) calendar days from
receipt of the OnWESC Applicant of the
letter of disqualification, the REMB shall
prepare a memorandum to the ITMS to
immediately re-open the area for RE
Applications by posting such information on
the DOE website and send notifications to
concerned interested participants or RE
Applicants through electronic mail pending
the necessary modifications to the EVOSS
System.

48.10.3. The OnWESC Applicant shall submit all supplemental
documents through the EVOSS System. Documents submitted
outside the EVOSS System and those submitted through the
EVOSS System but beyond the prescribed period shall not be
accepted or evaluated. Further, the OnWESC Applicant shall
have a one-time opportunity to address the deficiencies found
after the completeness check mentioned in Section 48.10.2.2,
which shall be made within the ten (10) working day period. The
remaining days, if there are any, shall be forfeited. Therefore,
the OnWESC Applicant must ensure that all its documents are
final and complete before submitting the same through the
EVOSS System.

48.10.4.No RR of any of the legal, technical, financial evaluation or the
disqualification shall be entertained, except when the OnWESC
Applicant failed to submit the required documents within the
prescribed timelines due to a fault in the EVOSS System, as
confirmed by the IPO. In such circumstances, the OnWESC
Applicant shall file the RR with REMB within three (3) working
days from uploading of the Notice of Disqualification.

48.10.4.1. Upon receipt of the RR, WEMG shall request the IPO
to confirm the occurrence of the technical problem.
If so confirmed and the same prevented the timely
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48.11.

48.12.

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submission, WEMG, FS and/or LS shall evaluate the
OnWESC Application considering the additional
submission.

48.10.4.2. If the OnWESC Application passes the evaluation,
REMB shall grant the RR. Thereafter, WEMG shall
proceed in accordance with Section 48.10.2.1.

If the Onshore Wind Energy Developer waived the COA during the pre-
application process, WEMG shall proceed with the application in
accordance with Section 50.2.

Re-application for OnWESC. After ITMS re-opens the area for RE
Applications pursuant to Section 48.10.2.2.3, the OnWESC Applicant
may re-apply for the same AOI by complying with Section 48.9.1.

During the checking of the submission for completeness and
consistency under Section 48.9.2 and prior to giving notice of any
deficiency, WEMG shall stamp the Notice to Apply “Revalidated’ with the
appropriate date if the area is still open for OnNWESC Applications.

If another OnWESC Applicant is issued a Notice to Apply over the same
AOI or a portion thereof and uploads the documentary requirements
through EVOSS System, the completeness check referred to above and
the validation of the area with the ITMS shall be on a first-come, first-
serve basis. WEMG shall issue an order of payment for the application
and processing fees to the OnWESC Applicant which first files the
complete documentary requirements based on the EVOSS System logs.

49. Terms of Certificate of Authority. The awardee of an OnWESC shall have
exclusive authority to procure permits or certifications and tenurial instruments needed
for the exploration, development and utilization of the onshore wind energy resources
within an area specified in the OnWESC Application and conduct reconnaissance and
other activities needed for pre-feasibility studies upon the issuance of COA by the

DOE.

49.1.

49.2.

The COA shall be valid for a period not exceeding three (3) years. During
its validity, the COA shall serve as the DOE’s exclusive endorsement for
the Onshore Wind Energy Developer to conduct reconnaissance and
other pre-feasibility activities and secure the necessary permits or
certifications and tenurial instruments from government agencies, LGUs,
entities or instrumentalities having jurisdiction over any aspect of the
onshore wind energy operations. The denomination of each permit or
certification or tenurial instrument to be procured as well as the
reconnaissance and other activities to be conducted for the onshore
wind energy project shall be listed in the COA.

The COA shall reflect the metes and bounds of the area as proposed in
the OnWESC Application over which reconnaissance and other pre-
feasibility activities may be conducted and permits and tenurial
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49.3.

49.4.

49.5.

49.6.

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instruments may be secured by the Onshore Wind Energy Developer for
the project. For this purpose, a copy of the technical description of the
area to be covered by the OnWESC shall form part of the COA.

Within thirty (30) calendar days from the issuance of the COA under
Section 50.1, the Onshore Wind Energy Developer shall submit a fixed
timeline for the procurement of permits and conduct of activities in Gantt
chart form, with the minimum work commitment under Annex H.1.

The above timeline shall not be revised.

Not later than thirty (30) calendar days after the end of each year of the
COA, the Onshore Wind.Energy Developer shall submit an annual report
on the permits, certifications or tenurial instruments procured and/or
reconnaissance and other activities needed for pre-feasibility studies
conducted. The annual report shall follow the format prescribed in the
COA: Provided, That during the last year of COA validity, the Onshore
Wind Energy Developer shail submit a report covering the first quarter
of such year not later thirty (30) calendar days after the last day of the
period covered: Provided, however, That if the Onshore Wind Energy
Developer opts to shorten the period of COA validity and the Onshore
Wind Energy Developer gives notice to execute the OnWESC before the
reportorial obligation herein arises, the report and corresponding
evaluation shall be dispensed with.

The DOE shall evaluate the annual accomplishments of the Onshore
Wind Energy Developer based on the fixed timeline above-mentioned:

49.5.1. REMB shall conduct an initial evaluation within ten (10) working
days from receipt of the report of the Onshore Wind Energy
Developer, or from the lapse of the period given under Section
49.3.

49.5.2. Within ten (10) working days from notice thereof, the Onshore
Wind Energy Developer may submit additional documents
refuting REMB’s findings and/or rectifying any deficiency in the
annual report or its supporting documents.

49.5.3. In every case, REMB shall complete the evaluation within the
prescribed period: Provided, That the period for rectification
shall not be counted against REMB’s period for evaluation.

After due evaluation, the DOE may withdraw the COA if the Onshore
Wind Energy Developer is unable to show, through proper
documentation, reasonable efforts to undertake the activities. If the
DOE, through REMB, finds that the COA should be withdrawn, it shail
give the Onshore Wind Energy Developer written notice within fifteen
(15) working days that it has forfeited the benefit of the COA and shall
direct the Onshore Wind Energy Developer to pre-sign the OnWESC in
accordance with Section 50.2.
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49.7.

49.8.

49.9.

49.10.

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The decision of the DOE to withdraw the COA shall be final and non-
appealable.

The validity of the COA shall not be extendible. Any reconnaissance
activity and other pre-feasibility studies that is not conducted and/or
permit or certification or tenurial instrument that remains unissued upon
the lapse of the COA, despite the due diligence of the Onshore Wind
Energy Developer, shall be procured and the necessary activities
therefor conducted, as part of the Pre-Development Stage.

The Onshore Wind Energy Developer shall have the option to waive,
shorten or utilize maximum period of validity of the COA.

49.9.1. If the Onshore Wind Energy Developer opts to shorten the
period of validity, it shall give written notice to the DOE with a
request to execute the OnWESC, a proposed Work Program
and a terminal report on the permits, certifications or tenurial
instruments procured and/or reconnaissance and other
activities needed for pre-feasibility studies conducted.

49.9.2. If the Onshore Wind Energy Developer opts to utilize the full
term, it shall give written notice to the DOE with a request to
execute the OnWESC, a proposed Work Program and the
terminal report mentioned in Section 49.9.1 not earlier than six
(6) months but not later than three (3) months prior to the
expiration of the validity of the COA.

49.9.3. Failure of the Onshore Wind Energy Developer to give written
notice to the DOE within the period mentioned in the preceding
paragraph shall be deemed an abandonment of the OnWESC
Application and disqualified following the procedure set forth in
Section 48.10.2.2.3.

Within three (3) calendar days from notice, WEMG shall prepare REMB’s
memorandum for the DOE Secretary endorsing the execution of the
OnWESC in accordance with Section 50.2.

50. Award of Onshore Wind Energy Service Contracts and Registration of
Onshore Wind Energy Developers.

50.1.

50.2.

issuance of Certificate of Authority. After the approval of an OnWESC
Application and before the execution of an OnWESC, the DOE shall
issue a COA: Provided, That the COA may be waived in accordance with
Section 49.9.

Signing of the Onshore Wind Energy Service Contract. The following
procedure shall govern the awarding of OnWESC:
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50.2.1. Notification of Award. The DOE shall notify the selected
(under the OCSP) or qualified (under Direct Application)
OnWESC Applicant of the award of the OnWESC.

50.2.2. Signing of the Onshore Wind Energy Service Contract. The
signing of the OnWESC shall be divided into two stages,
namely: a) pre-signing by the OnWESC Applicant; and
b) signing by the DOE Secretary.

50.2.2.1. The REMB Supervising Assistant Secretary shall review
the recommendation and endorse the same to the
REMB Supervising Undersecretary through LS within
two (2) calendar days from receipt thereof. LS shall act
on the endorsement within two (2) calendar days from
receipt of the documents. The Undersecretary shall act
on the endorsement within two (2) calendar days from
receipt of the documents. Within one (1) calendar day
from the concurrence of the Undersecretary with the
REMB’s recommendation, the REMB Director shall
require the OnWESC Applicant to pre-sign the original
copies of the OnWESC following the prescribed
template. The OnNWESC Applicant is then required to
pre-sign the OnWESC within thirty (30) calendar days
upon receipt of the notice. Failure to comply within this
timeframe shall result in the OnWESC application being
deemed abandoned. Notifications will be sent through
EVOSS System at ten (10)-day intervals within this thirty
(30)-day period to the OnWESC Applicant.

50.2.2.2.The OnWESC Applicant shall submit the pre-signed
OnWESC to WEMG. Within one (1) working day, the
WEMG shall check the completeness of the pre-signed
OnWESC, and, if the same is in order, shall forward the
pre-signed OnWESC, along with the endorsement and
all its attachments to the Office of the DOE Secretary
one (1) calendar day thereafter. Incomplete pre-signed
OnWESC shall be returned to the OnWESC Applicant
for rectification.

50.2.2.3. The Office of the DOE Secretary shall receive the pre-
signed OnWESC and all its attachments, and the DOE
Secretary shall act on the documents within seven (7)
calendar days from receipt thereof.

50.2.3. Payment of Signing Fee. The WEMG, through the EVOSS
System, shall issue the order of payment within one (1) calendar
day.

The OnWESC Applicant shall pay the signing fee and upload
the proof of payment thereof within fifteen (15) calendar days