Surigao del Sur 2nd district Rep. Johnny Pimentel has identified a potential fund source for the Maharlika Wealth Fund (MWF) that's literally under the sea.
According to Pimentel, all future national government royalties from forthcoming offshore natural gas projects in the West Philippine Sea (WPS) ought to be funneled to the proposed investment-centric sovereign wealth fund.
“We would highly recommend that all potential government earnings from prospective undersea gas development projects – excluding those from Malampaya – should accrue to the MIF (Maharlika Investment Fund)" the veteran lawmaker said in a statement Sunday, Dec. 11.
He was referring to the MWF by its previous name as per its original bill in the 19th Congress, House Bill (HB) No.6398.
Pimentel said the commercial development of another gas field comparable in size to Malampaya could easily yield a windfall of more than P500 billion in government royalties over a 20-year period.
“Right now, the Malampaya royalties accrue to the national treasury every year and help fund the national budget. This is okay since the project’s gas deposits are nearing depletion anyway,” said the Mindanaoan.
“However, once the Sampaguita gas discovery is eventually developed, we would want 100 percent of the royalties to be invested in the MIF for the long-term benefit of the Filipino people,” he noted.
The House of Representatives plans to establish the country’s first-ever sovereign wealth fund.
Under HB No. 6398, the proposed MIF--later changed to MWF--would be invested in an array of both real and financial assets to create a nest egg for the country and to further spur national economic development.
Pimentel is former chairperson of the House Strategic Intelligence Committee. He is also proponent of a bill that seeks to appropriate P5 billion for the installation of new naval forward operating bases to secure the gas and oil deposits in the WPS for the country.