SBMA mulls offshore wind infra policy

COPENHAGEN – The Subic Bay Metropolitan Authority (SBMA) is planning to craft a policy that will hasten the entry of investor-proponent on the re-purposing of port infrastructure facility that will service offshore wind (OSW) investments in the Philippines. SBMA has been part of the Philippine delegation led by Energy Secretary Raphael P. M. Lotilla to check on the Denmark infrastructure facilities as well as policies and regulations that this European energy market had set in place to continuously whet the appetite of investors in its flourishing offshore wind industry. The energy chief primarily noted that “ports to support OSW development would have to be improved, rehabilitated or expanded.” And in addressing this major infrastructure requirement for OSW projects, he stated that “raising the resources required would have to consider the full menu of state financing, official development assistance, public-private partnerships or purely private financing.” In an interview, SBMA Senior Deputy Administrator for Business and Investment Renato W. Lee indicated that they will need “to craft a policy to enable the hastening of the entry of offshore wind projects in the Subic Freeport to coincide with EO (Executive Order) 21.” EO 21 was recently issued by President Ferdinand Marcos Jr. to accelerate the streamlining of project permitting in the offshore wind industry; and enable the speedy integration of all required permits in the energy virtual one stop shop (EVOSS) system as supervised by the Department of Energy. To serve as a key take-off point on SBMA’s policy framing, Lee said “a memorandum of agreement (MOA) with the Department of Energy (DOE), Energy Regulatory Commission (ERC), and all other national government departments involved in renewable energy projects, is recommended” while support from the National Economic and Development Authority (NEDA) is similarly suggested. On the required port support for the offshore wind sector, the SBMA official conveyed that they will present the proposed policy to the SBMA Board of Directors for approval; and this will likewise be subject to the Commission on Audit’s existing policies and regulation. Primarily, the target is to have a feasibility study that shall be undertaken within 6-12 months span; and that will assess the viability of the Subic port in terms of propping up the logistics needs of the offshore wind industry. “An SBMA Unit composed of Law Enforcement Department, Land and Asset Development Department, Engineering Department, Planning and Development Office, Ecology Center, and other relevant departments shall be formed to provide the assistance to the feasibility study team. The SBMA Business and Investment Group shall be the focal unit to assist the proponent in coordinating with other agencies/departments related to permits and requirements from other government agencies,” he stressed. Lee expounded that the investor-proponent “shall be required to submit a feasibility proposal and prove its expertise in the wind energy sector, including financial capability to operate the project.” Based on initial assessment, the Subic Bay freeport zone “has the capacity to support this project (OSW investments),” primarily on the aspect of “logistics and transportation requirements for the rotor, main bearing, shaft, gearbox and gensets for the offshore wind turbines.” Considering the enormous berth and  capacity needs, Lee specified that “we recommend the use of the marine terminal or the new container terminal inside the Subic Bay Freeport Zone,” for the port support needs of the industry. In particular, he cited that the marine terminal has a length of 240 meters; loading capacity of 600psf and a draft of 12.5 meters; while the new container terminal has 560m length and a loading capacity of 600psf. Lee illustrated that “both terminals currently can handle Panamax type vessels with an average of 30,000 gross register tonnage (GRT),” adding that “huge cargo and heavy machineries can be accommodated” provided they satisfy the prescribed capacities. On planned entry of a project proponent for port re-purposing or retrofit, he emphasized that the chosen entity “shall commit to understudies coming from key SBMA departments in order that continuity is assured from project feasibility undertaking until project implementation.” Lee asserted that the major advantage of the Subic Bay freeport is its strategic location, as this is “well connected across the region by land via the Subic Clark Tarlac Expressway, and anywhere in the world by sea and air with our fully equipped, automated and internationally recognized seaport and airport.” Additionally, he underscored that the SBMA as the entity supervising the freeport has always been very strict in implementing Republic Act 11032 or the Ease of Doing Business Law in freeport, and “we have a one stop shop counter for all our locators’ business needs, which makes it easier for businesses to start operating in the country.”