DOE Statement on Allowing Foreign Investors 100% Ownership of Large-scale Geothermal Projects

Geothermal resources are defined as mineral resources by Republic Act 9513 or the Renewable Energy Act of 2008. 

Foreign companies may now be allowed to participate in large-scale geothermal exploration, development, and utilization activities, under the third Open and Competitive Selection Process (OCSP3) in the awarding of RE Service Contracts, as announced by Energy Secretary Alfonso G. Cusi recently.

However, there are some conditions that foreign investors should meet if they wish to participate such as (1) it should be large-scale, with a minimum investment cost of about US$50 million, and (2) it should be under Financial and Technical Assistance Agreement (FTAA) as provided under the Constitution.

The exclusive right to develop a geothermal resource will be granted through an Open and Competitive Selection Process (OCSP). In this process, all proponents, whether foreign or Filipino corporations, will have to compete.

The one with the best offer will get the RE Contract (or in the nature of an FTAA should the foreign proponent win).