The Valencia government has apportioned a large portion of its P169-million royalty share surplus from the Philippine National Oil Company for various livelihood projects for residents.

These programs include farm to market roads, planting of fruit trees, water works system and irrigation, Vice Mayor Diodoro Olasiman said. He added that the use of the fund came after General Appropriations Act of 2005 allowed localities receiving royalties from PNOC, for livelihood purposes. Olasiman said that, three years ago, the town secured a clearance from the Department of Budget and Management to allocate the surplus for livelihood projects.

Municipal treasurer Rolando Obaniana said Valencia acquired huge surplus consistently because its royalty share is bigger compared to the amount of subsidy to the electric consumers.

The local government is giving P600 monthly subsidy to every electric consuming household, or about P20 million annually.

Valencia got some P94 million share from the royalty last year, and is expected to increase to P100 million this year, because the sale of geothermal energy is also increasing due to its growing demand, Obaniana said.

Republic Act 7160 or the Local Government Code of 1991, states that local government units are entitled to "one percent of the gross sales or receipts of the preceding calendar year" of the "proceeds derived by any government agency of government-owned and controlled corporation engaged in the utilization and development of the national wealth."

Its section 294 provides that 80 percent of the proceeds, derived from the development and the utilization of hydrothermal and geothermal, shall be applied solely to lower the cost of electricity in the LGU where such source energy is located, Obaniana added.*RA

back to top