After losing an estimated ₱250 billion in revenue from the Malampaya gas project, Palawan lawmakers are pushing for a law that would guarantee local government units a share from future offshore energy and mining operations.
Palawan 3rd District Rep. Gil Acosta Jr. said the proposal was shaped by the province’s experience with Malampaya, which supplied electricity to Luzon while Palawan received no direct share from the project’s national government revenues.
“All over the Philippines ang akala nila ang Palawan may share na kinukuha,” Acosta said.
He said the proposed law would establish a revenue-sharing mechanism for provinces, cities, municipalities and barangays located closest to natural resources extracted from the sea, including those beyond the 15-kilometer municipal waters.
Under the Constitution, LGUs are entitled to an equitable share in the proceeds from the use and development of national wealth within their respective areas. However, the Supreme Court ruled in the Malampaya case that the gas field is outside Palawan’s territorial jurisdiction.
Acosta said the ruling also made clear that it was Congress, and not the Supreme Court, that could create a law granting LGUs a share from offshore resources outside their jurisdiction.
“This bill would be answering that very question na pinropose ng SC. Kasi ang sabi ng SC sa Malampaya case, hindi trabaho ng SC na mag-enact ng batas na bibigyan ng share ang LGU,” he said.
While Palawan’s estimated share from Malampaya could have reached ₱250 billion, Acosta said the proposed measure would not seek to recover revenues already collected by the national government.
“So we’re not asking for the retroactive application,” he said.
“Kasi if you compute it, it’s roughly ₱250B na dapat ang share ng lalawigan ng Palawan. But moving forward dapat natin kalimutan na natin ang mga nakaraan. Kasi decided na yung case,” he added.
“Wala na yung ₱250B. So what we’re after is the future,” he added.
Acosta also pointed to the irony of Palawan’s continuing power problems despite hosting the country’s largest natural gas project. Malampaya has supplied fuel to power plants that serve a large portion of Luzon’s electricity requirements.
“Tingnan mo, the irony is [may] problema tayo parati sa kuryente,” he said.
The lawmaker said the campaign goes beyond Palawan. The proposal would also cover coastal provinces that may host offshore energy, mineral or other natural resource projects in the future, including areas near the Philippine Rise and the Pacific Ocean.
“But again, this is not for Palawan alone. This is for all the provinces facing the ocean in the future. Hindi natin alam,” Acosta said.
He argued that the LGUs and communities closest to offshore resources should directly benefit from their development, just as host communities receive shares from natural resources extracted on land.
“Dapat ang pinakamalapit na local government unit ay may share doon sa mga yaman na nasa dagat,” he said.
Acosta said securing a revenue share from future offshore projects would ensure that the benefits of Palawan’s natural resources reach the province’s next generation.
“So what we’re after is the future. We must secure na ang yaman ng lalawigan ng Palawan ay para sa mga kabataan na taga-Palawan na may pakinabang,” he said.
