Semirara royalty payments to DOE surged in 2016 by 47% to hit P2.65B

Semirara Mining and Power Corp. (SMPC) said its royalty payments turned over to the Department of Energy surged by 47 percent to P2.65 billion in 2016 from P1.8 billion in 2015.

Of the amount paid last year, 40 percent or about P1 billion was intended for local government units that host SMPC’s coal mine—Barangay Semirara, the town of Caluya and the province of Antique.

By law, LGUs are entitled to a two-fifths share of royalty proceeds from petroleum, coal, geothermal, hydrothermal and wind resources.

Also by law, the three LGUs will respectively get a share of 20 percent, 45 percent and 35 percent of the inflow.

“SMPC is committed to creating shared value for our stakeholders,” SMPC president and chief operating officer Victor A. Consunji said in a statement.

“Because of our partnership with the national government, we are able to generate growth that redounds to our host province, municipality and community,” Consunji added.

Since DMCI Holdings bought into SMPC in 1997, the power firm’s royalty payments to the national government has accumulated to at least P13.5 billion.

In 2015 alone, based on data from the Department of Budget and Management, SMPC’s remittances represented 83 percent of the P2.2 billion total government royalty collections from energy resource and production.

Source: <a href="http://business.inquirer.net/226503/semirara-royalty-payments-doe-surged-2016-47-hit-p2-65b">Philippine Daily Inquirer</a>