DOJ: PNOC can build Batangas-Manila pipeline sans Congress’ franchise

The Philippine National Oil Company is authorized to undertake the creation of the Batangas-Manila Natural Gas Pipeline and tap a private concessionaire to operate it even without a legislative franchise, according to the Department of Justice.

In a five-page legal opinion, Justice Secretary Emmanuel Caparas said the PNOC Charter provides sufficient basis to support the contention that the PNOC is authorized to engage with a private entity to carry out the project.

“The DOJ agrees with the PNOC which holds the opinion that it is legally authorized to develop and operate the project, sans the need for a separate congressional franchise, by virtue solely of its Charter,” read the opinion.

Caparas said the "PNOC’s Charter suffices as the legislative authority to operate the project as a gas transmission system by way of underground pipelines.”

“We affirm that the PNOC may contract with a private concessionaire, with the latter financing, constructing, maintaining and operating the project through the applicable period,” read the legal opinion.

The pipeline involves a gas transmission system through an underground pipeline spanning around 120 kilometers stretching from Tabangao in Batangas City to Navotas.

The pipeline aims to transport natural gas to high-froth areas in between the two points and is the first in a planned series of similar projects to be carried out in Luzon.

To carry out the venture, a public-private partnership is set to be established by selecting a private concessionaire in accordance with Republic Act No. 6957 as amended by RA 7718 and its Implementing Rules and Regulations.

Caparas issued the legal opinion upon the request of Antonio Cailao, president and chief executive officer of the PNOC. — Mark Merueñas/BM, GMA News