Flinders Asia Centre

Traditionally the requirement for meeting environmental liability obligations for regulated activities has focused on financial security. A single or blanket bond covering many licenses of an operator is often used to cover a state’s financial exposure to the environmental liabilities from disclaimed licenses in the event of operator insolvency. Less attention has been given to changes in regulated activities, operator risk and market changes, and management of wells over the life cycle. The Department for Energy and Mining (DEM) in South Australia has revised its policy for managing the environmental liabilities from petroleum and geothermal activities to be more holistic, risk and evidence based. Operators are now required to account for the status of all licensed activities in annual reporting, or for any change in ownership. Wells and infrastructure that have not been in production for over 24 months require an assessment based on prescribed future use criteria. If a future use ...

This paper considers the effects of privatisation and project financing hydropower producers in the Philippines. It provides a brief background to electricity industry reforms and explores the effects of privatisation. The paper also examines the influence of project finance on hydropower plant operations and rehabilitation programs. Discussion explores the challenges of attracting investment, watershed management and governance of tax windfalls. The legacy risks and cumulative impacts of other development projects are also considered. The paper shows that privatisation and project financing of power assets can improve performance. It also identifies opportunities to achieve more through wider engagement of stakeholders, holding Government accountable for revenues and developing partnerships with other development actors to improve public welfare and broader economic growth. Introduction The Philippines Government passed Republic Act 9136 in 2001 to reform the electricity industry (...