June 24, 2019
SEC-OGC OPINION NO. 24-19
RE: FOREIGN OWNERSHIP REQUIREMENT OF PARTLY NATIONALIZED ACTIVITY
Atty. Dennis R. Quiokeles
Corporate Secretary
Green Earth Enersource Corporation
4/F Northside Business Hub,
G. Lopez Jaena, AP Cortes St.,Tipolo
Mandaue City, Cebu 6014
Dear Atty. Quiokeles :
We write in response to your letter dated 27 March 2019 requesting an opinion on whether Green Earth Enersource Corporation (GEEC) complied with the ownership requirement under Section 2, Article XII of the 1987 Constitution.
You disclosed that GEEC is applying for the conversion of its Provisional Authority to Operate (PAO) into a Certificate of Compliance for its Buluan Biomass Power Plant as a FIT-eligible plant with rated capacity of 3.33 MW located in Brgy. Poblacion, Buluan, Maguindanao. The Energy Regulatory Commission (ERC), during its deliberation on the issue of GEEC's compliance with the 60%-40% Filipino-foreign ownership requirement under the Constitution and the Renewable Energy Act of 2008 1 (REA),directed GEEC to secure a formal Securities and Exchange Commission (SEC) opinion regarding its compliance. Hence, this request.
I. RULES ON CORPORATE NATIONALITY
Section 2, Article XII of the 1987 Constitution provides that "the exploration,...
