MANILA, Philippines – Budget and Management Secretary Florencio B. Abad said the government will abide with the final decision the Supreme Court (SC) will make on the claim of the local government of Palawan province to 40 percent of the proceeds from the Malampaya gas project.

“The Palawan provincial government still has a chance to obtain the 40 percent share of the government revenues from Malampaya that they are claiming, but if and only if the Supreme Court decides in their favor,” Abad said.

“The national government is willing to sit down with the Palawan provincial government to clarify and to discuss this issue,” he added.

A Provisional Implementation Agreement signed on July 25, 2007, between the Energy, Finance and Budget departments and the Palawan provincial government, stipulates that both sides will have an equal share in the disputed 40 percent until the Supreme Court rules with finality on the row or when the interim agreement lapses on June 30, 2010, whichever comes earlier.

As the interim agreement has lapsed before the Supreme Court penned its final ruling on the issue, Abad said the national government can now claim the full government share of revenues from the deep water gas-to-power project.

“The national government cannot just surrender its prerogative to obtain the full Malampaya proceeds, especially now that it is hard-pressed to control the deficit and to fund urgent needs of our people,” he said.