DOE asked to resolve row over Benguet hydro plants
BY LENIE LECTURA – JUNE 28, 2021
from Business Mirror
SENATE Energy Committee Chairman Sherwin Gatchalian urged the Department of Energy (DOE) to exercise its mandate to resolve the issues involving the impending shutdown of the three hydroelectric power plants in Benguet province.
“At a time when there’s a threat of yellow and red alerts in the power supply, we have to make sure that all plants are up and running especially now that we’re in the middle of a global health crisis,” Gatchalian said.
The National Commission on Indigenous Peoples (NCIP) in Cordillera has issued a cease-and-desist order (CDO) last June 22 against Hedcor Inc., operator of Labay, Lon-oy and F.L. Singit hydropower plants in Bakun town, Benguet.
The order to stop operations stemmed from alleged issues in obtaining consent from indigenous tribes, particularly the Bakun Indigenous Tribes Organization (BITO).
Under the Indigenous People’s Rights Act of 1997 (IPRA), project developers can only acquire permits and licenses upon the issuance of the Certification Precondition (CP) by the NCIP which proves consent from the indigenous community where the project will be situated.
“While the issues confronting Hedcor Inc. and the indigenous communities are legal in nature, I implore the NCIP and DOE to work out a possible solution,” Gatchalian said.
Hedcor maintained that it has been fully compliant with the memorandum of agreement (MOA) it signed with BITO.
“We believe that we have been compliant with all the requirements during the course of the FPIC (Free Prior Informed Consent) application process, and have been waiting for the issuance of the CP since the FPIC-MOA was signed,” said Hedcor Vice President for Corporate Services Noreen Vicencio.
The company would still continue to actively reach out to the community for a dialogue, with the guidance of NCIP.
“The CDO will not just affect Hedcor, but also the customers and communities we serve. At this time of a red alert situation in the Luzon grid, the continued operation of our plants is very crucial,” said Vicencio.
The company said it looks forward to continuing to provide the benefits that the Bakun community is currently receiving from the generation of the plants. Non-operation of the Bakun plants, however, means that the community shares and ER 1-94 funds will neither accrue nor accumulate.
Under the ER 1-94 program, power firms set aside P0.01 per kilowatt-hour of their total electricity sales as financial benefits to host communities, which shall be allocated to three types of funds: one-half of one centavo for the Electrification Fund of the concerned distribution utilities; one-fourth of one centavo for the development and livelihood fund; and another one-fourth of one centavo for the reforestation, watershed management, health and/or environment enhancement fund of the host local government units.
