‘Nat’l
power supply in peril’
By
Lloyd Revilla and Rocky Ngalob
LA TRINIDAD, Benguet –
Gov. Melchor Diclas warned of adverse effects of the shutting down of three
hydroelectric power plants of Hedcor Inc., in Bakun town by the National
Commission on Indigenous People’s saying it “would negatively impact power
supply in the country”. “It is the
responsibility of the province including Bakun folks to provide the national
government of uninterrupted supply of electricity to the Luzon grid,” he said during
a dialogue between Hedcor and Bakun officials and folks.
The NCIP
Cordillera issued a cease and desist order over Hedcor’s three run-of-river
hydropower plants in Bakun on June 22.
The
issuance of the CDO was due to alleged irregularities regarding the free prior informed
consent-memorandum of agreement (FPIC-MOA) between Hedcor and the Bakun
Indigenous Tribes Organization (BITO) signed on Oct. 15, 2019.
“We
believe that we have been compliant with all the requirements during the course
of the FPIC application process, and have been waiting for the issuance of the certificate
precondition (CP) since the FPIC-MOA was signed,” said Hedcor’s vice president
for corporate services Noreen Vicencio.
NCIP-CAR
ordered Hedcor to cease hydro operations, five days after receipt of the CDO.
“Hedcor
is saddened by the NCIP-CAR’s decision to shut down its Bakun operations
despite all efforts to come to a dialogue with BITO and the NCIP,” Vicencio
said. "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."
Despite the CDO,
she said Hedcor will reach out to the community for a dialogue or the customary
“tongtongan” between the company and the Bakun indigenous peoples with the
guidance of NCIP.
“The company
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 means the community shares and ER 1-94 funds will neither accrue
nor accumulate,” she said.
NCIP regional
director lawyer Marlon P. Bosantog, ordered Hedcor Inc. to cease and desist in
its operation of the latter’s 2.4 MW Lower Labay, 3.6 MW Lon-oy and 6.4 MW FL
Singit hydroelectric power plants all situated within the ancestral domain of Bakun.
Said CDO was
anchored on section 59 of Republic 8371 known as the Indigenous Peoples Rights
Act (IPRA) of 1997 parallel to the authority granted by the NCIP Commission en
banc resolution 08-017-2021 series 2021.
“Hedcor, its
respective officers, directors, agents, representatives, and any and all
persons, conduit entities and subsidiaries claiming and acting under their
authority, are hereby ordered to immediately cease and desist from further
operating the three power plants, namely: (1) 2.4 MW Lower Labay; (2) 3.6 MW
Lon-oy; and (3) 6.4 MW F.L. Singit”, the CDO said.
The CDO came
after following issuance of a notice of violation last June 7 by the regional
director to Hedcor Inc. giving Hedcor Inc. 10 ample working days to address “violations”
towards the IP host community of Bakun.
Hedcor
applied to NCIP – CAR for the issuance of a certification precondition for
continuance and renewal of their operation, of which caused the FPIC process on
Aug. 13, 2018.
Both parties
reached negotiation stage a year on May 17, 2019.
However, due
to failure of the parties to meet at a common ground on royalty shares, the IP
host community manifested their rejection through their issuance of resolution
of non-consent (RNC).
The RNC was
reconsidered on Sept. 2, 2019 during an IP community assembly with the hope
that Hedcor will heed demands of the IP host community.
Negotiations
resumed which culminated to signing of the MOA on October 2019.
The agreement
of both parties however turned sour when the MOA entered by the IP host
communities was allegedly used by Hedcor Inc. against the former’s fellow IPs
in local government of Bakun.
Bakun
indigenous elders/leaders Juan Aglayen and Benitez Acbayaan said during
negotiations between the domain and the company, the latter requested the
community, not to ask too much “basiten yo ti dawat yo (demand small) and “haan
yo unay padagsenen ti proposal (do not ask too much) to give room for the
company to negotiate with the municipal and barangay governments.
Due to these
conditions, an agreement was forged through the signing of the MOA.
Hedcor
reportedly barred negotiations with the LGU claiming the host IP community
already consented to renewal, upgrading and continuance of operations thus
negotiations with the LGU were no longer necessary.
Hedcor Inc. later
filed cases against the LGU whose officials are IPs and AD holders
themselves.
Dominga
Gaspar, one of the IP elder, during the validation activities of NCIP said the
case filed against their officials was akin to paniyew or inayan (taboo) –
“maga met lawa si inyat da (they [LGU] have done nothing wrong). Naey tako abe
ay manmiti-miting yan nan kompanya et mangalgalansiya (We keep on meeting about
the company’s operation with the company reaping the benefit continuously
utilizing the natural resources in our ancestral domain).
Due to this,
on March 1, 2021, NCIP – CAR received a resolution of from the IP
elders/leaders of Bakun expressing they were revoking the MOA due to alleged irregularities such as the MOA allegedly used
by Hedcor Inc. as a tool to exert pressure on Bakun LGU officials to yield to
demands of the former.
They said terms
and conditions in the MOA were highly disadvantageous to the IP host community
of Bakun.
The NCIP
Commission en banc unanimously resolved to grant the request and authorized the
regional director of NCIP – CAR to issue the requested CDO.
Said
deliberation came after Bosantog issued a notice to Hedcor “to return to the
Indigenous peoples community of Bakun the parcels of land occupied by your
operations, as being the true and incontestable owners thereof, immediately and
without delay”.
On April 7,
2021, NCIP – CAR received the second resolution of non-consent (RNC) from the
IP host community of Bakun citing similar grounds in their revocation of the
MOA.
Said second
RNC was followed by a community resolution from the same IP host community
requesting the NCIP for the issuance of a CDO against Hedcor Inc.
The IP host
community later welcomed officials from the NCIP last June 1.
Four
commissioners, including the NCIP chairperson, Allen Capuyan went to Bakun
where Bakun folks and officials aired their issues and concerns.
AboitizPower,
in its web site said it is the holding company for the Aboitiz Group’s
investments in power generation, distribution, and retail electricity services.
It advances business and communities by providing reliable and ample power
supply at a reasonable and competitive price, and with the least adverse
effects on the environment and host communities.
“The company
is one of the largest power producers in the Philippines with a balanced
portfolio of assets located across the country. It is a major producer of
Cleanergy, its brand for clean and renewable energy with several hydroelectric,
geothermal, and solar power generation facilities. It also has thermal power
plants in its generation portfolio to support the baseload and peak energy
demands of the country.”
The company reportedly
owns distribution utilities that operate in high-growth areas in Luzon,
Visayas, and Mindanao, including the second and third largest private utilities
in the country.
Currently,
Aboitiz Power, together with its partners, is the Philippines’ largest owner and
operator of renewable energy based on installed capacity. In the next 10 years,
the company will significantly expand its Cleanergy portfolio, in support of
the government's efforts to promote renewable energy in the country and as the
company's contribution to the global renewable energy targets. AboitizPower is
aiming for an almost 50:50 Cleanergy and thermal capacity mix by 2030.