Gov warns on closure of Hedcor hydros by NCIP

‘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.

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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.