Itogon, Aboitiz ok millions for IPs on Binga power plant

ITOGON, Benguet – This mining town’s council of elders signed a memorandum of agreement with the Sn Aboitiz Power (SNAP) Benguet for operation of the 140-megawatt Binga hydroelectric power plant.
    With this, Itogon indigenous peoples will get more benefits from the operation of the power plant.
    The MoA signing came after more than two years of negotiations between the company and Itogon IPs and officials over ancestral domain facilitated by the National Commission on Indigenous Peoples (NCIP).
    According to the signed approved agreement, SNAP Benguet will provide the Itogon ancestral domain with about P10.3 million annually starting this year or an equivalent of 3.10 centavos per kilowatt-hour in total benefits.
    Agreed benefits include 1.65 centavos per kilowatt-hour from the plant's annual production and an annual special fund of P1 million for partnership projects promoting indigenous culture in addition to the existing benefits provided by the company since 2008, which now amount to P3.8 million.
    SNAP Benguet will provide a stimulus of P5 million to cover the years 2023 to 2025 to boost fund for cultural partnership projects,
    SNAP will also provide a one-time benefit of P6.1 million or equivalent to 1.65 centavos per kilowatt-hour of its 2021 production, the year when the negotiations started to communal owners of the ancestral domain.
    The IPs, through the Itogon Indigenous Peoples Organization (IIPO) and the Tinongdan Indigenous Peoples Organization (Tinpo), will receive additional P6 million, representing 1.65 centavos per kilowatt-hour of SNAP's 2022 production and the adjusted value of its 2022 corporate social responsibility fund.
    SNAP also agreed to increase benefits by five percent every five years until the lapse of the agreement in 2041.
    Negotiations for additional benefits started in June 2021 among SNAP Benguet, Tinpo and IIPO where the IP organizations formally accepted SNAP's offer of additional benefits in December 2022 or after the conduct of 19 negotiations during the said period.
    SNAP will provide said benefits to the IP community, through its designated IP organizations on annual basis.
    This will give the IP community greater control over projects they want to implement.
    "On behalf of the management team of SNAP Benguet, I thank the IP communities of Itogon for their continued trust and support. This MoA signing is a testament to the spirit of partnership that prevails between SNP and our IP brothers and sisters," SNAP Group president and chief executive officer Joseph Yu said.
    "We look forward to a positive impact on the community and its people based on this cooperation," he said.
Aside from giving to IP organizations, the company will continue to extend separate voluntary CSR funds to its host local government units including the municipality of Itogon, Barangay Tinongdan and its now adopted host community, Barangay Dalupirip.

The company will also provide mandatory benefits to energy host communities through the national wealth tax and the once centavo per kilowatt-hour energy Regulations 1-94 fund.

IIPO president Rosita Bargaso said with the said agreement, IPs can achieve their dreams with the help of the investors with assistance of the NCIP.

"We persevered for nearly two years of this negotiation. We thank everyone for their patience," Bargaso said.

Hosillos said the contract represents the progress through its 15 years of partnership with Itogon.

"It also shows our genuine sincerity to bring the IP community's partnership in progress," Hosillos added. "We look forward to working with our host communities to realize our shared vision to protect and nurture IP culture."

In 2008, SNAP Benguet took over the ownership and operation of the Binga hydroelectric power plant from the government through privatization bid.