Northern Philippine Times: Jobs for locals urged in groundbreaking: Hedcor builds Mt Prov hydro for Luzon grid

Imprinting of fingerprints on cement. from left: Sabangan vice mayor Joseph Bernardez, Hedcor Pres/CEO Rene Ronquillo,Mt Province Gov Leonard Mayaen, and Namatec brgy captain Julius Licayo

By Gina Dizon

SABANGAN, Mountain Province -- Employment for locals of this town was urged by officials during the June 18 groundbreaking ceremonies of a 14 megawatt minihydro considered the first project of Hydro Electric Development Corporation (HEDCOR) in Mountain Province.

Sabangan mayor DonatoDanglose in his message read by municipal planning officer Salvador Decoy reminded employment of constituents from Sabangan by HEDCOR and its contractor Sta Clara in the construction and maintenance of the minihydro project.

Danglose specially cited provisions of the 25 year memorandum of agreement between HEDCOR and the Sabangan local government unit on preferential employment of locals from Sabangan.

Employment opportunities include construction of access roads and easements; and maintenance of the energy project located in barangays Napua and Namatec.

Indigenous Peoples representative to the Sangguniang Bayan Luis Bosoen also urged HEDCOR officials to prioritize employment of locals from Sabangan.

Mountain Province Gov. Leonard Mayaen cited the need for cooperation with the municipality and the province as he urged HEDCOR officials employment of persons qualified to offices of said company.

Chief operating officer and HEDCOR president Rene Ronquillo noted remarks of officials further saying that communities should benefit not only in employment.

The MOA between Sabangan LGU represented by mayor Danglose and HEDCOR by Ronquillo provided that Sabangan shall access one percent from the gross income of electric sales as per the Renewable Energy Act of 2008 with 60% of the amount for the national government and 40% to the local government. The 40% is divided with the barangay getting 35%, municipality at 45 % and the province at 20%.

Sabangan also stands to benefit from provisions of the Electric Power Industry Reform Act of 2001 (EPIRA) obligating HEDCOR to remit one centavo per kilowatt hour to Sabangan municipality of the power generated in said municipality. The amount shall be increased by PhP.005 per kilowatt hour every five years till the agreement period of 25 years.

Ronquillo in a separate press conference said Sabangan shall stand to benefit by PhP550,000 with its projected 55 million kilowatt hour annual generation. As provided in the 25 year contract, HEDCOR shall also extend PhP1.5 million financial support to build the town’s legislative building.

Ronquillo looked forward to working with the Mountain Province Electric Cooperative (MOPRECO) and Departments of Social Welfare and Development and Tourism in the near future in furtherance of the town’s benefits.

The HEDCOR president looks at Sabangan as an excellent start in Mt Province and hopes to build additional minihydros in Bontoc, Sadanga in the near future which currently are in application mode. A 100 million megawatt energy generation is projected for the next 10 years in Mountain Province.

Asked whether HEDCOR shall entertain build operate transfer (BOT) schemes, Ronquillo said it was possible. He also said carbon credits may also form part of the town’s shares where the Sabangan project may enter into.

The Sabangan minihydro plant with its 3.2 kilometer long headrace from the intake weir to the powerhouse is a run-of-river hydropower scheme that will harness the waters of the Chico River.

HEDCOR is a wholly-owned subsidiary of Aboitiz Power with 19 run-of-river hydropower plants in Benguet, Davao and Ilocos Sur with a total capacity of 155 megawatts.

Reminding Hedcor of preferential treatment on employment for constituents of Sabangan- Mayor Donato Danglose's message read by municipal planning officer Salvador Decoy