News Summaries on Selected Topics

San Roque Dam Project

June - August 2000


Date: Fri, 25 Aug 2000 09:59:46 -0700 (PDT)
From: owner-irn-sanroque@netvista.net
subject: LS: Benguet folk not ditching dam project

http://www.manilatimes.net/2000/aug/26/top_stories/20000826top7.html

August 26, 2000


THE Sangguniang Bayan (SB) of Itogon, Benguet, is not about to withdraw 
its endorsement of the $1.2-billion San Roque Multi-Purpose Project, a 
local official said yesterday.

Itogon Vice Mayor Aloysius Kato confirmed there was a motion by Councilor 
Trazon Fianza to withdraw the municipal council’s endorsement of the 
project due to uncertainty in the funding for watershed management.

But Kato said it is not true that the council has scheduled the motion 
for third and final reading this coming Wednesday contrary to a news 
story of THE MANILA TIMES yesterday.

“What the council merely did in our last meeting was to take note of 
the motion by Councilor Fianza,” Kato said.

He also added “there is no emerging consensus on the matter, and this 
can be validated by the transcript of the meeting.”

“In due time the council will act on whether the motion is meritorious 
or not.  It is premature to guess the council decision because at the 
moment we are awaiting the release of the funds for watershed 
management.  Meantime we continue to support the project,” he said.

Kato said the council is periodically assessing compliance by the 
government and the project contractor, San Roque Power Corporation, of 
their 17 commitments to the Japan Bank of International Cooperation 
(JBIC), which is funding the project.

He said the motion to withdraw the council endorsement on the San 
Roque project was prompted by reports that the national government has 
not allocated funds for watershed management.

But the vice mayor disclosed that no less than President Estrada 
himself had directed Budget Secretary Benjamin Diokno last Monday to 
release P200 million as initial funding for watershed management for 
the year 2001.The total allocation for watershed protection is P310 
million for next year.

The meeting with Mr. Estrada in Malacańang last Monday was attended by 
Benguet Rep. Ronald Cosalan and representatives from the National Power 
Corporation (Napocor) and Department of Environment and Natural 
Resources.

Kato said the Napocor, the lead agency for the San Roque project, has 
presented to the President a 10-year comprehensive watershed management 
program to cover not only San Roque but also the Ambuklao and Binga 
dams.

“We welcome the government’s commitment to protect our watershed.  We 
are elated that the government plan includes Ambuklao and Binga,” he said.

Two barrios in Itogon town are affected by the San Roque project, the 
country’s biggest infrastructure undertaking.¨


Date: Wed, 23 Aug 2000 11:05:43 -0700 (PDT)
From: owner-irn-sanroque@netvista.net
subject: LS: San Nicolas projects bared

http://www.sunstar.com.ph/pangasinan/08-22-2000/topstories5.html

San Nicolas projects bared

By Erwin dela Rosa

SAN NICOLAS - With the business tax from the San Roque multi-purpose dam
project and the support of the provincial government and elected officials
here, major infrastructure projects in this town has been completed.

Engr. Reynaldo Mejica, municipal planning and development coordinator told
Sun.Star that his office was able to restore washed-out dams, concrete and
widen roads, rehabilitate the public market, improve farm-to-market roads
and computerize their systems.

Mejica said the on-going rehabilitation of phase I of the public market 
will be completed by December. The rehabilitation costs P17 million.
He also said the concreting of a sitio road in Barangay San Roque worth
P500,000 is also finished.

He added that they have constructed a diversion road to Barangay San 
Rafael and in the process reconstructing the dike here that eroded by 
raging floodwaters during the July typhoons.

Mejica said all the offices in the municipal hall are fully air-
conditioned and computerized. He also said the police station has been 
renovated and each barangay captain has been provided with a cellular 
phone.

Projects set to be implemented include the rehabilitation of Barangay
Malilion-Sto. Tomas road with a budget of P500,000 and the concreting of
Poblacion Luna street worth another P500,000.


Date: Mon, 14 Aug 2000 11:57:09 -0700 (PDT)
From: owner-irn-sanroque@netvista.net
subject: LS: Sincerity of government in dam project doubted

Baguio Midland Courier
August 13,2000

No Budget
Sincerity of government in dam project doubted

By Dexter See

The sincerity of the National Government in fulfilling its commitments 
for the construction of the controversial San Roque Multi-Purpose Dam 
(SRMDP) project is now under question due to the failure of concerned 
agencies to allocate funds to address the social and environmental 
concerns of the project.

This developed after Benguet Representative Ronald M. Cosalan was 
informed by top officials of the Department and Natural Resources (DENR) 
that no funds were appropriated from the agency's budget next year for 
the ancestral claims and the P747 million watershed plan for the Agno 
River Basin.

It was learned that Itogon officials have already accepted the 
watershed management plan with the commitment from DENR Undersecretary 
Mario S. Rono that they will facilitate the appropriate of an initial 
P276 million for the plan starting next year.  The promise was allegedly 
made by the said DENR official during a workshop of the San Roque Dam 
task force which was held at the Hotel Supreme.

Of the said amount, P76 million will be exclusively earmarked for 
livelihood projects for the communities affected while P200 million will 
be earmarked for reforestation and watershed management for year 2001.

However, Cosalan revealed that when he had a meeting with 
Undersecretary Rono, he was allegedly informed by the latter that he 
did not promise any funding for the watershed management plan next year.

"Obviously, the commitments of the government are mere paper so there 
is no guarantee that their promises will be fulfilled," Cosalan 
stressed.Unless the national government will show concrete evidences 
of their sincerity particularly in the allocation of funds for their 
commitments, the Benguet legislator emphasized that the people of 
Benguet will continue to doubt the sincerity of the national government.

The national government is expected to appropriate P360 million next 
year for the first year of implementation of the four year watershed 
management plan which is a component of the dam project.

The failure of the government to address the social and environmental 
concerns of the controversial dam project is causing the delay in the 
release of the project funds from the Japan Bank for International 
Cooperation (JICA) sic. (JBIC)

Cosalan explained that he will raise the issue in the forthcoming budget 
deliberations of the DENR.

DENR Assistant Secretary Angela Defensor also informed Cosalan that some 
officials in their agency are not aware of the watershed management plan 
prepared for the purpose


Date: Mon, 14 Aug 2000 11:05:15 -0700 (PDT)
From: owner-irn-sanroque@netvista.net
subject: LS: Land tenurial rights respected under watershed reservation

Sun Star Baguio August 13, 2000
http://www.sunstar.com.ph/baguio/08-13-2000/topstories9.html

DENR director explains Proc. 268

By Ernie N. Olson Jr.

LA TRINIDAD, Benguet - Contrary to earlier opinions that Proclamation 
No.268 declaring the Ambuklao and Binga Forest and Watershed 
Reservation asprotected area limits the rights of the occupants, the 
DENR holds that land tenurial rights of indigenous communities are 
respected under the said proclamation.

In a two-page clarificatory statement dated July 18 provided to members 
ofthe Benguet provincial board, DENR-CAR regional director Roquesa de 
Castrosaid "while the Upper Agno River Basin generally meets the 
required criteriafor a resource reserve, the aspects on accessibility 
and uninhabitedconditions as indicated in the definition of resource 
reserve appear to havebeen overlooked. In the decision sheet being used 
in determining protectedarea category, it is indicated that 
accessibility and traditional uses areoptional considerations."

De Castro added that the category of a resource reserve is subject 
forhanger to other protected area category. She said that while other 
protectedarea categories are permanent in nature, in the event of 
changing theresource reserve category, "amendments may be considered 
to exclude other portions of the protected area such as communities and 
other areas that aredeemed not essential in the attainment of protected 
area goals andobjectives from the bounds of the re-categorized 
protected area."

She added that the temporal characteristic of a resource reserve is 
crucialin the case of the Upper Agno River Basin because of the 
existence ofindigenous communities and expansive agricultural 
developments. "Assigning the subject river basin under the category of 
a resource reserve in effectwill not foreclose the local people to 
avail in the future applicable landtenure instrument options in the 
view of the transitional nature of aresource reserve," she said.

De Castro stressed that the ancestral lands and rights of the 
indigenouspeople are recognized not only in the NIPAS Act but also 
under Proclamation268. In view of this, she added that the Protected 
Are Management Board(PAMB) is presently studying the status of the 
various protected areas inthe province. "In this concern, the 
definition of protected area categoriesis being re-defined at present 
by PAMB," she added.

PAMB prepares a management plan over a protected area, director De 
Castroemphasized, but the "plan is approved for implementation only 
if it isprepared with the participation of the local people through 
consultationsand with prior consent from them"

De Castro said declaring the Ambuklao/Binga watershed forest 
reservation asprotected area is more beneficial to occupants. If the 
Upper Agno RiverBasin Resource Reserve remained as a watershed, its 
management is governedby PD 705 as amended, which is more restrictive 
because occupancy andextraction of resources from proclaimed 
watersheds are prohibited.

Last April, Pres. Estrada issued Proclamation No. 268 coveing an are 
of77,651 hectares encompassing the towns of Atok, Bokod, Buguias, 
Kabayan,Kibungan, Itogon, La Trinidad and Tublay all in Benguet; 
Kiangan andHungduan in Ifugao and Kayapa in Nueva Vizcaya as Upper 
Agno River Basin Resource Reserve Area.

The Kalanguya Tribal Orgnization represented by provincial prosecutor 
FelixCabading earlier urged the provincial board to oppose the 
proclamationsaying that it violates the provisions of the National 
Integrated Protected Areas System (NIPAS) law which is supposed to 
implement the property rightsof the people there.

Moreover, the proclamation did not satisfy the required consultation 
proceesprovided under the law.

Board member Lizo Agpas also expressed his agreement with Cabading, 
addingthat NIPAS law violates local autonomy provided under the Local 
GovernmentCode limiting the rights of the indigenous people with the 
protected area.


Date: Fri, 11 Aug 2000 17:27:48 -0700 (PDT)
From: owner-irn-sanroque@netvista.net
subject: LS: San Roque dam controls only 50% of Agno flow

San Roque dam controls only 50% of Agno flow

By Bong E. Otadoy

The San Roque Multi-Purpose Dam Project in San Manuel town can only 
provide about 50 percent control over waters that flow along the Agno 
River, a National Power Corporation official said Wednesday.

Bernie Carasco of the NPC in San Manuel bared this before over a hundred
participants and guests who attended the Fifth Working Conference on 
Flood Alleviation that was held at the Max's Restaurant in Calasiao town 
on August 9 at 3 p.m.Carasco did not elaborate on the technical basis 
which could support his statement though.

However, he said, that when completed, the dam project will have to 
provide not only flood control facility within the areas lying along the 
Agno River stretch, but, electricity and irrigation services as well.
The construction of the dam project is under the supervision of Raytheon
Ebasco, Ltd., a contractor based in the U.S.

Carasco said the project is expected to be operational by the end of
December, 2002.He stressed that the dam is being built to stand a water-
holding capacity that is equivalent to 815 million cubic feet of water.

From what Sun.Star gathered, based on such a capacity, the dam could 
emerge as the largest in Asia and the 12th biggest in the world.

Relative to these, at least 35 municipalities that comprise five out of 
the six districts in the province have presented their problems about 
the perennial flooding that they experience annually.

These low-lying areas include: District two (Aguilar, Bugallon, Lingayen,
Labrador, Mangatarem, Urbiztondo and Basista); District three (Bayambang,
Calasiao, San Carlos City, Malasiqui, Mapandan and Sta. Barbara; District
four (San Jacinto, Manaoag, Dagupan City, San Fabian and Mangaldan);
District five (Binalonan, Laoac, Sison, Alcala, Villasis, Sto. Tomas 
and Pozorrubio); and District six (Rosales, Balungao, Umingan, San 
Quintin, Natividad, San Nicolas, Sta. Maria, San Manuel, Asingan and 
Tayug).

During the conference, the mayors of these affected municipalities 
have presented their respective flood-control projects that they 
need, amounting to a total of P2.4 billion.

But Dr. Vivencio V. Villaflor, Jr., president of the Greater Metro 
Dagupan City Civilian Reconstruction Fund Foundation, Inc. (GMDCCRFFI), 
said the huge fund has yet to be procured.

The GMDCCRFFI which organized the conference, however, said, Dagupan
City Mayor Alipio Fernandez, Jr. could best help in obtaining the money 
from the special funds of President Joseph Estrada, who is a close 
friend of the mayor


Date: Fri, 11 Aug 2000 10:23:10 -0700 (PDT)
From: owner-irn-sanroque@netvista.net
subject: LS: NIA employees not paid for 8 months

(San Star Pangasinan August 11)

NIA employees not paid for 8 months
By Erwin dela Rosa

ROSALES--- At least 14 regular employees of the National Irrigation
Administration's Lower Agno Irrigation System (LAIS) have not been paid
their salaries for eight months, covering the period November 1999 to 
June 2000.

It was learned that employees were responsible for constructing a dam 
and have been involved in the rehabilitation of irrigation systems.

Despite their plight, they are still employed at the NIA-LAIS as regular
rehabilitation employees.In general the NIA is not generating enough 
income to pay its employees  due to insufficient collection. NIA 
employees salaries are based on irrigation fee collections.

As of June 30, 2000, the NIA-LAIS has incurred a total of 1.4 million 
pesos outstanding unpaid obligations. This outstanding obligations are 
the salaries of employees and contributions to government agencies.

About half million pesos was incurred this year and 945 thousand pesos 
was incurred in prior years.

The proposed 3.3 million peso budget for the year 2000 by the NIA-LAIS
wherein some amount will be used to pay its employees was not approved 
by NIA National Administrator Manuel Antonio S. Arevalo.

The regular daily employees together with the rest of the NIA-LAIS 
employees have started receiving their salaries from the San Roque 
Multi  Purpose (SRMP) Dam Project this July.

The SRMP dam project has absorbed the NIA-LAIS since July 1, 2000. 
According to NIA employees, President Joseph Estrada's Administrative 
Order No. 17 which is the adoption of Socialized Irrigation Service Fee 
and Amortization on Communal Irrigation System has added a burden to 
the NIA.

Under the Socialized Irrigation Service Fee system, the farmers pay 
lesser irrigation fees by as much as 50 percent compared to the usual 
fee.

In the old rate, a hectare of riceland pays the equivalent amount of 
two cavans of rice on wet season and three cavans on dry season. But 
in the socialized irrigation fee system, two to five hectares (2-5 has.) 
of ricelend pays the equivalent amount of two cavans on wet season and 
three cavans on dry season.

NIA-LAIS employees also noted that most farmers or land owners who own 
large hectares of riceland are the ones who are stingy and difficult to 
collect from.

As of June 30, 2000, the NIA-LAIS failed to reach its target collection 
of 1.3 million pesos. It has only collected a total of P1,011,728.37.
It has collected 736 thousand pesos in the dry season and 213 thousand 
pesos in the wet season.It has collected 62 thousand pesos from rentals 
of its equipments.

The regular daily employees are still hoping for improved collections 
to pay for their eight-month-salary backlog.Other NIA-LAIS employees 
are anxious on the absorption of SRMP Dam Project on them. They fear 
that their government service and appointments might be made null by 
the SRMP Dam Project takeover.

They also fear that from their status as regular employees they will 
become casual employees.

The fourteen regular daily employees and three emergency employees 
worked on the construction of the Brush Dam which started in November 
1999 and was completed on February 1, 2000.

However, the dam was thrice washed out and restored on February 8, 
16, and 26 this year. Meanwhile, the Lagasit Spillway collapsed last 
March 17, 2000 thus the regular and emergency employees have to be 
tapped to do the repairs. Since then, they have been working as regular 
rehabilitation workers for the NIA-LAIS.


Date: Fri, 11 Aug 2000 10:04:38 -0700 (PDT)
From: owner-irn-sanroque@netvista.net
subject: LS: San Roque water poisoned by mine tailings

New Threat Seen  from SRMDP
Sunstar Daily , Pangasinan August 9, 2000
Eric R Mineses

Lingayen- The San roque Multi-purpose electric dam will be the 
catch basin of mine tailings and some radioactive materials, according 
to a report on toxic waste  traced to Malacanang.

Citing a palace information, a Sunstar Pangasinan source said the
possibility is great that that this will bring about ecological 
disaster once the dam starts operation. As the dam will serve not only 
as source of electricity but also an irrigation water to more than 
50,000 hectares of agricultural  land downstream, the materials coming 
from the Benguet mining operations will be spread in the lowlands, he 
said.
     
The source also predicted  a possible dam breakage, citing  records on
dam built in the United States.Based on the record, at least one percent 
of dam breakage s in the US were due to seismic occurrences, whether 
tectonic movement of the earth crust caused by faultlines , or volcanic 
eruption.

The cases the source cited were the high earth dam in western Colorado,
the Malad reservoir and high teton dam of Idaho, the St. Andreas Dam 
in California and the St. francis dam in Los Angeles. The LA disaster 
killed about 400 people. This were caused by foundation  instability. 
The source cited the other causes of dam breakage as high pressure and 
blowouts, piping and foundationlevels and erosion and solution in rocks.


As the San Roque dam is situated near the Digdig fault, an active
faultline, the source pointed out the need for backmdropping of that
faultline for the past 10,000 years.

In this matter, the Provincial Legal Officer Lawyer Geraldine Banigued,
head of the Task Force San Roque, told Sunstar that the information has
already reached the office of the governor. She said the provincial
government is in the process of  validating the information for possible
measures to be adopted.
     
Initially, it was found out that if small fishes will take remnants 
of mining or a chemical and the smaller fish will be eaten by bigger 
fish which will be also be the food of the people, the whole citizenry 
will be affected. , Baniqued said, referring to the mercury, a toxic 
metal whose effect to consumers multiplies.
     
She also said the effect to the human is gradual an cannot be felt
abruptly. Earlier a fish kill  occurred in Dagupan City which resulted 
to a grave loss in bangus (milkfish) industry. However, Baniqued stated 
that the provincial government is yet to established hard facts about 
this matter.


BAGUIO MIDLAND COURIER
August 6,2000

2001 budget

Still no funds for dam watershed management plan

By: Kathleen Okubo

"The municipal council of Itogon should all the more recall their 
endorsement of the san roque Dam.  Besides not having satisfactorily 
fulfilled the 17 conditionalities stipulated by the town council, the 
builders and sponsoring government agencies of the San Roque Dam do not 
have the funds to support and implement the watershed management plan 
for the dam."

Congressman Ronald Cosalan of the lone district of Benguet Province 
advised so in an interview with him last Thrusday. He said that there has 
been no funds stipulated or appropriated in the recently passed national 
budget.  The watershed management plan had a proposed budget of some 
seven hundred forty seven (P747) million pesos.

He also said that without these funds the National Power Corporation can 
not pay or compensate all those people displaced, affected and to be 
affected by the building of the multi-purpose mega-dam in Pangasinan or 
in Benguet most especially.

So far, only ten percent, of the affected population have been given 
compensation and many of which is only partial.  The construction has 
began in 1994  and the development of the dam is going very fast.  
Soon it will be done and the NPC may be privatized, where or how will 
the people be able to collect what is due them?"he said.

The Movement against San Roque Dam and other Mega-dams (MASRDAM) said, 
"many of those already displaced by the dam construction in the 
Pangasinan side have been waiting almost six years for government-
promised compensation  or payments, livelihood support and basic 
assistance due displaced communities."

"People in the Pangasinan relocation sites have continuously raised 
their grievances with the San Roque dam contractors and local government 
units.  The angry communities are organizing themselves due to the 
government's unsatisfactory response or non-reponse and the foreseen 
damage to the environment," they said.

In the Benguet side, indigenous peoples peoples communities here 
expressed  fear that the government will again displace them like their 
families and relatives in the old Ambuklao and Binga villages who still 
have to collect compensation after some already 47 years since the dams 
there were built.

They have also expressed painful lessons from the experience of their 
communities being practically erased and the environment along the Agno 
River from which they draw livelihood as greatly deteriorated.

Congressman Cosalan has announced earlier that P28 million pesos has 
already been set aside for the payments of those displaced by the 
construction of the Ambuklao and Binga Dams.  This has in turn  been 
acknowledged by the provincial government of Benguet but legitimate 
claimants still have to be established.


Date: Mon, 7 Aug 2000 15:42:12 -0700 (PDT)
From: owner-irn-sanroque@netvista.net
subject: LS: Study shows poisoned water flowing to San Roque Dam

Study Shows Poisoned Water
Flowing To San Roque Dam

By MICHAEL A. BENGWAYAN

BAGUIO CITY-The water that flows to the controversial San Roque Dam 
is highly dangerous. It is laced with poisonous chemicals and minerals 
which include mercury, lead, chloride, iron and manganese that have high 
toxicity levels.
The finding was contained in a study conducted by the Department of
Environment and Natural Resources (DENR) Cordillera Administrative 
Region (CAR) office.

It confirms an independent finding made by a panel of scientists
commissioned by the International Rivers Network (IRN) early this year 
which concluded that "the water that will be impounded by San Roque Dam 
will have heavy concentrations of dissolved chemical constituents, some 
of which are deadly."

Dr. Robert Moran, who made the analysis of water quality in San Roque 
for the IRN, said concentrations of mercury, lead, selenium, molybdenum, 
iron, iron, manganese, zinc, arsenic, copper and nickel are evident in 
the water tributaries that flow to San Roque.

The chances of the reservoir turning into a collecting point of cyanide
compounds, uranium and other radioactive materials is not far-fetched, 
Moran added.

The DENR study conducted by Marylou G. Andrada said different 
tributaries to San Roque carry the dangerous chemical concentrations. 
This is because several mining operations exist  along the middle Agno 
River basin. There are also several small-scale mining operations along 
the river system. Because of the heavy concentration of the chemical 
substances,  Andrada in an interview said they have identified only 
eight freshwater fish species in the Agno River. These include the 
native  tilapia, "ayungin", "suyet", "noso", "pigad-pigad", freshwater 
crab and freshwater shrimp.

Andrada is recommending that DENR review the Environmental Impact 
Assessment (EIA) given to the mines operating above Agno River and 
oversee the strict implementation of the Environmental Compliance 
Certificate (ECC) provisions required for mining companies to follow.
She added that appropriate tailings dams should be constructed by the 
mining firms to prevent further degradation of Agno River's water 
quality.

The San Roque Dam, third biggest in Southeast Asia when completed, is
President Estrada's most expensive flagship project with a total cost of
$1.9 billion.  That's dollars. Government planners say it will irrigate
nearly 80,000 hectares of ricelands and provide electricity for Central
Luzon and Manila.

The social, economic and environmental costs, however, are staggering. 
It is going to displace several hundred Benguet folks, possibly flood 
1.5 million hectares in 27 towns in Central Luzon when it overflows or 
when it breaks, and poses an economic burden on the Filipino people who 
have to pay for all the foreign debts the government took out to construct 
the dam.


Date: Thu, 3 Aug 2000 14:02:57 -0700 (PDT)
From: owner-irn-sanroque@netvista.net
subject: LS: International activists urge more study of dams

International activists urge more study of dams

BAGUIO CITY - Third World activists from East and Southeast Asia are 
asking the governments of the Philippines, Korea, China, Japan and eight 
other countries to undertake more critical and independent inquiries 
about new dam projects, especially those being financed by Japan.

In a manifesto signed by representatives of 23 environmental activist 
groups during a July meeting in Thailand, they also urged Asian 
governments to review the social and ecological impact of dams.

The manifesto, called the Pak-Mun Declaration (named after Mun River 
[Pak]), urged Asian countries to stop constructing dams until the 
problems created by existing dams have been rectified.

Instead, it advised South Korea, China, Japan, Indonesia, Thailand, 
Burma, Taiwan, Vietnam, Cambodia, Malaysia, Hong Kong and the Philippines 
to invest in "cheaper, cleaner and better alternatives to dams to meet 
actual needs of people for energy and water."

Joan Carling, secretary general of the Baguio-based Cordillera People's
Alliance, represented Igorots displaced by state-owned power plant
facilities in that meeting.The Pak-Mun Declaration was formally presented 
to Prof. Nicasio Melecio, a consultant of Pangasinan Gov. Victor 
Agbayani, during a dialogue here on July 14.

Melecio now chairs an environment committee for a special Pangasinan 
task force formed this month by Agbayani.The task force is tasked to 
validate the potential impact of the $1.2-billion San Roque multipurpose 
dam project in Benguet on the annual floods in Pangasinan.

Carling described the Pak Mun Declaration as a new stage in the CPA's
decade-old criticism of the San Roque dam project, which was conceived
during the Ramos administration as a mitigating facility for the yearly
floods in Pangasinan.

Melecio sought out the CPA to address studies provided by the 
International River Network, a US-based international lobby group, that 
challenged the safety of San Roque dam.

"We have already (endorsed) the IRN reports you provided as vital 
evidence (about San Roque dam, now being run by the San Roque Power 
Corp.)," he told the CPA.

Melecio said the Pak Mun Declaration may also be included in a July 30
report that will determine the province's position on San Roque Dam.

But the San Roque dam project is predominantly a power plant, the first
'real' independent power producer (IPP) which has complete control over
the hydroelectric facility's production, said Teodoro Orquiza, a union 
vice president of the National Power Corp.

The Pak Mun Declaration addresses new dam-related projects being 
financed by the Japan Bank for International Cooperation, said Carling.

The Philippines had been negotiating for a $400-million JBIC loan for the
San Roque project."The Thailand meeting was able to determine that all of 
these dam projects are dominated by Japan," Carling said.

The opponents of the dam are trying to block funding for the projects 
that are expected to come from Japan and other foreign lenders.

Environmentalists warned that the construction of more dams would erase 
from the map more and more villages, mostly populated by tribal groups.

Protesters are also raising objections to the widening of the Pampanga 
River as a measure to stop flooding in the province.

Pampanga residents proposed that instead of dredging or widening the
Pampanga River, authorities should order the desilting or dredging of 
major waterways to where the river leads.

The waterways are heavily clogged and their clogging is the main cause 
of floods in Pampanga and other low-lying Central Luzon areas.

Vincent Cobreza, PDI Northern Luzon Bureau


Date: Fri, 28 Jul 2000 18:10:36 -0700 (PDT)
From: owner-irn-sanroque@netvista.net
subject: LS: July san roque campaign update from CPA

San RoqueUpdates

Tongtongan ti Umili Cordillera Peoples  Alliance    	 	                 June-July 2000

On the Project and Government Actions

San Roque dam builder admits quality deviations
(A.A. Dumlao, Manila Times, 6-23-2000)

San Manuel, PangasinanDespite an earlier commitment that it would not 
compromise quality control and quality assurance (QC, Q/A) the San Roque 
Power Corporation (SRPC) admitted that there had been quality deviations 
in  the construction of the $1.2-billion San Roque dam flagship project.
	
Raymond E. Cunningham, SRPC senior vice-president and the project 
director  admitted as much to the Manila Times, but also said he would 
not rely solely on the findings of the quality assurance personnel of the 
Raytheon Ebasco Overseas Ltd. (REOL) who publicly exposed the construction 
flaws. Cunningham has confirmed that ten of the Q/C/ QA workers have been 
retrenched.

Board Firm on stand vs. San Roque Dam Project
(Baguio Midland Courier, 7-2-2000)

Members of the Provincial Board are not intimidated by the tremendous 
pressure being employed by some of the local and national officials to 
support the construction of the controversial San Roque Dam Project as 
they reaffirmed the support to the different oppositors to the project 
particularly the people of Itogon.
	
During the regular session of the board last Wednesday which was attended 
by various opposition groups from the different barangays in Itogon, board 
member Danilo L. Bolislis reiterated their previous stand opposing the said 
project still stands and has never been amended or repealed and none of his 
colleagues objected.

NIPAS act limits indigenous rights in protected area
Benguet SP urged to go to Congress against Proclamation268
(Zigzag Weekly, 6-25-2000)

La Trinidad, Benguet--- The Sangunian Panlalawigan was urged 
this week to oppose Proclamation 258 which declares the old Ambuclao 
/Binga Forest and Watershed Reservation a protected area as that would 
limit rights of the people there. 
	
The area is now called the Upper Agno River Basin Reserve, covering an 
area of 77,651 hectares spread from the municipalities of La Trinidad, 
Tublay, Atok, Kibugnan, Buguias, Kabayan, Bokod, Bokod and Itogon all of 
Benguet; Kiangan and Hungduan of Ifugao; and Kayapa of Nueva Vizcaya.
Provincial Prosecutor Felix Cabading  and SP member Liso Agpas 
pointed out that this proclamation treats the erea as a mere resource 
base and denigrates the property rights of the people.


San Roque megadam, NAPOCOR contract
“Grossly disadvantageous to government ”- Jaworski
(press release, 6-2-2000)

Protecting its own version of the NAPOCOR privatization, the Senate, on 
the other hand, may just boosted the public call for a massive review of 
all power contracts to protect the National Government interests and of 
consumers. First in line is that covering the San Roque Multi-purpose 
Project, a flagship project approved during the Ramos administration. 
Former President Marcos had shaved the project conceived during the early 
70’s.
	
The financial bleeding of NAPOCOR from its contracts with the IPPs and 
the controversy of who should foot the stranded costs after privatization 
had divided the house of Representatives, Senator Jaworsky, member of the 
energy committee, filed P.S. Res. No. 785 , which would be the long sought 
response by the Legislature to the public outcry against onerous power 
contracts.
	
“The Power Purchase agreement between the NAPOCOR and the San Roque Power 
Corporation is a void contact from the beginning and is grossly 
disadvantageous to the government,” Jaworsky stressed.


On the Continuing Struggle…

IIB-A To Mark the Anniversary of the MOA Signing with A Picket
		
While local and national officials treats the opposition’s argument as 
moot and academic since the project is already 40% complete, the members 
of the Itogon Inter-Barangay Alliance has not given up its 
uncompromising   stand against the San Roque Dam. After they have 
expressed their firmed stand against the project before the provincial 
board  in session, they will hold a picket at the municipal hall to show 
their continuing opposition.
	 
Fernando Mangili, one of the IIB-A leaders, said, “as the anniversary of 
the signing of the Memorandum of Agreement is nearing, we remember the 
day, July 17 when our local officials signed the MOA despite the strong 
opposition of the people of Itogon. We want to mark this day with a 
protest action to reiterate our call to the local officials to rescind 
the MOA.”


MASRDAM to Discuss Latest Developments and Draw Action Plans

Information on the flooding of the 12 municipalities of Pangasinan and 
erosions at the project site in San Roque prompted members of the Movement 
Against the San Roque Dam and All Mega Dams (MASRDAM)  to come together 
for a round table discussions on the latest developments in Pangasinan.
	 
According to  Fr. Terry Revollido of the Aglipayan Church of Urdaneta, 
the latest release of waters from the Binga and Ambuclao Dams reached 
his church compound.  Flood of about two feet high has reached this part 
of Pangasinan during the height of Typhoons Edeng and  Ditang. In 
reaction to the pronouncement of Pangasinan Governor Agbayani that the 
people need the San Roque Dam to control the perennial flooding in 
Pangasinan, Father Terry said that for several decades since the 
construction of the Binga and Ambuclao Dams, the people has been 
suffering from the effects of floods.
 
How can they  (government) be sure that the San Roque Dam that is located 
in Pangasinan will be able to control waters from the Agno River?  These 
floods have damaged a lot of rice fields, fish pens and have cost several 
lives, yet government has done nothing to solve this.

This will be one of the issues to be taken-up in a round table discussion 
among anti-dam groups. The discussion will focus on the problems of the 
people of Pangasinan and possible actions that can be taken by  joint 
efforts of various opposition groups from Baguio, Benguet and Pangasinan.


East  and  South East Asia Activists Unite to Protect Rivers, Fight Dams

Anti-dam and river protection organization in East and SE Asia have 
united to form a regional network to fight dams and protect rivers in 
East and SE Asia. At the First  East and SE Asia Regional Meeting on Dams, 
Rivers and People, held in Kong Jam, Ubon Ratchathani Province of 
Thailand from June 28-July 2, more than 60 participants from fourteen 
countries announced their intention to “unite our struggle at local, 
national and inter level so as to stop the funding of dam projects in 
East and SE Asia and to restore rivers to the communities who depend on 
them.”

Participants at the meeting, which included dam-affected people from 
Malaysia, Korea, Thailand, the Philippines, Taiwan and Cambodia, together 
with allies from the across the region, produced the Pak Mun Declaration, 
which calls:
·	A moratorium on large dam construction until the problems created 
by existing dams have been rectified and reparations made to affected 
communities;
·	The decommissioning of dams which have created irreversible social, 
environmental and cultural destruction; and
·	An immediate stop to the financing of Dam Projects by bilateral and 
multilateral organizations, particularly the World Bank, Asian Development 
Bank and Japan Bank for International Cooperation.


CPA and IRN in a Joint Urgent Call

Amidst the hellbent pursuit of the proponents of the San Roque Dam 
project, the Cordillera Peoples Alliance and the International Rivers 
Network calls on all anti-dam activist and supporters from all over the 
world to launch a massive urgent call to stop the dam project. Through a 
letter barrage, this specific form of protest is designed to spread the 
campaign on the national and international level with a common form of 
protest letter to the JBIC, the Japanese Government, The Philippine 
Government, the National Power Corporation and the San Roque Power 
Corporation.
	
The CPA and IRN will print several thousands of letters to be distributed 
to as many people who will then sign this letters and send them to the dam 
proponents within a certain period.  According to CPA and IRN, by calling 
on the people from different parts of the globe to send this numerous 
letters, it will barrage the offices of the dam proponents. This barrage of 
letters is a way of registering to the dam proponents the widespread 
opposition to their project.

CWERC to Launch San Roque Journal

A collection of various studies on the San Roque Dam will soon come out 
in a journal. Through the effort of the Center for Women Education and 
Research, this journal seeks to provide readers in-depth studies made by 
local and international technical and socio-cultural experts. This latest 
form of literature on the San Roque Dam is an addition to the growing 
number of written materials on the impact of the San Roque Dam Project. It 
enlightens readers the environmental and social dimensions of issues 
surrounding the project.

This journal will also highlight the contribution of women to the anti-
dam struggle, lest the stories on how women displayed their leadership 
and courage against this giant project be forgotten.
	
In a campaign where there is a persistent tit-for-tat   exchange of views 
between the pro and anti dam groups, the journal comes in for those who 
wants a probe on several aspects of the issues and concerns on the 
project. It provides additional knowledge that will enlighten the readers 
on the legitimate cause of the growing anti-dam mass movement. #
	


Date: Wed, 26 Jul 2000 11:15:17 -0700 (PDT)
From: owner-irn-sanroque@netvista.net
subject: LS: Agno River contaminated with mercury

Agno River contaminated with mercury
DAGUPAN, (ABS-CBN) - Task Force San Roque confirmed Friday that the 
Agno River along San Roque and San Miguel towns in Pangasinan has been
contaminated with mercury, a known poison and environmental pollutant.

The mercury flow was traced to mine tailings descending from the 
highlands.Melecio said they have already coordinated with mining 
companies in theCordillera and inspected their operations and visited 
their mining areas.

The companies have been instructed to furnish Melecio's team data on 
howmuch mercury they use and what measures are being taken to avoid 
overflows.Mining companies which have already been shut down may have 
contributed to the overflow that reached Pangasinan, the task force said.

Agno River flows from San Manuel to several other towns in Pangasinan,
including Lingayen and Dagupan City.As early as the 1950's, it was 
established that mercury emissions in theenvironment could have serious 
effects on human health.

These early studies demonstrated that fish and other wildlife attain 
mercurylevels of toxicological concern, when directly affected by
mercury-containing emissions from human-related activities.
Human health concerns arise when fish and wildlife from these 
ecosystems are consumed by humans.

http://www.abs-cbnnews.com/abs/newsflash.nsf/BRundown/20000706003

Wednesday, July 5, 2000 10:51 AM ZE8

Agno River contaminated with mercury

PANGASINAN, (ABS-CBN) - High concentrations of mercury have contaminated 
the Agno River in San Roque, San Manuel, this province.

According to Nick Milencio of the Multi-Partite Monitoring Team and 
Task Force San Roque for the San Roque Multi-Purpose Project, the said
contamination is still at a tolerable level and will not affect the
ecosystem of the surrounding areas.Mercury levels were graded at .001 
concentration which is lower than the .002 standard level.

Milencio said the mercury may have overflowed from mine tailings of mining
companies near Benguet.


FUJIWARA Toshihide
E-mail: cffc-jp@mbox.kyoto-inet.or.jp


Date: Mon, 24 Jul 2000 18:18:28 -0700 (PDT)
From: owner-irn-sanroque@netvista.net
subject: LS: Vizcaya gov't denies backing plan to build dam in tribal 
village

Vizcaya gov't denies backing plan to build dam in tribal village
By Ben Moses Ebreo
PDI Northern Luzon Bureau

BAYOMBONG, Nueva Vizcaya- The provincial government here has denied
endorsing a dam project in Barangay Ammueg in Ambaguio town, a village
populated by the Kalanguya tribe.

"We are not aware of any commitment made by the provincial government of
Nueva Vizcaya to support the construction of a dam that will dislocate 
the Kalanguya and Ayangan people,'' said Bernabe Almirol, public 
relations assistant of the provincial government.

Almirol was reacting to fears expressed by upland villagers that their
barangay would be submerged by the dam project. Barangay Ammueg, located
1,000 meters above sea level, is at the foot of Mt. Pulag, the highest 
peak in Luzon.

He said there was a proposal from the National Irrigation Administration 
to build a multi-purpose dam along the Matuno River located at the 
downstream of Barangay Ammueg.

The project, despite its prepared technical study by the Japanese
International Cooperation Agency, did not push through because it did 
not have funding and the site is still being disputed by Ambaguio in 
Nueva Vizcaya and Asipulo town in Ifugao.

Instead, the provincial government proposed a flood control dam with an
irrigation component in Barangay Manamtam in Bambang town located near 
where the Matuno and San Fabian rivers meet. Officials said the project 
intends to augment the irrigation needs of farmers in Nueva Vizcaya who 
depend on the tanggal (makeshift) dam system.

"This is a lowland and not an upland type of dam. Initial studies 
show that there will be no dislocation because the dam is an 
overflow-type that is intended mainly as a flood control and irrigation 
facility," Almirol said.

He said the provincial government supports the indigenous people's 
rights over ancestral domain by advocating the granting of alternative 
tenure instruments to upland residents because the province serves as 
a watershed for Magat Dam in Isabela and Casecnan Dam in Alfonso 
Castaneda, Nueva Vizcaya.

Opposition to more dam projects is strong in Northern Luzon because the
projects, according to their critics, would wipe off entire villages and
endanger crops, lives and property.

Some projects, however, were able to proceed despite protests, one of 
them being the San Roque multi-purpose dam and irrigation project.

Critics of the San Roque Dam are trying to stop the financing of the 
project to no avail. Proponents of the project defended it, saying its 
benefits would far outweigh the damages that its critics said the project 
would bring.


Date: Wed, 5 Jul 2000 10:22:00 -0700 (PDT)
From: owner-irn-sanroque@netvista.net
subject: LS: Impsa Asia to Negotiate with Napocor Over Philippine Power 

Project

Impsa Asia to Negotiate with Napocor Over Philippine Power Project
(July 04, 2000)

MANILA (AFX-ASIA) - Impsa Asia Ltd will negotiate this week with state-
run National Power Corp over the rehabilitation and operation of the 
750-megawatt Caliraya-Botocan-Kalayaan hydroelectric power project after 
Napocor cancelled the contract, Impsa Asia president Francisco Ruben 
Valenti said.

"While we are negotiating with Napocor, Impsa will continue to work in 
the CBK power complex. The dispute was not expected. However, we have 
been assured by Napocor, particularly president Federico Puno, that the 
negotiations will proceed smoothly," Valenti said.

Puno yesterday said Napocor cancelled the contract after Impsa Asia's 
failure to meet the June 30 deadline for financial closing for the 
project. Valenti, however, insists the contract has not been cancelled 
and added that the inability of government agencies to provide the company 
with the necessary documents for financial closing delayed the process. 

For instance, Napocor failed to deliver on time the Justice Department's 
standard opinion concerning the "enforceability" of the contract.
Valenti said the new negotiations will be possible due to a dispute 
settlement mechanism provided in the contract.

"Our contract with them has a supplementary component which states that 
we can go on with our rehabilitation work (for a certain period) despite 
disputes that may arise in the contract," Valenti said.
Valenti said that once the necessary documents are with Impsa Asia, the 
company will complete the financial closing within three months. 


Date: Thu, 29 Jun 2000 15:11:33 -0700 (PDT)
From: owner-irn-sanroque@netvista.net
subject: LS: Impsa Asia to Borrow Money for Philippine Hydro Project

Impsa Asia to Borrow 350 Mln Usd for Philippine Hydroelectric Power 
Project (June 26, 2000)

MANILA (AFX-ASIA) - IMPSA Asia Ltd of Argentina will borrow some 350 
mln usd from Europe and Japanese banks to finance in part its 
Caliraya-Botocan-Kalayaan hydroelectric power project in northern 
Philippines, Impsa Asia president Francisco Ruben Valenti said.
Valenti said the banks are Societe Generale, Banque Nationale de Paris, 
International Bank of Japan and Dai-ichi Bank.

Valenti said it will take two to three months to achieve financial 
closing for the project estimated to cost 470 mln usd. The remaining 120 
mln usd will be raised through equity.
The National Power Corp gave IMPSA a deadline of June 30 to complete the 
financial requirements for the project. 


Date: Sun, 25 Jun 2000 22:52:15 -0700 (PDT)
From: owner-irn-sanroque@netvista.net
subject: Omnibus power bill includes funding for SRMP watersheds

Omnibus power bill includes
funding for SRMP watersheds

By Cheryl G. Cruz

Benguet Rep. Ronald Cosalan has successfully worked for the inclusion in 
the Omnibus Power Reform Bill a provision that will ensure funding for 
the maintenance of the watershed of the Ambuklao, Binga and San Roque 
dams.

Cosalan told Sun.Star Saturday that he worked for that because he knew 
that the Department of Environment and Natural Resources and the 
National Power Corporation may not be able to shell out needed amount for 
the implementation of the integrated watershed management plan, specially 
for the San Roque project.

The inserted provision provides for certain fund allocations for
"reforestation and watershed rehabilitation and management or RWRM to be
managed and shared equally by the host provinces and municipalities
concerned".

Section 50 of the proposed bill states that "all hydroelectric power
generating facilities shall allocate one-half centavo per kilowatt-hour 
of their total electricity rates to accrue to (a) RWRM".

"I inserted this provision to also assist them (DENR and NPC and the 
people affected by the dam construction). If the power bill will be 
approved, the DENR and the NPC will not spend a single centavo to fund the 
integrated watershed management plan for the San Roque project," Cosalan 
said, stressing that while he has been questioning the lack of funds for 
the said plan, he's also been doing his responsibility to his 
constituents.

"It's not true that I'm only (just) criticizing the San Roque project and
not doing anything to help," he added.

Cosalan was reacting to an earlier comment made by DENR secretary Antonio
Cerilles, urging the congressman "to also try to help us in the solution" 
of various issues with regards the project, instead of "just criticizing" 
the effort of the national government in the construction of the $1.15 
billion dam project.

Cerilles earlier stressed that Cosalan should also consider the plight 
of the national government, especially in its difficulty to secure loans 
from banks and other lending companies.

"We've been asking Congressman Cosalan to also consider the government's
plight," Cerilles said. "(I hope) he also tries to help us in the 
solution of this dilemma rather than just criticizing and opposing the 
project."

He added that the needed money for the rehabilitation and livelihood of 
the affected communities in Itogon cannot just be loaned by lending 
institutions to the Philippine government without also considering 
various requirements.

These include the commitment of the government to pay back what's been
loaned, and that the objective of the lending institution is also being 
met and satisfied with the implementation of the project.

"We've been trying to understand the government for the last 45 years 
(as in the case of affected residents of Binga and Ambuklao dam projects). 
Where 's the money? Where's the sincerity?" Cosalan stressed.

He added that he will again badger the DENR to include in its year 2001
budget the needed amount for the implementation of the 10-year integrated
watershed management plan which is suppose to start next year.

"There's no positive action yet to allocate the needed fund for the
implementation of the plan," Cosalan stressed.

Earlier, the DENR submitted a P735 million-watershed management plan to 
the municipality of Itogon. In return, Itogon officials passed resolution 
no. 56-2000 which "conditionally" accepted the plan, provided that it 
"must be funded".

"It is only when this plan shall have been funded that it can satisfy 
the conditionality imposed by this body...The institutionalization 
process of funding must be adopted...with a strong recommendation from 
the Presidential Committee on Flagship Projects and Programs...for 
inclusion in the GAA for year 2001 and every year thereafter for four 
consecutive years," the resolution added.

"I asked DENR regional executive director Roquesa de Castro on the
availability of the money and she said that she has already requested a
budget for it. We'll see if the amount will be included in its year 2001
budget that will be submitted next month. Kung wala, we'll keep on
pressuring them to comply with this provision," Cosalan disclosed.


Date: Sun, 25 Jun 2000 22:52:14 -0700 (PDT)
From: owner-irn-sanroque@netvista.net
subject: SRPC head vows protection of rights, interest of dam-affected 
families

SRPC head vows protection of rights,
interest of dam-afffected families

By Cheryl G. Cruz

THE project proponent of the San Roque Dam has vowed to take legal action
against "opportunists" to protect and ensure the interest of families who
are affected by the construction of the dam.

Ray Cunnigham, senior vice-president and project director of the San 
Roque Power Corporation, said they are willing to provide full resources 
to fight these unscrupulous people in Court to protect the interest of 
legitimate claimants affected by the billion-peso flagship project.

Cunningham was reacting to problems encountered in the finalization of 
the masterlist of affected residents both in the Benguet and the 
Pangasinan sides of the development.

The final listing has been delayed due to the reported presence of
enterprising individuals who are claiming that they should also be
compensated. Others allegedly fed on the vulnerability of the legitimate
claimants in demanding what they want from the project proponent, when 
in fact, they do not have the right to do so.

"Some people are trying to take advantage of the situation". This should 
not be the case," Cunningham added.

But sources said that while concerned agencies have yet to identify these
individuals posing as bonafide claimants, "the good thing is that it's 
the concerned barangay officials themselves who are certifying the 
legitimacy of affected residents in their respective areas".

"Alam nila kung sino talaga ang legitimate claimants o hindi," they 
added.

Meanwhile, Cunningham also assured those who are only sourcing income 
from the Agno River, like the gold panners, that they will also be 
compensated or provided training for alternative livelihood 
opportunities.

"Even if they do not have structures (within the 290-level), and only
sourcing their income (there), they have to be compensated," he 
stressed.

Records from the Mines and Geosciences Bureau disclosed the presence 
of some 6,000 "seasonal" miners along the Agno River and its 
tributaries. But 90 percent of them are operating illegally in the area.

MGB regional director Neoman dela Cruz said "this is precisely why the 
DENR and the local government unit of Itogon are working closely to 
legitimize the small-scale miners' operation so that they could also 
avail of the assistance that can be offered them" with regards the 
San Roque project.


Date: Sat, 24 Jun 2000 18:20:35 -0700 (PDT)
From: owner-irn-sanroque@netvista.net
subject: LS: No quality deviations, says San Roque dam builder

No quality deviations,
says San Roque dam builder


San Roque Power Corporation categorically dismissed the reported 
admission of a top company official, bannered on this page yesterday, 
that there had been quality deviations in the construction of the 
$1.2-billion San Roque multi-purpose project.

"Nothing could be farther from the truth," said SRPC senior vice 
president Raymond E. Cunningham in a press statement. "I flatly deny 
saying or admitting that there were flaws in the construction of the 
San Roque project."

Cunningham said what he confirmed with The Times correspondent was was 
the layoff of 10 workers from the quality control/quality assurance 
department of Raytheon Ebasco Overseas Ltd. "whose services were no 
longer needed."

Raytheon is the engineering, procurement, and construction contractor 
for the project.

He also confirmed the existence of the laid-off workers` April 19 letter
"Questioning the management about the testing materials with failed 
result but white wash made of it (sic)."

Cunningham`s press statement said SRPC was awaiting the results of an
independent investigation, and reiterated the company`s no-compromise
policy on the quality of the project construction.

He said that the SRPC`s QC/QA team has three professional quality
inspectors working full-time at the job site. This was, he said, contrary 
to the allegation of retrenched technician Diosdado Gordovez that 
Raytheon has in its QA/QC  staff "unqualified, high school graduates" 
who have visited the dam construction only once since the work began.

In an earlier pronouncement, SRPC president and CEO Patrick McAllister
assured that the matter of quality control was "non-negotiable."

"We are committed to ensuring that the San Roque dam is designed and
constructed in accordance with the highest international engineering and
construction standards," he said.

Four different bodies, he said, monitor quality assurance and quality
control to ensure that the project meets the highest international
standards.

"We must bear in mind that SRPC will operate the dam for the next 25 
years and there are sufficient safeguards in our contract with the 
Philippine government which make us liable for any defects or 
shortcomings in engineering design and constructions," McAllister said.


Date: Sat, 24 Jun 2000 18:18:25 -0700 (PDT)
From: owner-irn-sanroque@netvista.net
subject: San Roque dam builder admits quality deviations

San Roque dam builder
admits quality deviations
By Artemio A. Dumlao


San Manuel, Pangasinan?Despite an earlier commitment that it would not
compromise quality control and quality assurance (QC/QA), the San Roque
Power Corporation (SRPC) admitted that there had been quality deviations 
in the construction of the $1.2-billion San Roque dam flagship project 
here.

Raymond E. Cunningham, SRPC senior vice-president and project director
admitted as much to THE MANILA TIMES, but also said he would not rely 
solely on the findings of the quality assurance personnel of the US-
based Raytheo Ebasco Overseas Ltd. (REOL) who had publicly exposed the 
construction flaws. Cunningham has confirmed that 10 of the QC/QA workers 
have been retrenched.

"I have my own quality control and assurance team and independent quality
engineers who would look into allegations of flaws in the construction,"
Cunningham said.

"We are investigating the matter and will find out in due time, he said.
"Why would we compromise the dam's quality when we have to operate it for
25 years after it is finished."

Creditors led by the Japan Bank for International Cooperation (JBIC) has 
an independent engineering firm to review the overall quality and progress 
of the project, he added.

San Roque Dam is listed as the largest dam in Asia and the 12th in the 
world upon its completion three years from now as projected by the 
builders.

Earlier, SRPC president and chief executive officer Patrick McAllister 
made assurances that the matter of quality control was "non-negotiable" 
as far as they were concerned. "We are committed to ensuring that the 
San Roque dam is designed and constructed in accordance with the highest 
international engineering and construction standards," he said in a 
statement faxed to media.

The government`s National Power Corporation (NPC) also said it will 
call the attention of REOL on such concerns.

NPC project manager Melchor Polanco said that an investigating body 
was formed with members coming from the NPC central office and the SRPC.
Retrenched REOL QA/QC managers and employees alleged that low quality
materials were being used in the dam.

Diosdado Gordovez, former lead laboratory technician of REOL said that 
mix designs not yet approved were currently being used causing him to 
fear of the dam`s sefety. Gordovez who claimed to have direct knowledge 
of the construction said that materials being used failed tests 
conducted by his office.

Gordovez further alleged that Cunningham`s QC/QA team was composed of 
only three to four persons who have visited the dam construction only 
once since the work began. "How can they promise the maximum quality 
when in fact REOL has in its QC/QA staff unqualified, high school 
graduates," he said.

A private contractor who spoke on condition of anonymity told TMT that 
he had just delivered an underrated gravel material into the dam project. 
His delivery contained silt beyond the specified tolerance for concrete
aggregates.


Date: Thu, 22 Jun 2000 08:36:32 -0700 (PDT)
From: owner-irn-sanroque@netvista.net
subject: LS: Filipino people to pay SRPC $10M monthly in fees by 
2004

Filipino people to pay SRPC $10M monthly in fees by 2004

By Gigi Sarfati


As soon as the San Roque Dam becomes operational by the year 2004, 
Filipino consumers will have to pay the San Roque Power Corporation 
(SRPC) a minimum of 10 million dollars a month or P400 million a month 
in fees.

This is whether or not the SRPC is successfully able to supply consumers
with electricity.The obligation to pay this amount is contained in the 
power purchase agreement (PPA), a contract signed by the Philippine 
government, represented by the National Power Corporation and the SRPC, 
a foreign consortium of Japan's Marubeni and Kansai Electric Power 
Corporation and US' Sithe Energy.

A study made by a US expert on corporate financing revealed that the 
PPA contains a schedule of payments which the National Power Corporation 
is obliged to follow in favor of the private consortium.

"The rates are highest during the first 12 years of the dam's lifespan 
with monthly charges consisting of energy fees, capacity fees, and 
operating fees," the study revealed.

Wayne White, Ph.D., of Foresight Associates, a consultancy firm based 
in the US and contracted by the International Rivers Network to conduct 
a review of the PPA also disclosed that the cost of power from the SRPC 
is "hugely inflated" as compared to the 1998 annual report.

The US-based expert summarized the Thirteenth Schedule (of payments)
contained in the PPA which provides sample calculations of monthly 
billings under three scenarios which was summarized in the report as 
follows:

Under the first scenario, the plant operation incurred no outages and 
the total example monthly fee is equivalent to a minimum of P13.17 per 
kilowatt hour.

In the second scenario, the plant operation incurred outages within 
"the allowable limits" and the NPC will be charged with a total 
example monthly fee of P20.48 per kilowatt hour.

In the third scenario, plant operation incurred outages outside "the
allowable limits" and we shall be charged a total example monthly fee 
of P20.93 per kilowatt hour. Article 8.5 of the agreement provides 
that "NPC will be required to pay the full amount of the capacity fees 
and operating fees... whether or not any energy is dispatched" as a 
result of water insufficiency.

According to White, this provision in the PPA unconditionally put the 
burden of taking all the hydrological risk in the operation of the 
power project on the shoulders of the Philippine government.

Anti-dam activists who had read the study also noted that the agreed 
amount and schedule of payment shall be higher if power outages occur.

They said the summary of the thirteenth schedule of payments also shows
that, if the SRPC fails to produce electricity because of insufficient 
water in the Agno River, the Filipinos will be obliged to pay them higher 
fees.

The Tongtongan ti Umili-Cordillera Peoples' Alliance pointed out, "at
present, the National Power Corporation passed on to Filipino consumers
whatever amount they are obliged to pay to independent power producers 
they have entered into contract with.

In other words, the Filipino consumers will shoulder these payments 
promised by our government to the SRPC and we shall be paying an average 
of P13 to P21 per kilowatt hour by the year 2004, whether or not we are 
supplied with the power we need."

Meanwhile, Senior Engineer Christine Martinez of the Benguet Electric
Cooperative (BENECO), reports that as of May this year, consumers in 
the Baguio-Benguet area paid only an average of only P4.4 per kilowatt-
hour for residential areas, and P4.5 per kilowatt-hour for commercial 
areas.

Average Filipino households consuming less than a hundred kilowatt hour 
a month only pay as little as P400 a month in electric bills.

By the year 2004, if the San Roque Dam pushes through as planned, the
average Filipino household consuming a hundred kilowatt hours a month 
will be paying a minimum of more than a thousand pesos in electric bills 
a month.

Aviva Imhof, Southeast Asia Campaigner of the International 
Rivers Network says the San Roque deal is a "rip-off" and "a rotten deal 
for Filipino consumers and taxpayers as the SRPC stands to gain massive 
profits from the project".

Members of people's organization opposing the dam project decried the 
PPA saying, "it is unthinkable, even from the point of view of 
businessmen, to enter into such an onerous agreement.

The fact that the NPC is a government corporation who should represent 
and safeguard the interests of the Filipino people makes the situation 
worse."

The CPA added that, "because of politicians" desperation to encourage
foreign investments in the country, the government has entered into an
agreement very detrimental to the Filipino people and has shown the 
lack of any political and moral will.

This is very clearly reflected by the onerous PPA."


Date: Thu, 22 Jun 2000 08:36:31 -0700 (PDT)
From: owner-irn-sanroque@netvista.net
subject: LS: 168 valid SRMP-related claims ready for payment: NCIP

168 valid SRMP-related claims ready for payment: NCIP

By Nonnette C. Bennett


BENGUET -- THE claims for damages of 168 individuals affected by the 
San Roque Multi-Purpose Dam Project in Itogon town here are ready for
publication after these were validated by the provincial appraisal
committee, according to regional director Amador Batay-an of the 
National Commission for Indigenous Peoples.

Batay-an said the claims were also validated by the NCIP as to the 
proposed valuation of land, structure and improvements.

He said the claims would be presented to the National Power Corporation 
for payment.

Batay-an said Tuesday that the NCIP was optimistic that by October, the
claims would be ready for payment.

Itogon Vice Mayor Aloysius Kato in an interview with Sun.Star Tuesday 
said the NPC was prepared to deposit P50 million in escrow at a Baguio 
City bank to show it's sincerity to pay for the claims.

"It's for all intents and purposes," he said.

Northern Luzon Presidential Assistant for Regional Concerns Gerard
Salapantan noted that the NPC had allocated P730 million as payments 
for claims.

Only Pangasinan claimants had received partial payments for the lands,
structures and improvements affected by the 345-megawatt power plant.

He stressed that although the allocation had been made, the actual money 
was not on hand for NPC to pay the claims outright. This is the reason 
for the partial payments.

Kato said that in Itogon the claims were varied. Because of this, there 
were different valuations proposed by the NCIP for the properties, 
structures and crops.

He noted that there were landowners who owned the structures and
improvements, land users who built their structures or made improvements 
to properties that did not belong to them, and there are improvements 
on properties that were being leased by individuals.

These claims have different values.

Kato also said that the process adopted by the PAC on the claims 
included the survey of the lots, and validation of the ownership or 
claims by the NCIP.

Once validated, these claims were to be submitted to the Department of
Environment and Natural Resources (DENR) for approval before the claim 
could be presented to the NPC.

According to Kato, the PAC had already approved the payment of P83,000 
for the remains of ancestors in the burial grounds affected by the 
SRMDP.

However, the lands valuation was not yet determined.

Some claims not yet processed, according to Kato, were due to the failure 
of the individuals to comply with basic certificates required. This was 
the reason for the NCIP attention in the past two weeks over those who 
have failed to fulfill their documentations.


Date: Thu, 22 Jun 2000 08:36:27 -0700 (PDT)
From: owner-irn-sanroque@netvista.net
subject: LS: San Roque campaign updates

San Roque Issue
Tongtongan ti Umili- Cordillera People’s Alliance
        
April10-May 15,2000	
Movement Against San Roque Dam and all Mega Dams (MASRDAM)

On the Project

Raytheon Out, Morrison Knudsen In As New Contractor
		
Morrison Knudsen, a U.S. based corporation has signed an agreement to 
acquire the Engineering and Construction Division of the Raytheon Company 
on April 17,2000. According to news reports one reason for the sale is 
that Raytheon is loosing due to performance issues on international 
project. Raytheon claims this project is not the San Roque Dam.
	
Morrison Knudsen  as  an engineering, contactor and program manager has 
23,000 people at work in more than 35 counties serving the government, 
envi’l, heavy civil construction, industrial, mining, nuclear services, 
operation & maintenance,power, process, transportation, and water-
resource markets.Management take over will start at the end of 
May, 2000.

Picket At Project Site Suspended Work For Four Days
  		
A picket and barricade was staged by employees in the San Roque 
Project  at the entrance to the project site on April 30-May3. The 
picketers raised issues of non-implementation of the Memorandum of 
Agreement   and  several conditions set by the  local government  that 
a priority hiring be given to those affected by the dam, construction.		
	
The picket was  also participated by members of the relocated families 
who  once again raised the issue of compensation and other promises of 
NPC.  Accdg. to Kathleen Okubo in her interview with Vice-Mayor Cris 
Suller,  “if the issues raised by the labor and the communities directly 
affected  on  job security, priority hiring, compensation and livelihood 
are not attended to immediately as promised  it is inevitable that local 
government members who are sworn to serve their constituency join the 
picket lines against the construction company, too.”
	
The San Manuel Council has passed a resolution declaring Mr. Jack Owens , 
SRMDP site manager of Raytheon as persona non grata for not giving due 
attention to workers’ issues and for ignoring negotiations the 
labor unrest.
	
Project	Employees Raise Dam’ s Safety	

Several employees of the Department of Quality Control of the San Roque 
Project have raised concerns on the dam’s safety . These are the 
employees who were involved in questioning the management about the 
testing of materials with failed result but white wash made it. They  
are now included on the list of those to be terminated.
	
In April 19,2000, 33 employees in the said department wrote a letter of 
complain to the Resident Manager of SRPC, John Lockwood stating that they 
have reason to believe that members of their department were in the list 
of  workers to be laid off apparently because of the controversial test 
results  that they have reported. The listed names from their Department 
showed that they are all in responsible position and except for, one are 
all from San Manuel,Pangasinan.
	
They also stated in their letter, “if we ignore this problem and allow 
them(SRPC) to terminate us as witness and as guards of the affected 
localities here in this Department, they are free to do anything they 
want  in constructing the dam because of not following the specifications 
or changes according to the ASTM.” They added, “ So if this happens, the 
people Pangasinan and nearby provinces will be affected. What’s going to 
be  built will be a dam of low quality. People sacrifice their lives with 
these kinds of project.”
		
Legal  Action Against SRPC’s Burrowing at Brgy. Narra
	
The municipality of  San Manuel  is set to file a case against the 
SPRC continued burrowing at Barangay Narra despite the  municipality’s  
protest.
	
The SRPC have been burrowing aggregates for the dam constraction  at a 
depth of ten meters. SRPC have identified area of 1400 hectares near the 
dam construction as its burrowing site . This area covers the Barangay of 
Narra and several communities of  San Nicholas. About 180 families living 
in this area are set to be relocated.
	
In the early part of this year, the Municipality of  San Manuel have 
asked  the SRPC to stop the burrowing of a large tract of land in 
Barangay Narra as this will create an artificial lake that will bring 
adverse environmental impact.
	
In February, the DENR have issued a cease and desist order as this 
activity have no environmental permit. The DENR later , acting upon the 
executive order of Pres. Estrada , lifted the ban and issued an onshore 
special mineral extraction permit  that allowed burrowing at five meters 
deep. Until today the SRPC continues to burrow the area at ten 
meters deep.
	
Sen. Jaworksy To Present San Roque Issue to  Senate

The  Sen. Jaworksky , Chairman of the Committee on Environment  of the 
Senate is finalizing his paper on the San Roque Project which is set to 
be presented this month of May. Among the major issues to be presented 
is the onerous Power Purchase Agreement between the NPC and the SRPC.
	 
Legal experts are  now studying  clauses  of the  PPA that  runs counter 
to public interest. Issues on the legality of the PPA will be raised at 
the  Senate as the various groups would call for its cancellation.
	
According to the Senator’s staff the Senate has listed the Omnibus Bill 
as the priority agenda  but they will try to schedule the San Roque 
agenda  this month of May.  Amidst the hell bent pursuit of the SRPC on 
this project, opposition groups sees the need to pressure the members of 
the Senate to pursue an investigation on  the impact of this project. 

This agenda for discussion in the senate has been delayed several 
times since the House approved last year  a  resolution  filed by Sen. 
Honasan to investigate the impact of the San Roque Dam Project.

JBIC  Rep  To Come  For  Inquiry
Env.’l Safety Nets is Threatened With NPC’s Privatization


A representative of the Japanese Bank for International Cooperation will 
be here on June to look into to the social and environmental issues on 
the San Roque and the actions taken by  NPC and the government on these 
matters.
	
JBIC has not yet released the remaining the US$4000 to the government as 
several issues on the project’s impact remained to be unresolved. Earlier, 
the NPC and several government agencies  presented  their plans  for the 
Watershed Protection, livelihood and several services to the dam affected 
families. But according to Cong. Cosalan these are mere papers and  that 
there are no funds are available for the implementation of these plans. 
He added that  Fedrico Puno, the NPC’s President could not figure out how 
the government could continue supporting these environmental safety nets 
once the NPC is  privatized.
	
Opposition groups will seek audience with the JBIC representative to 
present the affected communities’ issues and opposition to the project 
and the real score on the conditionalities and the promises of the NPC 
and government agencies.

The Continuing Struggle ……

Cordillera Day
		
Militant Mass Movement Continues to Show the Way

 On the 16th celebration of the Cordillera Day, the Cordillera 
Peoples Alliance rallied thousands of delegates from the various parts 
of the Cordillera to resist all attempts to disintegrate the Cordillera 
peoples indigenous systems.
	
The  CPA  as the center of the region’s mass movement  asserts its role 
and states that “the militant mass movement bannered by the Cordillera  
Peoples  Alliance continues to show the way on key  economic and political 
issues confronting  the Cordillera peoples today.”
	
“The CPA’s campaign on the defense of land, livelihood and resources is 
persistently waged against unjust, destructive, and anti-peoples policies 
and programs of the government and their foreign partners. Thus the 
campaign against the San Roque Dam and all mega dams and the campaign 
against the Philippine mining Act of 1995 and its implementation by the 
Newmont, Newcrest and other mining ventures.”

Power Purchase Agreement
			
San Roque Dam a Rip off  for Philippine Various Groups Call for the 
Immediate Cancellation of the PPA
	
In a press conference here in Baguio, the CPA, IIBA,MASRDAM, IRN and 
FOE-Japan, has called for the immediate cancellation of the PPA signed 
by the NPC and the SRPC. 	
	
According to the IRN and CPA, the San Roque Dam Project is a rotten deal 
for  Philippine electricity consumers and taxpayers as shown by a n 
independent study. The CPA added that  “under the PPA , the SRPC has 
everything to gain and nothing to loose.

This agreement is a clear example of how foreign investors in the 
Philippines are assured of mega profits while Filipino people are 
burdened with economic, social and environmental costs of power projects.”
	
According to a review  of the PPA made by Dr. White Wayne, the NPC will 
be paying the SRPC between 13-21 pesos per kilowatt hour of electricity 
purchased. NPC

Has agreed to pay SRPC over P400 million per month regardless of whether 
there is sufficient water available to generate water. Furthermore, the 
agreement forces the NPC to buy the San Roque power even if it does not 
need it.

(A review on the PPA was conducted by Dr. Wayne White of Foresight 
Associates in the U.S. Copies are available at CPA and TTU offices.)

On the 17 Conditionalities
IIB-A to Itogon LGU: Withdraw Endorsement, Stop Acting as 
Dam Builders’ Propagandist			

In the same press conference mentioned above, members of the Itogon 
Inter-Barangay Association, whose affiliates are distributed among the 
seven barangays of Itogon and comprise a substantial portion  of the 
municipalities constituency  have reiterated their objection to the 
council’s  support of the project . IIB-A in their press statement asked 
the Municipal Council to withdraw their endorsement  to the project.
	
In reaction to the  council’s continued  support  of the project, the 
IIB-A  said,“nearly three years have passed since the Council laid down 
the 17 conditionalities upon which it hinged its endorsement of the San 
Roque dam project. Not  one of the more substantive of these conditions 
has yet been met.”
	
The IIB-A  will  launch a signature campaign demanding the withdrawal 
of the municipality’s endorsement .
		
The IIB-A  will continue to rally the various communities of Itogon in 
its campaign for the defense of land, livelihood and resources. In its 
plan of action, several activities have been lined up for the next six 
months. This culminate on the Jubilee Sunday for Indigenous Peoples on 
October this year.

NCCP TO Campaign Against Japanese ODA

The NCCP   held a preliminary consultation with various organizations to 
study the negative impact of Japanese funded projects in the Philippines. 
The Overseas Development Assistance (ODA) of Japan has funded various 
projects in the country; among them are several   big projects that are 
located in the CALABAR Zone in Southern Luzon, the Pampanga Delta 
Development Project in Central Luzon and the San Roque Dam in Northern 
Luzon.
	
In 1995, a study by IBON Facts and Figures showed that about 40% of our 
external debt accounts for by funds from Japan. This have increased in 
the succeeding years as other agencies like the JBIC has accumulated 
bigger capital and is now offering loans as big as US$20 b per year.  
This amount of loan is as big as the annual releases of the World Bank. 
The JBIC provides funding support to the San Roque Dam Project in the 
amount of US$1.2 b.
	 
The NCCP will be holding a national conference on June 5&6 to draw up a 
national campaign plan against this Japanese funded projects. It is 
expected that with this concerted action plan, it will to generate wider 
support among Filipino and Japanese people and will strengthen lobby 
actions in Japan.

More activities on June

Campaign Launching of international Postcard Barrage
By international rivers network

	Cordillera-pangasinan joint press conference in Dagupan

	MaSRdam   letter barrage  campaign

	Launching of Music album on agno river

	Delegation to the southeast asia  conference  for  dam 				affected 
      communities


Date: Fri, 16 Jun 2000 17:19:08 -0700 (PDT)
From: owner-irn-sanroque@netvista.net
subject: LS: Phil. Senate resolution on San Roque

ELEVENTH CONGRESS OF THE
REPUBLIC OF THE PHILIPPINES
Second Regular Session

SENATE
P.S. RES. NO. 785

Introduced by SENATOR ROBERT S. JAWORSKI

RESOLUTION

URGING THE APPROPRIATE SENATE COMMITTEES TO INVESTIGATE, IN AID OF
LEGISLATION, THE ALLEGED UNILATERAL, VOID AND GROSSLY DISADVANTAGEOUS 
POWERPURCHASE AGREEMENT ENTERED INTO BY AND BETWEEN THE PHILIPPINE 
GOVERNMENTTHROUGH THE NATIONAL POWER CORPORATION AND THE SAN ROQUE 
POWER CORPORATION

WHEREAS, the San Roque Multi-Purpose Dam Project (SRMDP) is a priority
project for the National Power Corporation (NPC) Luzon Grid under the 
1997 Power Development Program for the year 1997-2010 scheduled for 
commissioning in January 2005;

WHEREAS, according to the San Roque Update of August 4, 1998 signed by
Mr. Federico E. Puno, the SRMDP is a multi-purpose development which aims 
to utilize the water of Agno River principally for power generation and
irrigation with flood control and water quality improvement as secondary
objectives;

WHEREAS, the total estimated project cost before financing at 1996 price
levels is US$907.28 million;

WHEREAS, after the project was approved by the NEDA, the NPC tendered
the implementation of the project on February 18, 1997 by subsequently
signing a Power Purchase Agreement with the San Roque Power Corporation ?
the project proponent which is composed of a consortium of three (3) 
foreign corporations namely Marubeni Corp., Sithe Philippine Holdings 
Inc., and the Kansai Electric Co. of Japan.

WHEREAS, while there is no doubt that the on-going construction of the
San Roque Multi-purpose Dam Project is mandated by the highest interests 
of national economic development, a close scrutiny of the Power Purchase
Agreement (PPA) signed by and between the NPC and the SRPC, however, 
reveals that the PPA is a VOID contract and is grossly disadvantageous 
to the Government;

WHEREAS, the fact that the PPA is a VOID contract and grossly
disadvantageous to the Government is reflected in the PPA itself for 
the following reasons:  (a) the PPA is not subject to market discipline;  
(b) a substantial amount of risk is borne by the Philippine Government 
through the NPC;  (c) the Philippines is not assured of project 
completion;  (d) the Philippines is not assured of responsible and 
productive long term operation;  (e) the PPA does not ensure mitigation 
of environmental effects; and (f) the PPA has no regard to the project's 
social impact.

WHEREAS, the project is being implemented under a BOT arrangement for
the power component and a BTO arrangement for the non-power portion of 
the project. However, the BTO arrangement includes the power fees that 
NPC  will pay to the proponent, including a US$400 million direct 
government contribution that will be disbursed to the proponent over a 
period of three (3) years (1998-2000) to cover the non-power share of 
the cost of the project;

WHEREAS, there seems to be no wisdom behind these huge disbursements of
sums of money on the part of the NPC because to a large extent, profits
shall go to the foreign consortium as provided under the BOT contract 
signed by the Government and the SRPC;

WHEREAS, under the same BOT contract, it is perceived that the
Philippine Government will be obliged to pay the SRPC loan in the event 
that the latter fails to meet its obligations to the lending bank;

RESOLVED BY THE SENATE, as it is hereby resolved, to direct the
appropriate Senate Committees to investigate, in aid of legislation, 
the alleged unilateral, void and grossly disadvantageous Power Purchase
Agreement entered into by and between the Philippine Government through 
the NPC and the San Roque Power Corporation.

ADOPTED,

ROBERT S. JAWORSKI
Senator



Date: Fri, 9 Jun 2000 11:04:18 -0700 (PDT)
From: owner-irn-sanroque@netvista.net
subject: LS: Philippine Senate clears power reform bill

Philippine Senate clears power reform bill

MANILA, June 8 (Reuters) - The Philippine Senate said on Thursday it
has approved a bill restructuring the power sector and paving the way 
for the privatisation of National Power Corp (NPC), the country's 
largest supplier of power. 

A similar bill was approved in April by the House of Representatives. 

A joint panel from both houses will be reconciling the two versions of
the bills before the final version can be presented to President Joseph
Estrada for signing into law. 

"I do not think there are too many disagreeing provisions because the
(lower) house is inclined to accept the innovative approach of the 
Senate in creating a joint legislative-executive NPC privatisation 
committee, "Senator John Osmena, the main author of the bill in the 
Senate, told reporters. 

Under the approved bill in the Senate, the NPC privatisation panel
shall be chaired by both the heads of the committee on energy in both
houses of Congress. 

The bill passed by the House of Representatives has specified that the
guidelines and the implementation of the privatisation of the NPC shall 
be made by the departments of finance and energy. 

"The differences (between the two bills) are more tactical in nature,
particularly the mode of privatisation of NPC," said Joey Salceda,
vice-chairman of the economic affairs committee of the House of
Representatives. 

CROSS-OWNERSHIP ISSUE 

The passage of the bill, deemed by President Joseph Estrada as urgent
last year, was delayed due to the complexity of the issues. 

Government officials said one of the most contentious issues in the
bill was a ban on cross-ownership between a power generation firm and 
an electricity distribution company. 

The Senate bill allows existing cross-ownership to continue but a ban
will be imposed on future arrangements. 

The House bill also bans cross-ownership between distribution
utilities and transmission companies to ensure no single entity gains
control over the industry. 

The passage of the power bill is one of the critical reforms 
promised by the Philippine government under its $1.38 billion standby 
arrangement with the International Monetary Fund. 

House Speaker Manuel Villar has said the bill aimed to lower power
prices over time with the dismantling of state-owned NPC's monopolistic
control of the industry and opening it up to new players. 

 The government intends to privatise NPC, which controls the bulk of
the country's power generators, by breaking it into several firms, 
thereby separating power generation, transmission and distribution. 

The privatisation was expected to lighten the financial burden on the
government, which contributes 16 billion pesos ($377 million) each year 
to NPC, the bulk of which goes to the firm's capital expenditures, 
officials have said. 

Napocor President Federico Puno previously said if the law is passed
in June, the firm can be privatised in the second quarter of 2001. 

($-42.4 pesos) 

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