News Summaries on Selected Topics
San Roque Dam Project
January - February 2001
Date: Fri, 23 Feb 2001 16:33:56 -0800 (PST)
From: owner-irn-sanroque@netvista.net
subject: LS: Philippine Debts Leave Sale as Only Option
Philippine Debts Leave Sale As Only Option
Copyright © 2001 Dow Jones & Company, Inc.
By Jeremy Bowden
SINGAPORE (Dow Jones)--After some uncertainty during the recent transfer of
power in the Philippines, the new administration of Gloria Malacapal-Arroyo
has clarified its commitment to the existing power privatization and reform
bill, which should be passed by June at the latest.
But the new administration's commitment is driven primarily by a need to
secure development financing and avoid insolvency at the National Power
Corporation (Q.NAP), or Napocor, according to Philippine member of
parliament, Julio Ledesma. The motive of achieving a more competitive and
efficient system appears very much a secondary, and longer-term concern.
The Philippines' keenness to sell contrasts with most other Asian
countries, which are tending to resist reform in order to maintain
centralized domestic control for strategic reasons.
Ledesma, representing the Philippines at an industry conference in
Singapore this week, pointed out that Napocor's debts - at around $7
billion, plus another $9 billion in power purchase obligations - are
unsustainable.
He said the government's only viable option is to push ahead with the bill,
otherwise power tariffs - already Asia's third highest behind Japan and
Singapore - would rise, and further essential investment in infrastructure
would not take place.
Federico Puno, president of Napocor until Estrada's removal from power,
estimates investment of US$9 billion will be needed over the next ten years
to keep pace with electricity demand.
In the past, Napocor had little choice but to borrow to finance expansion
of generating capacity - given that revenue is fixed by a government
imposed electricity tariff cap - which has resulted in an unsustainable
accumulation of debt.
Ledesma said the use of state money to bail out Napocor and finance
generation expansion was not an option, because of high existing public
debt and more pressing social needs. The state already contributes over
US$300 million a year to keep Napocor afloat.
Puno, whose replacement - Jesus Alcordo - was named last week, says the
real challenge is to design trading arrangements that will produce
sufficient competition to sustain efficiency gains for the Philippine
economy.
Sale Proceeds to Pay Napocor Debt
The government plans to make the sale of Napocor more palatable by
relieving Napocor of its debt before privatization, hoping that proceeds
from the sale - estimated at $5-6 billion by Ledesma - will cover repayment
of most of the loans.
The existing power bill envisions splitting Napocor's generation assets as
evenly as possible into six-to-eight separate companies before sale to
encourage competition, according to Ledesma.
The sale will be open to foreign investors, but no single company will be
allowed to own more than 30% of the nation's generating assets, which could
preclude the largest independent power producers, or IPPs, in the
Philippines - notably Mirant Corp. (MIR), previously Southern Energy Corp.
- from bidding, he said.
The first IPPs in the Philippines were given the green light in 1987. IPPs
now represent about 40% of the Philippines' generating capacity.
Ledesma says Napocor's $9 billion of power purchase agreements with IPPs
will be sold off too. The ownership and operation of the transmission
system will be transferred to an independent company, Transco, which will
be privatized at a later date. No cross-ownership of generation,
transmission or distribution assets will be allowed.
Privatized generating companies will be allowed to sell directly to large
end-users, as well as into a competitive market or power pool.
The largest end-users, representing around 18% of the market, are already
free to buy directly from their generator of choice - IPPs or Napocor. A
further tranche will be free to choose from 2004.
Double-Quick Progress
Ledesma says the electricity reform bill could be passed quickly, possibly
as early as the week of March 12, if the Arroyo administration chooses to
call a special parliamentary session.
The Philippine senate and house of representatives are currently in recess
pending legislative elections in May. But even if Arroyo misses the March
opportunity and loses support in the election, she can still pass the bill
in a final session of the existing legislature in June. The legislation
cannot then be repealed without her approval.
Arroyo had called into question the substance of the bill in a television
interview at the end of January, saying her administration intended to
shelve it, as the projected sale proceeds wouldn't be enough to cover the
company's debts.
But she has since reversed this statement, targeting June 9 as the latest
date for its approval.
Consultation continues with civil groups, but Ledesma says it's more to
build support, and he doesn't expect any major changes.
"I don't think the final version will be materially different from the
current version," he said. "The bill is currently undergoing a process of
consultation", which should be complete this Friday, he said.
Date: Wed, 21 Feb 2001 18:18:19 -0800 (PST)
From: owner-irn-sanroque@netvista.net
subject: LS: Is the GMA regime showing its real face?
For the Defense of Ancestral Domain and Self-determination
PRESS STATEMENT:
IS THE GLORIA MACAPAGAL-ARROYO REGIME SHOWING ITS REAL FACE?
We, the people who worked for the ouster of the former President Joseph
Ejercito Estrada even since before the start of the impeachment trial were
snubbed by the President s party during a supposed multi-sectoral dialogue
here in Baguio City. We express our disapproval of the manner by which
the people who have worked for truth, justice and meaningful change to
prevail were treated.
The President knew that we were going to be present at one of the
dialogues she had set here in the city because we had expressed our
intention to present the demands of the people of Baguio and the
Cordillera. Matters along this line had been properly coordinated with
the Presidential Management Staff (PMS) even before her arrival.
We had even been earlier promised by the PMS of an opportunity to present
a position paper regarding the issues in the region that need to be
addressed. The first was a lunch meeting with the President at the
Mansion House. This was cancelled and we were advised instead to go to
the multi-sectoral dialogue on issues of the poor at the covered court
along Gibraltar Road.
People even came from as far as the Itogon mining communities and from
the San Roque dam-affected communities of Itogon and Pangasinan, hoping
that the President would have time to listen to their demands. They were
only seriously disappointed when not even one of them was recognized to
speak and air out the people s issues.
Aside from this, the youth and the community people who carried placards
along with them to stress their demands were harassed. The police and
members of the Presidential Security Group forcibly took away their
banners and tore some of their placards. One of our members was not also
allowed to enter the venue because he brought along the printed statement
of the people s demands.
The only persons who were allowed to speak were government officials and
representatives of affluent non-governmental organizations who failed to
mirror the people s interests. The multi-sectoral dialogue which was
suppose to be a venue for the government to listen to the people turned
out to be a venue for the government to talk to itself.
Thus, the people walked out of this dialogue.
This has brought us to question the sincerity of Gloria Macapagal-Arroyo
about her intentions to facilitate the healing of our land. To build our
land, the government has to recognize the masses, the backbone of the >nation, and not ignore them. To heal our land, the government has to ease
the suffering of the people by at least giving them the assurance that
they are heard ,and not slight them.
With this incident, we fear that the leadership of Gloria Macapagal-Arroyo
will be similar to or even worse as the Estrada regime. Significant moves
of the government are pointing to this direction.
First , former President Joseph Ejercito Estrada is not being arrested for
plunder and his biggest cronies, Danding Cojuangco and Lucio Tan, are
still seemingly being cradled by the present government.
Second, more than 200 political prisoners continue to languish in
jail. With its current policies on the release of these people, the
government seems not to be committing itself towards the respect of human
rights. A great number of those detained because of their political
beliefs are not even recognized as political detainees but are considered
as common criminals.
Third is the commitment of the President to free market rather than to
upholding the interests of the peasants and workers who bear the biggest
brunt of liberalization, deregulation and privatization.
Fourth is the decision of Gloria Macapagal-Arroyo to surround herself with
former military men and the policy of exclusion and hostility towards the
progressive movements who have made a decisive contribution to the ouster
of Joseph Ejercito Estrada.
Fifth is the continuing implementation of Oplan Makabayan despite the
government s pronouncements regarding the resumption of the peace
negotiations with the NDFP and the MILF. Men, women and children continue
to live in fear and suffer from the ongoing militarization in the countryside.
In the statement that the President failed to read or listen to, we have
stated that she has to heed the cries of the people for justice and
meaningful change to bloom in our nation.
We challenge her, still, to find time to listen and stand for the
interests of the people who have placed her in power. This is the least
she can do as the country s president. (February 17, 2001)
Date: Wed, 21 Feb 2001 18:18:08 -0800 (PST)
From: owner-irn-sanroque@netvista.net
subject: LS: Statement from CPA to Arroyo
'For the Defense of Ancestral Domain and Self-determination'
LET JUSTICE AND MEANINGFUL CHANGE BLOOM
During the start of this year, we saw a nation rise up and depose a
president who took from the poor and the powerless to feed his and his
cronies greed. In a monumental show of force called the People Power II,
the world witnessed the garden of the people s struggle bloom and
flourish. The sons and daughters of the nation went out to the streets to
seek for truth, justice and meaningful change.
Still immersed in crisis, we challenge President Gloria Macapagal Arroyo
to be a true leader of the Filipino people. We challenge her to transform
her rhetoric to action as she has stated in her inaugural address. We
remind her that for a nation to heal, its wounds have to be addressed.
In Baguio City and the Cordillera, certain issues have to be taken into
account by the current administration.
First is the issue of the San Roque Multi-Purpose Dam Project.
We ask that the San Roque Multi-Purpose Dam Project be immediately aborted.
The project has physically, economically and psychologically displaced the
families directly affected by the dam construction. Aside from this, the
National Power Corporation (NPC) has not justly compensated the
dam-affected families for the properties that have been destroyed. Most
affected are the tenant farmers who have been unjustly compensated or
unpaid. They are at the mercy of the collusion of the NPC and landowners.
We also bring to the administration s attention the victims of the
NPC projects in Ambuklao and Binga who have not yet been paid. How long
shall they wait for the compensation they have agreed to receive in
exchange for their land and properties?
Also, the dam construction has facilitated the destruction of the
environment with the quarrying activities of the San Roque Power
Corporation and the flooding it has caused in Pangasinan.
We expect more adverse effects as the construction prospers.
The dam would not benefit the Filipino people. A review of the Power
Purchase Agreement between the government and the SRPC would show that the
dam is not economically viable. The only beneficiaries of this project
would be its contractors and the foreign mining companies who would come
in the Cordillera.
We also demand for the stop of the plans to build three more dams in the
Cordillera namely the Palsiguan Dam in Lagayan, Abra, the Matuno Dam in
Nueva Vizcaya which will greatly affect the people of Ifugao and the dam
to be constructed along the Amburayan River in North Benguet.
We therefore insist that the building of dams be stopped in favor of the
people s interests.
We urge the new government to adopt and implement the recommendations of
the World Commission on Dams(WCD) with the framework of the Assessment of
Risks and recognition of Rights in all dam projects. This is to ensure
that the rights of affected communities will be respected.
Second is the issue of Mining in the region.
We demand that the Philippine Mining Act of 1995 be repealed. This law
has paved the way for the full liberalization of the mining industry and
the turnover of the country s mineral resources to the hands of the
foreign mining companies.
Half of the Cordillera is under mining application. Twelve of these
mining applications have been approved. We call for the cancellation of
the approved mining applications especially since there are no informed
and prior consent of the affected communities and the violation of the
indigenous people s ancestral land rights.
We reiterate our demands that the natural resources of the people should
primarily serve their interest and welfare, and not for business and profit.
Third is the issue of the privatization of the National Power Corporation
the National Food Authority and the City Market.
Government line agencies are set up to provide the basic services for the
people. Once these are privatized, the masses shall be at the mercy of
those whose main interest is profit over service. We therefore call on
the government to stop the privatization of government assets and agencies
especially the following:
The National Power Corporation We object to the privatization plans
of this government agency. NPC privatization would mean higher
electricity rates for consumers.
Currently, in relation to the plans of privatizing the NPC, the consumers
are being made to shoulder the PPA rates to cover for the debts of NPC.
This should not be. We demand a review of this erroneous policy.
The National Food Authority We oppose the privatization of the NFA
because this would mean higher consumer prices for the agricultural
products and amore heightened exploitation of the peasants in the country.
The City Market - We are against the privatization of the city
market because this would mean the economic displacement of small local
retailers and market vendors. Baguio residents will have to face the
problem of lesser livelihood opportunities because of the monopoly of
whoever will control the city market area.
The privatization of these agencies would also mean loss of employment for
hundreds of government employees. Instead of pushing the people who serve
the country out of employment, the government should grant a P3,000 across
the board wage increase which the government employees deserve.
We urge the Arroyo government to take responsibility and make sure that
the people s interests are considered in its plans for these
government-run assets and agencies.
Fourth is the issue of human rights.
We call for the immediate release of the more than 200 political prisoners in the country.
Here in the Cordillera, we call for the immediate release of LORNA RIVERA-BABA who is presently detained at the Abra Provincial Jail. She was abducted by elements of the Intelligence Services of the Armed Forces of the
Philippines (ISAFP) in Abra last March 17, 2001 and later charged with the murder of CPLA chairperson Conrado Balweg. Lorna Rivera-Baba is innocent of the charge. She is a church worker of the Iglesia Filipina Independiente.
We also call for the release of the three farmers from Bakun, Benguet
wrongly charged of multiple murders. They are LEONARDO DOLO, MALBECIO
ANNOT, and JOEL ANNOT who are languishing at the Benguet Provincial Jail
for more than a year now. They were active members of the United Church
of Christ in the Philippines in their community.
We call on the government to sincerely commit itself to the respect of
human rights.
Fifth is the issue of housing and social services for the urban poor.
The issue of housing and social services are a problem for a great number
of residents in Baguio who always live under the threat of demolition and
displacement or fear of being arrested because of selling along the
sidewalks of Baguio. We urge the present government to seriously face the
need for housing and provision of social services to the Baguio urban poor
as well as their need for livelihood opportunities.
Sixth is the issue of the retrenchment and contractualization of laborers.
We want a stop of the contractualization of labor. This has prevented the
workers from receiving their much-deserved benefits and their right to
union organizing.
We demand for a P125 Across-the Board wage increase for the workers in
order for them to at least cope with the economic crisis the country is facing.
We call for the President to review the thrust of the Philippine
economy. Deregulation, liberalization and privatization have only
amounted to the continued retrenchment of workers making it more difficult
for the Filipino families to survive.
Seventh is the issue of the students democratic rights.
The youth sector strongly demand the GMA government to guarantee the
rights of every Filipino youth to education, just wages and gainful
employment. The most urgent youth demands are:
· The immediate stop to all tuition fee increases
· An increase in state subsidy for education
· The realization of student democratic rights on campus
· The immediate and unconditional release of all youth political
prisoners
Eighth is the issue of women oppression
We call on the President to uphold the rights and interests of half of the
nation s population. The women s demands are:
· Junk the Visiting Forces Agreement that tramples on the sovereignty of
the nation and the dignity of women.
· Deliver justice and just compensation to all victims of human rights
violations since the Marcos period. Strengthen measures against human
rights violations especially against women and girls and improve measures
and provide adequate budget for social services, legal assistance,
crisis intervention and just compensation for women who are victims of
violence, militarism, abuse and exploitation.
· Uphold the UN Convention on the Elimination of All Forms of
Discrimination Against Women (CEDAW) and the Nairobi Forward-Looking
Strategies for Women. Immediately investigate and define decisive steps
against widespread anti-women labor policies especially to married and
pregnant women.
Ninth is the issue of teachers
We ask the government to listen to the demand of the teachers who play a
major role in the shaping of the nation s future. Their demands are:
· That priority be given to education over debt payments and military
spending
· That benefits of public school teachers and education employees which
were scrapped by the Estrada administration such as the amelioration
pay, hazard pay be restored and that the allocation for these benefits
are included in the national budget
· That the rights of teachers, students, and school employees to freedom
of expression, to organize and to initiate and to participate in
democratic actions be respected.
Tenth is the issue of the Camp John Hay development.
We call on the President to facilitate the termination of the contract of
agreement between Bases Conversion and Development Authority (BCDA) and
the Fil-Estate because of clear violations on the side of the developer.
For one, an outstanding amount of P1.4 B has not yet been paid to the city
government for the area rent.
More than this, we stand against the privatization of Camp John Hay. The
area , an Ibaloy ancestral land, is primarily for the residents of Baguio
and not for any high impact development that would only benefit a few.
The development of the former US military base has not yet been finished
and the residents of Loacan Liwanag and Happy Hollow are already complaining
about being fenced off their own land, their own homes. This is happening
while the condominium units and cottages of those who can afford to buy the
properties from Fil-Estate are being constructed. This happened while the
log cabins, which constituted the crony village of Erap, were being
constructed in the Voice of America, a forest reserve which was not
originally part of the deal between the BCDA and the Fil-Estate.
The wounds of the nation are deep and they have to be given the proper
attention. These issues are among those that hurt the Filipino people.
The Cordillera Peoples Alliance challenges the government to heed the
people s calls. These are the demands of the people of Baguio and the
Cordillera.
We also expect the GMA government to weed out former leaders who have
committed grave crimes against the people. We demand for the prosecution
of Joseph Ejercito Estrada and his cronies.
We hope that the new government heeds the cry of the people. It is only
then that justice and meaningful change shall bloom in our nation.
Cordillera Peoples Alliance
Tongtongan Ti Umili
Kilusang Mayo
Uno
INNABUYOG (Alliance of Women s Organizations in the Cordillera)
Organisasyon Dagiti Nakurapay Iti Syudad (ORNUS)
Itogon Inter-Barangay Alliance
Alliance of Concerned Teachers
People Power Youth Movement for Justice and Meaningful Change
Confederation for the Unity Recognition and Advancement of Government
Employees
Date: Mon, 19 Feb 2001 22:40:40 -0800 (PST)
From: owner-irn-sanroque@netvista.net
subject: LS: NPC debts and Binga rehab
* NAPOCOR DEBTS HIT P900 B AS OF DECEMBER 2000
* NAPOCOR SEEKS PARTNERS FOR REHAB OF POWER PLANTS
http://www.philstar.com/philstar/News200102140421520.htm
Headline News
Napocor debts hit P900 billion as of December 2000
by :Donnabelle Gatdula 2/14/01
A whopping P900 billion and still rising.
This is how much state-owned National Power Corp. (Napocor) owes foreign
and local creditors as of last year, Napocor officials announced yesterday.
But this doesn't worry the cash-strapped power firm since taxpayers are
expected to shoulder some P200 billion of this amount once the Omnibus Power
Sector Reform (OPSR) bill is passed by Congress.
The P200 billion represents Napocor's obligations and other costs in
privatizing power generation companies, small power utility grids and
transmission companies.
President Arroyo had earlier wanted to shelve the OPSR bill because the
government, itself strapped by a gaping budget deficit, would be spending
more than it would be earning if the measure is passed.
But the country's economic managers had cautioned the President against
such a position because the country's multilateral creditors like the
International Monetary Fund (IMF) and World Bank (WB) would not be impressed
by such a move.
The Department of Finance (DOF) also said several loans would not be
released if the government fails to implement the reforms under the OPSR
bill.
Other power sector players, however, withdrew their previous support of the
OPSR bill because vital reforms that would make power cheaper for consumers
were allegedly dropped.
Instead, the focus of the much-debated and much-revised OPSR bill is now on
the debt load of certain assets that would later be sold by the government.
Napocor officials said the power firm's debt load was already 12 percent
higher that its 1999 level of P801 billion but this is expected to rise
further this year due to another foreign loan.
While Napocor has promised its creditors that it would reduce its debt
service ratio, Napocor later this year plans to float debt papers amounting
to some $300 million to pay off maturing debts amounting to $144 million
from investment bank ING Barings.
The bulk of the power firm's debt load is from foreign-denominated loans
which stood at some $16.38 billion, or about P820 billion, in 2000.
Of this foreign debt, about $10 billion, or P499.98 billion was incurred by
independent power producers (IPPs). Last year, IPP contracts also cornered
the bulk of Napocor loans amounting to P438 billion.
http://www.philstar.com/philstar/News200102140721465.htm
Business News
Napocor seeks partners for rehab of power plants
by :Donnabelle L. Gatdula 2/14/01
The National Power Corp. (Napocor) is looking for a joint venture partner
for the rehabilitation of the 100 megawatt (MW) Binga and other
hydroelectric power plants in Northern Luzon.
Napocor chief operating officer Asisclo Gonzaga told reporters yesterday
that the Napocor board approved the rehabilitation of the plants after the
company took over their operation from their contractors last year.
"We will take over from the Securities and Exchange Commission (SEC)
management committee," he said.
The Napocor official said they are waiting for proposals to come in. "We
have not received any proposal yet on the Binga project," he said.
He said the Binga, under a rehabilitate, operate and lease (ROL) scheme,
plant was formerly contracted to a Chinese firm, Chiang Jiang Energy Corp.,
which abandoned the contract last year.
According to Gonzaga, the rehabilitation of Binga plant is one of the major
concerns of the company this year.
Most of the issues concerning the Napocor this year do not involve policy
matters but the rehabilitation of the plants that need to be rehabilitated,
he said.
Another hydroelectric plant that is up for rehabilitation is the Ambuklao
dam which was abandoned by the Manila Electric Co. (Meralco) Industrial
Engineering Systems Corp. in September 2000. Construction giant FF Cruz had
indicated plans to rehabilitate Ambuklao, but did not follow this up.
Aside from Binga and Ambuklao, Napocor has lined up at least two more
hydroelectric power plant projects in Northern Luzon this year. These are
the 70-MW Bakun hydroelectric power plant in Ilocos Norte and the 140-MW
Casecnan hydro plant in Pangasinan.
Date: Tue, 13 Feb 2001 02:41:47 -0800 (PST)
From: owner-irn-sanroque@netvista.net
subject: LS: NPC appealed for residents' trust
http://www.sunstar.com.ph/baguio/02-13-2001/topstories3.html
Tuesday, February 13, 2001
NPC appealed for residents' trust
By Cheryl G. Cruz
BAGUIO - The National Power Corporation has appealed to the municipal
council and residents of Itogon for "utmost patience, understanding and
trust in our process (of fulfilling the conditionalities) in connection with
the construction of the San Roque M ultipurpose Project.
The appeal was contained in a letter of SRMP project manager M. F. Pulanco
to Itogon vice mayor Aloysious Kato. The letter was in reaction to an
earlier report that the Project Affected People (PAP) are giving the NPC up
to the end of March this year to fulfill their promises to them otherwise,
they will request the council to forward to all SRMP-concerned agencies an
approved resolution withdrawing support and endorsement of the project.
"From the outset, NPC has been aggressive in its efforts to acquire the
lands affected by the project within bounds of the government bureaucratic
procedures anchored on the principle that all claimants must be duly
compensated," Pulanco pointed out.
"The case of Itogon is obviously peculiar because all the affected lands are
considered ancestral lands and are governed by the Indigenous Peoples Right
Act, hence, all transactions regarding the sale and use of these lands need
to be governed by the said law and administered by the NCIP as the
responsible agency," he added.
Pulanco stressed that even with this peculiarity, NPC has "since embarked on
compensating all claimants of the Itogon area (affected by the San Roque
dam)." He revealed that all 61 original houses and structure owners were
already fully paid in the amount of P7.458 million and that of the 135 new
structure owners identified after the original cut-off date, 84 had been
paid in the amount of P5.4 million. More over, NPC has requested the NCIP
and PAC to come up with an acceptable amount of compensation in connection
with the transfer of remains of persons buried in areas that will be
inundated by the dam.
He also said payment for improvement is also an on-going and that three
claims had already been paid. In addition, 12 other claims that had been
certified by the DENR are now being processed.
"In so far as land payment is concerned, all activities leading to
satisfaction of documentary requirements are vigorously being undertaken,"
he said, adding that NPC has already submitted the survey returns of two
blocks (of the 15 blocks) to NCIP for p ublication in a local paper. He also
said more survey returns are underway.
After this process, the San Roque Power Corporation will advance the amount
of P500,000 to each claim. "NPC will make full payment as soon as the
transfer of the Certificate of Ancestral Land Title (CALT) to NPC is
effected."
"And just to prove the NPC's clamor for expediency in the process, it
assumed responsibility in the preparation of the survey returns otherwise
due from the NCIP," he emphasized.
It will be recalled that mayor Crescensio Pacalso vetoed the resolution of
the Itogon municipal council withdrawing its endorsement for the San Roque
project late last year. The council overrode the veto last month and would
have forwarded the override r esolution to concerned agencies. However, the
residents of Itogon who are affected by the project requested that the
forwarding of the resolution be held in abeyance as they gave the National
Power Corporation up to March 31 to make its words to them.
It will also be recalled that only recently, the Department of Budget and
Management released an initial P137.79 million to the Department of
Environment and Natural Resources for use in the implementation of the
Itogon Watershed Management Program (IWMP ).
As this developed, Kato already wrote local officials and representatives
of the nine barangays in Itogon to attend a meeting tomorrow during the
municipal council's regular session to discuss issues and concerns relative
to the "full and faithful implem entation" of the budget.
Kato told SunStar that there had been a "dismal performance" by the DENR in
the implementation of projects and programs, particularly that of the P88
million (not P8M as earlier reported) reforestation program in the
municipality funded by the Overseas E conomic Cooperation Fund.
"This time, there should be a faithful implementation of the program and all
residents and barangay officials involved in the preparation of the IWMP
must also be involved," he added.
Date: Mon, 12 Feb 2001 05:02:25 -0800 (PST)
From: owner-irn-sanroque@netvista.net
subject: LS: San Roque Watershed Management Funds Released.
http://www.sunstar.com.ph/baguio/02-08-2001/topstories5.html
Thursday, February 8, 2001
DBM releases P137.79M for SRMP watershed mngt.
By Cheryl G. Cruz
The Department of Budget and Management has released some P137.79 million to
the Department of Environment and Natural Resources "to cover the initial
funding requirement" to implement the Integrated Watershed Management Plan
(IWMP) of the San Roque Multipurpose Dam project.
In a letter to the Presidential Committee on Flagship Programs and Projects
dated February 2, newly-installed DBM secretary Emilia T. Boncodin also said
that funding requirements for the succeeding years of the IWMP
implementation will be "included (in) the annual budget of the DENR subject
to congressional allocations".
The environment department earlier submitted a P745 million request for
funding to implement the Lower Agno IWMP following a "bottoms-up" approach
to benefit the affected residents of concerned communities in Itogon with
the construction of the $1.15 billion dam project.
The needed money will be used to finance the putting up of measures for
forest protection; siltation control; land tenure; biodiversity
conservation; air and water quality and solid waste management; livelihood;
the conduct of research and development; manpower requirements and; policy
review and recommendation, among others.
Earlier, concerns have been raised as to the "capability of the DENR and the
national government to source out the needed funds".
This despite the letter of (then) executive director Manuel Gaite of the
Presidential Committee on Flagship Programs and Projects dated September 12,
2000 addressed to Itogon vice-mayor Aloysious Kato, saying that the funding
requirement for the IWMP "will be taken from the Foreign Assisted Funds, a
lump sum appropriations in the GAA".
Kato, meanwhile, lauded the new DBM secretary "for listening to us" and
hinted that as the people and the local officials of Itogon and Benguet "are
getting favorable actions, I think that the body will have to reconsider its
action".
He was referring to the recent move of the council overriding the veto of
Itogon mayor Crescensio Pacalso on an earlier resolution withdrawing support
for the continuous construction of the SRMP.
It can be recalled that the council unanimously agreed to override the veto
but deferred the transmittal of the resolution to concerned agencies,
particularly the National Power Corporation, after some local leaders
requested that the NPC be given until March 31 to comply with its commitment
to the people of Itogon.
Kato also told SunStar that projects and programs to be funded by the
initial P137.79 million "should be implemented faithfully" and that "all the
residents and barangay officials concerned who were involved in the
preparation of the Itogon IWMP must also be involved".
The vice-mayor noted the "dismal performance" of the DENR in the
implementation of the P8 million reforestation program in the municipality
which was funded by the Overseas Economic Cooperation Fund (OECF).
He also said that while the release of the initial amount was made possible
through "our strong representation," the Itogon officials will still
follow-up other requests for funding and that of the commitment of concerned
agencies to ensure the welfare and interest of the people with regards the
SRMP flagship project.
Date: Wed, 7 Feb 2001 23:09:31 -0800 (PST)
From: owner-irn-sanroque@netvista.net
subject: LS: Stalled Philippines power reform bill
"Future of Philippine economy hangs on stalled power reform bill"
MANILA, Feb 7 (AFP) - Hobbled by one of the highest electricity rates in
Asia, the Philippines is struggling to adopt landmark power sector reforms
to address the country's serious energy problems.
If the reforms are not enacted soon, many analysts fear the country could
return to the lengthy daily power outages that crippled economic growth in
the early-1990s.
The reforms are incorporated in the omnibus power bill, which has been
languishing in Congress for years.
After a cabinet meeting held Tuesday to discuss the bill, President Gloria
Arroyo ordered her finance secretary to redraft it.
"We want the full consensus of everybody next month so that we can present
the agreed version to the international community," Arroyo said.
Congress has said it will suspend deliberations on the bill until the new
version is presented but it is not clear how long it will take to get the
new bill through the legislature and passed into law.
Congress is due to be dissolved on February 12 with a new legislature to be
elected in May. The new congress will not start sessions until July.
The administration of then-president Joseph Estrada had tagged the omnibus
power bill as a major priority, promising its passage in 2000.
But when Estrada became embroiled in a growing corruption scandal that
year, power reform -- and everything else -- took a backseat to the
political crisis. In January 20, a popular revolt ousted Estrada from power
and installed Arroyo in his place.
The reform bill is intended to open up power-generation to the private
sector. This includes the privatization of the debt-ridden National Power
Corp., known as Napocor, a state firm which generates the bulk of the
country's electrical power.
The entry of more investors into that sector is supposed to result in
investment in major infrastructure, increased competition, better
efficiency and lower power rates. Such high rates have been a major
deterrent to foreign investment in the Philippines.
Power rates are varied, depending on the region and the type of consumer
but one Asian expert on the power sector, speaking on condition of
anonymity, estimates that Philippine rates average 9 to 10 cents per
kilowatt-hour, roughly close to the level of highly-developed Hong Kong.
In contrast, other developing countries of the region have far lower rates
such as 3-4 cents per kilowatt-hour in Indonesia, or 6 to 7 cents in Thailand.
International lenders have tied the approval of major loans to the passage
of the power sector reforms. The release of about 200 million dollars in
funds for the power sector committed by the Asian Development Bank has been
suspended pending the bill's approval.
Initially after assuming office, Arroyo had planned to shelve the power
sector reform bill, saying her cash-strapped government could not afford to
absorb the huge liabilities of Napocor if it is privatized.
However government sources have said her economic planning secretary, Dante
Canlas, quickly impressed on her the importance of the reforms.
Opponents of the bill include congressmen and leftist groups who oppose the
privatization of state assets and fear it will lead to a deregulation of
power rates.
ADB country director for the Philippines, Gunter Hecker, agrees that the
present version of the bill needs revisions and says that
even the bank would "rather have it re-discussed than to rush ahead and
have a power bill passed that does not meet the requirements of the power
sector."
However he warns that under present economic growth rates, the Philippines
needs to erect new power plants within four years if it wants to avoid
power shortages.
Despite their own misgivings, the country's main business group, the
Philippine Chamber of Commerce and Industry, is calling for the swift
passage of the power reform bill saying it "will be a major boost to the
country's privatization program and infuse funds to the economy."
The W. Sycip Policy Center, a think-tank that studies the country's
international competitiveness, has stressed in a report that although "the
shift from a regulated to a competitive environment is always a slow,
painful process" the reforms must be passed.
It warns that the country must deal with Napocor's mounting debt, bring
down "crippling electricity prices" and put in place new power
infrastructure, estimated to cost some one billion dollars over the next 10
years or else face "a power crisis by 2005."
Filipinos are familiar with power shortages. In the early-1990s they
endured outages for as long as 12 hours a day because of a lack of power
plants.
Gross domestic product growth plunged from three percent in 1990 to minus
0. 6 percent in 1991 due to the outages.
Date: Mon, 5 Feb 2001 15:03:54 -0800 (PST)
From: owner-irn-sanroque@netvista.net
subject: LS: NPC given ultimatum to fulfill its word
http://www.sunstar.com.ph/baguio/02-04-2001/topstories1.html
Sunday, February 4, 2001
NPC given ultimatum to fulfill its word
By Cheryl G. Cruz
BAGUIO -- The National Power Corporation and other concerned government
agencies are given until March 31 to make good their commitment to the
project-affected-people (PAP) of Itogon with regards to the construction of
the $1.15 billion San Roque Multipu rpose Dam project.
This developed even as local leaders and affected communities in the area
also appealed to President Gloria Macapagal-Arroyo to intervene and ensure
that the welfare and interest of the PAPs and the affected communities will
be given utmost consideration .
Vice-mayor Aloysious Kato yesterday told SunStar that some 20 leaders of the
PAPs appeared before the council last Wednesday and requested that the body
defer the transmittal to concerned agencies like the NPC, the Department of
Environment and Natural R esources, and National Commission on Indigenous
Peoples of the resolution withdrawing the town's endorsement for the San
Roque Multipurpose Project.
The approved resolution overrides the veto of mayor Cresencio Pacalso on the
body's earlier resolution to withdraw support for the construction of the
SRMP due to alleged non-compliance of the concerned agencies, specially the
NPC, with regards the payme nt of claims and compensation for the structures
and lands that will be affected by the dam project.
Earlier, Pacalso said that the council first wait for the respective reports
of these agencies and study them comprehensively before pushing through with
plans to backtrack and withdraw support for the SRMP.
But as what was reported earlier, the resolution to override mainly anchors
on the (continued) failure of the NPC and other agencies to comply with the
17 conditions set forth at the start of the dam construction.
Kato said that during discussions, it was pointed out that there's an
"evident pattern of discrimination...(and) failure to fulfill" the promises
made by the NPC to the PAPs by "inventing new and unwarranted
conditions...to make these promises "moot and academic".
There is also the issue on the DENR's "topsy-turvy" plans on the protection
and preservation of the environment, including solutions to the siltation
and upstream sedimentation problems, as indicated by the absence of "serious
allocation" program to impl ement these plans.
The compliance of the conditions and assurances made with which the Task
Force on Rehabilitation and Livelihood committee was formed is also wanting.
Kato said that with all of these issues and the "chaotic predicament" of the
then Estrada administration, the council decided to withdraw support for the
SRMP.
"The council strongly believes that with what is happening at the national
level (during Estrada's time), the national government (and the concerned
agencies) are incapable of delivering their promises to the people" who
endorsed the dam project in the f irst place mainly because of the
government's commitment to comply with all of the 17 conditions, he added.
The vice-mayor, however, stressed that due to the request of the PAPs and
that of the affected communities, the transmittal of the resolution was put
on-hold to give the NPC and other agencies the chance to redeem themselves.
It can be recalled that the earlier resolution to withdraw support to the
SRMP states that "there is no substantial compliance of the 17 conditions,
or if there is a shade or color of compliance, the same is dismal and
disappointing...(so) the much-bally hooed benefits is a mere illusion, like
a mirage that in reality does not exist".
"Primordial among the 17 conditions is the issuance of the appropriate
instruments for the people of Itogon, specially those landowners, residents
and/or occupants within the watershed. It is of public knowledge that the
people of Itogon are still waitin g for the issuance of their long-awaited
instruments," it added.
"While our lowland brothers may look forward to tangible benefits that may
come from the SRMP, the peoples of Itogon look forward to environmental
degradation as well as deprivation of their indigenous right of ownership
over their land that are in eminent and certain danger of being submerged
permanently".
Residents also questioned the use of the P50 million, which NPC earlier
reported to have been deposited in escrow account. "Kung nandiyan nga iyong
P50 million, bakit hanggang ngayon, di pa kumpleto iyong supposed payment
and compensation sa mga PAPs?"
Date: Wed, 24 Jan 2001 19:44:34 -0800 (PST)
From: owner-irn-sanroque@netvista.net
subject: LS: CPA press statement on ousting of Estrada
HAPIT · Official Publication of the Cordillera Peoples' Alliance ·
January 23,2001
PRESS STATEMENT
A CALL FOR CONTINUED VIGILANCE
The Cordillera Peoples Alliance (CPA) salutes the Filipino people for
successfully ousting an immoral and corrupt president. In unity and
collective action, we have once again proven that the power of the people
is the force that can change history. While we salute all those who have
participated in the protests actions, we should not also forget that it was
from the basic sectors that the movement against ERAP started, which was
sustained and broadened till the end. It was the organized peasantry and
working class who, early on started exposing the big lie behind Erap’ s
claim to be serving the interest of the poor, and called for his ouster. We
should pay tribute to these basic sectors and ensure that their interest
and welfare will be addressed by the new administration.
The battle against Mr. Estrada and his cronies is not yet over. Their
prosecution must be pursued in order to attain reconciliation based on
justice. We should not allow a repetition of post-EDSA I when the Marcoses
and their cohorts got away with their crimes, and worst, easily got back to
power under Mr. Estrada.
Our lessons from the Peoples Power actions should serve as a guide for our
public officials. Graft and corruption, cronyism, patronage politics, and
subservience to foreign dictates should be eliminated if we are to redeem
our integrity as a people and as a nation. Public transparency,
accountability, honesty and sincere service to the people are minimum
requirements for any elected or appointed public official. New politics
based on the interest and welfare of the masses should replace elite and
self-serving political system.
Democracy should not remain as mere rhetoric but the actual empowerment of
the majority in the day-to-day affairs of our economic and political life.
Likewise, the fundamental condition of mass poverty, political
misrepresentation, and inequality should be addressed decisively by the
new administration in order to rectify longstanding injustices and
maldevelopment.
We welcome President Gloria Macapagal Arroyo, as the duly constituted
replacement of the deposed Mr. Estrada. We condemn and denounce any attempt
by Erap and his cohorts to get back to power or cause destabilization of
the new administration.
We express our hopes that the new administration shall be a better
government based on the lessons from the People’s Power. We caution GMA in
choosing her cabinet members as so many “balimbings” and political
opportunists are again scrambling to be at the good graces of
Malacanang. Performance and character evaluation is needed to clean up the
bureaucracy of scalawags and those undeserving of public trust.
While economic recovery will be difficult, we expect the new administration
to set the right direction and implement fundamental changes that shall
truly benefit and uphold the rights and interest of the basic sectors. The
further privatization and liberalization of our economy within the
framework of globalization runs counter to our economic development, based
on the needs of our people. There should be no illusion that joining the
bandwagon of globalization is the solution to our economic woes as it
actually worsened the crisis we are facing today.
In the Cordillera, we expect that the denial of justice to our indigenous
peoples will finally be addressed through the actual recognition of their
rights over their ancestral land and natural resources. GMA said in her
multisectoral consultation held here in Baguio in December 2000 that she
will work from RHETORIC TO ACTION particularly for deprived sectors like
the indigenous people. We hope this is not another case of lip-service. As
an initial step to rectify the continuing violation of indigenous peoples
rights in the implementation of anti-people development projects, we urge
the new administration of GMA to take the following action:
STOP the ongoing construction of the San Roque Dam, and immediately conduct
a thorough and independent evaluation on the adverse impacts of this
project, violations to existing laws, and address the plight of resettled
families.
Issue a moratorium on the construction of new dams in the Cordillera,
namely Palsiguan Dam, Matuno Dam, Agbulu Dam, and Bakun Dam. Implement the
recommendations of the World Commission on Dams which includes a thorough
study on alternatives, transparent consultations and prior and informed
consent of affected communities, implementation of international
environmental standards.
Cancel all approved mining applications that clearly violated the
requirements for genuine consultation, on prior and informed consent of
affected communities, andCertify as urgent the Bill in Congress on the
repeal of the Mining Act of 1995.
Let the aspirations of the people be the core program of the new
administration. democratic rights ###
Reference: Joan Carling
Cordillera Peoples Alliance
#53-D Palma Street (1st Road)
Baguio City, 2600
Tele-fax (074) 445-73-06
Tel. No. (074) 304-4239
*Public Information Commission
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
"the oppressed and exploited are rising, fighting from them comes the
strength to change the world"
Date: Tue, 23 Jan 2001 22:21:04 -0800 (PST)
From: owner-irn-sanroque@netvista.net
subject: LS: Philippines Energy Outlook
Philippines - Energy - 1/22/01 10:18:48 Am
( January 23, 2001 )
The Philippines is a net energy importer. The main imports are oil and
coal. In 1998 the Philippines imported an estimated 337,000 barrels per day
of oil and 2.3 million tons of coal. Domestic energy resources include
limited amounts of oil, natural gas, hydroelectric power and coal.
At present, the Philippines produces minimal volumes of oil. For 1998, the
country produced 2,000 barrels per day (bbl/d) while consuming 339,000
bbl/d, resulting in net imports of 337,000 bbl/d. This represents a decline
from 1997 consumption of 350,000 bbl/d, largely as a result of the general
slowing of the economy.
Oil consumption is expected to remain flat over the next several years, as
economic growth increases demand in most sectors, but demand for fuel oil
diminishes as a result of the government's drive to retire aging oil-fired
electric power plants.
The promise of additional production took a hit in January 1998 after Shell
Philippines Exploration, a unit of Royal Dutch/Shell Group, terminated and
oil exploration project in southern Philippines. After failing to find
significant hydrocarbons, Shell abandoned the Princesa 1 well, located in
Northwest Palawan. However, in February 1998, the Philippines awarded two
new oil exploration contracts.
In early February, the government awarded an exploration contract for the
under explored Visayan Sea basin in central Philippines. The exploration
consortium consists of Alcorn Petroleum (46.6%), Trans-Asia Oil and Energy
Development (33.34%), and Petrofields Corporation (20.06%).
The contract covers 3.6 million acres of mostly shallow, offshore areas
bounded by the islands of Cebu, Bohol, and Leyte. The consortium will spend
about$260,000 over the next 24 months surveying the area, with an option to
drill on exploratory well.
In late February, the government awarded a second exploration covering a
3.7 million acres area in the South China Sea, off Palawan Island. The
consortium of Filipino companies is led by Trans-Asia with a 55% interest
followed by Phoenix Energy with 15%; Basic Consolidated and Seafront
Resources, each with 10%; and Oriental Petroleum & Minerals and
Petrofields, each with 5%.
The consortium will spend $250,000 over the next 15 months evaluating 800
miles of new and vintage seismic data and 1,553 miles of marine gravity and
magnetic record, with options to conduct a new seismic survey and drill two
exploration wells.
While there is no significant current crude oil production, some
exploration is being undertaken. Sydney Oil Company Drilling and
Exploration (SOCDET) is conducting exploration offshore to the northwest
of Palawan Island. It also holds several other small concessions elsewhere
in the Philippines, and believes, based on 3D seismic survey data, that
significant quantities of oil may be recoverable from its concessions.
The Philippines has 2.7 trillion cubic feet (Tcf) of proven natural gas
reserves. While in the past the gas sector has not been developed
extensively, the government has made expanding gas use a priority,
particularly for electric power generation, to cut oil import expenses.
The Malampaya-Camago gas field, discovered in 1989 off the coast of the
western island of Palawan, is thought to contain up to 4 Tcf of natural
gas. Shell, and its partner Texaco, holds the concession for Malampaya, and
is building a pipeline which will transport the gas to an three electric
power plants with a total capacity of 2,700 megawatts (MW).
The project is scheduled to be completed in late 2001, and Shell has
20-year sales contracts with National Power Corporation and First Gas
Power, which are building the power plants.
Malampaya is expected to produce up to 500 million cubic feet
per day of gas and 20,000 bbl/d of condensate. Shell is also doing
exploratory drilling at its Nido concession near the find at Malampaya.
In January 1998, the operators of the fields, Shell Philippines Exploration
BV and Occidental Philippines Inc., signed two gas supply agreements with
First Gas Holdings and National Power Corporation of the Philippines.
Both agreements cover 20-year periods, with first delivery targeted for
January 1, 2002. The gas production facilities are expected to produce up
to 500 million cubic feet per day of gas and 20,000 bbl/d of condensate.
The state-run Philippine National Oil Company (PNOC) is drilling for gas on
Fuga island north of the main island of Luzon. Investors have expressed
interest in building a pipeline to export gas to Taiwan if the Fuga island
exploration yields large new finds. A group led by Stirling Resources of
Australia and including SOCDET also is drilling for gas near Cebu island in
the central Philippines.
Currently, the Philippine electric power sector is dominated by two firms,
National Power Corporation (Napocor) and Manila Electric Company (Meralco).
Meralco serves Manila and the immediate surrounding area, while Napocor
serves most of the rest of the country.
The government owns a majority stake in Napocor and a minority stake in
Meralco, and has stated its intention to privatise them. Eventually, the
government plans to sell its stake in Meralco, and break up Napocor into
separate regional entities, which it hopes will promote development of a
competitive power market.
The current privatization program has attracted much interest from U.S.
companies. Six U.S. firms, Enron, Mission Energy, Unocal, CMS Energy,
Southern Energy, and General Public Utilities, are reported to have
expressed interest in acquiring equity in Napocor successors when it is
broken up and privatized. Legislation to allow privatization of Napocor is
currently in the Philippine Congress.
The Philippines had a total of 11.6 gigawatts (GW) of installed generating
capacity in 1998, as reported by the Philippines Department of Energy. This
represents a significant short-term oversupply from the country's peak
demand of 7.4 GW. New power projects are being undertaken, however, because
current capacity is dominated by oil-fired plants (representing 47% of
installed capacity), many of which are nearing the end of their service
life.
Demand also is projected to grow by approximately 9% annually over
the next decade. The government wants to reduce oil imports, in part by
speeding the retirement of oil-fired plants as rapidly as is practical.
Napocor has announced that it does not intend to renew most of its
contracts with independent power producers (IPP's), which run oil-fired
plants, shutting seven plants with a capacity of 1,677 MW by the end of 1999.
Future increases in power demand will be satisfied largely by the three
gas-fired plants which are being linked to the Malampaya gas field. Napocor
will be completing the 1,200 MW Ilijan plant in 2002. First Gas Power will
be completing their 1,020 MW plant at Santa Rita the same year. In 2003, an
additional 500 MW of smaller gas-fired capacity is due to be completed.
Apart from natural gas, other development focuses on coal and hydroelectric
power. Many small hydroelectric projects are being built on the smaller
islands, as a method of supplying power to towns not connected to the main
islands' electric grids.
The largest hydroelectric project currently under construction is the 345-
MW San Roque hydroelectric dam on the main northern island of Luzon, which
is being undertaken by a consortium including Sithe Energies and Marubeni
Corporation. Coal-fired projects include the 1,000-MW Sual plant and the
300-MW unit at Masinloc.
Geothermal power currently makes up around 24% of the Philippines'
installed generating capacity, making the Philippines the world's second
largest producer of geothermal power. Most of the Philippines geothermal
capacity has been developed by the Philippines National Oil Company -
Energy Development Corporation (PNOC-EDC), which is a recognized leader in
geothermal power and markets its services abroad.
The Philippines, due to its geography, still has problems linking all of
its islands together into one grid and ensuring availability of electric
power to all communities. The Philippines government has set a target date
of 2008 for electrification of all rural towns, and also is taking steps to
link together the country's major power grids. Where it is not economical
to link small islands' grids into the national grid, separate local systems
are being established around small generating plants.
In 1997 out of 33.7 billion kilowatts produced, 62% was produced in thermal
plants using oil, coal and gas, and 20% was produced from hydroelectric
facilities. Coal in the Philippines generally is classified as lignite or
subbituminous and is of poor quality for use in power generation. Thus,
higher-grade imported coal was blended with indigenous coals to improve
burning characteristics.
Date: Mon, 22 Jan 2001 00:49:41 -0800 (PST)
From: owner-irn-sanroque@netvista.net
subject: LS: Fear San Roque dam will create calamity arises
"Fear San Roque dam will create calamity arises"
http://www.sunstar.com.ph/pangasinan/01-22-2001/topstories1.html
Monday, January 22, 2001
Fear San Roque dam will create calamity arises
By Bong E. Otadoy
SAN MANUEL - Environmentalists have expressed fear over the structural
capability of the San Roque multi-purpose hydroelectric dam project here in
assuring protection against flood for residents in this town and in
neighboring low-lying areas.
The apprehension was intensified following an unofficial statement from the
National Power Corporation which claimed that the SRMDP can only provide
about 50 percent control over waters that flow along the Agno River.
"If the report is true, then the guarantee provided by our leaders that it
will solve the perennial problem of flooding in Pangasinan and its neighbor
province is no guarantee at all," an environmental researcher, who spoke on
condition of anonymity, said.
This adds to earlier worry among public officials and residents in the
lowland that the San Roque dam, when completed, will bring about more
disastrous floods that with the water releases from the existing small
Ambuklao and Binga dams.
Considered the largest dam in Asia and the 12th biggest in world, the
multi-billion-peso project is expected to be opertional by the end of
December, 2002.
The construction of the structure is being constructed by Raytheon Ebasco
Overseas Ltd., a Unitede States-cased contractor, and supervised by the San
Roque Power Corpration and the National Power Corporation.
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 dam is being built to stand a water volume of 815 million cubic feet.
Despite these facts, however, sources said the structure could be a threat
to the 35 low-lying areas located near the Agno River stretch.
Among the municipalities most likely to be affected in Pangasinan include
district two (Aguilar, Bugallon, Linayen, 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).
Date: Sun, 21 Jan 2001 21:47:12 -0800 (PST)
From: owner-irn-sanroque@netvista.net
subject: LS: News on Binga and Ambuklao Dams
PDI
December 25, 2000/ NAPOCOR TAKEOVER Binga Dam employees seek P71M in benefits
August 15, 2000/ Aboitiz keen on Benguet power plant
http://www.inquirer.net/issues/dec2000/dec25/hometown/hom_main.htm
NAPOCOR TAKEOVER
Binga Dam employees seek P71M in benefits
By Avigail Olarte
Inquirer News Service
PDI Northern Luzon Bureau
ITOGON, Benguet ? As the National Power Corp. braces for its takeover of the
Binga hydroelectric plant, 120 dam employees are asking management to pay
them P71 million in benefits.
Reports that Napocor is set to take over the operation of the power plant
from its private contractors before the yearend have raised the
employees'
fear over the uncertainty of their future.
"Para kaming bolang pinagpapasahan nila. Ngayong kukunin na naman kami ng
gobyerno, ano na naman ang mangyayari sa amin? (We're like a ball being
passed around from one player to another. Now that the government is set to
reclaim Binga, what fate awaits us employees?)" one of the workers asked.
The employee said Napocor was unlikely to fulfill its promise of paying the
P71 million worth of unpaid claims, accumulated since 1995, before the
scheduled takeover on Dec. 22.
"We would have to find ways to pay them (employees), including their
separation pay," said Napocor vice president Froilan Tampinco.
Tampinco denied reports that about 100 employees from the Napocor's
Sucat plant in Paranaque City would replace 58 BHEP employees here.
He allayed fears of Binga employees that many of them would be displaced by
the takeover. "We will definitely rehire some of them. Unfortunately, not
everybody (will be hired). It's also true that they will be working on a
contractual basis.
However, the manpower agency, run by the employees themselves, will
negotiate with us (Napocor) on the terms of their employment and benefits.
Ultimately, it's all up to them," Tampinco said.
He said Napocor decided to take over the plant from the Management
Committee, a Securities and Exchange Commission-installed body to oversee
the rehabilitation and operation, because the committee was not
properly putting in the necessary work for the plant's rehabilitation
projects.
"Binga is one of our most valued assets and we can no longer tolerate the
delays in the projects that Mancom was supposed to execute since it was
created by SEC," Tampinco said.
The SEC mandated Mancom in 1999 to take over the plant's management from
China Chang Jiang Energy Corp. following the cancellation of its
rehabilitate-operate-and-lease-back contract with Napocor.
The immediate installation of the committee was prompted by a corporate
dispute among the stockholders, it was learned.
A Binga representative, however, said Mancom was not able to effectively
continue the rehabilitation of the BHEP since Napocor refuses to release the
supposed revenues for the plant's operation.
According to Mario Soria, BHEP department manager, Napocor has given the
committee P110 million since its creation last year. He said 35 percent of
the money went to the employees and the rest went to the rehabilitation work.
"It is true that we have not been paying the energy fees. It is because the
ownership issue has not been settled yet. Now, whichever contractor wins, we
will pay then the collectibles and re-negotiate with this entity. In the
meantime, we are inclined to operate the plant ourselves," he said.
BHEP engineer Joselito Buhangin said the siltation problem of the dam has
worsened due to the lack of funds. "The silt grows to about one million
cubic meters a year. Nasa bukana na ito ng planta at malapit nang pasukin
ang mga hydros. (The silt sits at the plant's entrance and this will
reach the hydros soon)," he said.
Buhangin said a P100-million project design was already drafted to mitigate
the problem but Napocor refuses to release funds.
He also said Mancom argued that it would be unlawful for Napocor to take
over BHEP since the committee has yet to be dissolved by the SEC.
"Napocor cannot simply ask us to turn over the plant's operation to them
since SEC has not yet dissolved Mancom. As far as the law is concerned, we
still remain as the operators," a Mancom representative said.
December 25, 2000
http://www.inquirer.net/issues/aug2000/aug15/business/bus_5.htm
Aboitiz keen on Benguet power plant
By Christine A. Gaylican
THE ABOITIZ Power Corp. is keen on acquiring and rehabilitating the
100-megawatt Binga power plant in Benguet province.
Aboitiz Equity Ventures executive vice president and chief operating officer
Erramon I. Aboitiz told the INQUIRER that it would participate in the
bidding for the 45-year-old plant if the National Power Corp decides to bid
it out to private investors.
"It would depend on the plans of Napocor for the Binga plant, but we would
participate if it decides to bid it out to other investors," Aboitiz said.
Aboitiz Power is the Aboitiz family's holding company for its investments in
power generation and power distribution ventures. It accounts a big chunk of
AEV's earnings.
Included in the list of its power-related firms are power distributors Davao
Light and Power Corp. and Cotabato Light and Power Co., which are wholly
owned by the Aboitiz family.
The Aboitiz Group's subsidiary, Philippine HydroPower Corp., holds its
business interests in hydroelectric power. This hydropower arm of the
Aboitiz Group could directly be in-charge of the Binga plant if it emerges
as the winning bidder.
Binga still runs at full capacity as compared to the Ambuklao Dam, which
currently generates only 21 megawatts from one of its three unit generators.
A management committee appointed by the Securities and Exchange Commission
currently oversees the Binga plant. This was after Binga's Chinese investors
abandoned a rehabilitate-operate-lease (ROL) contract for the aging Binga
plant, which had cost them P2 billion.
Chiang Jiang Energy Corp.-Philippines could not realize its investments from
the Binga plant's operations after five years of its 15-year lease had
elapsed.
The Napocor received a letter from Catalino Tan, president of CCJEC Binga
Hydroelectric Dam Inc., announcing the company's withdrawal from the plant.
A Napocor source noted that "there were no direct reasons for the pullout
but you can read between the lines. They were having difficulties recovering
their capital."
The SEC management committee is still negotiating the terms with CCJEC's
employees union about unsettled contract claims.
Another problematic hydro plant of the Napocor is the 50-year-old Ambuklao
power plant. The five-year-old ROL contract of an engineering affiliate
group of Manila Electric Co. for the Ambuklao power plant is ending next
month.
Meralco Industrial Engineering Systems Corp. (Meiscor) will end its
desilting contract on Ambuklao this month, but has already abandoned the
project three months ago as the accomplishment report noted a success rate
of not less than 50 percent.
August 15, 2000
Meiscor abandons Ambuklao rehab
7/24/00
The Meralco Industrial Systems Corp. (Meiscor) has abandoned the
rehabilitation of the 75-megawatt (MW) Ambuklao hydropower plant despite
having two more months remaining in its five-year contract.
According to the National Power Corp. (Napocor), Meiscor still has until
September to complete the rehabilitation of the Ambuklao plant under a
rehabilitate-operate-lease (ROL) contract. Napocor is the government agency
that has jurisdiction over the hydroplant.
"The Napocor board is still undecided on whether to abandon or continue
rehabilitating the plant," Napocor chief operating officer Asisclo T.
Gonzaga told newsmen recently.
Gonzaga explained that the Ambuklao hydropower plant has a criticial role in
the downstream flow of the Binga hydroplant and the San Roque hydropower
plant.
The plant is only 75 percent rehabilitated with a leak still unplugged. This
has resulted in siltation of soil surfaces in the agricultural areas while
slowly developing complications to the Agno River feeding areas of the San
Roque dam.
Napocor anticipates additional costs as the dam is not completed. This has
forced the Napocor board to look into the possibility of shutting down not
only the Ambuklao plant but also the Binga plant, which in turn will affect
the effective operations of the San Roque dam.
Earlier, the Chiang Jiang Energy Corp., abandoned the rehabilitation project
for the Binga dam claiming that it was not earning enough to offset their
investment. It only completed a third of its 15-year contract.
Binga still runs at a full capacity of 100-MW while the Ambuklao hydro plant
is only running at 21-MW from one of its three units. The San Roque hydro
plant will generate 345-MW.
The possible closure of both Ambuklao and Binga will affect not only the
efficiency of the San Roque plant but also the entire Luzon Grid . While the
power demand in the grid remains below full capacity, Napocor officials fear
that as demand increases the absence of the two plants plus the low capacity
of San Roque plant could be--
Date: Wed, 17 Jan 2001 22:06:33 -0800 (PST)
From: owner-irn-sanroque@netvista.net
subject: LS: SRMP to be completed despite Itogon stand
http://www.sunstar.com.ph/baguio/01-15-2001/topstories1.html
Monday, January 15, 2001
SRMP to be completed despite Itogon stand
By Cheryl G. Cruz
The impending override on the veto of Itogon Mayor Cresencio Pacalso on the
Council's earlier resolution withdrawing endorsement and support for the
construction of the San Roque Multipurpose Project (SRMP) will not affect
the completion of the $1.15 billion flagship project.
This was the reaction of Benguet Gov. Raul Molintas to an earlier report
that the Itogon council is poised to approve on third and final reading this
Wednesday the resolution which will override Pacalso's veto.
Molintas also belied allegations that the SRMP is no different from the
government's two dam projects, the Binga and Ambuklao hydroelectric plants,
with which affected residents who were dislocated because of the
construction of the dams have yet to be fully compensated.
"We cannot say (at this point) that families affected by the construction of
the SRMP will not be given their due compensation. (Afterall), negotiations
are still on-going" with regards the matter, he added.
The governor also stressed that the National Power Corporation has already
deposited some P50 million in escrow account, supposedly to be used as
payment for legitimate claims and damages after final negotiations on how
much will be paid the affected residents is completed.
This only shows that the government-owned corporation is sincere in paying
the affected residents and giving due compensation for any legitimate damage
to properties and structures that will be incurred.
He also said that with the recent favorable decision of the Supreme Court on
the constitutionality of the Indigenous Peoples Rights Act (IPRA) of 1997,
the welfare and rights of the affected residents to land ownership and just
compensation have been ensured.
Earlier, Sun.Star reported that the Itogon Municipal Council is poised to
override Pacalso's veto on an earlier resolution to withdraw support for the
continuous construction of the SRMP due to alleged failure of the concerned
agencies to comply with various conditions on the dam's construction.
These conditions with which the NPC and the DENR allegedly failed to comply
include the payment of compensation to families and of structures adversely
affected in Benguet by the construction of the dam; the issue on upstream
sedimentation problem; and that of the Environmental Impact Assessment or
EIA which should already be answered by the DENR's Environmental Management
Bureau.
A source said "(there is) a strong belief that the national government is
incapable of addressing the various concerns of the people, specially with
what is happening right now."
Date: Sun, 14 Jan 2001 23:19:15 -0800 (PST)
From: owner-irn-sanroque@netvista.net
subject: LS: Three new dams proposed for Cordilleras
http://www.manilatimes.net/2000/dec/24/top_stories/20001224top7.html
December 24, 2000
Highlanders restive over 3 new dams
BAGUIO CITY
Indigenous peoples in the Cordillera Region are greeting the New
Year with rage, having received word that "developers" are planning to
construct three new hydroelectric power dams, threatening rivers and their
ancient homesteads.
"History is repeating itself," Joan Carling, secretary general of the
militant anti-dam group Cordillera People's Alliance said.
"These dams will also threaten the dam's surrounding rivers, the earth's
life blood."
According to Carling, feasibility studies are being mapped out and
geological scoping is underway along the Palsiguan River in remote Tineg
town in Abra.
The provincial government is seeking Japanese funding for the dam projects,
she said.
The Matuno dam project along the Ifugao-Nueva Vizcaya border, threatening
the Amueg River where Kalanguya and Ifugao communities are located, is
slowly being built although the Ifugao provincial board has opposed the
project, Carling added.
New targets
A Japanese bank has already conducted a feasibility study for a
build-operate-transfer scheme on Matuno Dam, Carling said.
Another hydroelectric project, called the Amburayan River Dam, is being
planned for the upper system of the Agno River, the source of the
controversial San Roque Dam Project in San Manuel, Pangasinan, she added.
The National Power Corporation has already constructed diversion tunnels in
Kayapa in Bakun town, another mountainous barangay in Benguet province.
Carling said the common denominator on the planned dams "is to supply
electricity to the mining industry",now still moribund.
Mines and Geosciences Bureau chief Victor Ramos earlier told THE MANILA
TIMES that the government is convincing 10 world-class mining giants to
invest in the country.
The foreign firms' entry has been opposed, as constitutional questions have
been lodged versus the Philippine Mining Act of 1995. The law allows
100-percent equity ownership of companies.
"Cost Benefit"
Carling explained that government insistence on building dams, despite
avowals of the state's power agency (Napocor) of surplus power in the years
ahead, rests on the big business interests.
"They do not consider the risks and costs faced by indigenous peoples
living within the river systems and the eventual effects like lowland
flooding that go with dams," the activist leader stressed.
Date: Sun, 14 Jan 2001 23:15:44 -0800 (PST)
From: owner-irn-sanroque@netvista.net
subject: LS: Council to override veto on SRMP resolution
http://www.sunstar.com.ph/baguio/01-13-2001/topstories1.html
Saturday, January 13, 2001
Council to override veto on SRMP resolution
By Cheryl G. Cruz
The Municipal Council of Itogon, Benguet is poised to render ineffective the
veto of Mayor Cresencio Pacalso on the body's earlier resolution to withdraw
support for the continuing construction of the proposed US$1.15-billion San
Roque Mul tipurpose Dam Project.
An official of Itogon, who requested anonymity, said the Council was
expected to approve on third and final reading this Wednesday the measure
that would override Pacalso's veto.
The latest resolution is anchored on the alleged failure of concerned
agencies like the National Power Corporation and the Department of
Environment and Natural Resources to comply with the 17 conditions related
to the construction of the National Govern ment's flagship project.
The conditions with which the NPC and the DENR allegedly failed to comply
include the payment of compensation to families and of structures adversely
affected in Benguet by the construction of the dam; the problem on upstream
sedimentation; and that of t he Environmental Impact Assessment or EIA which
should already be answered by the DENR's Environmental Management Bureau
(EMB).
"(There is) a strong belief that the National Government is incapable of
addressing the various concerns of the people, specially with what is
happening right now," the highly placed source said.
He added that as of December 2000, Napocor committed to pay the affected
residents at least half of the amount of their compensation.
But the payment never came. "Kung meron mang nabayaran, iyon pa iyong mga
tao na hindi pa kumpleto iyong kanilang mga requirement." (If there was
really payment, it was those people whose requirements were not even
complete yet.)
The Municipal Council, last September 13, had voted seven to one with two
councilors absent in favor of a measure withdrawing its support and initial
endorsement for the construction of the SRMP as contained in Resolution
16-99 passed on January 21, 1999 .
The September resolution states that "there is no substantial compliance of
the 17 conditions, or there is a shade or color of compliance, the same is
dismal and disappointing... the much-ballyhooed benefits is a mere illusion,
like a mirage that in real ity does not exist."
"Primordial among the 17 conditions is the issuance of the appropriate
tenurial instruments for the people of Itogon, specially those landowners,
residents and/or occupants within the watershed. It is of public knowledge
that the people of Itogon are sti ll waiting for the issuance of their
long-awaited tenurial instruments," it added.
"While our lowland brothers may look forward to tangible benefits that may
come from the SRMP, the peoples of Itogon look forward to environmental
degradation as well as deprivation of their indigenous right of ownership
over their land that are in emine nt and certain danger of being submerged
permanently."
Last October, Pacalso vetoed the Council's resolution, saying it should be
reevaluated since the measure was approved without first awaiting the
respective accomplishment reports of the concerned agencies on their
supposed compliance with the conditions.
"The Council (initially) asked the agencies to submit their respective
accomplishment reports on their compliance rate. Ang nangyari, hindi pa man
nakapag-submit ng kani-kanilang report iyong mga agencies concerned, the
resolution to withdraw support to the SRMP had already been approved. I
vetoed the council resolution and (asked the council) to await (first) the
respective responses of the agencies which should also be comprehensively
evaluated in line with the various issues regarding the dam project ,"
Pacalso was quoted as saying in an earlier report.
The source, however, revealed that at present, "NPC is buying time (as) a
deliberate delaying tactics," especially with regards to the payment of
affected residents.
"Merong P50 million that Napocor deposited in escrow account to show their
commitment that they will comply with the conditions. Why is the Napocor not
paying the affected residents (until now)?" he asked.
From: remonde@gsilink.com
Date: Sat, 13 Jan 2001 10:25:49 +0800
Reply-To: kontra-mina@egroups.com
Subject: [kontra-mina] November article
Philippine Daily Inquirer
November 10, 2000
Gov't urged to woo back mining industry investors
by Gil C. Cabacungan Jr.
AUSTRALIAN and New Zealand businessmen are urging Malacañang to rekindle
foreign investor interest in the local mining industry, which has eroded in
the past few years due to lackadaisical [unenthusiastic] support from
government and its unclear regulations.
In a position paper submitted to the Economic Coordinating Council,
Australian-New Zealand Chamber of Commerce president William Mason said:
"There is a current lack of international investor confidence in the mining
industry. For things to turn around, confidence has to be restored."
While confidence might not be regained that swiftly, Mason said that by
creating a favorable investment climate and strongly supporting companies
operating in the country, the international community would see the
results and investment would follow.
Among the key concerns that are holding back the take-off of the mining
industry are the lack of commitment from the government, strong opposition
from local government units, environmental conservatism, murky
documentation on land ownership, foreign equity constraints, lingering
questions on the constitutionality of the 1995 Mining Act and the legal
implications of the Indigenous Peoples Rights Act.
Mason said the enactment of a new mining law five years ago fueled interest
of foreign investors in the local mining industry. "Programs worth about
$200 million a year were committed for exploration and three to four major
new mines were in the advanced planning stage with potential investments
exceeding $2 billion.
The companies were here with funds but because of frustrating delays most
of the companies have now left and have spent their funds elsewhere."
He said this was unfortunate because the country has a "very high mineral
endowment" being one of the top eight countries in the world for copper,
nickel and gold deposits. He noted that in the 1980s, mining accounted for
21.3 percent of the country's total exports but this shrunk to less than 3
percent today as production lagged behind the country's potential.
The chamber believes that mining has a potential to yield $1.2 billion in
annual export earnings which should boost the industry's share in the
country's exports to 9 percent within five years. However, this is if
foreign miners are encouraged to tap the country's resources.
He said the mining industry could generate up to $3.2 billion in new
investments over the next five years particularly in less developed areas
such as Mindanao and Cordilleras. Also, a vibrant mining industry would put
P21 billion into the government's coffers, of which the local government
units would get P12 billion.
Mason said that as metal prices improve and with the lingering political
instability in Indonesia, "the Philippines has emerged as the ideal country
in Southeast Asia for mineral investment if current problems could be
resolved."
Date: Tue, 9 Jan 2001 14:50:23 -0800 (PST)
From: owner-irn-sanroque@netvista.net
subject: LS: Benguet town withdraws support for San Roque dam
2 news clippings from PDI on Jan. 8.
* Benguet town withdraws support for San Roque dam
* Cordillera tribes wary over 3 more dam projects
http://www.inquirer.net/issues/jan2001/jan08/hometown/hom_5.htm
Benguet town withdraws support for San Roque dam
By Avigail Olarte
Inquirer News Service
PDI Northern Luzon Bureau
ITOGON, Benguet ? The municipal council revoked its endorsement of the
controversial San Roque Multipurpose Dam Project (SRMDP) last Wednesday and
rebuked the national government for deceiving the indigenous Ibalois who
would be affected.
"We have given them (government) time to prove their worth but they are
worthless," said Vice Mayor Aloysius Kato.
He said the council has established what he called the "patterns of deceit"
by the government for its empty promises to Itogon. Some crucial aspects of
the agreement that, he said, were not met are the non-issuance of
instruments to legalize payment of ancestral lands affected by the project,
the lack of funds for the P268.5-million integrated watershed management
plan, and the payment of benefits to families to be relocated.
The council said the ongoing impeachment trial of President Estrada has
contributed to this problem since everything is now at a "standstill."
Kato said the trial has crippled the P20.2-billion SRMDP and placed agencies
involved in the project in a "drifting state."
The council voted to override the mayor's veto on Resolution No.
180, which revoked Itogon's endorsement of the project. The San Roque Dam
was designed to augment the power supply and irrigate farms in Northern and
Central Luzon.
"Our decision would hit the Estrada administration hard. The construction of
the dam would have to stop. However, we are still open for reconsideration
but the government has to be sincere this time," Kato said.
The council castigated the National Power Corp., Department of Environment
and Natural Resources, presidential committee of flagship programs and
projects, San Roque Power Corp. and other agencies for their non-compliance
with the 17 conditions that would allow the project.
January 8, 2001
http://www.inquirer.net/issues/jan2001/jan08/hometown/hom_6.htm
Cordillera tribes wary over 3 more dam projects
By Desiree Caluza
Inquirer News Service
PDI Northern Luzon Bureau
BAGUIO CITY--Tribal communities in the Cordillera are wary over the proposed
construction of three multipurpose dams in Abra, Ifugao and Benguet, saying
these projects would cause social and environmental havoc, especially in
host communities.
Joan Carling, secretary general of the Cordillera People's Alliance
(CPA), said the consent of the affected communities was not sought on the
dam projects.
The proposed facilities are the Palsiguan multipurpose dam in Tineg, Abra;
the Matuno River dam project in the boundary of Ifugao and Ambaguio, Nueva
Vizcaya; and a mega-dam along the Amburayan River in northern Benguet.
Carling said there was no need to build more dams in the Cordilleras as the
National Power Corp. (Napocor) reported that from 2000 to 2010, the region
would be supplied with adequate electricity from the surplus generated by
existing dams in the area.
"The question here is, does the region need these dams? We all know that the
only ones who would benefit from these dams are the investors themselves,"
she said.
She cited the construction of a diversion tunnel in Barangay Kayapa in Bakun
town that dried up the village's river and affected the residents' farming
activities. Water from Kayapa runs the turbines of the power plants in
Alilem, Ilocos Sur.
Nippon Koei Co. of Japan and a surveyor of the Nueva Vizcaya provincial
irrigation office revealed in a geological study that the Matuno River dam
project would affect families living in Sitios Cabudayan and Lower Duli in
Barangay Ammueg, in Asipulo, Ifugao, according to the CPA.
The P5-billion project will be built under a build-operate-transfer scheme.
Carling claimed these dams would serve not only their investors but also the
big mining corporations in the region.
Benguet and Pangasinan host the San Roque multipurpose dam, which is being
built along the Agno River. Affected Ibalois in Benguet and farmers in San
Nicolas, Pangasinan are opposing the construction of the 345-megawatt dam.
"We all know that we do not need a dam in Cordillera, but it is clear to us
that there is a massive promotion of the mining industry here. It is clear
that these dams are meant to serve the power supply of these mining
companies," Carling said.
Eduardo Austria, officer in charge of the Mine Management Division of the
Mines and Geological Bureau, said since 1990, his office has approved nine
mining applications. But he said these applications were under the Mineral
Production Sharing Agreement (MPSA).
Austria said while the mining companies have their own power generators,
they still buy power from the Napocor and need power supply from outside
sources such as dams.
"Our agency is only concerned with the mining applications. We do not care
about where these companies source their logistics such as power supply," he
told the Inquirer.
Austria said his agency believes the dams would not only augment power
supply but also service the irrigation needs of the region.
"Cordillera is prone to dam construction because of the beautiful terrain
and our river basins," Austria said.
The World Commission on Dams (WCD), an independent body sponsored by the
World Bank and the International Union for the Conservation of Nature, has
questioned the validity of building dams in indigenous communities.
In a study on the performance of dams all over the world, the WCD said many
large dams have proven to be impractical, considering their social and
environmental costs.
Results of the study were published in November last year.
