By SHERWIN DE VERA
www.nordis.net

VIGAN CITY — Indigenous peoples of Bokod town, in Benguet, rejected the bid of SN Aboitiz Power Benguet Incorporated (SNAPBI) to continue the operation of the 105 megawatts Ambuklao hydroelectric power plant (HEPP).

They also urged concerned government offices to recall or withhold the issuance of the necessary permits to the company for its operation.

In a January 13 interview, lawyer and vice mayor Erick Ignacio said they had submitted their Resolution of Non-Consent to the provincial office of the National Commission on Indigenous Peoples (NCIP). The council of elders designated him as the spokesperson of the Bokod Indigenous Peoples Organization (BIPO).

At the heart of the failed negotiation, which started in July 2021, between SNAPBI and BIPO is the community’s share from the utilization of natural resources within their ancestral domain.

According to Ignacio, the company has yet to provide royalty for Bokod since it took over the facility’s operation.

“They implemented CSR (corporate social responsibility), and paid other taxes under the law, but with respect to the royalty mandated by the IPRA (Indigenous Peoples Rights Act), there was none,” said in mix English and Filipino.

In December 2020, the Cordillera regional office of NCIP Cordillera regional office issued a show cause order stating why it should not be liable for violating Section 7b of IPRA. The provision says that indigenous peoples “have the right to benefit and share profits from allocation and utilization of their natural resources….”

Ignacio added that while the company and community signed an agreement in 2008, the provisions were vague and general.

“It does not contain the specifics like they will provide scholarship, but it was not stated how many, or provide waterworks; however, we do not know how much will the community receive for the project,” Ignacio explained.

“Pitiful, exploitative”

The elders called the company’s final offer of 3.25 centavos per kilowatt-hour (kWh) inclusive of the existing benefits the communities are receiving “pitiful and exploitative.”

“It is a mere pittance given the more than Two Billion Pesos annual revenues the company generates,” the Dec 2022 resolution stated.

“It’s far too low from the 9 centavos per kWh royalty that the community considers as equitable share in the operation of the Ambuklao HEPP computed against the actual energy production of the company as cab be verified on reliable records,” the elders said.

The Ambuklao HEPP’s annual average output is 289,000,000 kWh.

The resolution added that SNAPBI unjustly profited “at the expense of the impoverished community” for its rejection of their demand for a “reasonable royalty.”

Ignacio said the amount is meager compared to other community shares from HEPP in the province.

He cited that Hedcor Group, which operates three microHEPPs in Bakun municipality, agreed to increase the community’s share from one to 14 centavo kWh. The increase translates into an increase from P500,000 to almost P7 million annual share for the municipality.

“Our demand was much higher before. We started with P2.00, then brought it down to nine centavos,” the lawyer explained.

Hedcor is a subsidiary of AboitizPower in charge of operating 22 microHEPP in five provinces in the Philippines.

“The refusal of SNAPBI to formally file any application for the issuance of CP (Certification Precondition) that should have preceded the conduct of FPIC (free, prior and informed consent) negotiations shows that SNAPBI does not fully recognize the rights of the IPs of Bokod over their Ancestral Domain,” the resolution said.

“In good faith”

In an emailed statement, SNAPBI said they have engaged the community “in good faith and earnest negotiations for additional benefits.”

The company explained that their last offer, which they presented to the community on November 25 last year, “was open for further discussions.” They received information on January 6 of the communities rejection and a copy of the resolution of non-consent on January 12.

Constructed in 1950, the Ambuklao HEPP started its operation in 1956 with an initial capacity of 75 MW. The government decommissioned the facility in 1999. It was among the 19 power plants under the National Power Corporation privatized following the passage of the Electric Power Industry Reform Act in 2001.

SN Aboitiz Power took over Ambuklao HEPP in July 2008 and undertook extensive rehabilitation and upgrading of the facility, raising its power output to 105 MW. The company completed the renovation in 2011, and the operation commenced in the same year.

SN Aboitiz, a partnership between Norway-based Scatec and Aboitiz Power Corporation, owns and runs the Magat, Maris, Ambuklao, and Binga HEPPs, producing 633.5 MW of dependable capacity. # nordis.net