Pulangi 5 Exec Hits back VS. Critics, Opposition

By Ren Consul

CAGAYAN DE ORO CITY – The proponents of the Pulangi V hydro-electric plant project in Bukidnon province are saying that they can’t help but suspect that the opposition to the project is at “the behest of the coal industry.”

The opposition however said that what they want is just “to protect the rights of indigenous people in their ancestral lands.”

The proponents also accuse opposition to the project of doing their “noise” in favor of the coal-fired power plants being proposed in Mindanao. The Pulangi V project is a 300mw hydro electric power plant which is designed to contribute clean and cheap energy to Mindanao which is now on serious power crises.

“They are very rabid in attacking the project and yet use suave and sophistication in promoting coal-fired power plants in Mindanao,” said Butch Baz, manager of the Pulangi V Project Management Office.

The Pulangi V project is currently on its pre-development phase. It is being implemented by the First Bukidnon Electric Cooperative (Fibeco) and the Greenergy Development Corporation.

He added that the opposition “make no comment or criticism on coal-fired power plants, they just re-echo its advantages even in their website,” this time referring to some posts on coal-fired power plants in the website of the Legal and Natural Resource Center (LRC), one of the major groups that opposed the.

In an interview with officials of the LRC, they said that their intervention in the communities affected by the Pulangi V project is specific to “legal and technical services and advocacy support to protect their right to self determination.”
“We respect and will not intervene in the internal tradition process of the Lumads in coming up with a united stand on the Pulangi V issue,” said Karl Cesar Rebuta, Program Officer of the LRC.

Wilmar “Datu Bong” Ampuan,chairperson of Natabuk a Lumad federation, meanwhile told The Daily Corridor that there is currently a consensus of the tribal leaders to hold continuing dialogue on the issue and allow the conduct of the Environmental Impact Study of the Pulangi V.
“Bisan supak ako niini, ako kining respetuhan nga kasabutan,” Ampuan said.

Baz however said that the meddling of LRC and other outside groups have complicated the issue.

A thing Rebuta also accuse the project proponent. “Tungod sa ilang pagsulod, nag away ang mga Lumad.”

To this, Baz countered, “and why are they also meddling? Why are they supporting Ampuan who is now isolated in the Lumad community for walking out in a dialogue sometime last July 2010, simply because his personal stand was not supported by the other tribal leaders?” Baz told The Corridor.
He added that except for isolated cases like the case of Ampuan, there is no problem with lumad communities “which will be at the center of development in the implementation of the Pulangi V project,” Baz said.

He added that it would be interesting to know where the non-government organizations (NGOs) opposing the project are getting their foreign funding to bankroll what looks like an expensive and well-oiled campaign machinery against the project.

“Where have they received funding for said stronger campaign against renewable energy?” he asked out loud.

Baz also said that its critique, “a certain Wilmar “Datu Bong” Ampuan is guilty of sowing disinformation and is just sourgraping for being rejected by his fellow lumads in the traditional process of resolving some disagreements over the project.”

And he claimed that Ampuan himself opted not to respect the process being done by lumad communities in the affected barangays of the Pulangi V project when he walked out in one of the tribal dialogues sometime in July 2010.

 “How can Ampuan be the voice of the lumads when he isolated himself from the traditional processes and he even does not know his numbers or are just using these for disinformation,” Baz said.

Baz added that the affected area based on project design is only about 3,000 hectares and affected communities only about 1,000 households which shall enjoy full compensation and relocation assistance. (with report from BenCyrus Ellorin/PNN)

Weighing Mindanao’s power problems: The case for renewable energy (Last of 2parts)

by BenCyrus G. Ellorin

Last of 2 parts
Defined, renewable energy is:
“n. any naturally occurring, theoretically inexhaustible source of energy, as biomass, solar, wind, tidal, wave, and hydroelectric power, that is not derived from fossil or nuclear fuel.”

At the height of the power shortage this summer, I struck a conversation with a worried pregnant mother working in one of the coffee / internet shops in Cagayan de Oro’s Divisoria. A mother of two, and seven months pregnant, she was very anxious as her salary, very meager to start with, has been slashed to half for the simple reason that they only operated half-day because of the rotating brownouts.

That to me is the face of the power crises in Mindanao.

The 19th Edition of the Mindanao Business Forum which will convene in Cagayan de Oro on Sept. 18-19 will once again tackle the Mindanao power problem.

And I do agree that what we need now are new power plants. Some maybe surprised by this stand now, knowing that I had lead the community opposition of the last base load power plant that went online in the Mindanao grid, the Mindanao coal-fired power plant of Steag in Villanueva, Misamis Oriental a few years ago.

As memory refresher though, we were not saying then that power plants are not needed. We argued that the coal-fired power plant which they were rushing in order to fill the so called power shortage in 2002-2003 was not necessary and we argued then that there was still a window to tap clean and cheap renewable energy.

Based on 2005-2014 PEP, our energy generation will be negative compared to demand starting in 2012 and would reach a 500-megawatt deficit in 2014.

I reviewed the computations of the DOE and found out that unlike the high nine percent average GDP projection for the medium term planning period of 1995-2004, the current PEP used the average four percent GDP growth projection for the 2005-2014 planning period.

In the upcoming Minbiscon, I am sure that on the options menu to be offered to investors will be at least three coal-fired power plant.

There is no doubt, Mindanao needs new power generation plants. Aside from the fact that energy demand is increasing and no new power plant project was started in at least the last 10 years, our existing workhorses, the Agus and Pulangi hydro electric power complexes, are already aging. (Although the Steag coal plant started full operation in Nov. 2006, the project was started in 2000.)

I am sure spinners of the 200mw Conal coal-fired power plant in Maasim, Sarangani and another 300mw coal-fired plant being planned to be put up in Surigao City by Korean investors will make their pitch in the business conference. And I would not be surprised if the expansion by another 150mw the generation capacity of the 200mw Steag Mindanao coal-fired power plant in Villanueva, Misamis Oriental will also be presented, with Aboitiz Corp. as its would-be investor.

Already, Aboitiz owns 34 percent of the Steag coal plant. Aboitiz company by the way, is in an investment frenzy in the energy sector. They already acquired the power barges in Nasipit, Agusan del Norte and Maco, Compostela Valley with a total capacity of 100mw.
We should take note that the acquisition of the power barges, former baseload power plants of the National Power Corporation (NPC), by the Aboitiz-owned Therma Marine Inc. which now operates as ancillary service providers in cahoots with the National Grid Corporation of the Philippines (NGCP), has been blamed for the almost 100-percent increase of power rates in Mindanao at a time that power supply service was at its worst.

But there should be no mistaking about these things, Mindanao really does not need those expensive and dirty fossil fuel-based power plants. It has vast renewable energy reserves with over a thousand megawatts from hydros, about 400mw from wind and unexplored potential in solar power.

In the pipeline are at least two big hydro power plant projects, the 300mw Pulangi V in the boundary of southern Bukidnon and North Cotabato and the 132mw Bulanog-Batang run-off the river (no dam) power plant in the Cagayan de Oro river. Several smaller hydro plants are being planned in Bukidnon, Compostela Valley and Zamboanga Sibugay.

Lately, non-government organizations (NGOs), among them the Freedom from Debt Coalition, have questioned the claim of power shortage in the island. It would be interesting to browse over the data set they are using to come up with such a claim.

But judging from their arguments, they seem to be echoing the arguments we were using in opposing the Mindanao coal-fired power plant about 10 years ago. Well, I do not want to be presumptuous but they owe it to the public to explain fully how they came up with those conclusions. Otherwise, we can surmise that they are just unnecessarily rabble-rousing.

I understand, they are using the argument of defective energy demand projection to boost opposition to the proposed power plants like the 300mw Pulangi V.

This is dangerous to say the least, as unlike in the 1998-2003 period when we campaigned against the building of the Steag Mindanao coal-fired power plant, we are now having load-shedding, proof of actual power crises.

Even Mayor Romy Tiongco of Damulog, Bukidnon is saying that framed on the greater interest of Mindanao, the Pulangi V project is very necessary. He also believes that the social issues levied against the Pulangi V project can be and should be mitigated. Those who know the mayor, a former priest and still a social activist even as a local politician, will have no doubt that he had thought of his stand quite thoroughly with the interest of the lumads and other communities to be affected in mind.

I do propose however for an inclusive and informed dialogue on the Pulangi V issue. It still remains to be seen if those who are opposing the project which have external support from NGOs like the Legal and Natural Resource Center (LRC) are willing to sit down to a dialogue with other power stakeholders.

I have met with officials of Pulangi V proponents in at least two occasions, during the power consumer forum organized by the Apostolate for Good Governance of the Archdiocese of Cagayan de Oro sometime last June and in the Alumni Homecoming of the St. John Vianney Seminary and I am of the impression that they are willing to reach out to all power stakeholders in the island.

Early on, I would have to ask the opposition of renewable energy projects like the Pulangi V if they have the same argument against the proposed 200mw coal-fired power plant in Maasim, Sarangani, the 150mw expansion of the Mindanao coal-fired power plants and the one planned in Surigao City?

On the other hand, saying that coal is cheap is false. Like crude oil, it is not insulated from the volatile price behavior of crude oil.

At the height of the crude oil price rise in 2008, reaching up to U$147 per barrel, the price of coal also rose from below U$50 per ton to over U$100 per ton.

This reality should prod our decision makers and power stakeholders to seriously pursue renewable energy development in Mindanao. And for businessmen to realize that investing in renewable energy is good not just for their profit bottomline but also to their social and environmental bottomlines.

Supporting renewable energy serves the long term interest of the consumers and business which will enjoy cheaper energy rates and addresses issues of climate change mitigation.

Renewable energy simply means cleaner, healthier and more productive Mindanao.
(Comments can be sent to bency.ellorin@gmail.com.)

Weighing Mindanao’s power problems and options (First of 2 Parts)

by BenCyrus G. Ellorin

CAGAYAN DE ORO CITY (MindaNews/14 September) — Monday’s 9-hour brownout in southern Mindanao and parts of northern Mindanao was part of the power problem of Mindanao, the incompatibility of the transmission system between these two regions of the island.

More than 10 years ago, we have argued that to solve the immediate power problem in the island, a power plant needs to be put up in southern Mindanao and the upgrade of the Mindanao grid transmission system should be done in earnest.
Solid economic growth in southern Mindanao anchored on the two growth areas in Davao City and the Socksargen area (South Cotabato, Koronadal, Saranggani, General Santos) has made it a net importer of power from northern Mindanao, which hosts the powerhouse of the island, the Agus hydroelectric complex cutting across Lanao del Sur and Lanao del Norte and the Pulangi IV hydroelectric plant in Bukidnon.

The context of our argument at that time is the timeliness and location of the 200-mw Mindanao coal-fired power plant in Villanueva, Misamis Oriental which was proposed then.

For starters, bringing in power to southern Mindanao from the Mindanao grid hub in Lanao del Norte is very costly as it needs the use of expensive transformers, not to mention the high power dissipation rate caused by reducing power from the 230-kilovolt transmission lines in northern Mindanao to the 130-kv transmission lines in the southern part of the island.

It is like transferring water from a 12-inch pipe to an eight-inch pipe.
But upgrading Mindanao grid’s power transmission lines is just one of the issues of the Mindanao power problem. The bigger problem is what to put in those transmission lines from generating plants.

About 10 years ago, we argued that Mindanao does not need the 200-mw Mindanao coal-fired power plant in Villanueva, and even pointed out that the plant, one of the controversial contracts signed with Independent Power Producers (IPP) at the close of the Ramos administration, is not necessary.

In 2003, we come up with a study arguing that the Philippine Energy Plan of the Dept. of Energy (DOE-PEP) covering 1995-2004 was faulty and that the projected power shortage in the island was not coming in the next six to 10 years.

Moreover, with global warming and upward volatility of fossil fuel prices in the world market (i.e. crude, coal, diesel), there is still enough time to build renewable energy sources like hydro electric power plant, work on the expansion of the Mt. Apo Geothermal Complex and the Leyte-Mindanao inter-connection which would primarily tap the surplus energy generation capacity of the Leyte Geothermal complex.

The study commissioned by the World Wildlife Fund’s (WWF) Powerswitch campaign done by economist Maitet Diokno agreed with our critique of the DOE-PEP energy demand forecasting method which was based on the elasticity of aggregate economic indicators.

They computed the medium-term demand based on projected Gross Domestic Production (GDP). For its 1995-2004 medium-term energy planning, the DOE used the 9-percent projected GDP growth + 1 (elasticity) to come up with the projected increase in energy consumption.

This formula is very defective on at least two counts: 1) the 9% average GDP growth for the planning period is “overbullish;” and 2) an increase in GDP does not necessarily result in increased power consumption.

Even Ramos’ NEDA director general Dr. Cielito Habito agreed with us when we had a “Power Forum” to present our critique of the faulty DOE energy planning methodology, at Xavier University in 2004. He admitted that they tended to do “over bullish economic growth forecasting” in order to create the impression on the international community that the country has sound economic fundamentals.
And if you look at the actual economic growth rate in the 1995-2004 period, the GDP was actually just between four and six percent.

Measuring consumption patterns based on aggregate economic indicators like GDP has been very tricky. We were taught by the books and in economics classes that economic growth, as measured by GDP and GNP for example directly influences per capita consumption which in turn results in increased use of energy.

But this is not the case for export-oriented, import dependent economies like the Philippines. In fact, one economist noted that a percentage point increase in GDP actually redounds to an eight- to nine-percent increase in real poverty rate. (Gonzales, Ernesto, 2005)

In our research on actual installed generation capacity in Mindanao from 1990 to 2001, we found out that it was only in the later part of 1993 to the early part of 1994 that there was an actual shortage of power in Mindanao. This was used by President Ramos in declaring a power crisis and signing expensive IPP contracts.
Although the 200-mw Mindanao coal-fired power plant of the Steag only went on full operation in Nov. 15, 2006, the power plant was originally planned to fill in power gaps in the 1995-2004 period.

Having said this, in the last 15 years or so, no significant power generation plant entered the Mindanao Grid except the Mindanao coal-fired power plant. (Next, The need for renewable energy generation plants) MindaViews is the opinion section of MindaNews. Comments can be sent to bency.ellorin@gmail.com]

Pulangi Hydroelectric Plant to be Implemented in 2011

KITAOTAO, Bukidnon – The proponents of the Pulangi V Hydro Electric Plant (HEP) project in Bukidnon is expected to be implemented in 2011 and hopes to contribute to the long-term solution to the power shortage being experienced in Mindanao.

Engineer Cerael Donggay, chief executive officer of Greenergy Development Corporation, said that despite minimal funding, the pre-development phase is going very smoothly that many foreign and local investors are strengthening commitments to fund this $300-million project in the future.

“There are many short and medium-term projects in the pipeline, but what makes Pulangi V different is that it is renewable energy, it will generate very cheap power and its project proponents have integrated social and environmental safeguards as early as the project pre-development stage,” he said.

Donggay said that with the predevelopment phase going smoothly, many foreign and local investors have signified their interest in the project.

He said that with the urgency of solving the power problem in Mindanao, the project could be fast-tracked to four years. Hydroelectric plants usually take five years to construct.

According to research released by the Pulangi V Management Team in March 2010, Pulangi V Hydro will avoid burning 1,882,500 barrels of fuel oil for power and help save the Philippines some P10.95 billion per year.

Engineer Raul Alkuino, president of the First Bukidnon Cooperative (Fibeco), said that the pre-development stage of the project is progressing very well.

He also said that they are addressing the “minutest details” as far as social and environmental impact of the project is concerned.

Of the 22 communities affected, 18 have already given their support.

These communities are in the Bukidnon towns of Kitaotao, Kibawe, Dangcagan, and Damulog and Roxas in North Cotabato.

Clean and Cheap Solution to Mindanao Power Crises Pulangi V Hydro Project On Track

KITAOTAO, BUKIDNON – The regular rotating brown-outs may be over, El Nino droughts may have gone, but the threats of more severe power shortage and even climate change induced floods still hangs over our heads.

The proponents of the Pulangi V Hydro Electric Plant (HEP) project in Bukidnon hopes that the project which is expected to start construction in 2011 will contribute to the long-term solution to the power shortage being experienced in Mindanao.

Designed to generate 300 mw of power into the Mindanao power system or1,256 giga watt hours of cheap renewable energy nationwide, the Pulangi V HEP will provide as much as 60% of the projected power shortage in Mindanao in 2014 and onwards. Energy demand forecasts by the Dept. of Energy (DoE) project a 500mw shortfall in 2014 if no new power plants are constructed.

“There are many short-term and medium projects in the pipeline, but what makes Pulangi V HEP different is that it is renewable energy, it will generate very cheap power and its project proponents have integrated social and environmental safeguards as early as the project pre-development stage,” said Engr. Cerael Donggay, Chief Executive Officer of Greenergy Development Corporation.

Donggay said that despite minimal funding, the pre-development phase is going very smoothly that many foreign and local investors are strengthening commitments to fund this $300million project in the near future.

Located in the heart of Mindanao island, the Pulangi River stretches a 320km distance and is considered the second largest river system in the Philippines. It is the longest river in Bukidnon and crosses a majority of its cities and municipalities.

“Pulangi River is one of the largest rivers in the Philippines and luckily, it is situated in Mindanao. The power that can be harnessed from this great river thru Pulangi V Hydro, is a form of ‘Gold’ for Mindanaoans. It is our golden ticket to social and economic progress,” said Donggay.

Donggay is a former vice president of the National Power Corporation and one of the pioneers in large-scale renewable energy generation in the Philippines as one of the founders of Northwind that now operates the country’s first wind farm in Ilocos Norte in Northern Philippines.

According to research released by the Pulangi V Management Team in March 2010, Pulangi V Hydro will avoid burning 1,882,500 barrels of fuel oil for power and help save the Philippines P.10.95 BILLION per year.

Engr. Raul Alkuino, President of the First Bukidnon Cooperative (Fibeco) said that the pre-development stage of the project is progressing very well. Of the 22 communities affected, 18 have already given their support. These communities are in Bukidnon towns of Kitaotao, Kibawe, Dangcagan and Damulog, and Roxas in North Cotabato. In the next one or two months, we shall be able to get 100 percent approval.

Already, newly elected Bukidnon Governor Alex Calingasan registered his support to the project.

Damulog Mayor Romy Tiongco said that he is very supportive of the project on one condition that the concerns of the affected lumads shall be addressed.

“So far, I have seen the sincerity of the project proponents in addressing the concerns of the affected communities,” added Tiongco, a former priest and social activist.

Alkuino said that they are addressing the “minutest details” as far as social and environmental impact of the project is concerned.

Butch Baz, manager of the Project Management Office said that since they started the pre-development stage of the project, they have already conducted more than 200 community consultations.

Donggay said that with the pre-development phase going smoothly, many foreign and local investors have signified their interest in the project.

He said that with the urgency of the power problem in Mindanao, the project could be fast-tracked to four years. Hydro electric plants usually take five years to construct.

New Bukidnon Gov Favors new Pulangi Dam Project

MALAYBALAY CITY (MindaNews/29 June) – Bukidnon’s new governor has underscored his support to environmental protection by pledging to increase the allocation for the Mt. Kitanglad and Mt. Kalatungan natural parks from P1 million to P2-3 million each. At the same time, however, he said he favors the construction of the Pulangi V hydropower dam in southern Bukidnon as well as small-scale mining operations.

Calingasan ignored criticisms to the dam project, saying the economic benefits far outweigh the impending displacement of Lumad communities.

“It (displacement) is being addressed. It can be talked about,” he said.

He added the new hydroelectric power facility will bring cheaper power and attract investors to Bukidnon.

As long as the project goes through democratic consultations it should be pursued, he told MindaNews after talking to executives from Bukindon’s two electric cooperatives.

Calingasan also said he will review the provincial government’s policy promoting small-scale mining.

“I am still agreeable to small-scale mining, on certain conditions,” he said.

He noted that most of the mining exploration proposals are pushed by the Lumad communities themselves.

“We will have to assess if this really benefits them as a whole or just the few dealers,” he said.

But Calingasan refused to issue a statement on the proposed moratorium on the expansion of banana plantations. He said he will leave it to the municipal and city mayors to decide.

“They too are empowered to decide on this and they too know that the people need to balance between food security (and export crops),” he said, adding he would make environmental conservation and protection a leverage for provincial government support to local governments.

He said he will continue outgoing Gov. Jose Ma. Zubiri’s program to provide Bukidnon’s 464 barangays with funding support for road projects but only if they commit to turn their landscape into green.

But when reminded of the violations done by companies in Bukidnon against the terms of their environmental compliance certificates, Calingasan said: “As to the environmental concerns, that is where the people will come in. They will have to be vigilant,” he said.

In public functions shortly before assuming his new post, Calingasan also said he will fine-tune his predecessor’s programs and projects.

In his one-hour inaugural speech yesterday, he said his priorities in his first 100 days include streamlining the “over-staffed” provincial government workforce, noting that with its 2,323 workers it is employing more people than the big firms in the province.

The Capitol has at least 1,000 casual employees.

Calingasan said he has instructed the Human Resource and Personnel Office chief to evaluate the performance and tenure of the employees as basis for retention or termination.

The new governor also outlined his programs for agriculture and real property tax collection. He said he will assign more work to the Provincial Agriculture Office, which he said was sidelined in the past administration.

The Kaamulan Festival did not escape Calingasan’s attention. He promised to review the holding of the annual fanfare which critics said has become too commercialized and an affront to Bukidnon’s cultural heritage.


(Walter I. Balane/MindaNews)

Pulangi 5 Hydro Power Project Crucial to Mindanao Development

By RUEL V. PELONE, Online Editor

PROPONENTS of the Pulangi 5 hydro electric project in Bukidnon are now turning the table to the oppositors of the project saying the group is undermining the economic development of Mindanao.

“The social impact of the project is minimal, but it’s impact on Mindanao’s economy is enormous,” said Romulo Baz, Pulangi 5 Project Management Office manager.
Baz said the project’s pre-development company Greenergy Development Corporation is now implementing a “responsive and sensitive social program.”

“In the one year that we have implemented the pre-development phase of the Pulangi 5 project, we have conducted more than 200 community consultations, with special attention on the concerns of the Manobo indigenous people,” Baz said.

Relocation and sustainable livelihood shall be provided to affected residents in the areas affected by the project. “We will not only provide them with homelots and farmlots, but shall also provide high value farm inputs to the affected residents,” Baz added.

Their objective he explained is not just to give equal livelihood opportunity to the affected residents but improve their lives. Aside from compensation based on the fair market value of the lands, each family shall be reserved a slot in the construction work, will be allowed to till their lands while construction is ongoing and at the same time be provided with high value farm inputs like abaca and rubber.

“While the construction goes on for 5 years, the affected farmers shall be allowed to till their lands and at the same time given support to develop their new farms. When the project is finished their rubber are already productive, for example,” Baz explained.
It is definitely a win-win situation for all,” he added.

The 300 megawatt Pulangi 5 hydroelectric plant is reservoir-type dam. Actual displacement shall happen when the dam is finished and they start flooding the reservoir area.

Engr. Cerael Donggay, President and CEO of Greenergy said that the welfare of the affected residents and the whole island of Mindanao is on top of their intentions in pushing the project. “Mindanao cannot develop with the current power infrastructure and supply that we have,” said Donggay.

He also wasn’t able to hide his displeasure to the opposition to the project which he said “are not being truthful.”

The non-government organization Legal and Natural Rights Resource Center (LRC) has registered opposition to the project. Published reports of the opposition cited among others the displacement of more than 3,000 households and inundation of 78,000-ha by the project.

Donggay said that these figures are “outright lies.” Based on their field validation he said only 1,060 households will be directly affected and the flooded area for the plant’s reservoir would only 3,300-ha.

Baz said the figures of LRC and other oppositors “pure fiction.” The total land area of the 22 barangays to be affected by the Pulangi 5 is only about 30,000 hectares and only about a 10th of it will be flooded for the reservoir.

BusinessWeek Mindanao tried to contact LRC for their side of the story but got no response as of press time.

The Pulangi V hydroelectric project, the affected families of the proposed project in the areas of Kibawe, Kitaotao, Dangcagan and Damulog in Bukidnon and Pres. Roxas in North Cotabato shall be relocated in housing areas and shall have livelihood program.

Baz, said each housing area shall have access and subdivision roads, electric lines, water system, community center, chapel and tribal halls. Beneficiaries of these are both landowners and tenants whose lands and houses would be disrupted by the said project.

Also, part of the livelihood program for the affected communities include agro-forestry, such as the planting of rubber and fruit trees, engagement in freshwater fisheries, as well as, the development of tourism to generate income for these families, according to him.

Despite objections from NGOs, the Pulangi 5 project has already gained the endorsement of 18 out of the 22 barangays to be affected by the project. The proponents are confident, they get the remaining four endorsements in the next two months.

On the other hand, the 300 megawatt hydroelectric plant is seen to provide clean source of energy that can help solve the power shortage in Mindanao in the next years, as claimed by the Project Management of the Pulangi V HEP.

*Published on BusinessWeek Mindanao. 7 June 2010.

FASTLANES: Renewables, best solution to Mindanao power crisis (2)

By BenCyrus G. Ellorin
(Last of two parts)

CAGAYAN DE ORO CITY (MindaNews/05 June) – Sound management of the power industry starts with good medium and long-term planning.

Short term solutions are expensive economically, socially and environmentally.

Many argue that the construction cost per megawatt ratio of dirty coal and expensive oil-fed generators is lower compared to renewable energy, but in the long term these non-renewables are still more expensive on two counts: 1) The cost of producing power for coal and oil is very expensive as it is dependent on the upward movement of the fossil fuel prices in the world market; and 2) burning fossil fuel drives global warming and climate change, aside from it noxious pollution. A 2003 study by the European Commission revealed that the external cost of using coal as fuel is four times the profits reflected in the balance sheets of coal plant owners.

They concluded that for every dollar of profit, society is left to pay an equivalent of U$4 in terms of cost of damage brought by global warming, health risks due to pollution, soil degradation due to pollution, acid rain, among others.

These realities should encourage our power planners and stakeholders in the energy sector to look for cleaner and cheaper sources of power.

Engr. Cerael Donggay, President and CEO of Greenergy Devt. Corporation said that quick fixes in the power industry is costly to the consumers and the environment.

“The twin evils of short term non-renewable energy solutions are high cost of power and environmental damage like global warming,” said Donggay who is one of the founders of Northwind. Northwind owns the country’s first wind energy farm in Ilocos Norte.

The brown outs due to supposed power shortage in Mindanao this year has underscored the need for the power industry to get it act together, albeit not in a business as usual setting.

Pushing for renewable sources of energy should be done in earnest now and there should no longer be any pussy footing on pipeline hydro electric projects like the132-megawatt run-off the river Bulanog-Batang hydro electric power plant in Besigan, Cagayan de Oro and Talakag, Bukidnon. Another hydro electric project that needs urgent pushing is the 300-megawatt Pulangi 5 hydro electric power plant in southern Bukidnon and North Cotabato.

The Bulanog-Batang project already has an investor, the Fortune 500 listed American Engineering Services, while the Pulangi 5 hydro electric project is now in the social preparation phase.

As of this year, technically, Mindanao still does not have shortage of power generating capacity, at least on paper.

Data from the Dept. of Energy indicate that the island still has generation reserve of about 7%. At this level though, the power situation of the island is very vulnerable to external factors like the El Nino phenomenon which brought draughts. Ideally, the reserve power to be dependable is pegged at 13-15% of the peak demand.

Despite the warnings in 2009 of an El Nino episode this year, the National Power Corporation which owns and manages the Agus and Pulangi hydro electric plants wasted the water reserves, the renewable fuel of hydro power plants, by releasing what they thought was excess water from Lake Lanao.

This is something that CEPALCO vice president Engr. Dave Tauli behemently protests as very irresponsible. It is tantamount actually to economic sabotage.

The contribution of hydro electric power in the Mindanao grid has reduced sharply in the last 20 years, from 95% to its current contribution of about 20%.

This has resulted in high power costs in the island as the increased dependence on global warming fossil fuels exposed our electricity bills to the skyrocketing prices of oil in the world market. The worse was in 2008 when crude oil prices spiked to U$147 per barrel. It had since then settled to U$70-80/ barrel, but still way above the U$40/barrel in 2004.

Coal, the dirtiest of the fossil fuels, although cheaper than its liquid counterparts is no better as its price behaviour is largely influenced by the crude prices. From U$40-50 per ton in 2007, it breached the U$100 mark at the height of the oil price crises in 2008.

The renewable energy potentials of Mindanao is enourmous and there is no reason to rush on proposed dirty coal-fired power plants like the one pushed in Saranggani province.

The National Renewable Energy Laboratory has listed 98 potential sites for small hydro electric power plants in Mindanao with a total capacity of 826-megawatts. Wind energy is not far behind with 47 potential sites in Mindanao with potential generation capacity of 336-megawatts. Solar energy has demonstrated its viability in the 1-megawatt photovoltaic power plant owned by a CEPALCO subsidiary in Indahag, this city.

You add the potential renewable energy sources with pipeline projects like the Bulanog-Batang and Pulangi 5 hydro electric plants, and we are actually seeing a potential addition of 1,500 megawatts of power for Mindanao in the medium term.

This is more than the forecasted power generation requirement of 2,600 megawatts by 2014. The current capacity of the Mindanao power generation plants is about 1,900 megawatts. (MindaViews is the opinion section of MindaNews. Comments can be sent to bency.ellorin@gmail.com).

*Published on Mindanews, Sunday, June 6, 2010.

Pulangi 5 Hydro Allay Fears From Residents

By Stan Salcedo

PROPONENTS of the Pulangi 5 hydroelectric plant allay fears by residents to be affected by the project in southern Bukidnon and North Cotabato.

Officials of the project's pre-development company Greenergy Development Corporation said that the social impact of the project is minimal and its impact on the economic development of power-hungry Mindanao is enornous. .

Pulangi 5 Project Management Office Manager Romulo Baz said that as early as now, they are implementing a "responsive and sensitive social program."

"In the one year that we have implemented the pre-development phase of the Pulangi 5 project, we have conducted more than 200 community consultations, with special attention on the concerns of the Manobo indigenous people," Baz told The Daily Corridor.

Relocation and sustainable livelihood shall be provided to affected residents in the areas affected by the project. "We will not only provide them with homelots and farmlots, but shall also provide high value farm inputs to the affected residents," Baz added.

Their objective he explained is not just to give equal livelihood opportunity to the affected residents but improve their lives. Aside from compensation based on the fair market value of the lands, each family shall be reserved a slot in the construction work, will be allowed to till their lands while construction is ongoing and at the same time be provided with high value farm inputs like abaca and rubber.

"While the construction goes on for 5 years, the affected farmers shall be allowed to till their lands and at the same time given support to develop their new farms. When the project is finished,their rubber are already productive, for example," Baz explained.

It is definitely a win-win situation for all," he added.

The 300 megawatt Pulangi 5 hydroelectric plant is reservoir-type dam. Actual displacement shall happen when the dam is finished and they start flooding the reservoir area.

Engr. Cerael Donggay, President and CEO of Greenergy said that the welfare of the affected residents and the whole island of Mindanao is on top of their intentions in pushing the project. "Mindanao cannot develop with the current power infrastructure and supply that we have," said Donggay.

He also wasn't able to hide his displeasure to the opposition to the project which he said "are not being truthful."

The non-government organization Legal and Natural Rights Resource Center (LRC) has registered opposition to the project. Published reports of the opposition cited among others the displacement of more than 3,000 households and inundation of 78,000-ha by the project.

Donggay said that these figures are "outright lies." Based on their field validation he said only 1,060 households will be directly affected and the flooded area for the plant's reservoir would only 3,300-ha.

Baz said the figures of LRC and other oppositors "pure fiction." The total land area of the 22 barangays to be affected by the Pulangi 5 is only about 30,000 hectares and only about a 10th of it will be flooded for the reservoir.

The Daily Corridor tried to contact LRC for their side of the story but got no response as of press time..

The Pulangi V hydroelectric project, the affected families of the proposed project in the areas of Kibawe, Kitaotao, Dangcagan and Damulog in Bukidnon and Pres. Roxas in North Cotabato shall be relocated in housing areas and shall have livelihood program.

Baz, said each housing area shall have access and subdivision roads, electric lines, water system, community center, chapel and tribal halls. Beneficiaries of these are both landowners and tenants whose lands and houses would be disrupted by the said project.

Also, part of the livelihood program for the affected communities include agro-forestry, such as the planting of rubber and fruit trees, engagement in freshwater fisheries, as well as, the development of tourism to generate income for these families, according to him.

Despite objections from NGOs, the Pulangi 5 project has already gained the endorsement of 18 out of the 22 barangays to be affected by the project. The proponents are confident, they get the remaining four endorsements in the next two months.

On the other hand, the 300 megawatt hydroelectric plant is seen to provide clean source of energy that can help solve the power shortage in Mindanao in the next years, as claimed by the Project Management of the Pulangi V HEP. PNN

*Published Frontpage on The Daily Corridor, June 2, 2010 / The Daily Corridor is a member of the Periodico News Network

FASTLANES: The Power Dilemma in Mindanao (1)

By BenCyrus G. Ellorin | Friday| June 4, 2010

1st of 2 parts

CAGAYAN DE ORO CITY (MindaNews/2 June) — The rotating brown out at the height of the El Niño drought has highlighted the very bad management of Mindanao’s power industry.

Such mismanagement can go as high as Malacañang. Despite all its pronouncement of putting Mindanao as priority development area, the nine-year Gloria Macapagal-Arroyo regime has failed in putting one of the most basic economic infrastructure — power generation.

Although she may be credited for closing the deal with financiers of the only power plant to augment Mindanao’s ageing hydro-electric power plants, the 200-megawatt dirty coal-fired power plant of Steag in Villanueva, Misamis Oriental in 2003, at best GMA’s role was ceremonial as the contract for the said Independent Power Producer was signed during the Ramos administration, with Mindanaoan Guido Delgado still president of the National Power Corporation.

I was at the helm of the opposition to the Steag coal-fired power plant and even brought our campaign right at the doorsteps of the international banks that financed the project, in the KFW headquarters in Bonn, Germany and the JBIC in Tokyo. Our argument then was that the construction of the coal-fired power plant entails a lot of social and environmental cost. We had batted then for cleaner sources of energy like hydro, wind, modern bio-mass and solar.

Of course, all is bridge over troubled water now and for development of the island to push, we need additional sources of energy. There are many offers, especially from the dirty coal and expensive petrol-based generators. Two clean options however are on the starting block and may have to be given the much needed go signal as soon as possible.

These are the 132-megawatt Bulanog-Batang hydroelectric plant in Besigan, Cagayan de Oro and Talakag, Bukidnon and the 300mw Pulangi 5 hydroelectric project in southern Bukidnon and North Cotabato. It was learned that the pre-development phase of the Bulanog-Batang project is already finished and the American Engineering Services, a Fortune 500 listed company, is getting ready to hit the ground running for the $300-million project.

The Pulangi 5 HEP, I was told, is almost done in its social preparations and pre-development stage and may start breaking ground in 2011.

With the power crises in Mindanao hitting a high note this summer with those 5-hour daily brownouts, many people are asking me what I thought of the power situation and whether our arguments 10 years ago about the power situation in Mindanao are still valid.

I would have to say that our critique before on the power demand forecast were right. Based on the Department of Energy’s forecast from 1995 to 2005, the power demand for Mindanao would increase by 9-11% per year. They based it on a Gross Domestic Product (GDP) + 1 formula, or to put it simply, if the GDP is 9%, the projected increase in power demand would be 10%. This of course is very faulty and inaccurate as the GDP rate was based on the medium term forecast which former NEDA head Dr. Cielito Habito said was almost always over-bullish as government economic planners want to project a robust economy to impress investors.

But real GDP for that period was 3-7%. Theoretically, there should be no power supply shortage even if no power plant goes online at that time.

Now, could it still be said of the present? I would say that the critique still stands, but we have to factor in the actual situation of existing power plants.

In the 1980s to the early ’90s, Mindanao was fed 95% by hydroelectric power from the Pulangi and Agus hydroelectric power complexes. It came down to 60% towards the close of the millennium and at present the hydroelectric plants can only supply a low of 20% to 30%. Although technically, the installed capacity of these plants can still be at 60% of the power demand. External factors like droughts and lowering water levels in the plants due to poor watershed management have resulted in drastic decrease of dependable capacity from these hydro plants.

The result of this power industry problem are twofold — brownouts and high power rates.

It is ironic that power rates have gone up despite brownouts which naturally redounds to lesser power consumption.

Mindanao’s power generation mix is hydro, geothermal, coal, bunker fuel and diesel.

While hydro is very cheap at below P4 per kilowatt of generated power, bunker and diesel are ranging from P14-20/kilowatt. Which means decrease in cheap hydro and increase in bunker and diesel equals high generation cost. Which is why when the electricity bill comes into our homes, despite the brownouts, we owe more to our utilities. (Part 2: The renewable solutions)

(The writer is a community organizer, environmentalist and peace advocate based in Cagayan de Oro City, Philippines. Comments can be sent to bency.ellorin@gmail.com.)


*Published on Mindanews, Friday, June 4 2010

Pulangi 5 Seen To Solve Mindanao Power Crisis

By Ren Consul and Stan Salcedo

PROPONENTS of the 300 megawatt Pulangi Hydroelectric Project in Bukidnon claimed that the project would substantially lessen Mindanao's power shortage in 2014.

The Pulangi V Hydroelectric Project also claimed that social preparations for the project is already 80% done. 18 out of the 22 barangays that will be affected by the project have already given their endorsement. At this phase, the proponents are confident that construction of this vital power infrastructure shall start in 2011.

By 2014, Mindanao is projected to have a power shortage of about 500mw. The PMO of the Pulangi V HEP said in Tuesday's meeting that the said 300 MW hydropower is seen to decrease the shortage by more than half.

The proposed Pulangi V hydroelectric project (Pulangi HEP), which uses water pressure to generate electricity, is seen as a much better option to “dirty” power sources like coal and fossil-fuel according to Engr. Cerael C, Donggay, President of the Greenergy Dev't. Corporation.

Hydroelectric power as “renewable energy “ source will not also contribute to global warming since it is not emitting carbon gases to the atmosphere, according to him.

Romulo T. Baz, Manager of the Project Management Office of Pulangi V HEP said that their social program is very "responsive and sensitive to the issues raised by the affected communities."

He added that they are tediously consulting the communities especially the Lumads in the area to mitigate whatever social impact the project will bring.

The barangays that have yet to issue formal endorsement to the project are San Vicente in municipality of Dangcagan and Magsaysay, Pinamula and Sanipon in municipality of Kibawe. As of April 31 this year, there are already 18 barangays out of 22 from Bukidnon and North Cotabato provinces have already given their endorsements, these communities are situated where the project will be established.

These endorsements are necessary to end the project’s predevelopment phase, which is eyeing a closure this year, in order to proceed to begin its construction targeted next year that will end in 2016.

Donggay said that this development is a good indication that these communities are opening up for dialogues and negotiations to come up with a win-win solution.

“We are ready for the position to accept endorsement, maybe within two months,” he said.

He however expressed disappointment over the "exaggerated" claims of those opposing the project. "We do not understand why they are claiming that project will affect 78,000 hectares, when the total area of the 22 barangays to be affected is only about 30,000 hectares."

He said that the reservoir will only submerge 3,300-hectares and that most of these areas are sparsely populated.

If finished, the project will substantially provide much needed respite to the power crises in Mindanao. It could give about 60% of the overall power shortfall in the island.

Donggay also added that they are all pulling all resources with local and foreign investors to help out on the $900 million project.

The Pulangi V project started out as a feasibility study done by then National Power Corporation (Napocor), eyeing a potential Builld-Operate Transfer scheme for bidding in 1998. However, due to the Asian financial crisis, many Mindanao industries shut down, and the Mindanao demand for power dropped.

Napocor opted to leave the development of the Pulangi V hydro project to the private sector in the light of the passage of the Electric Power Industry Reform Act (Epira) in 2001.

Responding to the call of the Department of Energy (DoE) for the private sector to invest in power generation facilities, Greenergy Development Corporation, initiated and encouraged Electric Cooperatives to start securing future power by investing on power generation facilities.

The passage of RA 9513, known as the Renewable Energy (RE) Act of 2008 to promote development of renewable energy sources such as Hydro power, gave way for incentives towards private entities who will initiate in RE developments.

Greenergy is in full gear in the predevelopment of the Pulangi V hydro project together with the First Bukidnon Electric Cooperative (FIBECO) to address and avert the power crisis in Mindanao. PNN

*Published Frontpage, The Daily Corridor, June 2, 2010 / The Daily Corridor is a member of the Periodico News Network

$27-million Hydropower Plant Set To Be Completed in Bukidnon

By MIKE U. CRISMUNDO

BUTUAN CITY – A $27-million hydropower pre-development project in Pulangi, Bukidnon province is set to be completed soon, officials said Wednesday.

The hydropower plant is part of the $900-million proposed 350-megawatt dam power development project in Pulangi river in Bukidnon.

If the project is fully utilized, residents in Mindanao may soon get a relief from the rotating brownouts, officials said.

Initially, the pre-development of the project is almost finished, said Engineer Cerael C. Donggay president of Greenergy Development Corp. (GDC), and overall manager of Pulangi 5 hydropower plant project.

"The project is seen to provide long-term renewable energy resources that would benefit all people of Mindanao," said Donggay.

Investors in these power projects are the Zhe Jiang Corp. of China and Applied Engineering Services based in the United States.

The Pulangi 5 hydro-electric power plant is also a joint project of GDC and First Bukidnon Electric Service Cooperative (Fibeco).

Pulangi River in Bukidnon province is a tributary of the Rio Grande of Mindanao. It has a length of 320 kms from its source in Barangay Kalabugao, in Impasug-ong town, Bukidnon, which is the longest river in Bukidnon.

According to Donggay, the power plant will provide much cheaper generation cost at only P4/kwh.

The Pulangi power development project will also benefits the village folk especially the indigenous people (IPs), providing them job opportunities, agricultural and livelihood training, and provision of free seedlings of rubber, coffee, abaca fruits and bamboo, Donggay said.

"The six-year power development project in the area will add livelihood to the villagers such as duck production and tourism-related job opportunities,” added Donggay.

*Published on Manila Bulleting Publishing, June 2, 2010, 4:53pm.

Hydropower Plant Project Kicks Off

By Nicole J. Managbanag

RESIDENTS in Mindanao may soon get a relief from the rotating brownouts as the proposed US$900 million Pulangi 5 Hydro-electric power plant project will kick off soon.

Engineer Cerael C. Donggay, president of Greenergy Development Corp. and over-all manager of Pulangi 5 hydropower plant project, said pre-development of the project is almost finished, costing US$27 million, after which construction of the 350-megawatt dam would follow.

"The project is seen to provide long term renewable energy resources that would benefit all people of Mindanao, even those indigenous peoples (IPs) who will be affected by the project," Donggay said.

He said investors are already starting to pour in their investments. Among these are the Zhe Jiang Corporation of China and Applied Engineering Services based in the United States.

The Pulangi 5 Hydro-electric power plant, a joint project of Greenergy Development Corporation and First Bukidnon Electric Service Cooperative (Fibeco), will source its water from the Pulangi River, considered as one of the tributaries of the Rio Grande of Mindanao. It has a length of 320 kilometers from its source in Barangay Kalabugao, Impasug-ong, Bukidnon, which is the longest river in Bukidnon, and traversing majority of its cities and municipality.

The project, Donggay said, is seen to provide much cheaper generation cost at only P4/kwh. It is expected to affect at least 22 barangays, five municipalities and two provinces in Bukidnon and Cotabato.

Donggay said residents in the affected barangays would be given benefits such as job opportunities, agricultural and livelihood training, and provision of free seedlings of rubber, coffee, abaca fruits and bamboo.

"The affected family will continue to till the land that they already sold for the project and harvest their crops while establishing their new farms during the project's construction period, which is five to six year," Donggay said.

Aside from this, he added that residents would also be given supplementary income for duck production and tourism-related job opportunities.

Donggay added the project would also construct an IP Cultural Center and a training center for the IPs, provide scholarships to deserving IP students, construct health clinics and "botika sa barangay, among other programs.

Last year, the project team already conducted a series of orientation to each affected barangay and invited IP tribal leaders and families for a visit to the existing hydro-power plant projects in Maramag, Bukidnon for them to personally see the benefits of the project.

As of present, Donggay said 18 barangays have already given their consent to the project.

*Published in the Sun.Star Cagayan de Oro newspaper on June 2, 2010