Privatization of Mindanao hydro-power plants feared

By Lady Opada Philippine Star Updated January 03, 2012 03:12 PM


ILIGAN CITY, Philippines – Power consumers in Mindanao feared the looming privatization of the major hydro-power plants in southern Philippines, the source of the more than 50 percent energy requirement in the area.


This after Republic Act No. 9136, also known as The Electric Power Industry Reform Act (EPIRA), provided that all power generation assets of the government operated by the National Power Corporation shall be disposed and privatized after 10 years of the law’s effectivity.


The EPIRA law was enacted in June 2001 and its first 10-year implementation expired in June 2011, rendering Mindanao’s major power plants – the Pulangi (Bukidon) and Agus (Lanao) Complexes – into the verge of privatization.


LANECO launches no-to-privatization drive


For its part, the Lanao del Norte Electric Cooperative (LANECO) spearheaded a campaign since 2010 opposing the looming privatization, citing that the move will aggravate hostility among the people within the affected communities.


Several municipalities within LANECO’s service areas, which included the towns of Kauswagan, Bacolod, Maigo, Lala, Kapatagan and Sultan Naga Dimaporo, issued resolutions opposing the privatization of the Agus hydropower plants in Lanao areas.


The entire Mindanao power stakeholders also expressed strong opposition on the privatization move during a consultation dialogue in Cagayan de Oro City in May last year. At the event, the Joint Congressional Power Commission headed by Senator Chiz Escudero and Batanes Rep. Hemedina Abad assured that the issue will be properly addressed in Congress.


In a position paper, the Association of Mindanao Rural Electric Cooperatives, Inc. (AMRECO) said the move will result to the loss of economic competitiveness of the Mindanao power supply sector, citing that companies that are energy-intensive will suffer the biggest consequences.


“Keeping the status quo of the hydro-power plants will provide a healthy competition in the power generation sector,” the group added, while citing that privatization will only promote monopoly and will discourage other players to participate in the energy investment arena.


Worse, the primary benefactors of the development of the natural resources will suffer instead, which will probably magnify the problems on security and peace and order in Mindanao, the group pointed out.


While present administration remained silent on the issue, the group called on President Benigno Aquino III for the deferment of the privatization of the NPC-operated hydro-power plants in Mindanao.