Irregularities in Misamis Power Plant Project
(First of two parts)

Environmentalists in Northern Mindanao province are up in arms because of the endorsement last July 2 by the regional development council of a coal-fired thermal power plant project. They cite as reasons the anomalous process in the awarding of contract, unfavorable technical report, lack of environmental clearance certificate and the all-expense paid trip to Germany for some of the local government officials.

By HERBIE S. GOMEZ
Bulatlat.com

Part I | Part II

CAGAYAN DE ORO CITY-- Misamis Oriental Vice Governor Miguel de Jesus, the most vocal endorser of a planned 200-megawatt coal-fired thermal power plant in the province, admitted in an interview that the controversial project went through an "unusual" process of getting government approval.

De Jesus said the national government gave the green light for the multi-million dollar German-funded project even before local officials could be consulted. 

"It was unusual but not irregular," defended de Jesus in an interview a day after his first local television appearance since the controversy regarding an all-expense paid trip to Germany broke out.

Normally, de Jesus said, proposed projects pass through the local government units first. But the coal-fired power plant, to be built in Villanueva town, was a major project, he said, and the national government gave the proponent, State Power Development Corp. (SPDC), the go signal even before the municipal and provincial governments and the Northern Mindanao Regional  Development Council (NMRDC) could look into it.

Corroboration

De Jesus' admission was corroborated by the June 17 evaluation report of the technical secretariat of the NMRDC’s infrastructure committee. The report noted how the project has been controversial from the first day it was processed, with the National Power Corporation (Napocor) awarding the contract to SPDC in 1996 despite reports on the project’s "non-viability."

Worst, the SPDC and its German partner Steag Ag had neither environmental clearance certificate from the Environmental Management Bureau (EMB) nor endorsement from the NMRDC at the time of the awarding.

"Nevertheless, (Napocor) proceeded awarding the project," noted the technical secretariat. "Since the project was already contracted out... it became one of the committed projects of the (Napocor)."

“Done deal”

A local environmental watchdog Task Force Macajalar said de Jesus' admission bolsters suspicion that the planned million-dollar power plant project is “a done deal."

The NMRDC clearance was only given last July 2 amid strong objections. A statement released by the National Economic Development Authority (NEDA) in Cagayan de Oro reportedly showed that Misamis Oriental Governor and NMRDC head Loreto Ocampos and Tangub City Mayor and RDC’s Infrastructure Committee head Jennifer Tan pushed for RDC approval despite the negative evaluation report by the committee’s technical secretariat.

A copy of an official RDC document secured by this writer showed that Mayor Tan had sought a "discussion/endorsement" of the power plant project, despite a negative evaluation report by her committee's technical secretariat.

The evaluation report said that "the project is not economically and financially viable, at least from the point of view of the national government.”

Meanwhile, Macajalar spokesperson Bencyrus Ellorin said local governments should have protested because, based on de Jesus' pronouncement, they were bypassed at the start.

But instead of questioning the process, Ellorin said de Jesus and company "have been acting like spokespersons of SPDC-Steag Ag instead of doing their job as public servants."

De Jesus said the project was originally intended to serve the now aborted Jacinto Steel Mill project. The steel mill, planned during the Ramos administration, was supposed to be built on a property of the Philippine Veterans Industrial and Development Estate Corp. (Phividec) in western Misamis Oriental. Due to financial problems, plans to carry out the steel mill project failed to take off.

Now, SPDC and Steag Ag are banking on the dramatic increase in the demand for energy in Mindanao by 2006 as projected by Napocor.  A press statement released by the local Napocor office quoted SPDC director Augusto Lopez-Dee as saying the planned thermal plant would meet Mindanao's energy demand, which is projected to shoot up between 2005 to 2006.

Free trip to Germany

While critics and supporters debated on the merits of the power plant project, six local officials went on a five-day trip to Germany last May courtesy of SPDC and Steag Ag, further fanning the controversy.

De Jesus, who led the delegation, admitted that the SPDC and Steag Ag shelled out US $2,000 or over P100,000 in travel and other expenses for each member of the delegation. The others members were: Mayors Bambi Emano of Tagoloan and Julio Uy of Villanueva; and Provincial Board Member Norris Babiera, all of Misamis Oriental; Councilor Michelle Tagarda of Cagayan de Oro; and Elisa Pabillore, a local trade and industry representative.  De Jesus, Emano, Uy and Tagarda openly came out with statements endorsing the project after the trip while Babiera authored a provincial board resolution in support of the construction and operation of the coal-fired plant.

Misamis Oriental Gov. Antonio Calingin defended those who went to Germany. He said it was necessary for the local officials to see for themselves how the German-owned Steag Ag was addressing pollution problems arising from coal combustion. Calingin said de Jesus and other members of the delegation were satisfied with what they saw.

Task Force Macajalar however asked, "Why should they go to Germany to inspect the facilities of the proponent --- are they experts?"

The task force members said they were convinced that the free trip to Germany affected the judgment of the officials, calling them traitors. "To say the least, they were not faithful and vigilant guardians of public interest," said Magallanes.

Ellorin said his group was contemplating on filing charges against the officials who allegedly committed serious ethical violations. He and other local environmentalists said De Jesus and company should have declined the free trip offer.

Calls to rescind

Environmental activists in the region are now calling on the Arroyo administration to rescind the contract between the SPDC and Napocor.

They cited the report of the government's Inter-Agency Independent Power Producer (IPP) Review Committee released early this month. The report listed 29 out of 35 contracts questionable IPP contracts which included the SPDC-Napocor power plant project in Misamis.

Environmentalists also questioned the legality of the inclusion of the controversial project in the RDC's agenda during its July 2 meeting in Tubod, Lanao del Norte.

Macajalar claimed Mayor Tan's committee made it clear that it would endorse the project to the RDC only if the project proponent presented an environmental clearance certificate (ECC).

Despite this, the controversial project was included in the agenda and subsequently approved by the council, on condition that an ECC be secured by the proponent from the Environment Management Bureau (EMB) in Manila.

Macajalar's Magallanes said the RDC decision to conditionally endorse the project "is absurd, unwise and tantamount to betrayal of the welfare of the people and the environment."

"It was a done deal," Magallanes said. Bulatlat.com

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