KABUGAO, Apayao – Authorized tribal elders of the Isneg indigenous cultural communities and indigenous peoples of the town’s twenty-two barangays recently forged a memorandum of agreement (MOA) with the San Miguel-controlled Pan Pacific Renewable Power Philippines Corporation (PPRPPC) for the put up of the 250-megawatt Gened 2 hydro power plant within their ancestral domain.
Earlier, PPRPPC filed an application for certification precondition with the National Commission on Indigenous Peoples (NCIP) for its Gened 2 hydro power plant project located within the ancestral domain of the Isnegs based in the 22 barangays of the municipality.
During the first and second community assemblies of barangay Namaltugan in nearby Calanasan town, there was a clamor from the community to lower the height of the dam to avoid submersion of the said barangay. Consequently, on November 25 and December 5, 2021, the new redesigned concept for Gened 2 from 335-megawatts to 250-megawatts was presented to the communities of Calanasan and Kabugao where Barangay Namaltugan will no longer be affected.
Under the aforesaid agreement, the Isneg indigenous peoples manifested that they have been fully informed of their rights as IPs and of the details of the company’s application and the proposed project, thus, their endorsement of, free and voluntary consent to the proposed Gened 2 project and all its phases to be undertaken by the proponent in their ancestral domain, including the utilization and development of natural resources such as water, land, or any portion of the domain.
The MOA provided that the proponent shall pay royalty benefits to the Isneg in an amount equal to P0.0175 per kilowatthour of energy generated annually effective upon the start of commercial operation of the hydro power plant.
Further, the royalty benefit rate per kilowatthour shall remain the same for the first 5 years of commercial operation and shall be increased by 3 percent every 5 years until the end of the agreement, provided, however, that in the event the annual generation is less than 20 percent capacity plant factor, the profit share shall be computed based on actual power generation during the year to be paid on the month of March of the succeeding year.
The proponent recognized that the land needed for the temporary and permanent works of the project will result to dislocation of around 86 houses based in the May 2021 periciliary survey conducted by thetan Engineering in barangays Madatag, Ibagat and Tuyangan classified as timberlands or forestlands by the environment department.
After extensive negotiations, the company shall compensate the affected IP house claimants upon the start of the construction of the project based on floor area and corresponding lot area covered by documents indicated.
Both parties recognized that agricultural lands classified as timberlands of about 11.7 hectares located in barangays Madatag – 3.5 hectares, Ibagat – 7.46 hectares and Tuyangan – 0.71 hectares will be affected, thus, the ownership of the same will be validated by an assessment committee for compensation prior to the commencement of the project.
Moreover, the parties agreed that all affected properties subject to compensation, relocation or lease are located in timberlands must show proof that the claimants are indigenous peoples belonging to the Isneg.
Aside from the aforesaid monetary benefits, the parties agreed that the MOA of the 150-megawatt Gened 1 dated April 20, 2021 includes the supply of 2-megawatt to the planned Apayao electric Cooperative with a condition that the said cooperative shall first bestow free electricity to each household of the Isneg IPs before any excess shall be sold to other end users.
The parties acknowledged that the 2-megawatt is already more than the power requirements of the entire Kabugao.
The company shall render financial assistance to the Isnegs for the establishment of an Isnag Heritage Center in the amount of P4 million upon the commencement of the construction of the project.
The agreement stipulated that 50 percent of 1 centavo per kilowatt-hour of the electricity sales shall be set aside as electrification fund for the affected communities.
The remittance of the Energy Regulation No. 1-94 financial benefits shall strictly abide by the prevailing guidelines for the said purpose while the establishment of trust accounts and administration of financial benefits shall follow the same.
The parties agreed for the creation of an oversight and monitoring committee or joint committee to oversee the implementation of the agreement and to fully satisfy the IPs that all construction works shall be done based on the plans and specifications presented during the community consultative assemblies and the submission to the indigenous peoples organizations. The same oversight and monitoring council shall conduct periodic inspection during and after the construction subject to reasonable rules and regulations as may be agreed.
