BAKUN, Benguet – The municipal government and the Aboitiz-owned Hydroelectric Development Corporation (HEDCOR), Inc. recently agreed to amicably settle their rift to allow for the resumption of operation of the company’s minihydro power plants in the locality and for the latter to settle its obligations with the barangay and municipality.
Bakun municipal officials and HEDCOR executives were forced to go back to the drawing board after Mayor Bill Raymundo issued a stoppage order to the company when it reportedly refused to secure a business permit for the operation of its power plants and the renew the expired 25-year memorandum of agreement with the municipality.
Under the initial agreement that was made by both parties, Mayor Raymundo shall order the lifting of the stoppage order to allow HEDCOR’s three minihydro plants to resume operations.
Further, the municipal mayor shall issue the company’s 2020 business permit for the power plants upon completion of the business permit renewal process and requirements.
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On the other hand, HEDCOR shall file a motion with the Regional Trial court (RTC) to withdraw its petition for temporary restraining order and writ of preliminary mandatory injunction that it filed against the municipal government upon the issuance of the 2020 business permit and signing of the order lifting the stoppage of operation effective last August 7, 2020.
Moreover, HEDCOR will undertake to provide financial assistance in the amount of P4.36 million for the municipality which amount shall be given to the local government within 30 days from the signing of the settlement agreement and for the company to undertake to provide financial assistance in the amount of P2.18 million for barangays Sinacbat and Poblacion which shall be given to the said barangays within 30 days from the execution of the agreement.
Mayor Raymundo said that the settlement of the supposedly emerging conflict between the local government and the company only shows that issues and concerns could be resolved through constant consultations and dialogue with the involved parties and not for a party to insist on what he belies is correct on their part because there are underlying matters that have to be discussed thoroughly in coming out with solutions.
In a statement, HEDCOR expressed its gratitude to Bakun officials for opening the opportunity to discuss all of the concerns extensively and in good faith.
The company recognized that the municipal government has shown everyone the value of working together and the resumption of the operation of its three minihydro power plants will allow the company to pursue its decades old collaboration with the local government in providing employment opportunities to its residents, educational support for its children, income to land owners, and support for the general welfare of its indigenous peoples communities in the form of direct assistance to infrastructure, health, environmental, livelihood development and the generation of renewable energy to the grid.
HECOR stated that the people of Bakun will reap the benefits of the aforesaid gesture on the part of the local government as it remains committed to advance business and communities.
Earlier, Raymundo ordered the stoppage of operation of HEDCOR’s three power plants in the municipality after the company refused to secure its latest business permit and renew its expired agreement with the local government over the past 3 years.
By Hent
Banner photo: Local officials of Bakun, Benguet earlier stopped the operations of three Hedcor, Inc. hydropower plants operating in their area.The memorandum of agreement (MOA) between the company and Bakun expired after 25 years of operation. Photo credits to Bakun LGU, 08/02/20
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