BAGUIO CITY – The city government wants the Baguio Water District (BWD) to transfer the warer rights over the Asin river to the local government to facilitate the full operation of the city-owned Asin minihydro power plants in Nangalisan, Tuba, Benguet.
The city government petitioned the Nation Water Rsources Board (NWRB) to facilitate the transfer of the water rights to the local government considering that BWD is no longer operating the Asin minihydro power plants.
The city asserted that considering that it is now the local government that will operate the facility through a winning bidder, BWD must already transfer the water rights to the city government in order to put in place the eventual operation of the power plants.
Baguio city owns the distinction of being the only local government in the country that owns minihydro power plants which were built in the early 1900s.
In 1981, the city government privatized the operation of the three Asin minihydro power plants with the Davao Lights having won the bidding for a 25-year contract.
In 2006, the 25-year lease agreement expired and the city government eventually got back the management and operation of the power plants.
However, in October 2012, the Energy Regulatory Commission (ERC) ordered the city government to cease and desist from operating the plants and selling power to the grid until such time that it was able to secure a certificate of compliance (COC) from the regulatory body for its operation and other related activities.
Early this year, the city government awarded the operation of the Asin minihydro power plants to the Kaltimex Energy Philippines which was declared the winner in the fourth bidding that was called for the purpose and the memorandum of agreement signed between the local government and the winning bidder is now pending confirmation before the city council.
Last Monday, the council approved the issuance of a certification that the petition of the city government for the transfer of water rights from BWD to the local government has been posted in conspicuous places in the city and that the same is a pre-requisite for the conduct of hearings for the purpose.
Previously, it was learned that BWD was against the transfer of the water rights of the Asin river to the local government for still unknown reasons but lately, sources disclosed BWD management is no longer opposed to transferring the water rights it acquired over the Asin river to the city.
For the past three years, the city government lost P30 million annually for the non-operation of the Asin minihydro power plants after the ERC ordered its stoppage of operation, thus, the need for the local government to ensure its immediate operation as part of the city’s income generating activities.
The transfer of BWD’s water rights to the city government is part of legitimizing its management and operation of the facility capable of producing over 4.2 megawatts of clean energy but the same could be increased to 10 megawatts upon the introduction of appropriate rehabilitation and upgrading of its power generation facilities.
By Dexter A. See
