BAGUIO CITY – Mayor Mauricio G. Domogan requested the leadership of the energy department to assist the local government in working out the immediate transfer of the water rights and service contract of the Aboitiz-owned Hydroelectric Development Corporation (HEDCOR) over the Asin river to the city to fastrack the eventual operation of the city-owned minihydro power plants that could boost the supply of renewable energy in the grid soon.
Domogan made the verbal request to Energy Undersecretary Benito Ranque during the opening program of the 3-day Seminar-Workshop on Mainstreaming Energy Efficiency and Conservation to Local Governments held here recently to ensure local government maximize the potentials of the minihydro power plants to help reduce the cost of power being charged to city residents.
“We appeal to the energy department to assist the local government facilitate the immediate transfer of the water rights and service contract over the Asin river to the city so that it will have the personality to enter into a contract with private developers for the privatization of the minihydro power plants that will be beneficial not only to the city but also to the indigenous peoples living in the host communities of Tuba,” Domogan stressed.
Currently, the water rights and service contract of the Asin minihydro power plants is under the name of HEDCOR and the local government is having difficulty consummating the contract with a multinational corporation that will allow the operation of the said minihydro power plants.
Baguio City owns the distinction of the only local government that owns renewable energy facilities which were built during the American colonial period.
Domogan claimed that the non-operation of the city-owned power plants for the past six years is a great loss on the part of the local government and the IPs living in the host communities because the minihydro power plants had been not productive.
In October 212, the Energy Regulatory commission (ERC) ordered the stoppage of operation of the Asin minihydro power plants that was then operated by the local government after the said plants were not issued the required certificate of compliance from the regulatory body.
Previously, the Asin minihydro power plants was operated by the Baguio Water District (BWD) before its privatization in 1981 when the contract was awarded to the Aboitiz-owned Davao Lights, a sister company of HEDCOR, and later the same was sub-contracted to the HEDCOR until the lapse of the 25-year contract in 2006 when the local government took over the operation of the said plants.
Domogan underscored that the eventual operation of the minihydro power plants once all legal issues shall have been settled will definitely contribute in generating added income to the local government, substantial support to the IPs in the host communities and local government and available supply of renewable energy that could be sold to the grid and help lower the cost of power for city residents.
By Dexter A. See
