DAVAO CITY ? Aboitiz Power Corp. has decided to halt the construction of its hydropower plant in Baguio and Marilog districts here, which the local water utility company has been vigorously opposing.

But Gregorio Jabonillo, vice president for operations of the Hedcor Tamugan Inc., Aboitiz Power?s subsidiary in charge of the project, said the decision was brought about by delays in the acquisition of the required water permit and environmental compliance certificate.

Jabonillo said Aboitiz Power already informed the Philippine Stock Exchange about the decision to stop the Suawan project on Aug. 14.

No permit, no project

The project is part of the company?s 34.5-megawatt Tamugan Hydropower Project.

?Without the water permit, the project cannot be registered,? he said.

Jabonillo said they were also not pushing through with two other projects in the area.

The Davao City Water District (DCWD), which has been opposing the projects, did not issue a comment.

But in the past, DCWD had already made clear its position against the hydropower plants, saying it will dry up the city?s water supply.

DCWD said, as early as 1998, that the city was one of the water-critical areas in the Philippines where water is consumed ?intensively.?

Water critical

DCWD said the Hedcor project would worsen the situation.

The study was conducted by the Nippon Koei Co. Ltd and Nippon Jogesuido Sekkei Co. Ltd.

The Department of Environment and Natural Resources also confirmed the report, saying the city?s water supply is critical.

Councilor Leo Avila, chair of committee on environment, has sided with the DCWD.

?Between power and water, my choice would obviously be water,? Avila said.