Group warns vs hydropower plant privatization

ILIGAN CITY – The 33-member Association of Mindanao Rural Electric Cooperatives (Amreco) has reiterated its warning against government moves to privatize the state-run Agus and Pulangui hydroelectric power plants, saying it could complicate the peace and security in the area.

Last month, Amreco passed a position paper during its meeting in Cagayan de Oro City, which said that the government’s move “will endanger and exacerbate hostility to the hydro plants by the people in the communities adjacent to Lake Lanao, where the Agus draws it water source; and Pulangi River in Bukidnon.”

The Maranao folk of Lanao del Sur and Lanao del Norte had been claiming their share from revenues generated by the Agus hydropower plants while the lumad of Bukidnon wanted the government to compensate them for the use of the Pulangui River.

Both hydropower systems were being run by the National Power Corp.

The government has not acted on the demands so far.

In recent months, armed men toppled steel pylons used for transmission lines although both the police and the military viewed the acts of sabotage as unfulfilled extortion demands.

“Such situation will magnify the problems on security and peace and order in Mindanao,” Amreco said in its resolution.

Clint Django Pacana, Amreco executive director, told the Philippine Daily Inquirer on Thursday the group’s position had not changed.

In fact, he said Amreco continued to campaign against the privatization efforts.

He said Amreco wanted the government to reflect on their position now as the Power Sector Assets and Liabilities Management (Psalm) starts moves to privatize the two hydro facilities, which provide the bulk of Mindanao’s power requirement.

Pacana said aside from its projected impact on peace and security, the move would also make ordinary consumers suffer because rates would surely shoot up.

Currently, the government’s power production cost from the operation of the two hydropower plants was pegged at less than P1 per kilowatt.

That would change, Pacana said, when private groups take over.

“If sold, the new owners will recover their investments by imposing increase on rates, and in a fashion more disadvantageous to end-consumers especially so that the generation sector is deregulated,” the Amreco statement read.

Pacana said increased rates would also result in “the concomitant deterioration of the economic competitiveness of Mindanao commercial and industrial firms that are energy-intensive.” Richel Umel, Inquirer Mindanao