THERE’s no turning back for the Sangguniang Panlalawigan of Bohol to push with its planned investigation into the alleged lapses on the part of the project proponent undertaking the giant Cantacoy hydro project following a preliminary meeting Friday, this according to Board Member Abeleon Damalerio in an exclusive interview. Damalerio, chair of the environmental protection committee, said the board, serves as a Committee of a Whole. The SP as a whole called on stakeholders to the next meeting on May 16, to hear both sides of the opposing groups. But he did not mention who are to be invited but definitely proponents are on the list primarily. The initial meeting of the Committee of a Whole was presided over by Vice-Gov. Concepcion Lim who serves as its chairperson. He hinted that there may be queries in a series of meetings as part of the investigation since not all parties concerned may be accommodated in one setting.

The conduct of the probe over the project’s alleged irregularities is mandated by an approved SP resolution following the separate privilege speeches delivered by Board Members Josephine Socorro Jumamoy and Romulo Cepedoza, who “denounced” the start of the project without social consultation pursuant to certain procedures and laws. The r SP probe on the project was also prompted following the ocular inspection of the officials of the Dept. Of Environment and Natural Resources thru PENRO Nestor Canda, Bohol Environment Management Office (BEMO) thru Leonilo Lafuente and Provincial Legal Office thru lawyer John Mitchell Boiser. The composite team reported to the recent Provincial Development Council executive meeting its findings, including the degrading and clearing of trees and vegetation without proper documents. Canda, meanwhile confirmed he and others with Inabanga Mayor Jose “Jono” Jumamoy conducted an aerial inspection of the project site but no official report or finding has been made or submitted to the provincial board for consideration. 

MOVE TO END FRACAS

Rep. Erico Aumentado reportedly wanted to resolve the Cantakoy dilemma once and for all. He was quoted as recommending to hold for a meeting of the Provincial Development Council (PDC). The meeting he suggested is to tackle issues involving the project, such as compliance of the pre-requisites prior to the actual project construction; conduct of the environmental studies; and compliance of local permits so to start the project, and benefits that may be enjoyed by the affected local government units, among others. The Cantakoy project located at barangay Cabatuan, Danao and Inabanga towns is facing a rough sailing following its alleged irregularities and evident failure to comply with certain pre-requisites being raised during the recent executive committee meeting of the Provincial Development Council (PDC) presided over by Gov. Edgar Chatto. Unfortunately, the side of project proponents of the Quadriver Energy Corp. was not heard for their apparent failure to attend the said meeting so that critical issues and concerns surrounding it (project) could be properly addressed and other kinks ironed out.

Gov. Chatto told the meeting, which lasted for more than three hours last Friday, that the said meeting was supposedly intended to tackle the project’s concerns, ranging from social and environmental impacts that are feared to affect the immediate stakeholders and community. But the proponents appeared to be declining to attend and instead sent a notice to the PDC secretariat that they could not make it. Chatto swiftly created a team in his memorandum dated April 23, 2012 to conduct an inquiry into the project. Chatto’s order was prompted following the passage and approval of Resolutions by the provincial board as a result of the privilege speeches the other week of provincial board member (BM) Josephine Socorro C. Jumamoy and BM Dr. Romulo Gonzaga Cepedoza, who is a native of Danao town. Jumamoy hails from Inabanga town. The team wasted no time and conducted an ocular inspection of the project site on April 26, 2012 as directed by Gov. Edgar Chatto in his memorandum dated April 23, 2012. It was composed of the DENR represented by forester Nestor Canda; Bohol Environment Management Office (BEMO) thru Leonilo Lafuente; Provincial Legal Office thru Atty. John Litchell Boiser and Atty. Peter Mende; Atty. Raul Barbarona of the Environmental Law Assistance Center (ELAC) and Mario Limocon of the PROCESS, a non-government organization.

 Upon arrival of the place where the project headquarter is located in Barangay Cabatuan, the team huddled with project manager John Jorge Orbe and hydrologist Fred Donato representing the Quadriver Energy Corp. (QEC)and project manager Lydio Ranon for the Sta. Clara International Corp., which is the project contractor.  Mayor Tom Gonzaga also visited the area during the probers inspection. Project officials told the team that the QEC is the “offspring” of both the Ayala Corp and Sta. Clara Power Corp. under an agreed sharing scheme and the one contracting the job is the Sta. Clara International Corp.

IRREGULARITIES

A lot of points which BM Jumamoy considered as “misrepresentations” on the part of the proponents has been raised during the PDC meeting. These include the absence of consultation/social preparation and acceptability; “who is the real applicant/owner” of the Environmental Compliance Certificate (ECC); how much really the amount for Environmental Guarantee Fund (EGF); and the size/height of the hydro power dam. Jumamoy has already stressed in her speech the lack, if not failure for the proponents to consider the conduct of social acceptability and consultations with the stakeholders concerned. During the huddle of the investigating team, the officials of the corporation could not show proof that it conducted social consultation with the people of the affected towns. Regional Director Fernando Quililan of the DENR’s Environmental Management Bureau (EMB) regional office confirmed that social preparation involving the stakeholder-communities is crucial and pre-requisite prior to project implementation. “I agree with the observation” of Jumamoy, he said. Quililan, who assumed the EMB and who was not the one who signed the ECC issued to the proponent, vowed to look into the ECC all over again.

Jumamoy said that they were made to believe that the height of the hydro power dam is only originally 40 meters but now it is increased to 60 meters and the project would cover some 53 hectares but the earlier revelation of the corporation says otherwise because, now, it involves a hundred hectares. What really is the exact size involved in this project, she asked. On the ECC, the PDC learned that the ECC was being applied by the Sta. Clara Power Corp. (SCPC) through its vice-president for operation Dominador R. Borje. But now the actual project implementer is the Quadriver Energy Corp., which can claim it is the “owner” of the ECC as approved by then EMB OIC regional director Rolando N, Luego. Quilian, who attended the meeting, said that the ECC issued to SCPC is “assignable” or “transferable.” It means that it can be assigned to other entity that is actually undertaking the project as long as it is the same project in the same location under EMB’s guidelines.

As to the EGF, Jumamoy lamented why so little fund in the amount of only PhP50,000 is being “deposited” aimed at cushioning adverse impacts as a result of the project implementation. She said she learned that at least 5% of the total project cost has to be set aside for the EGF. If this the case, so 5% of the PhP1.3 billion as project total cost is not only PhP50,000, she said. The ECC numbered RO7-0903-018-0120 issued on August 11, 2009 by EMB stipulated that “a readily available and replenishable EGF” of PhP50,000 is intended for the following: compensation/indemnification of whatever damages to life and property caused by the project; rehabilitation and/or restoration of areas affected by the project implementation; and decommissioning of the project facilities related to possible negative impacts. The ECC is issued in compliance with the Presidential Decree No. 1586 and Dept. Administrative Order No. 2003-30. It is contains restrictions and conditions by which the holder must observed and comply. Under this project ECC, included are the following (a) environmental management and monitoring plan (EMMOP); and (b) general provisions, such as compliance with other national laws : Toxic Substance and Hazardous and Nuclear Waste Control Act of 1990 (RA 6969); The Philippine Clean Air Act of 1999 (RA 8749); Ecological Solid Waste Management Program Act of 2000 (RA 9003); and Philippine Clean Water Act of 2004 (RA 9275).

The project should not proceed without first securing “applicable permits from other pertinent government agencies.” These documents include, among others, zoning certification, endorsement of the Protected Area Management Board (PAMB), other lawful permits, tree cutting permit, special agreement on protected areas (SAPA), building permits, environmental and sanitation permit and NWRB permit, PCA permit and disposal permit from PENRO. “Thus, this ECC becomes valid only after all necessary permits have been secured prior to project implementation.” The SP stressed in the said REsolution “to stop all the activities and construction at the Cantakoy Hydro Power Plant for non-observance of environmental regulations imposed by the DENR.” Jumamoy, in her stinging privilege speech, cited “section XIII, par. 13.2, subpar. 1 (c) and sub-par. II (e) of the Hydropower Service Contract between the DOE and Sta. Clara Power Corp” being allegedly violated by project proponents.

  ACCESS ROAD

Another irritant issue is the alleged use of national government funds for the opening of the project access road.  Trinidad Mayor Roberto Cajes, who represents as president of the League of Municipalities of the Philippines (LMP) Bohol chapter, told the PDC that based from what he learned some PhP4 million plus sourced out from the “various infra” of the Department of Public Works and Highways (DPWH) was allegedly released and used for the construction of the project access road.  The fund was released on August 3, 2009 and the access road project construction was completed on May 18, 2010. He also learned that a certain Saida Gonzaga Vitor , head of the DPWH planning office, was allegedly instrumental in the fund release. Saida Gonzaga Vitor is said to be the sister of Engr. Asisclo Gonzaga, head of the Sta. Clara Power Corp.

 “Why the public fund was used for private purpose,” referring to the said access road of the project undertaken by the private entity (Quadriver Energy Corp), he asked.  He denied that it was his pork barrel was used for the project access road while he was still the congressman of second district where the towns of Danao and Inabanga belong.

LGUs SHORT CHANGED

Cepedoza said that sometime in 2009, he came to know this project when his uncle Engr. Asisclo Gonzaga, president of Sta. Clara Power Corp, presented to Danao officials, including him as president of Liga ng mga barangays, the Shareholders Agreement for the hydro development. The sharing was the corporation share 50%; province, 10%; Danao and Inabanga towns; 15% apiece; and Bohol Electric Cooperatives I and II, 10%. But he alleged that the said agreement was “lost in oblivion” until recently he only knew the project has already began without them knowing since no feasibility was presented.  The town of Danao was lured to the offer, he said, thus, agreed to it. It passed twin Resolutions. One has authorized Mayor Louis Thomas Gonzaga, his cousin, to enter into the said agreement for the project and the Resolution No. 2009-06-105, manifesting the interest of the town to avail of the loan to the tune of PhP15 million to apparently chip in to the project. After that, Cepedoza said, the agreement “had been lost in oblivion with no explanation” from the proponents.

 But the town only knew that the project is now undertaken by Quadriver Energy Corp. with joint venture of AC Energy Holdings Inc., a wholly owned subsidiary of Ayala Corp. with 70% and SCPC, 30%, instead, Cepedoza said.  Short of saying Danao town has been short-changed, he accused the proponents of the project of “clear public betrayal at its highest level” because the province and his town, Danao, and Inabanga were excluded in the venture as earlier proposed by the project proponents.  Cepedoza was irked upon learning that his town and other stakeholders, including the province, were excluded from the said proposed agreemen sharingt as confirmed by Mr. Dominador Borje, Jr., an officer of the QEC. Cepedoza quoted Borje as saying that the proposed agreement was “unilaterally terminated” by his company without the knowledge of Danao and Inabanga because the partners (Danao and Inabanga) “could not come up with the necessary financing.”

SUPPORT

Egay Del Rosario who represented Cong. Erico Aumentado to the PDC meeting said that the congressman expressed his all-out support to the move or position of the provincial government in the conduct of the inquiry into the project.  For his part, BM Engr. Gerardo Garcia also expressed his all out support to the position taken by SP against the said project. He said he stood by his colleagues with mention of BMs Jumamoy and Cepedoza, his co-representatives to the board for second district.  Rep. Rene Relampagos (1 st dist.), Vice-Gov. Concepcion Lim, board membersAtty. Donisio Balite, Atty. Abeleon Damalerio, Atty. Benjie Arcamo, Cepedoza, Jumamoy, BCCI president Mayette Gasatan and representatives of the non-government organizations and other sectors also attended the PDC meeting.

THE PROJECT

Jumamoy learned that the project cost is about PhP1.3 billion. And based on the original plan, the project, when completed, is expected to generate 5.2 megawatts involving some 530,000 square meters or 53 hectares of land located at Barangay Cabatuan where the Cantakoy Falls belongs. The project components includes the development and operation of hydro plant with 30-m high water dam as impounding facility, access road to the power plant and 24/69KV step-up transformers in the open air. But the project’s ECC is amended by EMB in Cebu City that increase the capacity of the hydro plant to eight (8) MW “with geographical coordinates of 124(degrees)09’24.4” east longitude and 09(degrees)58’25.1” north latitude.” The dam is increased to 40 meters high from 30 meters as “small dam” and other facilities thereat, according to project description provided by the Environmental Management Bureau (EMB) in its letter of approval to the ECC as amended.  The proponent is also required to put up additional nursery program of 132,000 tree seedlings aside from the original 530,000 seedlings to support the Green Philippine Master Plan for tree planting and to put up PhP50,000 as Environmental Guarantee Fund (EGF) to pay or use for the environment assessment compensation/indemnification for “whatever” damages caused by the project, rehabilitation/restoration of areas affected and others, said DENR Officer-In-Charge regional director Alan C. Arranguez in his letter to Engr. Dominador Borje, Jr, vice-president of Sta. Clara Power Corp.

QUESTIONABLE UNDERTAKING

The 8-megawatt Cantakoy Hydropower Plant Project is to be established in an area that spans 53 hectares in barangay Cabatuan in the town of Danao and Barangay Sua in the town of Inabanga. The land in Danao side is classified as alienable and disposable, but a portion of the project site in the Inabanga side is classified as Timberland as verified on the ground using GPS during the inspection. Based on the ECC, the project will include the development and operation of a small dam– approximately 40 meters high from the base to the crest provided with a regulated spillway at the mid section of the dam; penstock pipe--approximately 53 meters long embedded in the dam within the 1.88 hectares area; power house to be constructed within the 700-square-meter area where the two horizontal axis Francis turbines driving a synchronous alternators, individually has the capacity  of four megawatts; an impounding area of approximately 47 hectares; an open air substation where the generated voltage will be raised to the appropriate transmission lines; a switchyard of 150 square meters; an 808 meters access road; and an open channel trail race where the water is returned back to the mainstream approximately 60 meters downstream from the powerhouse.   

INSPECTION FINDINGS

Initial findings of the onsite inspection led to serious recommendations based on what had been found to be grave violations of the regulations. These recommendations have been included in the report submitted to Governor Edgar Chatto by the inspection team composed of PENRO Nestor Canda, Provincial Legal Officer Mitchell John Boiser, BEMO Head Leonilo Lafuente, Legal Officer Peter Emman Mende, PROCESS-Bohol Director for Operations Mario Limocon, and ELAC Executive Director Raul Barbarona. The team conducted an ocular inspection at the project site in barangay Cabatuan, Danao last April 26, pursuant to the governor’s memorandum dated April 23, 2012 designating them to compose the Cantakoy Hydro Power Project Ocular Inspection Team.

They found out that the project is still in its preparatory stage and temporary facilities are already in place made up of light materials to serve as office, employee’s quarters, motor pool, warehouse, mess hall, dirty kitchen and for other purposes. They also observed that site clearing is already done for the proposed batching plant and that there has been quarrying activity on the hill where the barangay monument marker is located without any quarry permit. In fact, the hill where the barangay monument marker no. 1 was placed has almost been flattened as a result of quarrying activities.     “According to the proponent, there was an existing pathway trail prior to the project but which is now being widened and developed as access road. The sidings of the widened road have been scraped and said pathway trail is located beside a mountainous area,” the team reported.

Surfacing and compacting of filled materials of the access road and base camp were also noted during the inspection, and there were already a number of planted trees (G-melina, mahogany) to include coconut and other pioneer species that were removed or uprooted in the course of improvement of the access road. The team also noted that the presence of natural source of water such as a spring at the right portion of the access road. A water reservoir was also noted at the left side of the access road. A pile of ordinary earth or surfacing materials were noted at the end portion of the access road obviously from the road cut itself presently utilized as filling materials for the base camp and road surfacing. 

REMARKS AND RECOMMENDATION

The team came up with eight recommendations to address these concerns. One of them is to investigate whether necessary permits should have been required prior to the removal of the trees during the course of the improvement of the access road. “Quarry permits from the Office of the Governor should be secured by the project proponent for the materials to be fed to the crushing plant that comes from the dam site or anywhere in the province of Bohol,” according to the team. They also emphasized that the project proponent has to secure an ECC prior to the installation of the batching and crushing plants. Moreover, the team finds it necessary to conduct an inventory of the flora and fauna in the area that may be affected by the project as there may be possibility of damage of endemic species, such that before irreparable damage may be done, the proponent must exercise necessary precaution.

Relocation of municipal boundary must also be undertaken by competent authority or competent geodetic engineer to ascertain political jurisdiction of LGU Danao and Inabanga, as far as project implementation is concerned. “There should be social preparation and acceptability of the immediately affected residents of the project for both municipalities of Danao and Inabanga; and Corporate Social Responsibility (CSR) of the project proponent shall be laid out or made clear to the community before the construction of the dam especially to those lot claimants affected by the 47 hectares impounding area. The project proponent shall observe the terms and conditions of the Environmental Compliance Certificate (ECC) of the mini-hydropower plant project, according to the team.

ISSUES

The report boils down to several issues that concerned agencies and entities need to address “in line with the provincial government’s mission to enrich Bohol’s social, economic, cultural, and environmental resources through good, responsive, transparent and accountable governance with a goal of implementing a sound environmental protection and management”. The SP investigation is bent on seeking action from the DENR on the Defects in the ECC such as incorrect location description since an actual ocular inspection shows that the project is being undertaken not only in barangay Cabatuan in the town of Danao but in barangay Sua, Inabanga. Moreover the geographical coordinates has been found to be contestable with incorrect location description that also makes the geographical coordinates reflected in the ECC questionable and that there is therefore a need to settle geographical and territorial boundaries.

The provincial legal officer also noticed that in the Sworn Statement portion of the ECC Borje, who ought to be its signatory, was not the one who signed it. “If someone signed for Mr. Borje, the name of the attorney-in-fact should have appeared in the statement in order to avoid misrepresentation,” according the provincial legal officer. The P50,000 Environmental Guarantee Fund is also obviously insufficient for a project costing P1.3 billion in case of any damage that might arise. Another issue is the irregularities in the issuance of the ECC wherein there was misclassification of the project location, considering that a big portion of barangay Sua, Inabanga where a part of the project is located is classified as a timberland and a part of the watershed of Wahig Inabanga River, hence, not Alienable and Disposable. This is aside from the granting of ECC despite the absence of a full Environmental Impact Statement (EIS).

“Regardless of the carrying capacity of the hydro power plant, be it 5.2 MW or 8MW, the project involves the construction of a dam.  A dam is undisputedly a critical project. A critical project needs a full Environmental Impact Statement. However, QuadRiver insisted that a EIS is not required. This is reflected in the letter of Mr. Dominador Borje to the Provincial Development Council (PDC),” according to the PLO. There has also been lack of public participation and social acceptability wherein after Sta. Clara Power Corporation, through Engr. Asisclo Gonzaga, asked for an endorsement from the Sangguniang Bayan of Inabanga in 2004, LGU-Inabanga has not been informed of the progress of the proposed project. The people of Inabanga were not also privy to any discussions relative to the project. The PLO also saw some violations of the conditions in the ECC wherein the project has been initiated by an entity which is different from the project proponent stated in the ECC.

“The ECC was granted to Sta. Clara Power Corporation but it is readily admitted by the QuadRiver Energy Corporation through its representatives that it is the latter who is now undertaking the project; and there was failure to secure the necessary permits prior to the initiation of the project,” according to the PLO. One of the general conditions in the ECC provides is that a proponent shall only proceed with the project implementation “after securing all application permits” from pertinent government agencies....” and that the ECC becomes valid only after “all” necessary permit have been secured prior to project implementation. Moreover, the LGUs concerned, CENRO, and PENRO were not furnished copies of the ECC though one of the conditions in the ECC is for these agencies to be given copies of the ECC. There has also been no Multi-Partite Monitoring (MMT) organized which is supposedly required under the ECC condition as to be composed of representatives from the proponent, DENR, DENR-EMB Region 7, DOLE, a local environmental NGO, religious group, academe and the LGUs.

Provincial officials and other stakeholders also found it difficult to secure responsive action from DENR regional and local officials in their queries regarding documents submitted by the proponents of Cantakoy Hydro Power Plant project. The Department of Energy might then be asked to Suspend and Terminate the Hydropower Service Contract due to non-observance of environmental regulations imposed by the DENR. This is based on the grounds that Sta. Clara Power Corporation violated environmental laws which include illegal cutting of trees, illegal quarrying, and illegal extraction of minerals, among others. Provincial officials also raised questions on the propriety of the assignment of the service contract from Sta. Clara to QuadRiver. They also need the DPWH to shed light on the irregularity of the access road which is a construction of public road leading to a “private” project through the funding of the national government and the person behind the initiation of the project needs to also answer this concern.

Provincial officials also seeks an intervention of the National Water Resources Board (NWRB) on the use of the water permit for Cabatuan, Danao beyond the geographic coordinates mentioned in the permit which covers only the Cabatuan side and utilization of water resources in Inabanga is not covered. They also cited irregularities in the issuance of the permit where there was no Notice of Application, land ownership documents, and certification from LGU to utilize the source. The Philippine Coconut Authority also needs to look into the cutting of coconuts trees in the area without the necessary permit.

LOCAL ISSUES

On the part of the local offices of national government agencies, the actions sought are the conduct of surveys to verify territorial and geographic boundaries; commission studies, investigations and evaluations to assess, verify, and evaluate the extent, sociologically, economic and environmental effects and impact of the project, the logistical preparedness of the LGUs concerned and the social acceptability of the project in the affected communities. There is also a need to review documents submitted to support the issuance of ECC to verify the veracity and completeness data used by the proponents in the documents; investigate the Illegal cutting of trees, illegal quarrying and extractions in the project area and prosecute the culprits in court; look into the lack of transparency by the proponents in their dealings and transactions; lack of public participation and social acceptability; and failure to submit and furnish documents, e.g. ECC, etc. which are required to be furnished to the LGUs and other agencies concerned.

Provincial officials also want to check possible conflict of interests of local officials which led to the “privatization” of the project and the consequent unilateral exclusion of the LGUs concerned to reap the benefits and properly manage their natural resources. They also noted that the proponent failed to secure the necessary permits such as Zoning Certification, PAMB Endorsement, Other Lawful Permits, Tree Cutting Permit, Special Agreement on Protected Areas, Building permits, FMB Permit and Environmental and Sanitation Permit, PCA permit, and Disposal Permit from PENRO which are clear violations of prescribed rules procedures to the prejudice of the LGUs and communities concerned. With the numerous issues hounding the multi-billion-peso dam project even in its early phase, the SP Committee as a Whole assures the Boholanos of sustainable development with the protection of the environment and promotion of social justice. (with reports from RVO)