T Corruption -riddled. This summarizes the initial findings of the Sangguniang Panlalawigan constituting as committee of the whole during the first hearing on the alleged anomalies surrounding the P1.3-billion Cantakoy hydro-power plant project in barangay Cabatuan, Danao. The first SP committee hearing on May 16 surprised provincial officials with the daring short-cuts in the processing of the Environmental Compliance Certificate and the dominance of Danao Mayor Louis Thomas Gonzaga’s family and relatives in the project. Provincial Environment and Natural Resources Officer (PENRO) Nestor Canda marked “not complied” on at least eight of the nine ECC conditions which, according to SP Member Josephine Socorro Jumamoy, must be tantamount to cancellation of ECC and suspension of the project. On this, the next SP committee hearing scheduled this Friday, May 25, right after the regular session will have the opinion from the regional director of the Environment Management Bureau (EMB) of the Department of Environment and Natural Resources (DENR), and even DENR Regional Executive Director Maximo Dichoso.

Canda also told the SP committee of the whole that EMB-7 will hold a technical conference in Cebu on May 24. Elpidio Palaca, OIC of the Talibon-based Community Environment and Natural Resources Office (Cenro) also noted that the project site is within the protected area of the Wahig-Inabanga forest reserve pursuant to Presidential Proclamation 223. The Compliance Evaluation Report of the DENR team based on the first monitoring on April 26, 2012 that Canda presented during the first hearing showed that the proponent failed to “ensure that all commitments, appropriate mitigating/enhancement measures and monitoring requirements especially those contained in the EMP in the IEE checklist document” shall be instituted and strictly implemented throughout the project implementation. There is also a remark in the report that “the project proponent has not given clear guidance to the contractor and the co-developer resulting to non-observance of the ECC conditions” as addressed to Sta. Clara Power-Quad River Corp. and Sta. Clara International.

The second violation was the failure to establish a nursery, while the requirement is for the proponent to establish additional nursery program for the seedling production of 132,500 pieces in support to the Green Philippines Master Plan which will be utilized for tree planting activities. The condition also includes planting of appropriate tree species within the project area as planned to serve as buffer and to compensate the removal of vegetation caused by the project implementation. But the proponent failed to comply this. The third violation was the failure to initiate or organize a Multi-partite Monitoring Team (MMT). The fourth condition not complied was the undertaking of a continuing information, education and communication (IEC) program to explain to all stakeholders, the final approved Environmental Management and Monitoring Plan (EMMoP) and the conditions of the ECC and update of the project status including significant changes on the EMMoP, and overall performance against the ECC. However, the EMB noted that the boring test, construction of access road and base camp were undertaken without IEC to the nearby barangays. The fifth violation was the failure to submit an updated Project Environmental Risk Categorization (PERC) prior to implementation.

The sixth violation was the failure to secure Engineering Geology and Geohazard Assessment Report (EGGAR), Certificate of Water Availability (CoWA), Tree Cutting Permit (TCP), National Water Resources Board (NWRB) permit, Philippine Coconut Authority (PCA) permit prior to the start of the project. The EMB is clear on the policy that the project’s ECC “becomes valid only after all necessary permits have been secured prior to the project implementation. The seventh violation was the non-compliance of the readily available and replenishable Environmental Guarantee Fund in the amount of P50,000. In its, remark, the EMB pointed out that the amount could be easily complied with by the proponent and that the amount was too small. It is also emphasized that there should be a replenishable Environmental Monitoring Fund (EMF) set aside for the operation of the Multi-partite Monitoring. Of the 13 conditions, the hydro power project proponent was required to comply nine. But of the nine, the proponent only complied one which is the billboard containing details of the project that must be visible in the project area. Canda also noted that the proponent failed to furnish copies of the ECC to the LGUs concerned, DENR, DOE, DOLE and other agencies concerned.

SHORTCUT

Canda expressed disappointment that the project proponent bypassed his office in the processing the ECC, saying that issues on the absence of social acceptability and the violations could have been addressed in the first place. He explained that the proponent should have first coordinated with the Talibon CENRO which has the jurisdiction on the project and the PENRO would then inspected the project and assessed the compliance of the requirements prior to submission of the documents to the regional office of the DENR for approval. The ECC was applied by Sta. Clara Power Corp. (SCPC) through its vice-president for operation Dominador Borje. But now the actual project implementation is undertaken the Quad River Energy Corp. which used the ECC of Sta. Clara Power Corp. Instead of getting a new ECC for the new proponent, and for the new engineering details considering its upgrading from 5 MW capacity to 8 MW.

BEHIND THE SCENE

On the other hand, DPWH II district Engr. Gregorio Sayson refused to divulge the identity of the official who worked for the release of the P4.473-million fund for the construction of access road leading to Cantakoy Falls with its end at the cliff overlooking the river below. Despite pressing questions from the SP committee of the whole, Sayson just left it hanging with a hint that “it is already obvious who he is”. Sayson and his assistant Engr. Godofredo Laga said they were even surprised to be informed that there is already a SARO for the project from the national office. And so, they just had to go over the process backwards—having the SARO then preparing the program of works—which is the reverse of the normal process. The fund was released on August 3, 2009 and the access road project construction was completed on May 18, 2010. A certain Saida Vitor-Gonzaga, then head of the DPWH planning office, was allegedly instrumental in the fund release. Saida Gonzaga is the wife of the first cousin of Engr. Asisclo Gonzaga--head of Sta. Clara Power Corp. and father of the mayor. Trinidad Mayor Roberto Cajes, who was then the representative of 2nd district raised questioned why the “public fund was used for a private project,” referring to the access road constructed as one of the components of the Cantakoy mini-hydro-project undertaken by the private entity, Quad River Energy Corp). Cajes also clarified that the funds for the access road did not come from his pork barrel. Cajes was dragged into the issue after Sayson said the budget for the project came from the then congressman’s pork barrel. The construction of the 1.8-kilometer access road which had been issued the SARO numbered A-09-05951 dated August 3, 2009 and was undertaken by the administration through DPWH 2nd district on Dec. 7, 2009 and was completed on April 30, 2010.

NO OFFENSE MEANT

Mayor Gonzaga denied trying to hold the SB secretary and the municipal officials from attending the SP investigation. The mayor is the son of Sta. Clara Power Corp. (project proponent) president Asisclo Gonzaga and uncle of the Vice-Mayor Jose Cepedoza whose brother is SP member Romulo Cepedoza. The mayor said their municipal planning and development officer and municipal engineer had to attend to important matters then. Moreover, he said the invitation was not formal because it was only coursed through the BLECS—though the practice had been done by Rep. Erico Aumentado when he was still governor. The mayor also said his office received the information late which was two days before the schedule of the investigation, giving them limited time to rearrange their schedules.

FAMILY ENTERPRISE

It also surfaced from the report of Danao Sangguniang Bayan secretary Annabelle Ceniza-Anunciado during the committee hearing that Danao Mayor Thomas Louis Gonzaga’s brother, father, and relatives have been involved in the project. Anunciado presented the chronology of events at the legislative branch, tracing to October 19, 2007 when the SB passed Resolution 2007-10-180, authorizing the Municipal Mayor Louis Thomas Gonzaga to enter into a Memorandum of Agreement with PhilCarbon, Inc. and Linkpoint Europe for the conduct of a feasibility study for the Cantakoy mini hydro project in the municipality of Danao. Then on December 12, 2007, the minutes of the session showed that the SB members took a break for the MOA signing. On July 21, 2008, the SB passed Resolution 08-07-132, endorsing Sta. Clara Power Corp., to conduct feasibility study on the development of mini-hydro power project in the vicinity of barangay Cabatuan along the Wahig River in Danao, and if found feasible for the realization of the same for the benefit of the people of Bohol. On October 18, 2008, the SB accommodated an urgent measure on the Cantakoy Mini-Hydro Power Plant Matters and Issues (Financial Scheme/Plan) presentation by Ian Gonzaga—who happened to be the mayor’s brother. On November 10, 2008, the SB passed Resolution 08-11-215, affirming the interest of the local government unit and authorizing Mayor Gonzaga to apply, negotiate and avail financing from the Municipal Development Fund Office (MDFO) under the Department of Finance through the Millennium Development Goal Fund (MDG-Fund), and undertake all acts necessary to the effective implementation of the LGU Equity to the proposed 5.2MW Cantakoy Mini-Hydro Power Project.

On December 15, 2008, the SB passed Resolution 08-12-247, authorizing the mayor to enter into a joint venture in behalf of LGU-Danao and the private sector on developing local enterprise designed to improve productivity and income of the municipality. On January 12, 2009, the SB passed Resolution 09-01-02, requesting the DENR clearance for the development of the proposed 5.5 Mega Hydro Electric Power in Cantakoy falls addressed to DENR through CENTRO-Talibon. On February 23, 2009, placed in the order of the day was a proposed resolution requesting Sta. Clara Power Corp. through its president, Engr. Asisclo Gonzaga, to reconsider the P30-million LGU equity for the project. Resolution 09-03-42 was passed on March 2, 2009 for it. It was also placed in the order of the day on June 8, 2009, a proposed resolution authorizing Mayor Gonzaga to enter into relevant agreement for the Cantakoy project. Then on June 15, 2009, it was placed as business of the day no. 1, the proposed resolution manifesting the interest of LGU-Danao to avail of a loan in the amount of P15 million for the project. Resolution 09-06-105 was passed on June 22, 2009 for this.

On June 29, 2009, the SB passed Resolution 09-06-108 authorizing Mayor Gonzaga to enter into a relevant agreement for the Cantakoy Hydro power plant (Shareholder agreement between the LGU and Sta. Clara Corp.). On October 26, 2009, Councilor Pedro Vitor gave a report on the access road to Cantakoy Falls and the minutes of the meeting showed that Vitor hinted that his sister, Saida Vitor-Gonzaga, was instrumental in the release of the fund for its implementation. Since then the SP Committee of the Whole noticed a hiatus from 2009-2012, then when it suddenly became the sole project of Sta. Clara Power Corp. then came the Quad River Energy Corp. in the scene. On February 20, 2012, Resolution 2012-02-75 was passed, expressing support from the LGU-Danao to Quadriver Enegry Corp. and Sta. Clara Power Corp. for the Cantakoy hydro-electric project. On February 27, 2012 Resolution 2012-02-83 was passed declaring Lot Nos. 2902, 2903, and 3001 in barangay Cabatuan as medium-scale industrial zone in the municipal zoning classification. On March 5, 2012 the second item in other matters was the request from Quadriver Power Corp. to amend the approved legislation manifesting support from the LGU on the proposed project.

Then, under reference business, the SB tackled at committee level on March 19, 2012 the proposed resolution requesting the Quadriver Energy Corporation, developer of the proposed hydro power plant in Cantakoy falls, to conduct a social preparation and IEC relative to the project to the affected barangays for their information and awareness. This move came just recently when the project is already ongoing. On April 2, 2012 the SB deferred the proposed resolution requesting Quadriver Energy Corp, to provide the SB a copy of the ECC of the “newly constructed” project. Last April 10, 2012 the SB passed Resolution 2012-04-119 endorsing Resolution No. 6 of the Liga ng mga Barangay requesting Quadriver Energy Corp. to conduct social preparation and IEC. Last April 23, , 2012 Resolution 2012-04-125 was passed affirming strong support of LGU-Danao to Quadriver Energy Corp. for the Cantakoy project.