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Thursday, April 25, 2024

Hedcor sues Beneco over power plant

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KABAYAN, Benguet—Hedcor Kabayan Inc., the developer of the 52-MW Kabayan Hydropower Project here, has filed a civil case against the Benguet Electric Cooperative for interfering in the Free and Prior Informed Consent process the company is undertaking for the run-of-river power plant project.

Indigenous peoples in the 13 barangays of this town had voted to reject the proposal of the Aboitiz-owned Hedcor to put up the power plant by a vote of 62 to 58 with eight abstentions.

In voting against Hedcor’s proposal, the Kabayan IP leaders said they had already offered a partnership with Benguet Electric or Beneco. They were also concerned that Hedcor’s tunneling works for the project would cut off their water supply from the Agno River, which irrigates their farmlands.

“We are pleased that the court recognized the merits of our case and issued a Temporary Restraining Order on Nov. 25, 2016,” said Chris Faelnar, Hedcor senior vice president.

“This will allow Hedcor Kabayan to continue the consultation process with the community and the IPs of Kabayan in compliance to the National Commission of Indigenous Peoples guidelines to obtain IP consent for the project,” Faelnar added.

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The FPIC process is the first of many approvals and permits that are necessary to allow Hedcor Kabayan to develop and construct the 52-MW run-of-river hydropower project along the upper portion of the Agno River.

Faelnar said HEDCOR is committed to its corporate mandate “to uphold the best interest of our stakeholders and be the partner of choice in the communities where we develop renewable and sustainable run-of-river hydro projects.”

By virtue of the Renewable Energy Service Contract issued to Hedcor Kabayan by the Department of Energy and the DoE’s subsequent endorsement to conduct the FPIC, the company “has a right to perform activities in line with obtaining IP and community approval for the progress of the project,” he added.

Hedcor, Faelnar said, will focus its attention and resources on the continued development of the hydropower project, “which will provide the Philippines with an additional renewable power supply and most importantly benefit the Kabayan community.” 

The company operates 22 run-of-river hydropower plants in the country.

Under Republic Act 8371 or the Indigenous Peoples Rights Act, companies intending to develop, exploit and utilize the rich resources of the State must first secure the free and prior informed consent of the indigenous peoples to be affected by the project before implementing any activities within their ancestral domains.

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