Lumads back geothermal expansion project in N. Cotabato

COTABATO CITY, Philippines - Thousands of lumads (indigenous people) in North Cotabato have thrown their support to a geothermal expansion project of the Philippine National Oil Company-Energy Development Corp. in Mt. Apo. Datu Samuel M. Asicam Sr., Cotabato Tribal Consultative Council chair, urged the Provincial Government to let the state-run company continue its drilling operations outside the 701-hectare geothermal reservation block. About a year ago, the Provincial Board passed a resolution seeking a deferment of the expansion project apparently due to lack of consultation with the local government units. The North Cotabato Provincial Government eventually filed a court petition against PNOC-EDC, citing violations of the Provincial Environment Code, which led to the issuance of a temporary restraining order. The drilling operation reportedly seeks to establish a re-injection well to serve as a cooling system that will generate additional steam to increase power production. "The suspension of the re-injection well project has affected the geothermal production capacity of PNOC-EDC, which in turn will have a negative impact on the royalty share given to indigenous people's communities within a 10-kilometer radius around the geothermal site at Mt. Apo," Asicam said in a statement. Asicam's group noted that the "economic condition of the IPs will be greatly affected with the drilling project's suspension since most of their livelihood, education, health and social services programs are dependent on the royalty share they get from PNOC-EDC." Indigenous people from Kidapawan City and the municipalities of Makilala, Magpet and Arakan favored the continuation of PNOC-EDC's expansion project in a gathering last week at the provincial capitol, he said. Governor Jesus N. Sacdalan was set to have a meeting early this week with PNOC EDC officials but he could not be reached for updates. However, he has vowed to help the lumads. Sacdalan said that it is not only the residents and tribal communities within a 10-kilometer radius of the geothermal site that are affected by the low production of PNOC-EDC but also the Provincial Government and Kidapawan City government since they also get royalty shares from the company. Paul A. Aquino, PNOC-EDC president, reportedly said last year that the company has decided to drill outside the geothermal reservation because "the geothermal source within it is cooling down." He added that while drilling activities will be outside the geothermal reservation area, it is still within the energy support zone allocated to it, in anticipation of such an event. By virtue of Presidential Proclamation 853 issued by former president Corazon Aquino, a 701-hectare block was segregated from the Mt. Apo National Park and declared a geothermal reservation, which PNOC-EDC is exploiting. It consists of two power plants, the 52-megawatt Mindanao 1 Geothermal Power Plant (M1GP) and the 54-MW Mindanao 2 Geothermal Power Plant (M2GP). The PNOC-EDC and the Japanese firm Marubeni Corp. jointly operate both facilities. Marubeni is one of two foreign groups that designed, financed and constructed the project under a build-operate and transfer (BOT) arrangement. It bought out the other foreign BOT operator, Oxbow Power Corporation of the United States. Full operation and ownership of the two power facilities will be turned over to PNOC-EDC when the 10-year cooperation arrangement ends in 2009. – Sun.Star GenSan