Benguet endorses Hedcor’s Irisan hydropower plant

LA TRINIDAD, Benguet - The Provincial Board endorsed the memorandum of agreement between the Provincial Government and the Hydro Electric Development Corporation (Hedcor) for the development of a hydroelectric power plant in Tuba tapping renewable resources for energy generation.

Hedcor liaison officer Maria Elena Salita said their office requested for endorsement of the project from the province as a requirement needed by the Department of Energy (DOE) for a renewable energy service contract.

Before, the DOE only required municipal and barangay endorsements and these were already satisfied but DOE is now requiring, as an additional document, a resolution of support and endorsement from the Provincial Board, Salita said.

Hedcor president and Chief Operations Officer Engr. Rene Ronquillo forwarded a letter to the Provincial Board dated July 20 requesting the passage of a resolution favorably endorsing and supporting the 3.8-megawatt hydropower project (Irisan 1 HPP) located in Irisan, Tuba.

The Irisan 1 HPP project already took off December last year and is expected to be completed by October this year, Salita said.

Apart from the real property taxes paid, the province will also have a share from the proceeds of the gross sales of the hydropower plant, share as host community from the power generated and direct benefits.

The government share from development projects as a provision of the Renewable Energy (RE) Act of 2008 under Section 13 is equal to 1 percent of the gross income of RE resource developers resulting from the sale of renewable energy produced and such other income incidental to and arising from the renewable energy generation, transmission, and sale of electric power.

The one percent of the gross sales or the national wealth tax will be shared between government and the local government units (LGUs) at 60-40 percent sharing scheme. The 40 percent for the LGU will be shared by the province, municipality and barangay at 20, 45 and 35 percent, respectively.

Based on the RE Act, Electric Power Industry Reform Act (Epira) and its Implementing Rules and Regulations, as the project is within the territorial jurisdiction of the province, the Provincial Government, including the municipal and barangay units, will have a share from the power generated and delivered by Irisan 1 HPP for every kilowatt hour equivalent to 1 1/2 centavos or P0.015/kwh as host communities.

As indicated in the MOA, the province is expected to institute measures to protect and preserve the forest and water resources particularly watershed areas which may affect the project and assistance in maintenance of peace and order in the area, among others. (Susan Aro)