Wednesday, June 04, 2008 Town seeks suspension of Binga turnover
FOR lack of a final settlement of claims, the Itogon Municipal Government sought the intervention of the international financier of the SN Aboitiz Power (Snap) to ensure that the company complies with the social responsibility provision in obtaining its loan used to bid for the Binga and Ambuklao dams.
This came as town officials requested suspension of the impending turnover of the power plants from the National Power Corporation (Napocor) to Snap.
The officials however said the resolution is not an opposition to the bid of Snap to rehabilitate Binga, but "rather a local legislative assertion that local and international policies and principles on sustainable development are satisfactorily complied with and adhered to by all project stakeholders."
Until claims, social and environment concerns are fully addressed, the Municipal Government said the turnover must be held in abeyance.
Snap won the public auction for Binga and Ambuklao. The firm, it was learned, obtained a loan from the International Finance Corporation-World Bank Group (IFC-WBG) for its US$325 million bid for the formerly government-owned power facilities.
Town officials asked the IFC-WBG, through its Social and Environmental Department, to closely monitor and counter-check the compliance of its borrower, which is Snap in this case, with the Social and Performance Standards it set for the firm to adhere to as preconditions for the approval of the loan.
Napocor is set to turn over the dams to Snap on June 25.
But ancestral land claimants and former employees of Binga renewed their calls for just compensation, return of private lands, employment and provision of sustainable livelihood before new management takes over the dams.
"In the name of sustainable, holistic, equitable and genuine development, there is a need to request for the suspension of the turnover to give ample time for the project proponents to work out with the claimants mutually agreed solutions to the issues and concerns raised," the resolution said.
Snap chief executive officer (CEO) Emmanuel Rubio earlier said the claims are being addressed by Napocor. (JC)
