BOUNDARY dispute and ancestral claims between the Municipality of Tuba and Baguio City has stalled the operation of the Asin mini-hydro power plants despite being awarded to a private firm.
In July 2014, the City Government finally awarded the long delayed privatization, development and operation of the American vintage Asin hydro plants in Nangalisan, Tuba, Benguet to Kaltimex Energy Philippines based in Metro Manila.
However, the privatization contract is yet to be confirmed by the City Council.
Last year, the Provincial Board of Benguet has approved a committee report authorizing Tuba Municipal Mayor Florencio Bentres, to file a petition against the transfer of domestic water permit of Baguio Water District (BWD) into a power generation permit.
The report emanated from the Committee on Indigenous Peoples, chaired by Blas Dalus, with the mandatory IP Organization Representative of Benguet explaining a free, prior and informed consent (FPIC) is needed before the conversion of the water permit is approved by the National Water Resources Board (NWRB).
Dalus said at least four barangays of Tuba - Poblacion, Nangalisan, Tadiangan and Taloy Norte - form part of the watershed that supplies the Asin Hydro owned by the City Government of Baguio. The said water permit is the subject matter of a pending case between the BWD and Tuba with the NWRB.
Tuba Municipal Council Resolution No. 42-201 states Asin Hydro Electric Plan No. 1 is situated within the territorial jurisdiction of Tadiangan.
“A compromise agreement between the City of Baguio and the Tadiangan Nangalisan Hydro Ancestral Land Association (TNHALA) regarding claims and unpaid rentals reckoning from 2007 when the city government began operating the plants that are not resolved and addressed,” the resolution states.
Baguio City Mayor Mauricio Domogan, however, said Asin hydro is a property of the city even before the enactment of the Indigenous Peoples Rights Act (Ipra) which mandates the conduct of FPIC in developments that affect ancestral domains.
Domogan said Asin Hydro used to be operated by BWD but management was transferred to the City Government of the water system including the lines.
The permits however, remained under BWD who then should approve the application for the transfer of domestic water rights for conversion into power generation.
The power generation permit is needed for Baguio’s private partner Kaltimex to be able to connect to the national grid once it starts rehabilitation and operation of the Asin hydro plants.
Meantime, Barangay Tadiangan has entered into a 25-year contract of lease signed between Goldlink Global Energy Corporation for the development of two run-of-river hydroelectric plants along Asin River, near the power plants of Baguio.
Baguio is expecting the power plant to produce 41,406,178 kilowatt hours annually, once it is operated.
The City Government expects an income of P16 million or 30 percent of the gross earnings, whichever is higher, for the first year of operation and P18 million on the second year.
This will increase to P30 million on the third year, P40 million on the fourth and P50 million on the fifth years onwards.
The city government took over the three Asin hydro facilities, two of which are located in Barangay Tadiangan and one in Barangay Nangalisan, after its 1981 contract with BWD expired on September 1, 2006.