THE Power Supply Agreement (PSA) between Misamis Oriental II Electric Cooperative (Moresco II) and Astronergy, and independent power supplier in Gingoog City, has been put on hold by the Energy Regulatory Commission (ERC) following issues on the firm’s Environmental Compliance Certificate (ECC).
The ERC have been holding in abeyance the processing of applications for approval of PSAs which have not secured the required ECCs from the Department of Environment and Natural Resources (DENR).
Jose Vicente Salazar, ERC chairman and CEO, said the ERC fully shares DENR’s concern to ensure the protection of the environment and is determined to help safeguard the people’s right to a balanced and healthful ecology in accordance with the Constitution.
The commission said the move was in response to DENR’s request for ERC to suspend the process of approvals of any PSA pending before the ERC in view of the ongoing re-evaluation of ECCs.
Aside from Moresco II, the ERC identified seven other pending applications that are deficient or without ECCs.
The ERC said an ECC is required by the DENR for any project in the Philippines that poses a potential environmental risk or a significant impact to the environment such as mining, agriculture projects or construction.
The ECC would certify that the proposed project or undertaking will not cause a significant negative impact on the environment and that the proponent has complied with all the requirements of the Environmental Impact Statement (EIS) System and has committed to implement its approved Environmental Management Plan.
Engineer Ronel Cañada, Moresco II OIC-General Manager, said should Astronergy fail to comply and secure the ECC, it may possibly lose the bilateral contract.
“Ang pag-secure sa ECC sa contractor mana kung dili sila mag-secure most probably dili madayon ang kontrata,” Cañada said.
Cañada said the bilateral contract was signed in the previous management before he assumed office.
“Taod-taod nana nga bilateral contract before my assumption into office. Sa Agay-ayan sa Gingoog City daw i-construct ang embedded power plant,” Cañada
Astronergy is supposed to supply 10 MW to Moresco II.
But, Cañada said Moresco II will not need Astroenergy yet since the power supply is sufficient to cater to Moresco II’s service area.
“Right now we don’t need power plant kay sufficient pa atong supply. Kanang sa Astronergy is for future reserve para sa additional load in the future,” Cañada added.