Economist thinks that justification for Hydro project in Davao should be based on economic agendaSome news on the Hedcor DCWD Tamugan River Row. In a press release. Dr. Maria Teresa Diokno-Pascual, professor of UP Diliman and an economist, said that there could be no statistical basis for a shortage of electricity in Mindanao if we base it on population growth alone. If that is so, then there is a need to prioritize the Tamugan-Panigan River to supply water to the people of Davao rather than building a Hydro Electric power plant.

However, if the economic agenda for Mindanao is mining and agribusiness, then this justifies the government’s reason to grant Hedcor’s request. Having said that, then Hedcor project should be a go because there are already a lot of mining projects in the offing for the island of Mindanao.

The Tamugan River is being contested by both the Davao City Water District (DCWD) and Hedcor. The former holds prior approved rights to use the river to supply water to the city but had failed to develop the project. Hedcor meanwhile wants to use the river for a Hydro Electric power plant. Hedcor has been pushing for a joint use of the river while DCWD wants sole use for themselves.

Dr. Pascual has been studying the Philippine’s electricity demand projections for a long time. She said that the government’s estimates on future energy needs are often unrealistic because their estimates do not come from the ground. She also said that the threat of a power crisis had been often used to force the public to accept their power projects. Also, often times when you look at the time when the supposed crisis should have hit, the supply of electricity is in abundance because of the wrong projections made. She also pointed out that Mindanao has the least energy requirement as compared to the Visayas and Luzon.

According to the article a permit had already been issued to Hedcor to allow it to begin construction of its Hydro Electric Power Plant.

Another side story mentioned at the press release is the concern of the Davao chapter of the Freedom from Debt Coalition (FDC) on the owners of Hedcor (the Aboitiz Group) having a monopoly of electricity generation in Mindanao. Since aside from owning Mindanao power plants, they also own the Davao Light and Power Co (DLPC) which is the franchise holder for electricity distribution in Davao City.

FDC also warned that if the hydro project pushes through the DCWD will loose control of the Tamugan river and its potable water supply, this will give the opportunity for the Aboitiz Group to take control over water distribution through DCWD’s privatization.

FDC also said that DCWD is willing to compromise with Hedcor if they shoulder the operational expenses and additional building costs when rerouting their planned water project because of the presence of a hydropower plant there. They also said that DCWD is currently paying DLPC the sum of P211 million/year for the cost of pumping groundwater from its wells. By tapping the surface water of the Tamugan river they will be able to reduce this cost because the water will flow on gravity alone.

DCWD had been accused in the past of using propaganda in their war with Hedcor on the Tamugan River use.

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Category: Hydro, Aboitiz