Instability, business-wise, is a euphemism for bankruptcy.
Half a decade of zero production in the Northern Negros Geothermal Project at Mt. Kanlaon Natural Park of Energy Development Corporation and still, who-knows-who are there in the site doing who-knows-what. Are they exploring further? Do they have other motives? Or are they simply chilling out in the nice view?
By year 2010, EDC already shut the power plant down. It has declared that there are inconsistent resources resulting to difficulties in the operation.
One of the restrictions in the Memorandum of Agreement (which EDC murdered at every turn) Negros provincial government and EDC signed last 2008 is the 49MW production of the said project.
The 49MW was not met at any point. This isolated case already compromises the MOA. To add insult to injury, the Lopez-led company is even pushing to downgrade to 4-8MW of output without accountability on their previous violations.
With these facts given, a good deal of individuals could not help but ask why. Why would clever business people risk staying in the premises without gaining any profit?
World Carbon Trading
From an article of Myrna Velasco in Philippine Power Plant, WB in carbon trading deal with PNOC-EDC, dated February 17, 2007, it is distinguished how EDC literally sold the resources of the island to Netherlands in relation to the Kyoto Protocol.
With the ERPA, company officials noted that all certified emission reductions generated by the project will be purchased by the government of Netherlands via its Clean Development Mechanism Facility (NCDMF) with the World Bank acting as its trustee.
The ERPA has a contract value of about 7.2 million (euros) for the guaranteed purchase of a minimum of 929,000 tons of carbon dioxide from NNGP between 2007 and 2012.
When EDC was asked about this in a meeting last September 9, 2015 with Vice Governor Lacson, their representative only said that he could not talk about it.
The Kyoto Protocol is an international agreement linked to the United Nations Framework Convention on Climate Change, which commits its Parties by setting internationally binding emission reduction targets. During the second commitment period, Parties committed to reduce GHG emissions by at least 18 percent below 1990 levels in the eight-year period from 2013 to 2020. (UNFCCC, 2014)
Industrialized nations who opt not to limit their emissions within the country usually buy the emissions of those who are willing to limit theirs in exchange of financial aid like what Netherlands did.
Since the power plant in MKNP did not meet the agreed amount of carbon dioxide emission and was already financed, they could not easily leave the facility. Their failure not only led them to bankruptcy but also additional liabilities, as well as a shattered credibility.
As for the opposition, NNGP is designed for a renewable source of energy and we have nothing against that. What we dispute is the irreversible damage it caused Negros who happened to already have a fragile forest cover. We lost our mature forest, animals lost their habitat, degraded the ecosystem and heightened the risk of disaster.
In addition, it has violated multiple sections of the MOA especially its incapacity to yield its promised 49MW. Therefore, all the destruction was for nothing. They fail, we suffer? That’s a lot to take in.
Here are some good reads that might offer you approval of existence of the trade and a better understanding:
Disclaimer: Contract value and amount of carbon dioxide in agreement is only an estimate having different numbers in varied articles and files
Waiting for NNNP Geothermal Commissioning
As early as 2012 EDC already identified Mt. Mandalagan or Northern Negros Natural Park (NNNP) as one of their frontier areas for geothermal exploration.
♦ For exploration ♦ For review ♦ In operation
All I could say about it is indeed, desperate times call for desperate measures.
EDC is basically buying some time, waiting for the NNNP project to be commissioned. Target date is 2018. Maybe they will be hanging out in MKNP for a while before that.
After the non-fulfillment of the ERPA with World Bank, EDC had to take steps accordingly. To save their remaining dignity in the business society, they came up with another project, trying to cover-up the insolvency of the initial project.
In the September 9 meeting with Vice Governor Lacson, EDC said that they are only missing 2 endorsements- provincial and from the city, before they could push through with their study in Mt. Mandalagan. I can even remember the Vice Governor saying, “I’m telling you, that will not happen in this administration” and “We all know where that study is going,” showing his absolute disagreement with the plans in NNNP.
EDC uttered in the same meeting that if the province gives no endorsement, no study will be done in Mt. Mandalagan. But in reality, they have already sponsored students from UP Diliman to have it checked. Bringing the name of their school as a front, no one will suspect it’s a scheme. After all, they could be mere victims themselves.
Lastly, the province just discovered all these things about NNNP and let’s say, was pretty much surprised.
This game is all about deception. It’s up to every soul to dig deep for the truth. And that reality is:
- EDC geothermal projects here in Negros are totally useless. We were fine without them and we will be fine without them. In fact, in an article of CNN, there are No threats of possible power shortage in Visayas, says former DOE secretary, dated August 24, 2015.
- Termination is the only solution. Non-negotiable.
- Strangers will not fight for you in a life or death situation. Well, guess what? Environmental protection is a life or death talk. Let’s face it. You can’t live without clean air, water, land and safe food source. Go fight for that. Fight for the future generations, your loved ones, yourself.
- “It’s not about me. It’s about us.” You may sound like a clingy lover but really, others deserve to know, too. So, you have an obligation to share the knowledge and encourage action. Like the reason I’m writing this and you’re reading it. **High five!
Our eyes have been opened big time. I only hope everyone gets to open their hearts as well. We are together in this journey and we will conquer this fight.
Give justice to MKNP. Save NNNP.
NEGROS IS NOT BUY ONE, TAKE ONE.
NEGROS IS NOT FOR SALE!