Aboitiz Power Corp. suffered a setback after it was directed to cease and desist from operating three run-of-river hydropower plants in Bakud, Benguet allegedly due to irregularities.
In a disclosure to the stock exchange, AboitizPower said the National Commission on Indigenous Peoples in the Cordillera Administrative Region issued an order stopping the operations of the company’s three run-of-river hydropower plants in Bakun, Benguet five days after receipt of the CDO.
Covered by the CDO are AboitizPower’s Lower Labay Hydro, FLS Hydro and Lon-oy Hydro.
Irregularities were allegedly committed with respect to the Free Prior Informed Consent-Memorandum of Agreement (FPIC-MOA) between AboitizPower’s wholly owned subsidiary Hedcor and the Bakun Indigenous Tribes Organization (BITO), signed on October 15, 2019.
AboitizPower, however, insisted that it was “compliant with all the requirements during the course of the FPIC application process.”
“Hedcor is saddened by the NCIP-CAR’s decision to shut down its Bakun operations despite all efforts to come to a dialogue with BITO and the NCIP,” AboitizPower said.
“Tthe CDO will not just affect Hedcor, but also the customers and communities we serve. At this time of a red alert situation in the Luzon grid, the continued operation of our plants is very crucial,” said Noreen Vicencio, Hedcor’s VP for Corporate Services.
Vicencio said Hedcor would continue to actively reach out to the community for a dialogue with the Bakun IPs with the guidance of NCIP.
“The company looks forward to continuing to provide the benefits that the Bakun community is currently receiving from the generation of the plants.” Vicencio said.
AboitizPower is the holding company for the Aboitiz Group’s investments in power generation, distribution, and retail electricity services. It is one of the largest power producers in the Philippines with a balanced portfolio of assets located across the country.