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    Arroyo OK’s entry of factories
    around geothermal power plants
    By Manuel T. Cayon
    Reporter
     

    DAVAO CITY—President Arroyo signed here Tuesday an executive order (EO) inviting factories and other heavy-power users to put up their operations around the cheaper-rated geothermal power plants, including the one in environmentally sensitive Mt. Apo.

    A councilor here, however, immediately criticized the EO as “treasonous” for the preferential treatment of foreigners over the local businesses in accessing the cheap and abundant geothermal power, while opening up for environmental abuse the mountain that is being looked up as one of the last frontiers of nature.

    The still unnumbered EO was signed at the posh “prayer mountain” enclave of the religious group of Pastor Apollo Quiboloy in Tamayong, north of downtown Davao, and mandated the creation of a special economic zones around the geothermal plants in Tiwi, Albay, Palimpinon, Negros Occidental, and the Philippine National Oil Co.-owned Mt. Geothermal Power Plant in Barangay Ilomavis, Kidapawan City in North Cotabato.

    The creation of the zones would prepare the way for the eventual entry of factories and other industries that depend a lot of their operations on reliable and cheap power.

    “I have signed here an important executive order that would generate investments around the geothermal plant,” President Arroyo said in a 15-minute talk show with two reporters from the government-run National Broadcasting Network and a Manila newspaper. She said the EO would direct “all local government units [LGUs] where the geothermal plants are to put up their own economic zones.”

    “Because the LGUs around these geothermal plants are receiving royalties from hosting these plants, but the royalties can be used only to pay or subsidize their power consumption,” she said. “But in many cases, LGUs have fat bank accounts because their households consume less power and some even subsidize other villages.”

    “So why not subsidize the factories who are complaining of paying high electric consumption by inviting them to operate there? They could generate employment for their residents,” she said.

    She said that the Philippines has so much geothermal power sources, and Environment Secretary Angelo Reyes said the country has been rated second high user of geothermal power after the United States.

    “We have so much geothermal power that even some countries, like Thailand, have requested us to share our geothermal experience,” President Arroyo also disclosed as having talked with the Thailand prime minister on the issue at the side of the Asia-Pacific Economic Cooperation (Apec) conference in Sydney, Australia, last week.

    President Arroyo said Thailand has planned to develop its own geothermal-power generation.

    President Arroyo was scheduled to go to the Mt. Apo Geothermal Plant at midmorning Tuesday, but canceled her trip due to heavy overcast. She proceeded instead to the mountain retreat compound of the Jesus, the Name Above Every Name, the religious movement founded by Quiboloy.

    Davao City councilor Peter Lavina doubted, however, if the declaration of geothermal sites as “special economic zones” would attract power-intensive industries such as electronics in southern Mindanao.

    “It is unthinkable for electronic companies to locate in Mt. Apo, for instance, which is far from any airport or seaport,” he said in a statement he e-mailed Tuesday. He said electronic processing in the country is largely for exports.

    Lavina, chairman of the City Council committee on trade, commerce and industry, suggested that instead of making available cheap power to foreign investors, “the government should instead provide this to local business and consumers.” He described the move of giving “the preferential treatment for foreign manufacturers in the case of cheap geothermal power” as “simply treasonous.” 

    “Local business and consumers are being made as second-class citizens in their own country,” he added. 

    Lavina also warned that “attracting power-intensive industries to geothermal sites may run in conflict with environmental laws, in the preservation of lumad culture, and claims on ancestral domain areas.”

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