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Friday, July 18, 2008

 

BIG DEAL
By Dan Mariano
Misguided class suit

 
Geothermal energy depends, not just on heat, but also moisture. After all, the steam that is used to run power plants that generate electricity is a combination of heat and water.

The heat comes from geological formations underground that in certain cases create hot springs, geysers and volcanoes. The water—which seeps underground and combines with heat to form steam—comes from vegetation aboveground. The thicker the vegetation the greater is the source of moisture.

This is precisely why “wet” geothermal energy projects invariably involve forest protection. The steam fields that produce cheap electricity in Leyte, Bicol, Laguna, Negros and Maguin­danao are surrounded by lush rainforests. Their operators ensure that the vegetation remains untouched; these areas are tightly guarded from loggers and slash-and-burn farmers called kaingeros.

DENR Secretary Joselito Atienza Jr. was therefore standing on solid environmental—not to mention, legal—ground when he allowed Energy Development Corporation (EDC) to enter the buffer zone of the Mt. Kanlaon National Park in Neg­ros Occidental. EDC is the former geothermal subsidiary of the state-owned Philippine National Oil Company now controlled by a private consortium led by the Lopez family.

Atienza, EDC and several others have been sued by the Save Mt. Kanlaon Coalition before the Bacolod Regional Trial Court. The class suit seeks to stop the power company from entering the buffer zone surrounding the park for geothermal exploration.

EDC had sought entry into the buffer zone to tap more geo­thermal energy for its Northern Negros Geothermal Production project, which was granted an environmental compliance certificate as far back as 1995. By virtue of Republic Act 9154, a 169-hectare buffer zone in the Kanlaon area was set aside for geothermal energy development. In addition, Presidential Proclamation 1005 declared a 1,475-hectare area in the national park as a geothermal block.

EDC has been operating in the area since the 1990s. It commissioned its geothermal plant last year, and has applied to enter the buffer zone to tap more steam that could supply more electricity to the power-deficit province of Negros Occidental.

The coalition’s environmental concerns are understandable, but they obviously have misconceptions about the operations of geothermal power plants. Without EDC’s steam fields, the cost of electricity in Negros Occidental—and the rest of the country, for that matter—would be even more expensive than it already is.

Katas ng E-VAT

President Arroyo has launched a microfinance package for the families of jeepney and bus drivers. She said P500 million would be taken from surplus collections of the expanded value-added tax (E-VAT) on oil, and would be made available to public transport workers’ kin as start-up capital for small businesses. The fund will come from the P4-billion excess oil E-VAT for the second quarter of the year.

Administration spokesmen have tried to couch this surplus revenue in street patois by calling it Katas ng E-VAT, literally “Sap of E-VAT.” It is reminiscent of the signs proudly displayed in some jeepneys, like Katas ng Saudi, declaring how money to buy the vehicle was raised through the sweat of the owner who has toiled in the Middle East.

Despite the bid to give it a popular spin, Katas ng E-VAT could backfire. Even unlettered plebeians are aware that sap has a tendency to evaporate to climes unknown.

A day before she unveiled the P500-million microfinance package, Mrs. Arroyo had announced in Masbate that the government would extend P4 billion to poor Filipinos, including additional subsidies to offset electric bills and cash grants to senior citizens. These funds will be in addition to the P4 billion already released by the government since May to consumers of 100 kilowatt-hours of electricity or less that month, student loans and scholarships and conversion of gasoline-fed engines of public utility vehicles—which, for the most part, actually run on diesel—to compressed natural gas.

No full accounting has thus far been released of how the first P4-billion package had actually been spent—giving ammo to Mala­cañang’s usual critics.

For one, Lingayen-Dagupan Archbishop Oscar Cruz told reporters he was afraid that a big chunk of the Katas ng E-VAT “would only go to the pockets of corrupt officials” as no detailed audit of oil-tax expenditures is evidently being done.

He also questioned the administration’s distribution of cash handouts, which the Catholic prelate said tends to diminish the recipients’ self-esteem. “It seems [Mrs. Arroyo] has a very low regard for poor Filipinos because she just wants them to depend on dole-outs,” Cruz added.

Derelict irrigation

As the Arroyo administration busies itself with handing out dole, other areas cry out for immediate funding.

Last week the National Irrigation Administration (NIA) revealed that disused agricultural waterworks have rendered some 368,000 hectares of farmland unproductive. Acting NIA Administrator Carlos Salazar reportedly said that those farms have the potential of producing at least 29.4 million sacks of palay in just one cropping season.

The derelict waterworks were among the irrigation systems—built in 1963 during the incumbency of Mrs. Arroyo’s father, Diosdado Macapagal—that used to service 1.2 million hectares of farmland.

The neglected irrigation network could have produced enough rice to feed 14.7 million hungry Filipinos. Restoring the waterworks that used to irrigate 368,000 hectares of farmland would cost the government P22 billion.

To be sure, the state-owned Development Bank of the Philippines has set aside a P5-billion package for agricultural infrastructure, including irrigation systems. These are not handouts, but loans that must be repaid by local governments.

Malacañang is willing to spend a total of P8 billion—thus far—for handouts, but will lend only P5 billion for vital farm infrastructure like irrigation. At the very least, the administration’s order of priorities is suspect.

dansoy26@yahoo.com

   
 

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