by Juliet B. Saley

SABANGAN, Mt. Province, March 23 – The local government unit (LGU) of this town and Hedcor this week entered into a memorandum of agreement for the construction of the proposed hydro electric power plant located in the municipality with an installed capacity of 13.2MW.



The LGU was represented by Mayor Donato L. Danglose while Hedcor Inc. was represented by its vice president for Business Development, Gregorio P. Jabonillo.


As stipulated in the MOA, Hedcor shall remit one percent of its gross income and shall be distributed as follows: 60 percent to the national government and 40 percent to the local government. This is in compliance with Section 13 of the Renewable Energy Act of 2008 and its Implementing Rules and Regulations.


In compliance also with the “EPIRA” and its Implementing Rules and Regulations, the Hedcor shall comply with its remittance obligations which states that the allocation and distribution of the local government share where the natural resources are located in the provinces are as follows: 20 percent goes to the province; 45 percent to the municipality; and 35 percent to the barangay.


Hedcor also binds itself to deliver to the municipality, one centavo per kilowatt hour of the power generated and delivered by its Hydro Electric Power Plant located within the territorial jurisdiction of the town. The amount shall be increased by P0.005 per kwh of the power generation every five years.


It is also provided in the MOA that the municipality will benefit from the project in terms of employment wherein Hedcor shall extend preference in employment opportunities to bona fide residents of the municipality for its hydro electric power plant.


Only residents who are qualified, competent, and physically fit for the positions applied for, will be hired in accordance with the employment guidelines set forth by Hedcor.


It is also the responsibility of Hedcor to initiate measures to protect and preserve the forest and water resources specifically those areas relevant to the hydro electric power plant, through various initiatives and undertakings particularly the implementation of relevant watershed management programs.


Hedcor shall extend to the LGU financial assistance to support the construction of the legislative building amounting to P1.5 million which will be given upon issuance of notice to proceed to the contractor.


For its part, the Sabangan LGU binds itself to observe, abide, and respect the obligations and responsibilities under this agreement with utmost good faith. *(PIA- CAR/Mt. Province)