The Hydropower plants in Mindanao which supplies 52% of its electricity is planned to be sold to private investors. This should not happen. We are opposing the privatization and here is the reason why.

1. Women & Children Leading the Fight to Keep
Mindanao’s Hydropower Resources in People’s Hands

2. How We Got Started
Dr. Melchie Ambalong,
Mindanao Commission
on Women (MCW) Vice-
Chair, is also Chair
Emerita of the Lanao
Power Consumers
Federation (LAPOCOF)
She has been a power
sector reform advocate
even before the EPIRA
law was passed in 2001

3. Why it is a Women’s Issue
Women are the major users of energy
Our electricity bill accounts for nearly 15% of the
household budget so any increase in power rates
has an impact on our budget
Access to electricity is important to women’s
productive and reproductive roles so lack of
access exacerbates the burden on women
Women’s ability to participate and voice their
energy needs in decision-making at all levels of
the energy system is critical to any reform of the
power sector.

4. Mindanao women are breaking the silence
and asserting their right to be heard on
Mindanao’s vast energy resources

5. Starting with Agus Pulangi
The Agus Pulangi
Hydropower
Complex supplies
52% of Mindanao’s
electricity needs
Under the EPIRA
law, it was up for
privatization by 2011

6. The EPIRA
Electric Power Industry Reform Act (EPIRA) or
Republic Act 9136 passed on June 26, 2001 after
seven years of congressional debate and court cases
It has three main objectives: (1) to develop
indigenous resources; (2) to cut the high cost of
power in the Philippines; and (3) to privatize power
assets to pay off NAPOCOR’s debts
It requires state-owned utility National Power
Corporation (NAPOCOR) to break-up its vertically
integrated assets into smaller sub-sectors such as
generation, transmission, distribution and supply for
privatization

7. Selling NAPOCOR’s Assets
In 2001, two subsidiary companies were created:
• National Transmission
Corporation (TRANSCO) to
assume Napocor’s substation
and transmission assets
• Private Sector Assets and
Liabilities Management
(PSALM) Corporation to
handle the privatization of
NAPOCOR’s assets and the
management of its liabilities

8. What EPIRA Has Done
In 2008, the National Grid Corporation of the Philippines
(NGCP), a private corporation, got the franchise to
manage, operate and maintain TRANSCO’s power
transmission function effectively privatizing the country’s
power transmission
As system operator of the power grid, NGCP has the sole
power to decide who gets electricity when and for how
much
•
PSALM has privatized more than 91% of all NAPOCOR
power plants yet the debt remains at US$16.7 Billion (as
of September 2011), more than the original debt of
US$16.4 Billion in 2001 before the passage of EPIRA

9. Environmental Charge
Section 34 of EPIRA provides that all power consumers
must pay an Environmental Charge of P0.0025 per
kilowatt hour monthly to be used solely for watershed
rehabilitation and management
Collections and disbursements as of March 31, 2010:
T t C lcio
oa oetn
l l P7 5 4 ,3 4 6
7 ,2 9 0 .7
A am ns
vile t P3 8 2 ,4 2 2
3 ,9 8 9 .7
Bl c
a ne
a P4 6 2 ,8 2 4
3 ,3 0 1 .0

10. Lanao-Agus Reforestation
ILIGAN
CITY
• Total Area: 194,160 hectares
Lanao del MARAWI
Norte
• Forested: 151,094 hectares CITY
• Without Forest Cover:
43,066 hectares
• NAPOCOR reforestation
from 1992-present: 2,004
Lanao del
hectares only Sur

11. Pulangi Reforestation
• Total Area: 1.8 M hectares,
second largest in the
country
• Watershed Reservation:
309,750 hectares
• Without Forest Cover:
192,368 hectares or 60% is
devoid of trees
• Reforested as of 2006: 500
hectares only

12. Where do the hundreds of millions of
pesos collected as “environmental
charge” for reforestation go?
Who is responsible
and accountable for it?

13. Impact on Power Rates
June 2001 March 2011
Average Retail Price Average Retail Price
Luzon P5 2K h Luzon
.3 /w P9 4K h
.8 /w
Visayas P5 1K h Visayas P8 9K h
.2 /w .1 /w
Mindanao P3 2K hMindanao P6 0K h
.5 /w .7 /w

14. EPIRA is an
Epic Failure
It did not reduce power costs.
Privatization of NAPOCOR’s assets
did not pay off its debt, but
increased it.
Power capacity was not increased,
there are more brownouts instead.

15. And yet the sale goes on...
Agus River, 36.5 km Pulangi River, 320 km

16. The People of Mindanao
have clearly spoken.

17. House Initiatives
House Bill No. 7106 filed by
Iligan City, Lanao del Norte
Rep. Vicente Varf Belmonte
excluding Agus Pulangi
Hydropower Complex from
privatization
House Resolution No. 107
deferring the sale of Agus
Pulangi Hydropower
Complex pending review of
EPIRA

18. Senate Initiatives
Senate Bill No. 3182 filed by
Senator Gregorio Honasan II
excluding Agus Pulangi
Hydropower Complex from
privatization
Senate President Juan
Ponce Enrile has pushed for
the review of EPIRA

19. Multi-Sectoral Opposition
Lanao Power Consumers Federation
Mindanao Commission on Women
Confederation of Mindanao Governors and Mayors
Mindanao Congressional Bloc
Various local government units in Mindanao
Association of Mindanao Rural Electric Coops
Mindanao Chambers of Commerce
Regional Development Councils
Freedom from Debt Coalition
NAPOCOR Employees Association

20. We Oppose Privatization
Because Agus Pulangi Hydropower Complex
(APHC), which is the source of more than half of
Mindanao’s electricity needs, keeps our cost of
power relatively low and cheaper than the rest of
the country
Because passing on ownership of APHC to
private hands will be giving the new private
sector owner excessive market power controlling
51% of Mindanao market and power grid (a
violation of EPIRA)

21. We Oppose Privatization
Because electricity is a public utility and a basic
need, it should not be traded like any other
commodity
Because private power costs more, at least 20%
more
Because in a privatized electricity system, the
price of electricity is driven up by the added
costs of profits, higher returns for the banks that
finance private power projects and the fees of
many consultants and brokers

22. We Oppose Privatization
Because Agus River and Pulangi River, which
come from Lake Lanao, are part of the ancestral
domain of Mindanao’s indigenous peoples
notably the Maranao, the Pulangiyon Manobo,
and the Higa-unon
Because selling this ancestral domain to the
highest bidder will stand in the way of a peaceful
settlement between the GRP and the MILF
Because Mindanao’s vast hydropower resource
is our children’s heritage, it should not belong to
one private owner

23. We Oppose Privatization
Because privately-owned electrical utilities have
a poor track record in terms of undertaking
environmentally-responsible initiatives unless
there is a lot of money to be made so it is a
climate crisis risk
Because the power industry structure in the
Philippines is geared towards
monopoly/oligopoly rather than competition
Because market demand is too small in
Mindanao for there to be enough players to
compete in a level playing field

24. We do not want to sell the
Agus Pulangi Hydropower
Complex because it is our
people’s treasure.
It keeps our power cost low
and earns money
for the government.

25. Agus Pulangi is NOT Losing
It is a NET EARNER
The P15 B reported
losses are actually
paper losses
(representing
depreciation and
amortization)
It actually subsidizes
the payment for If properly maintained and when
onerous IPP IPP contracts of losing assets
contracts from the expire, it is projected to increase
past administration more than four times
its current net earnings

26. PNoy’s Response to Power Crisis:
Pay more or live with brownouts!

27. Because PNoy
insists on privatizing
Agus Pulangi, the
people will “buy” the
power complex
collectively.
We will “buy” it so
that it will be owned
by the people now
and in the future.

28. If there are 21 million people in Mindanao and
every man, woman, and child pledges at least
P50, we can raise at least P1 Billion in pledges

29. Why PIPOL’S POWER?
To remind PNoy who his real boss
is -- the very people who toppled a
dictator and installed the country’s
first woman president, his mother
Power -- political and electrical --
must remain in people’s hands
From “outage” to “outrage” --
collective action will change the
people’s feeling of powerlessness
to being powerful

30. Women and Children Lead PIPOL’S POWER

31. Here’s how you
can join us...

32. Set up a Pipol’s
Power Pledging
Station in your
community.

33. Organize a
forum to make
people aware
of the issues.

34. Lobby Your Representatives
to Change the Law
Both Houses of Congress (Senate & HoR)
Provincial/City/Municipal/Barangay
Councils

35. Join Our Online Campaign
• ht:/ ip l o e.bo so.c m
t / o p wr l p t o /
p p s g
• ht:/ w .fcb o.c mp oso epoet
t / wae o k o /ip l wrrj
p w p c
hts / it r o /ip l o e
t :/wt .c mP o P wr
p t e s

36. Before he delivers his State of the Nation
Address (SONA) on July 23, 2012...
Let’s show PNoy
Mindanao’s Power.
Let’s show PNoy
who’s the boss.
Now na!