Hedcor, IPs come together to resume Bakun RE plants operation

Hedcor’s FLS Hydro, Lon-oy Hydro, and Lower Labay Hydro have resumed operations on July 28, 2021 and synchronized to the Luzon grid. This is following the successful conduct of a negotiation participated in by Hedcor, the Bakun Indigenous Tribe Organization (BITO), together with the Local Government officials of Bakun last July 27-28.

In a Facebook post by the Mayor’s office of Bakun, it outlined that the Bakun Ancestral Domain, Bakun Indigenous Tribes Organization and Hedcor, Inc. have “finally settled its disputes through the assistance of the National Commission on Indigenous Peoples – Cordillera Administrative Region, thereby, allowing the three (3) Hydroelectric Power Plant of Hedcor, Inc. located within the Ancestral Domain of Bakun to resume operations at estimated 8:00 PM [on June 28]”.

Hedcor’s President and COO Rolando Pacquiao likewise expressed his gratitude for the resolution and the continued partnership since 1991 with the community of Bakun for another 25 years.

“We are very grateful that the BITO, LGU and the community have expressed their support over the resumption of our operations in Bakun. We are equally thankful for the support of the NCIP-CAR in opening the doors to dialogue, and to the community for the opportunity to sit down and talk so that we can work on a resolution.”

The agreement of the LGU and BITO leaders to combine the benefit shares from Hedcor’s LGU voluntary MOA proposal and the supplemental benefits to the BITO paved the way for the simultaneous resolution of the LGU concerns and addressing the requests of the IP community.

With this, the Bakun community will collectively receive about 14 centavos per kWh of the generation of the Bakun Plants which is an aggregation of mandatory shares, voluntary benefits, and projects.  This includes the DOE government shares, ER 1-94 funds, shares and projects outlined in the signed 2019 FPIC-MOA, and the agreed supplemental benefits last July 28.

Hedcor anticipates the official signing of the supplemental MOA, which will be followed by the conduct of Cañao—a ceremony conducted by IPs in Northern Luzon that signifies thanksgiving and celebration.

With the resumption of operations and the resolution of issues, Hedcor looks forward to the completion of its FPIC application and consequently, the release of its Certificate of Precondition by the National Commission on Indigenous Peoples. ###

PRESS RELEASE