Report of the Special Committee on Mindanao Affairs on the Agus 1 Hydroelectric plant

by Anisha on June 16, 2009

REPUBLIC OF THE PHILIPPINES

Senate, Manila

 

SPECIAL COMMITTEE

To     :     The Senate

From :     The Special Committee on Mindanao Affairs

Subject :  Agus I Hydroelectric Plant

 

Date     : August 15, 1991

 Your Special Committee on Mindanao Affairs respectfully submits the following report on the result of its investigation in aid of legislation into the proposed operation of Agus I Hydroelectric Project in Marawi City.

Background

Your Special Committee was mandated by two Senate Resolutions:

(1) .S. No. 1041 filed by Senator Mamintal Tamano on December 13, 1990, “Directing the Committees on Mindanao Affairs, Justice and Human Rights, and Natural Ecology, to inquire in aid of legislation of the possible detrimental impact on the people and the environment of the operation of NAPOCOR’S Agus I and the operations of the National Power Corporation in Lanao del Sur and Lanao del Norte,” and

 

(2.) S. No. 1048 filed by Senators Aquilino Pimentel, Jr., Juan Ponce Enrile, and Jose Lina, Jr., on December 18, 1990, “Directing the Senate Special Committee on Mindanao Affairs to conduct an inquiry in aid of legislation into the National Power Corporation’s construction and projected operation of the Agus Hydroelectric Plants in Marawi City and Lanao del Sur and particularly into the complaints of Marawi residents protesting against the operation of Agus I”.

 

Agus I is one of a seven hydroelectric plants that National Power Corporation is constructing in Marawi City and Lanao del Sur.

 

The first, Agus 6, with 25 megawatts, was constructed in 1953 at the Maria Cristina Falls, Agus II was completed in 1979, Agus 7 was done in 1983, Agus 4 and 5 were finished in 1985, and Agus 3 is still under the planning and design stage.

 

Altogether, the Agus River Power Development will have a total capacity of 952 megawatts.

 

So far, the government has spent P4,527.64 million for the construction of the various Agus hydroelectric plants. For Agus I, it has already spent no less than P 1,620.53 million as of the first quarter of calendar year 1991.

The resolutions above mentioned were meant to provide an avenue for the discussion of the issue raised, primarily, by SALLAM, acronym for the Save Lake Lanao Movement. SALLAM is composed of multi-sectoral groups, which spearheaded activities aimed at stopping the construction and operation of Agus I.

 SALLAM filed suit (Case No. 327-90) with the Regional Trial Court of Lanao del Sur to enjoin the construction and operation of Agus I. It also mobilized the people of Marawi City and Lanao del Sur to stage demonstration against it.

 The demonstrations were held on October 15 and December 17, 1990, the latter attracting no less than 10,000 people in Marawi City.

 On record, among the principal oppositors to the construction and operation of Agus I are:

  1. Omar Umpar of SALLAM;
  2. Gov. Saidamen Pangarungan of Lanao del Sur;
  3. Mayor Mahid Mutilan of Marawi City;
  4. Vice Gov. Saadudin Alauya of Lanao del Sur;
  5. Mayor Macadadaya Acoon;
  6. Rakiin Al Macarampat, President of the Mayor’s League of Lanao del Sur;
  7. Mandangan Decampong, President PICE Lanao del Sur Chapter;
  8. Atty. Pacaambong Macabando of the Sultanate League;
  9. Mayor Jamal Alonto
  10. Faisal Hussein of the ARMM;
  11. Sheik Abdulrakin Mutin of the United Sheiks of the Philippines;
  12. Former Gov. Linang Mandangan of Lanao del Sur; and
  13. Comilao Laguindab of Markaz Shabbab.

 SALLAM and the other oppositor groups raised the following issues against the construction and operation of Agus I:

  1. Agus I suffers from construction defects, more specifically, that it is constructed

      on top of two earthquake faults, thereby endangering the people of Marawi City;

  1. Agus I will deprive at least one-third of the people of Marawi of its water supply for the economic and religious use, specially with the transfer of the site of Agus I hydroelectric plant some kilometers downstream for Marawi City bridge to its present site in Bangon, Marawi City;
  2. Agus I will deplete the waters of Lake Lanao to such an extent that farmers and fisher folk dependent on the lake will be deprived of their livelihood;
  3. Agus I will destroy scenic spots and historic sites as well as the ancestral graves of the people. 

Hearings held

Your Committee, as directed, conducted hearings on the various issues raised on the following dates:

(1)  On January 4, 1991 at the Mindanao State University in Marawi City, with the following senators in attendance: Sens. Pimentel, Tamano, Emrile and Mercado. Several Local officials led by Gov. Saidamen Pangarungan of Lanao del Sur and Mayor Mahid Mutilan of Marawi City; NPC officials led by Mr. Ernesto Aboitiz, SALLAM leaders and thousands of concerned citizens attended.

SALLAM leaders and other oppositors aired their complaints along the lines of the issues they had raised as enumerated above.

NPC Chair Ernesto Aboitiz explained the benefits that Agus I could bring and the safety features of the hydroelectric plant.

(2)  On March 1, 1991, at the Senate Building in Manila where Senators Pimentel, Tamano and Rasul were present.

At this hearing, Sen. Pimentel emphasized that the committee has decided to conduct a thorough and impartial investigation of the issues raised by the oppositors of Agus I to try to defuse the tense situation then obtaining in Marawi.

He said that the rumors spread by NPC that the brownouts in Mindanao were caused by the action of the Special Committee on Mindanao Affairs were simply untrue. The brown-outs, he said, were caused by NPC’s inability to provide sufficient power and not because of any act of the Special Committee.

Gov. Pangarungan and Mayor testified at this hearing that tunnels have been dug through the heart of Marawi City. In fact, they said, the Marawi City Hall and the Lanao del Sur Provincial Capitol now sit on top of Agus I tunnel.

NPC representatives and witnesses also testified at this hearing.

Francisco T. Delgado, Senior Vice-President for Engineering of NPC, said that thorough feasibility studies and site investigations had been made prior to the construction of Agus I. He also underscored the fact that the same water will be utilized, at least, seven times. This means that the water to be used by Agus I will be the same water that will be utilized to operate Agus II, III, IV, V, VI and VII.

Jose Jovellanos, President of the Engineering and Development Corporation of the Philippines (EDCOP), and Querubin Cunanan, project manager, also of EDCOP clarified the issue on construction defects of Agus I, EDCOP was the company which provided consulting engineering services to NPC covering the areas of planning, design and construction of Agus I.

Jovellanos testified that although it is true that there are “minor” earthquake faults near Lake Lanao the “faults are (not) expected to present xxx problems which cannot be overcome by normal engineering and construction procedure xxx.”{l.s.n., Y.M. Catolos, pp.1-2, March 1, 1991}.

He also said that the major structures of Agus I were constructed away from the faults. He emphasized that even if the tunnel collapses “there is no danger of flooding Marawi City as it is 17 meters higher than the Lake Lanao. Furthermore, in that eventuality, the Agus I plant will automatically shut down {l.s.n, De Guzman, p.5, March 1, 1991}.

Cunanan corroborated the testimony of Jovellanos. He said that the major structures have, indeed, been constructed away from the earthquake faults. For example, he cited the tunnel that was constructed underneath Marawi City. He said that the earthquake alleged to be straddled by the tunnel is actually at the end of the tunnel. And that tunnel could withstand, at least, an intensity 8 of a Richter scale earthquake. {l.s.n., De Guzman, p.2, March I, 1991.}

(3)  On March 11, 1991, at the Senate Building in Manila. Senators Pimentel and Tamano were present at this hearing.

The following testified: Mandangan Decampong of PICE, Omar Umpar and Haroun Maruhom of SALLAM, Francisco Delgado and Manaros Boransing of NPC, and Atty. Ricardo Guevarra of the Association of Mindanao Industries.

At this hearing, there was a repetition of the issues raised by SALLAM. Delgado and Boransing justified NPC’s activities relative to Agus I. Atty. Guevarra manifested that his association planned to create a foundation whose purpose is to extend assistance to the residents of the Lake Lanao area.

It was at this hearing that a Task Force to delve into the issues more deeply was created with the consent of SALLAM and the other oppositors.

The Task Force was to be composed of nominees from the University of the Philippines College of Engineering, the Mindanao State University, NPC, SALLAM and the Special Committee on Mindanao Affairs

(4)           On March 19, 1991, at the Senate building, Manila where Senators Pimentel and Rasul; the representatives of Senators Tamano, Osmeña, Angara, Maceda, Aquino, Mercado, Enrile and Paterno; the chairman, president and three directors of NPC; and SALLAM leaders were present at this hearing.

At this hearing, the NPC nominated Engr. Alfredo Juinio, former secretary of the Department of Public Works and Highways and former dean of the UP College of Engineering and SALLAM nominated Mr. Benasing Macarambon to the Task Force.

Mr. Aboitiz testified categorically that there will be no opening of Agus I until the Committee finishes its inquiry {l.s.n., P. Mayor, P.5, March 19, 1991: as repeated in l.s.n., Buenaventura, P.1; March 19,1991.}

Atty. Omar Umpar, chairman of SALLAM, assured the Committee that SALLAM swore to uphold democratic processes and non-violent actions. {l.s.n., Buenaventura, P.5, March 19,1991.}

Because the other parties were not yet ready with their nominees, the Chair adjourned the meeting to May 6, 1991.

(5) On May 6, 1991, at the Senate Building, Manila where Senator Pimentel was present.

At this hearing, the Task Force membership was completed with the appointment extended to the following:

  1. Atty. Samuel Jardin, as chairman, representing the Senate Special Committee on Mindanao Affairs;
  2. Prof. Angel A. Alejandrino, as member, representing the UP College of Engineering;
  3. Engr. Mama Mangorangca, as member, representing the Mindanao State University;
  4. Mr. Benasing Macarambon, Jr., as member, representing SALLAM; and
  5. Engr. Alfredo Juinio, representing NPC.

In addition, named to assist the Task Force were Mr. Antonio Rodriguez, Sr. Technical Staff; Rommel Tillah, Special Committee Secretary; Mr. Ali Mindalano, Special Assistant; Ms. Laura Tantoy; Mr. Andrew Gapuz; Mr.Orlando Inigo, Legislative Committee Secretary; Mr. Dominador Alavazo, Ms. Clemencia Castro, and Ms. Flordeliza Francisco, Stenographers, and Mr. Calvin Lim, Legislative Police, as members of the secretariat.

 The Task Force was mandated to:

(1)   “primarily determine the safety of the Agus I Project and assess its impact on the environment.

(2)   “hear additional statements on the ‘religious’ aspect of the Agus I project. (and)

(3)   “submit its findings within two weeks form the time its work begins.”

The Task Force was authorized to conduct “an ocular inspection on the Agus I project and (it) may repair to Cagayan de Oro City to hear witnesses and complete its investigation and report.” (Memorandum issued by the Chairman of the Special Committee on Mindanao Affairs, Sen. Aquilino Pimentel Jr., dated May 6, 1991)

Pursuant to its mandate, the Task Force conducted hearings on the following dates:

  1. May 10, 1991 – organizational meeting;
  2. May 13, 1991 – public hearing at Marawi City
  3. May 14, 1991 – ocular inspection of Agus I hydroelectric plant;
  4. May 15, 1991 – public hearing at Iligan City
  5. May 16-17, 1991- public hearings in Cagayan de Oro City;
  6. May 21-24,1991 – public hearings in Manila;
  7. June 10 to August 7, 1991 – preparation and submission of report of the Task Force to the Special Committee on Mindanao Affairs.

In all, the Task Force received the testimony of 35 witnesses, which included, among others, the following:

  1. From the National Power Corporation

a)     Engr. Cerael Dunggay, Asst. Vice Pres;

b)    Engr. Matthew Uy, Manager of Engineering Department;

c)     Engr. Crispin Lamayan, Manager for Systems operations;

d)    Engr. Juan Beleta, Project Manager of Agus I;

e)     Engr. Thomas Santos III, In-charge of the Eng’g Aspect for Agus I;

f)     Prof. Manaros Boransing, Director, Lake Lanao Agus River Development Project;

  1. From SALLAM

a)     Atty. Omar Umpar, Chairman

b)    Mr. Haroun Maruhom, Manager III, Mindanao State University

 

  1. From the Philippine Institute of Civil Engineers (PICE) Lanao del Sur Chapter:

a)     Engr. Mandangan Decampong, President

  1. From the contractors involved in the construction of Agus I

a)     Engr. Jose Javellanos, President, Eng’g and Development Corp. of the Phils.

b)    Engr. Martin Canlas, Program Manager, PHESCO, Inc..

5. From the national government agencies:

a) Dr. Raymundo Punongbayan, Director of Philippine Institute of   Volcanology and Seismology;

                  b) Mr. Luis Sosa, Exec. Director National Water Resources Board;

                  c) Atty. Lope Reyes, Asst. Director Forest Management Bureau;

                  d) Mr. Rufino Bumasang, Dep. Director-Oca, Office of Energy Affairs,      

                  e) Ms. Linda Quiocson, Environmental Engineer, Environmental Bureau,

             DENR.

      6. From concerned local officials:

                  a) Gov. Pangarungan, Lanao del Sur

                  b) Mayor Mutilan, Marawi City

                  c) Mayor Macarampat, Mayor’s League of Lanao del Sur

      7. From the Mindanao State University

                  a) Dr. Ali Macawaris, Chairman, MSU Task Force.

Also, the Task Force pored several documents (about 58 titles) relevant to the controversy, To name some:

  1. SALLAM primer;
  2. LESACA report;
  3. AGUS I H.E.P.
  4. Environmental Impact Statement on Agus I dated May 1991;
  5. Summary report NPC side on the issues;
  6. Data on Notable Earthquake Information;
  7. Portion of daily report on Tailrace Tunnel No.1 Feb. 25,1983 Cave-in;
  8. Agus I Geologic Plan;
  9. Steel Liner Bulging, Power Conduit No. 1;
  10. Contracts entered into by NPC with different contractors involving Agus I;
  11. Mindanao Grid Load Sharing;
  12. Memo report for the Senate Committee on Mindanao Affairs regarding the NPC side on the issues;
  13. MSU Task Force Policy study on Lake Lanao;
  14. List of logging concessions within the Lake Lanao Agus watershed;
  15. Population and number of residents of barangay units in Marawi City affected by Agus I;
  16. List of water permit grantees in the province of Lanao del Sur and Lanao del Norte as of December 1990;
  17. Monthly rainfall from 1961 to 1990; and
  18. EDCOP report on Agus I to the Task Force.

On August 7, 1991, after several delays occasioned by conflicting views and the difficulties posed by financial constraints upon the members thereof, some of whom reside in Marawi City, the Task Force submitted its report.

Hereunder are the principal recommendations of the Task Force which your Special Committee on Mindanao Affairs endorses for the consideration and approval of the Senate.

Recommendations

(1) On the safety issues in general:

Considering the time and logistical constraints, the Task Force recommends that:”… it would be more pragmatic to assume without admitting, however, that the project was conceived, designed and constructed by professionals with good track records and who are just as concerned with safety. Xxx.” (Task Force Report, p.27)

Specifically, the Task Force recommends and your Special Committee agrees that – - -

a.) On alleged geologic faults:

     “The most important fault to be considered is the Mindanao Lineament due to its proximity to the present site. It is about 50 kms. South of the project. This fault trends northwest from Davao Gulf, crosses the Mindanao region and extends down to Sulu Sea. (Task Force Report, p.28)

“There is not enough information, however, on whether these faults are active or inactive so as to make definite conclusions on the safety of the structures as sited in the vicinity of these faults. xxx” (Task Force Report, p. 28)

Quoting Philvolcs director, Raymundo Punongbayan, the Task Force suggests that “xxx Some reassurances can be derived, however, xxx that the ‘closest fault that I can identify would be the Philippine fault Zone and this would be 150 kms. To the east of Lake Lanao.” (Task Force Report, p.29)

The Philippine Institute of Volcanology and Seismology may, therefore, be asked to undertake seismicity of the Agus I area of responsibility on the basis of which the NPC should make any corresponding adjustments warranted by the study.

b.) On alleged substandard construction:

     The Task Force concluded that “the laboratory test results (showed) that all concrete samples passed more than the required strength of 3,000 pounds per square inch. “ (TFR, p. 30)”

c.) On alleged grouting inadequacies:

     The Task Force was not categorical on the issue, at all. It only said that the inadequacies in the grouting of the tunnel have to be verified. (TFR, p. 30)

The Commission on Audit ought to verify the records of the NPC relative to the number of the cement bags ordered and those delivered to Agus I hydroelectric project and used for grouting in the project. {TFR, p.41}.

The findings of the Commission on Audit would be relevant to the conclusions of the Task Force on seepages which are discussed in the paragraph immediately following.

d.) On the seepages issue:

     The Task Force reported that “most of the seepages must have come from the tailrace tunnels and not from the power penstocks as these are lined with steel. xxx

“What could not be ascertained was whether there were leaks from the alleged defects of the tailrace tunnels.” {TFR, p. 32}.

The Task Force failed to physically inspect the tunnels because “at the moment xxx the tunnels are flooded.” {TFR, p.32}

It looks like there is a need to determine the causes of the seepages and your Special Committee recommends that NPC conduct proper testing of its tunnels in the presence of representatives of the oppositors; make its report public and do the necessary adjustments to ensure the safety of the tunneled

(II) On the environmental and social issues—

The main thrust of SALLAM and the oppositors in their opposition to Agus I is to save “lake  (Lanao) and its resources,” (TFR, p.32). They also ask whether or not there has been or will be compliance with environmental requirements and how the NPC and other corporate beneficiaries of Agus I will manifest their social concern for the people of Marawi and Lanao del Sur?

(A.) On the water level and water discharge of Lake Lanao:

The Task Force recommends that the maximum level of the lake (be set) at Elev. 702.00 meters and the minimum level xxx at Elev. 699.5.” (TFR, p.35)

It is recommended that this be done by Executive Order of the President (TRF, p.42)

The Task Force also recommends that “overflow dikes across the two outlets of the Lake Lanao, namely, the approach channel of Agus I and the approach channel of the regulation dam. The top of the dike can be set at Elev. 699.15 meters which is the minimum operating level of Agus I). Once the level in the lake is lowered to this elevation, there will be no more water flowing to the Agus I power plant and to the Agus river.” (TFR, p.35)

“These recommendations would form the rational basis for planning, development, and  management of all related projects in the lake region.”(TFR, p.35)

The Task Force likewise recommends that “the yearly drawdown (from the Lake) shall not exceed 1.5 meters. (TFR, p.35)

“xxx The undesirable effects of most of the other issues would be minimized” if the recommendations are followed (TFR, p.35)

(B.) On the livelihood issue, the Task Force recommends:

     I.) that the irrigation needs of the farmers around Lake Lanao should be attended to, if necessary, pump facilities should be provided (TFR, p.37) by the proper government agencies; and

II.) that the National Water Council permits granted to NPC be modified so as not to preclude the reasonable use of the lake for irrigation purposes also

III.) that the water level in the “littoral zone, which xxx serves as the feeding, spawning and nursery ground of (the) fishes in the lake” (TFR, p.37) be increased.

This can be done “by limiting the drawdown of the lake to the minimum water level of Elev. 699.15 meters xxx.” (TFR, p.38)

IV.) Appropriate dams at the two outlets of Lake Lanao, namely at Agus I and at the regulation point, should be constructed to prevent further discharge of lake waters when the water level is at Elev. 699.15 meters 

(C.) On transportation, water supply and religious issues:

The Task Force suggests that with the fixing of the maximum and minimum water levels of the Lake, it should now be possible to construct “access roads, navigations channels and terminal facilities for water transportation”. (TFR, p.38)

The Task Force recommends that water supply for domestic and religious uses be provided for.

(D.) On watershed protection:

The Task Force recommends a “total ban on logging” around the Lake to protect its water shed. (TFR, p.39)

On the other environmental issues, the Task Force recommends that NPC secure the requisite environmental compliance certificate before Agus I be operated. (TFR, pp. 39-40)

(E.) On corporate social concerns:

The Task Force recommends that the NPC “exert its best efforts to improve and strengthen the relations between the National Power Corporation and the various communities in the area.” (TFR, p.43).

Further, your Special Committee recommends that the NPC should take the lead in getting support for the development projects of Marawi City from the direct beneficiaries of Agus I hydroelectric project. We have the word of the officers and members of the Association of Mindanao Industries whose member-corporations include, among others, Mabuhay Vinyl Corporation, Maria Cristina Chemical Industries Inc., National Steel Corp., PHIVEDEC Industrial Estate and Phililippine Minerals and Alloys Corp., that they are willing to share a portion of their income for the development needs of Marawi City.

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