Flurry of new coal plants threaten Philippines’s Mindanao

Along the highway approaching the boundary areas of Davao city and Davao del Sur in Southern Philippines, Flora Salandron, a village councilor, opens the front windows she always locks up all day to keep away the dust from the highway. But these days, it’s no longer the dust, nor the fumes of passing trucks, that troubled her.

Just across the street, framed by her window and towering over most of the village of Binugao, stood the newly-built chimney of the 600 megawatt coal-fired power plant of the company Therma South Inc., a subsidiary of the Philippine company Aboitiz Power Corporation. “Soon there will be fumes coming out of that chimney,” says Salandron, her voice echoing her growing anxiety. “I don’t know what’s going to happen to us.”

Health activists and environmentalists have warned against the effects that the coal-fired power plant brings to the lives of people—from the toxic gases it will emit, to the dangers of contamination posed by coal combustion residues and the possible strain that operation of the plant might bring to the existing water resources. But the strong push of Davao city’s tough-talking and very popular mayor, Rodrigo Duterte, and the consent of village leaders, stifled the voices opposed to the plant.

The Aboitiz plant lies within the 60-hectare lot that straddles Davao city’s boundary village of Binugao and the largely fishing and farming village of Inawayan in Santa Cruz town of Davao del Sur.

It is one of the 45 new coal-fired power plants the Aquino government has lined up in the Philippines, supposedly to solve what business and power industry leaders project as the looming power shortage in 2015.

The sheer number of coal-fired plants built at the time when such plants are already being phased out in the West, have alarmed environmentalists.

Coal is the world’s top contributor to global warming, the leading culprit for climate change; and the Philippines has consistently been on the top 10 of the world’s most vulnerable countries to climate catastrophe.

Mindanao, which never used to experience typhoons, also got a dose of extreme weather in 2012, when the Supertyphoon Bopha battered the provinces of Compostela Valley and Davao Oriental, killing over a thousand people, and destroying some P10 billion worth of crops and properties. Yet, 13 of the new 45 coal-fired power plants being lined up in the Philippines are in Mindanao, an island still enjoying a relatively cheaper power rates than the rest of the country for its reliance on hydropower.

Recent projection by the Mindanao Development Authority (MinDA) shows that the flurry of coal-fired power plant construction in Mindanao will change the energy mix of the island from its current reliance on cheap hydropower to reliance on imported coal. This trend, environmentalists warned, will not only make electricity more expensive to ordinary consumers but will lock up the country’s dependence on coal power by 30 to 50 years.

For Aviva Imhof, coordinator of the Pacific Coal Network of the Australia-based The Sunrise Project, the figure is quite alarming, considering how countries around the world are now shifting towards renewable energy and are abandoning the dirty path of coal. “What Philippines is doing is locking itself to coal dependency in the next 30 to 50 years,” said Imhoff, “It’s crazy because there’s the concern about the global increase in coal prices; and if governments agree on climate targets, it will drive up the cost of coal, which consumers will be paying because the (power) generators will pass on the fuel cost to consumers,” she said, “You will end up paying for it,” she warned.

In July, the environment watchdog Greenpeace released a stern warning in Manila, saying the country’s “continued fixation” with coal-fired power plants as a main energy source will only invite climate catastrophes.

“While we cannot prevent super typhoons from entering the country, we can address what causes these storms to be stronger and more frequent, and we tag coal as the culprit, the main driver of climate change,” said Reuben Andrew Muni, climate and energy campaigner for Greenpeace. The group’s second volume of the report, “The True Cost of Coal,” blamed coal as the main culprit for the occurrences of extreme weather. “Building more coal plants will just be loading the dice for another typhoon Haiyan,” said the report released in July, referring to the world’s strongest typhoon that devastated a large swathe of land in Central Philippines in November 2013.

More than half of the total number of new coal-fired power plants being built in the country, are in Mindanao, an island still enjoying cheaper electricity rates compared to the rest of the country because of its heavy reliance on hydropower. The flurry of coal plant construction in Mindanao, however, is projected to reverse the trend in the coming years. While Mindanao still sources out 56 per cent of its energy need from renewable energy (mainly hydropower) this year, this reliance on renewable energy is projected to go down to 33 per cent in 2016; as the island will rely more on fossil-based energy like coal, according to the MinDA’s supply outlook projection for Mindanao.

Bryan Diosma, MinDA technical head, said the share of fossil-based fuel in the energy mix in Mindanao is projected to increase from only 44 per cent in 2014 to 67 per cent in 2016.

The MinDA data he presented shows that coal will make up 49 per cent of Mindanao’s energy mix in 2016 while hydro will share a minimal 29 per cent in the same year.

Environment groups assail President Aquino’s long-standing bias for coal.

Gerry Arances, national coordinator of Philippine Movement for Climate Justice (PMCJ), accused the President of listening first to power industry players before listening to his people. PMCJ said the power industry player’s proposed solution to the energy crisis is to approve and build more coal-fired power plants, most of which failed to get the consent of communities where they are located.

Francis Morales, coordinator of the Balsa Mindanao, a nongovernment disaster response group set up in the wake of supertyphoons Bopha and Hainan, said the setting up of more coal-fired power plants make the government of the Philippines the biggest disaster to the Filipino people, and that there’s no other way for the people to survive but to rely on their own strength. “It’s liberating for the people to protect and defend themselves when the government is putting people’s welfare way below in its priority list,” said Morales.

“For putting up more coal-fired power plants at the time when the country faces the threats of climate catastrophe, the Philippine government has turned out to be the biggest disaster that ever happened to the Filipino people,” Morales said. “People should brace themselves against the impact of climate change, coming to us through these coal-fired power plants, courtesy of the Philippine government.”

But President Aquino, hardly spoke about energy in his latest state-of-the-nation address, except to warn that hydropower, as a main source of power, is unreliable.

PMCJ also noted that the Philippine Energy Plan (PEP) 2008-2030, the country targets energy self-sufficiency but through heavy reliance on fossil fuel, oil, gas and coal.   “With or without an energy crisis, the proposed new coal power-plants will inflict debilitating effects on environment, health, loss of livelihood and to our resiliency to climate change impacts,” Arances said. “The government will put its people in danger with its energy plan.”

While government increasingly dangled coal as the fast and affordable solution to the energy crisis, environmentalists pointed out that governments are paying high cost for health and social catastrophes that confront communities, as a result of coal plant operations, and this does not yet include the severe damage caused by extreme weather to the economy. Dr. Jean Lindo, health activist and convenor of the group NO to Coal in Southern Mindanao, cited studies made by by Jeff Stant, director of the Coal Combustion Waste Initiative Environment Integrity Project in the US, warning that coal combustion waste is toxic, that it has high concentrations of 17 heavy metals including arsenic, selenium, mercury, cadmium, chromium, lead, antimony, thallium, molybdenum, vanadium, nickel and cobalt as well as boron, sulfates, chlorides and other salts.

These heavy metals cause birth defects, adverse physiological, metabolic effects, harms birds, fish and livestock. The study also showed that people living near coal combustion waste sites face a high risk of cancer and a high risk of arsenic contamination in their ground water.

At present, there are already 13 existing coal plants in the Philippines, with a total installed capacity of 3,799 megawatts. The Department of Energy (DOE)report in 2012 shows that the country still relies 38.76 per cent of its energy needs from coal, and Greenpeace pointed out that this reliance on coal has been growing, not receding through the years. Once the 45 new coal plants—being lined up now—will run, the country’s carbon dioxide emission level will increase to 79.8 million metric tons a year. Greenpeace also warned that the country’s continued investment in coal also undermines the Philippines’ position to push for legally-binding climate treaty that might save the country from the devastating impacts of climate change.

Most of the coal plant sites overlap biodiversity areas that the government itself has declared protected.

Along the strip of coastline where the Aboitiz’ plant sits in Binugao up to the village of Lasang in the north, people have been trading stories about their surprised encounters with butandings (whale sharks), a sign that biodiversity level in the area is still high, says Leonardo Avila III, a Davao city councilor and president of the Save the Davao Gulf Foundation Inc. The Binugao plant lies facing the Davao Gulf, earlier identified in one study as feeding ground of 11 species of whales and placed as one of the biodiversity hotspots. Greenpeace had earlier identified the area as cetacean priority in its Oceans Campaign, because of the presence of whales and dugongs in the area. But the string of coal-fired power plants built around the Davao Gulf alone is alarming, says Muni. “We believe, though, that once the coal-fired power plant will start operation, marine life will be affected, including whale sharks and dugong.”

Just four towns away, another coal-fired power plant is being built in Malita, Davao Occidental, by another Philippine conglomerate, the San Miguel Corporation (SMC), targeting to use the coal mined from its newly-acquired coal mines in the adjacent province of South Cotabato. Up north, where Mindanao’s first coal-fired power plant the Steag’s 210 megawatt’s Mindanao Power Plant which started running in 2006, another power plants are being built; namely, the 405 Megawatt FDC Misamis Power Corporation, a subsidiary of another Philippine company Filinvest Development Corporation within Villanueva town; and the plant being set up by Minergy in Balingasag town.

Just two provinces away, in Maasim, Sarangani, where the Conal Coal plant is located, members of the group Anti-COALition, a national network of communities opposed to coal and endorsing renewable energy, reported that the plant’s area overlapped with the Tampoan marine biodiversity area, where dolphins were often sighted and dugongs were known to thrive.


AS WAVES lap the strip of shore in the Binugao side of the coal plant, a group of farmers taking a rest in a shade watch as a man, they fondly called Bobby, push his small boat and prepared to sail in the water. Bobby had been known in the area as the man who used to swim with the butandings, a whale shark. As his boat sailed far deeper into sea, the farmers saw a school of fish jumping over his boat to the water. “He will not catch them, he’s not a fisherman,” says Celestino Gibao, 50, “He will only watch those fish play, they’re his friends.” Fishers used to be happy when the butandings come because they signal an abundant catch, says Annabelle Lovitos, who lives in the Binugao area for years. Lovitos said she only saw the butandings one late afternoon, when the sea was calm. “The fishers just left them alone, because when they come, swarm of fish follows. They have a good catch and that leaves the fisherfolks are happy.”

“Butandings are indicator species because they’re filter feeder,” says Avila, “They don’t have teeth, only filters, looking like tiny hairs. When they eat, they just swallow the water, then filter the small organisms inside—small shrimps, krills—these krills are available when the water is clean enough for certain planktons to thrive, so the presence of butandings indicate that the water is good, because the planktons are there, and where there are planktons, there are krills,” said Avila. “Imagine the volume of krills they eat all day,” he said, “That only means abundance.”

To their right, the coal dome of the new coal plant caught the sun’s rays. Gibao stared at the conveyor belt running from the dome all the way to the newly-built port facility, where ships carrying coal from Kalimantan, will finally unload their cargo. “I was told there would be no human contact,” he said. “No one will touch the coal. After it is unloaded from the ship, it will directly pass the conveyor’s belt to the coal dome,” Gibao said, “The pipe bigger than a man will take in as much water from the sea to cool the boilers and spit the water back again to the sea.” Alejandro Canque, a resident, thinks that the water released from the plant will be a lot warmer.

Soon, the first phase of the plant will soon start its test run.

They wonder how long will the krills survive.

Growing energy demand trips Philippines biosphere town

“Another bird trips the power line?”

Every time the electricity gets cut off, residents of a small but booming tourism city of Puerto Princesa in the Philippines flood their Facebook shout outs blaming the power supplier for inefficiency. The local electric cooperative then passes the blame on miniscule reasons like tree branches falling on electric lines or birds treading on them. It cannot be discounted, however, that ageing power lines and generators running on crude oil cannot cope with the increasing demand of the city, which has seen the number of hotels and restaurants grow exponentially. Three years ago, a three-storey mall also opened. This so-called development has driven local politicians to find ways of delivering the much-needed electricity within a short period. Gil Acosta, the governor’s spokesperson, said “the governor believes that Palawan has been left behind by other provinces, even though it’s the biggest in the region. Power plays a big role in development. Those who want to invest in Palawan first ask whether there is a stable power supply.”

Faced with criticisms and pressure from local leaders, the Palawan Electric Cooperative (PALECO), which is mandated to deliver uninterrupted power supply to the residents, signed a 25-megawatt supply contract with DMCI Power Corporation, a privately-owned company that specializes in power utilities, in July 2012. Aside from a coal-fired power plant, this also included a 5-megawatt diesel-fired power plant that began commercial operations at the end of 2012. The company, meanwhile, positions itself as a saviour. In a press release, it stated: “DMCI Power Corporation is building a power plant in Palawan to avert a looming power crisis in the fast-growing province, which thrives on tourism as a main industry.”

Much has to be said about the company that was contracted. Its mother company, DMCI Holdings has interests in construction, water and ore mining services. DMCI’s subsidiary Semirara Mining Corporation is the largest coal producer in the country and is one of the biggest in Asia. DCMI both exports and supplies its power plants with the coal it mines. While boasting of its corporate social responsibility and promising to follow environmental laws and regulations in building the coal-fired power plant in Palawan, DCMI doesn’t have the perfect grade in environmental protection. Its open pit-mine in Antique province’s Semirara Island has been blamed for a host of environmental destruction, causing low yields for farmers and low fish catch for fishermen.

In 2013, a part of a wall in its open pit mine collapsed that killed five workers and five others went missing.  Moreover, according to US-based Carbon Monitoring for Action (CARMA), which holds information about the carbon emissions of over 60,000 power plants and 20,000 power companies worldwide, DCMI’s  power plant in its mine site in Panian, Semirara emits 1,370 kilos of carbon dioxide per megawatt-hour, while its plant in Calaca, Batangas province emits 1,190 kilos of carbon dioxide per megawatt-hour, third and ninth respectively in the top 10 highest CO2 emitters in the country.

CARMA claimed that the usual intensity of CO2 emission among power plants in the Philippines is 506 kilos of carbon dioxide per megawatt-hour while the intensity of pollution caused by two of DCMI’s power plants is more than twice the usual. In a press release, the company said it will use the newest and cleanest coal technology in a proposed power plant in Palawan. “DMCI will employ the Circulating Fluidized Bed Combustion (CFBC), also known as the ‘clean coal’ technology, which is the latest and cleanest in coal combustion.”

Man and Biosphere Reserve

Opposition to the proposed coal-fired power plant is mounting because of the province’s fragile state. Since 1990 the entire Palawan holds the status of UNESCO Man and Biosphere Reserve. It is cited as a “site of excellence where new and optimal practices to manage nature and human activities are tested and demonstrated”.

It’s also home to two UNESCO natural heritage sites – the Saint Paul Subterranean River National Park and the Tubbataha Reefs Natural Marine Park. According to Worldwide Life Fund (WWF), the province may lose its status if the proposed coal-fired power plant goes ahead. RJ Dela Calzada, the Palawan project manager for the WWF-Philippines, said “the Man and Biosphere status is like a Nobel Prize for good sustainable development management in one area. Palawan is one of the two recipients in the Philippines. When we say man and biosphere, we’re talking about how human beings consciously use its biosphere for its own benefit… If we fail to meet those criteria then we might be delisted. Having a coal power plant may be a reason to be delisted.”

When DCMI got the approval from a government environmental body to first build said power plant in the municipality of Narra, environmental groups immediately organized petitions citing the fragile flora and fauna surrounding it. Haribon Foundation, a forefront in biodiversity conservation in  Palawan, opposed the plan arguing that the coastal town of Narra is so close to Rasa Island, which it called “the last stronghold of the unique Philippine Cockatoo”. The International Union for the Conservation of Nature lists the bird as Critically Endangered as only 1,000 individuals exist in the world. Haribon also claimed that the coal-fired power plant will threaten the proposed site’s surrounding air, land, water, vegetation and wildlife.

“These impacts can be felt during plant construction; when the plant’s physical structures are already in place; and when the plant is already operational,” the NGO said in a statement. “During construction, the dredging of barge unloading areas could affect fish, mussels and other aquatic life… Power plants build water intake and discharge facilities, so vegetation in surface waters can also be affected… But the coal power plant’s operation, when it is already spewing its emissions into the open air, can impact vegetation or result in air pollution.” After fierce opposition from environmentalists and the rejection of the municipality of Narra, the proponents moved the location of the power plant to the adjoining Aborlan municipality.

At the village of San Juan, the new proposed site, Tagbanua tribal chieftain Dominador Badilla could not hide his anger. “The ones who are pushing the project are better off. They have regular salaries. We only depend on our coconut trees and our plants. If our farm yield will be affected, where will my grandchildren get their livelihood? We, the members of the Tagbanua tribal community, do not want this coal-fired power plant. We would rather live with what little we have now. We can sacrifice without electricity,” he said in Filipino.

Outside his bamboo hut hangs a poster showing a picture of a coal plant emitting black smoke and dirty air. The poster reads: “Is this what you want to happen in Aborlan?” And in red bold letters it says: “NO TO COAL”. Badilla’s family and others in the community live through fishing and copra farming. On a good month, they earn about US$100 but they are content. The land they live on has been through many generations as their ancestral land.  “We inherited this land from our ancestors. This belonged to my grandfather since the 1930s. He was buried here. Then they will just put something that will destroy our land? What will happen to us?” he said.

The tribal chieftain is even angrier that the project has divided a once harmonious community. He insisted that there has never been a proper consultation for the project. “The proponents are saying they have consulted us. When things have stirred up because we voiced out our opposition, that’s when they said there will be public hearings. At first, they were hiding the meetings from those who opposed. They bring their own people using their own trucks to show there is a support from the public. If they only record what’s been happening in the public hearings they would know our reasons for opposing and how many people are against it,” he said.

As another resident Melvin Badilla enthused, “we didn’t like the process that our local leaders did. Before they let us know that the coal-fired power plant will be built in our village, they already prepared the documents for building it here. We were caught by surprise.”

The once opposed barangay (village) officials of San Juan, Aborlan stamped their endorsement on the project after they were reportedly showed around in another plant in Iloilo province. They argued that they saw first-hand that the company was responsible enough and the environment in the showcase piece in Iloilo was intact and unaffected. It was suspected, however, that aside from being dined and wined, they were only shown the sanitized version of the power plant.

The endorsement even came much easier from the provincial council of legislators who are allies of the governor who wants the project started as soon as possible. Allegedly without proper consultation and ignoring environmental impact assessment results, the provincial council unanimously endorsed the project to be built in Aborlan town.

As the proposed site is also near a fish sanctuary, the waste water discharge from the facility is deemed hazardous to the marine ecosystem. Dr. Lita Sopsop, Dean of the College of Arts and Sciences of the Western Philippines University that is in the heart of Aborlan, said “we oppose the coal plant because of the negative impacts to health and the environment, particularly to locally declared fish sanctuaries in the area. The residents get their livelihood from fishing. The discharge of waste water from the coal plant will cause thermal pollution that is hazardous to the marine ecosystem, especially coral reefs.”

Marlene Jagmis, a staunch environmentalist before joining the university’s faculty, said “the coal plant poses many hazards like the threat of lung disease or damage to the brain, especially in children. Burned coal can produce chemicals like mercury, which can’t easily be dissolved by so called new technology. This particle can be hazardous to humans, and even babies inside the womb are not spared.”

Last Frontier

Often cited as the Philippines’ last ecological frontier, Palawan has been battering environmental degradation. It has the largest forest cover and fish biomass in the country, rich mineral resources and the surrounding West Philippine Sea has vast potential for oil and natural gas. Tourism is also thriving because of its beautiful islands, beaches and dive sites. These attractions are irresistible to miners, oil and gas drillers, illegal loggers and fishermen and other investors.

Ironically, given the fragile state of the province, past and current political leaderships have never been serious in using renewable energies (REs). This is despite repeated demands from environmentalists and NGO such as World Wide Fund for Nature (WWF). Even President Benigno Aquino III seems reluctant to support REs believing these are unstable. In a recent visit to the province, Aquino insisted that it is important for Palawan to have sufficient power supply to complement the government’s target of attracting 10 million foreign tourists by 2016. He said the province needed more power supply to fuel construction projects, upgrading of airport facilities, as well as the upstream and downstream industries and the only reliable available source of energy is coal or diesel.

The governor’s spokesperson Gil Acosta said officials at the provincial government have been discussing new and renewable resources for 10 years but this never took off until this coal plant proposal came along. “The most viable proposal for the governor is to use coal and biomass fuels. We’re looking at hydro and wind power, but these won’t be enough,” he added.

RJ dela Calzada of WWF-Philippines disagreed. “If you go into renewable energies and strategize how to put those REs  in Palawan, then again we can supply the requirements of Palawan…There are places already that say REs are very efficient in providing energy… A one-megawatt requirement only requires you 2.5 hectares of solar farm. How much megawatt do you need in Palawan? There are new technologies in terms of solar that it can provide electricity even without sun for seven days.”

Environmentalists also argued that REs are cheaper than coal. “Why should Palawan buy more expensive, dirty power when we have cleaner, cheaper alternatives available?” said Atty. Gerthie Mayo-Anda, Executive Director of the Environmental Legal Assistance Center.

REs experts said while the fixed cost of renewable technologies is higher than conventional fossil-fuelled alternatives, this cost is borne by the developer and not the consumers. “Renewable technologies also generally have much longer life cycles than fossil options and have no or very low fuel costs,” according to Diana Limjoco, a resident of Palawan blogging on the power of REs. “In addition to lower generation rates, renewable energy requires little or no subsidy and consumers are exempt from payment of the 12% value-added tax (VAT). The net result of integrating renewables into the power mix is lower rates and reduced subsidy requirements.”

Environmentalists also assailed the government’s reasoning that there are no serious investors on REs in Palawan. WWW-Philippines said that since 2010, there had been proposals for mini-hydropower plants for the capital Puerto Princesa and Narra municipality but these mini-hydro projects failed to obtain contracts with PALECO. “Despite obtaining all the other requirements, they have been unable to start generating power for the people of Palawan,” WWF-Philippines said.

Limjoco said the Palawan Chamber of Commerce and Industry receives many inquiries from foreign and domestic firms and funding agencies to develop REs on Palawan. She said, “there are currently three private firms, two of which hold renewable energy service contracts with government, which are active in the development and pre-development stages of installing solar, biomass and run-of-river hydro power plants on mainland,” adding that “the problem is not a lack of investor interest, but the existence of policy, political, and bureaucratic constraints and a lack of clear guidelines for development and implementation of REs on Palawan and throughout the Philippines.”

At the end of the day, the government seems to show that solving a perceived power crisis is only solvable through a quick solution that is coal, notwithstanding the fragile state of the environment that is Palawan. As Haribon Foundation puts it: “people do need electricity, but we think this should not be at the expense of biodiversity loss. It would be misleading to approach the issue by choosing between two seemingly disparate choices of ‘power’ and ‘environment’. The need for electricity only makes sense for a community that has an adequate resource base for thriving and where ecological benefits can be enjoyed by the majority over a long period of time.  Agenda No. 1 should be the protection and conservation of remaining natural habitats and its biodiversity. Without this prerequisite, notions of ‘progress’ are self-deceiving.”