ABSTRACT

The research looked into the impact of EPIRA (Electric Power Industry Reform Act)
towards sustainable development by looking into the experience of Ambuklao and Binga.
Specifically, it sought to know the contribution of dam projects to the residents in terms of the
following aspects: Institutional, Economic, Socio-cultural and Environmental. Researchers tried
to find a way to balance these aspects that would allow them to complimentary coexist in the
community. The balance can be possible by containing the growth spirals of economy,
population and depletion of resources, reducing them to near stasis. The balancing act must be
accompanied by a thorough understanding that the nature of its problem is the tension between
short-term growth (development) and long-term survival (sustainability). The study bridged the
growing gap between the government and the community, and also shaped their organizational
capacity for sustainable development. The research employed qualitative method of documentary
analysis and participative interview in gathering the needed data. The research is best served to
the interest of the public using it as a springboard for positive action and making them aware that
the state has mechanisms for development that can affect them either positively or negatively.
Keywords: EPIRA (Electric Power Industry Reform Act), Development, Institutional, Economic,
Socio-cultural and Environmental, Sustainable Development

Chapter I
Introduction
Background of the Study
There are numerous existing definitions of development. It is not only dening
development which is contested; the way that development is measured is also problematic
(Willis, 2005). A simple dictionary however defines development as simply an act of growing
or to advance from a certain state (Merriam - Webster). On an another note, a mere act of
growing or advancing does not indicate whether its heading in a positive or negative way. If
the development activities of a group of people jeopardize the well-being of some other groups,
can it be called a proper development? The power industry of the Philippines fits well in this
category. Surely the industry is developing, but whether its developing in a favourable way for
the country and its people remains to be arguable at best.
The role of energy for a country can be described as vital. Its like a heart or air without
it, a body will cease to function and eventually die (World Economic Forum, 2012). Although
debatable, there is a general belief and agreement amongst economists, researchers, analysts, and
policymakers, that energy consumption is related to economic activity and plays a key role in the
process of economic development and growth (Kraft & Kraft, 1978). And so with the belief that
the availability of energy is essential for economic growth, established and emerging countries
tend to go the extra mile to fund developments in relation to energy.
Certainly, the Philippines was not an exception to this growing trend. Through the course
of time, the development of the energy sector became a national priority amongst the past
Presidents and their administration. In particular, the electric power industry and the
electrification of the whole country were heavily sought after. The electric power industry
experienced impressive growth and development over the past century. From supplying only 20
percent of the population in the early 1950s, it now stands at more than 70 percent today (Cham,
2007).
Although most part of the population has access to electricity today, prospects of
electricity shortages are constantly looming on the horizon. Even the prices of the electricity of
the Philippines continue to be among the highest in the World (Valderrama & Bautista, 2011).
Numerous concerns were raised and with the prices of electricity going through the roof and
electric power shortages headlining the news frequently, calls for reform in the electric power
industry are regularly knocking on the congress and the Malacaangs front door.
The problem that is being experienced today in our electric power industry can be traced
back in the 1960s and 70s. During this time, the demand for electricity soared rapidly due to
rapid economic and population growth. To keep pace of the times, the government pursued
aggressive power development plans financed largely by foreign borrowing (Cham, 2007). It
proved to be feasible and beneficial at the time since the economy was experiencing stability in
light of a strong and stable peso-dollar exchange rate.
Spearheaded by the National Power Corporation (NPC), numerous development plans
were rolled out including the infamous Bataan Nuclear Power Plant being among them. This
little mean machine is a 620 MW power plant that cost a staggering US$ 2.3 billion upon its
completion. But due to safety and morality concerns, it was never operated even though most
established and developed countries are using them for decades.
Because of political instability and upheavals in the country, the collapse of the economy
was slowly unravelling. Furthermore, the flawed fiscal policy of the government saw a drastic
depreciation of the peso in 1970s to 80s (Cham, 2007). It resulted to a substantial increase of
2

interest in foreign loans and unwittingly added more financial expenses for the NPC.
Furthermore aggravating its financial expenses was the 1973 Oil Crisis that saw a rapid
increase of oil prices in the international market.
No new generating capacity was added nor were there upgrades in the Luzon grid in the
1980s. They were expecting the Bataan Nuclear Power Plant to begin operation in 1984 but it all
went down the drain. Naturally, the NPC couldnt keep up with the rapidly growing demand for
electricity. And in the early 1990s, the repercussions were severe. The country experienced in
what was known today as the Power Crisis of the 1990s.
In 1990, there were 103 days of blackouts for an annual duration 1,273 hours, resulting in
251 GW energy sales losses (World Bank, 2003). It didnt take long for the power crisis to turn
into an economic crisis. Businesses were limited to their operations and factories were forced to
close or reduce operations. The daily, long, and rotational blackout severely crippled the
economy as productivity fell (Mejia, 2003). A problem like this begs for a solution as fast as
possible and the government responded with a fast-lane type of development.
In this particular problem, the government turned to the Private Sector for help. Back in
the late 1980s, NPC withdrew its exclusive rights to power generation through the virtue of
Executive Order No. 215 and allowed the private sector otherwise known as Independent Power
Producers (IPP) to participate in the electric power industry. Naturally, the process of obtaining
contracts was tedious and bureaucratic. During the power crisis however, they fast-tracked the
process of obtaining power project contracts with the private sector (Mejia, 2003). In 1993, the
power crisis reluctantly ended. The cooperation of the government and the private sector
successfully ended the power crisis and the NPC enjoyed profitability after long years of
financial losses.
With the IPPs augmenting the NPCs installed generation, the electric power industry
returned to normalcy 1996. In light of their recent success of averting the power crisis through
the help of IPPs, the government soon eyed further developments of the electric power industry.
Its no secret however that the financial position of the NPC and the government was delicate
and compromising at the time. They couldnt afford to upgrade nor rehabilitate their power
plants let alone build new ones. In order to save the ailing industry, the government turned again
to the private sector for assistance.
They envisioned the privatization of the electric power industry, the government taking a
step back, and assuming the role of a regulator instead (Corral, 2009). With that goal in mind,
numerous laws were passed for the comprehensive privatization of the electric power industry.
The epitome of their years of effort was promulgated on 2001 and it is known as Republic Act
9176 Electric Power Industry Reform Act (EPIRA).
EPIRA aims to develop and restructure the electric power industry by relying heavily on
the private sector for investments. The NPC and its assets and liabilities will be privatized to give
way for development and rehabilitation. But what EPIRA truly aims however, is the cheap and
reliable supply of electricity for the people. The government was hoping that by allowing
numerous IPPs to generate and distribute electricity, it would provide a more reliable and
abundant supply of electric power. The forecast was that the surplus of supply and the
competition among the IPPs should drive the prices of electric power down.
With the laws and frameworks enabling the privatization of the NPC, the Ambuklao and
Binga dams in Benguet were sold as a package to the SN-Aboitiz group in 2007. With the change
of ownership however, past issues were brought back to life. Old wounds were reopened in the

hearts of the indigenous people who were stripped of their lands during the construction of the
dams back in the 1950s.
The issue of land is at the heart of the conflicts between the government and the
indigenous people. Land is immensely important to both sides. For the indigenous people, land is
intimately connected to almost all parts of their lives their livelihood, culture, home, and their
identity (Skene, 2006). Losing it means taking most of what they have. Its no secret however
that the lands of the indigenous people are very rich in natural resources and it has great potential
for hydro-electric development projects (Skene, 2006). Developing these rich lands would
eventually lead the government into butting heads with the indigenous people. Thus, a conflict
leading to sacrifices was inevitable.
Through lengthy discussions, the state convinced the indigenous people that the
development programs will not only provide an abundant supply of power for the country but it
will also help the local residents at the same time. Thus, an exchange was made for this purpose.
The locals bitterly left their lands with the promise that they will be properly compensated for it,
that the community not be deprived of government assistance, and with hopes that these projects
will be for the betterment of the whole country. As they say, some element of force or coercion
and a goodly amount of consent are necessary for governance (Arcellana, 1976). Keep in mind
however, the word compensated. The taking of private properties of individuals is not
condemned in a modern society if the individual is sufficiently and justly and compensated. But
what if they were not compensated properly? To this day, some are still resurfacing and making
their protest heard in order to claim the just compensation that is way long overdue. Thats what
they claim. If its baseless or not, it will be for another occasion for people to scrutinize and
uncover these.
The prosperity of the majority is the new dogma of a modern sovereign state. Through
the virtue of the Social Contract, a private property of an individual can be taken by the state if
its deemed beneficial for the whole populace (Curtis, 2008). The welfare of the majority shall
override the needs and wants of the few such is the new brand of modern oppression: Tyranny
of the Majority. But can it really be called an optimistic development when few were left
behind? When the minority are exploited for the benefits of the many? When means employed
are only just a mean for an end? Time will tell if the sacrifice was worth it.
After 13 years of implementation, EPIRAs mandate of affordable and reliable electric
power is nowhere to be found. The electric power supply is nowhere near reliable as the rotating
blackouts in Mindanao only grew worse by the day. The prices of our electric power did not
become affordable and instead became one of the most expensive in the World. Electric Power
distributors were literally threatening the public of rotational blackouts if they dont increase the
electric rates up. As power outages headlines the news frequently, clamours for the reform of the
electric power industry is piling up and experts warn of an impending energy crisis again if
nothing is to be done.
Statement of the Problem
The general study sought to find out the impact of EPIRA to the sustainable development
from the experiences of Ambuklao and Binga. Specifically, the study sought to answer the
following:
1. How did the dam projects contributed towards sustainable development of the residence
in Ambuklao and Binga in the areas of:
4

a.
b.
c.
d.

Institutional
Economical
Socio-cultural
Environmental

2. What significant issues surfaced during the 1950 implementation to the present?
Conceptual Framework
EPIRA

Institutional

Economical

SUSTAINABLE DEVELOPMENT
Ecological

Socio-Cultural

To address the paradox between development and sustainability, the study aimed to come
up with recommendations and find a way to balance them all and allow them to coexist. This
balance may be possible by dramatically containing the growth spirals of economy, population
and depletion of resources, reducing them to a state of near stasis. This balancing act must also
be accompanied by a deep understanding that the nature of the problem is the tension between
short-term growth (development) and long-term survival (sustainability).
Electric Power Industry Reform Act: This policy aims to develop indigenous resources, to
reduce the cost of electricity, and to promote foreign investment in the sector. It liberalizes the
power sector, setting deregulation measures and privatization in motion by requiring state-owned
utility National Power Corporation (NaPoCor) to break up its vertically integrated structure into
smaller generation, transmission and distribution structures. The opening allows the participation
of any competitive technology, including renewables. The removal of subsidies will level the
playing field for renewable technologies by making the price of conventional fuels reflect their
true market value. (A World Resources Institute , 2001)
The Ambuklao and Binga hydroelectric power plants were privatized as a package
through an international tender process, under a comprehensive sector reform law, the Electric
Power Industry Reform Act (EPIRA). The plants are now owned by SN Aboitiz Power Benguet,
Inc. (SNAPB), a joint-venture between SN Power Invest (SN Power) of Norway and Aboitiz
Equity Venture (AEV) of the Philippines. The IFC investments partly finance the privatization
and rehabilitation of the 75 MW Ambuklao hydroelectric power plant and the 100 MW Binga
hydroelectric power plant, currently owned by National Power Corporation (NPC). The
rehabilitation re-commissions the Ambuklao plant, which has been shut down due to silt
problems, upgrade the Binga plant, and increase the combined capacity by 50 MW in total (30
5

MW for Ambuklao and 20 MW for Binga) from 175 MW to 225 MW. These operate as peaking
plants, supplying power to the Luzon grid for about five hours daily.
The project company, SNAPB, take over the hydropower facilities since June 2008, and
put in place new management procedures, addressing technical issues such as sedimentation and
dam safety and implementation for the rehabilitation of both plants. SNAPB will also enter into a
separate agreement with the Government, for those facilities that will remain under public
ownership, to cover the operation and maintenance of the dams and appurtenant structures,
formulation of operations manuals, formation of an oversight committee, and maintaining the
integrity of the water levels in the reservoirs. (International Finance Corporation, 2008)
Sustainable Development: The study assessed on the impacts of EPIRA to sustainable
development. The idea of sustainable development grew from numerous environmental
movements in earlier decades and was defined in 1987 by the World Commission on
Environment and Development (Karen Higgins, 2013) as: Development that meets the needs of
the present without compromising the ability of future generations to meet their own needs. The
focuses of the study are the four primary aspects towards sustainable development:
INSTITUTIONAL: Decision making policies which came from the government created an
impact that affected peoples lives. The politics behind passing the needed policies and
implementing important programs are complicated. It requires long-term thinking and tough
choices. In this study the researchers assessed the impact of EPIRA institutionally to the
barangay and municipality level of both Tinongdan and Ambuklao.
ECONOMICAL: Economic growth depends on a sustained, functioning natural environment.
The significance of this long recognized but superficially embraced interdependence is that there
are limits to Earth's natural resources and thus to any economic growth that depends on them
limits that, if not honoured, will gravely affect the future. (Higgins, 2013) In order to grow, the
economy also feeds on natural resources and threatens the livelihood on which life relies. In this
study, the researchers will assess the impact of EPIRA on economical aspect as to how this dam
projects sustained the residents of both the municipal and barangay levels respectively.
SOCIO-CULTURAL: Sustainable development requires that moral vision of human beings be
harnessed in as much harmony with local cultural aspirations as possible. Cultural diversity
guarantees sustainability because it binds universal developmental goals to plausible and specific
moral visions. Biological diversity provides an enabling environment for it. (UNEP, 2002).
The study is supported by the idea of Lipton (1997) and Scherr (1997) which emphasized the
relationship between population, social, conditions and resource degradation. The social
component of sustainability includes issues of population stabilization, distributional equity,
provision of social services and political accountability and participation. (Tesfaye, 2012) . This
study will assess the impact of EPIRA towards the socio-cultural aspect of both the municipal
and barangay level.
ECOLOGICAL: It is best to view the components of sustainable development starting with the
issue of environmental degradation. While damage to the natural world and resource depletion
directly affects human well-being, the health of the environment and how we solve
environmental problems are good ways of gauging how well sustainable development efforts are
working. (Watts, World Environment Magazine & TV, 2013) In this study, the researchers will
assess the impact of EPIRA towards environment caused by the dam projects to both the
municipal and barangay levels respectively.
Significance of the Study
6

The significance of this study is that it can be used to evaluate the current status of the
two dams in the said study, whether it be: a) efficiency and b) functionality
Another purpose is that it can be used as a guiding post or a guide for future policies or
mechanisms regarding energy and possibly societal change in particular areas who those projects
might affect. Furthermore, this can also be used as a reference for academicians and students that
will utilize it in related academic purposes or other purpose that might suit their interest in the
utility of this study in a legitimate way.
Lastly is that this research served the interest of the public as it can be used for them to be
made aware that the state has mechanisms like this and for them to know that a lot of people are
affected by it both positively and negatively, and that information can be used as a springboard
for positive action and change.
CHAPTER II
Methodology
Research Design
The study employed qualitative method using the documentary analysis and participative
interview. Formulated interview guide is composed of open-ended questions are used to gather
the answers needed for the study.
Locale of the Study
The study was conducted in the municipality of Itogon and Bokod, Benguet specifically
Barangay Tinongdan and Barangay Ambuklao. These places were selected because of their
proximity to the dam projects, Binga and Ambuklao Hydro Electric Power plants.
Respondents
Municipal Mayor
Barangay Captain
Local Residents

Itogon Benguet
Hon. Victorio Palangdan
Barangay Tinongdan
Benjamin N. Medina
Fernando Guzman
George Meno Bigues
Ramon Capsula
Narciso Wabaysan
Norberto Pacio

Bokod, Benguet
Hon. Mauricio T. Macay
Barangay Ambuklao
Arthur Solano
Marlon Etiw
Robert Bongsiw
A descendant

Data Gathering Tools

In order to elicit data from the respondents, the study used the qualitative method of
research inquiry. Personal interviews were conducted with an aid of an interview guide. (See
Appendix B)
Data Gathering Procedures
The researchers requested for courtesy call and asked permission from the Mayor and
Punong Barangay and conducted an interview. Then they scheduled an interview to the Mayor
and Punong Barangay. Afterwards names of qualified respondents from the Barangay
specifically residents with experiences followed. The researchers set out a date of interview for
7

the respondents. Lastly, the researchers consolidated the data accumulated from the interview
conducted
Treatment of the Data
The interpreted data discussed by the group were all gathered from the conducted
interview. Interviews were recorded and documented through pictures and audio by means of
electronic devices which were maximized to keep all the necessary data.
CHAPTER III
Results and Discussions
Pieces of information below are the result of the interviews conducted by the researchers
long way to their trip to Barangay Tinongdan, Municipality of Itogon & Barangay Ambuklao
Municipality of Bokod. The resulting data provided answers to the questions stated earlier in the
previous chapters.
The main purpose of this research is to know the impact of EPIRA to sustainable
development itself. It basically aims to study the different effects of privatization of the Binga
and Ambuklao dams to the community. To achieve the said objectives, the researchers conducted
participative interview to the people who have extensive knowledge of the area. For the
transcription of the actual interview (See Appendix D)
The Ambuklao Experience
Problem 1: How did the dam projects contribute towards sustainable development of the
residence of Ambuklao and Binga in the areas of:
a. Institutional
In the Barangay level, residents of Ambuklao were given a chance and an opportunity to
organize themselves into a group wherein they were able to form an organization of fisher folks
called BANPIKOI. Its main function is to regulate the places where fisher folks can acquire their
fishes from the dam.
One respondent noted, Good thing about Aboitiz is their assistance through the CSR
(Corporate Social Responsibility). The CSR funds are directed to schools as well improvement
of bridges. On the other hand Aboitiz promised that those who will be working for the dam
would be from the locality.
According to the Barangay Captain of Ambuklao, the SN Aboitizs Corporate Social
Responsibility (CSR) fund for the barangay sums up to 1.5 million pesos per year which includes
the delivery of their said responsibility for the barangay and municipalitys sustainability of
livelihood. Each household receives 1000 pesos of power subsidy only. However, the excess
power consumption of each of the household should be under their responsibility.
Elevating to the Municipal level, some additional taxes can be imposed and the influx of
tourists contributed to the development in the Municipality of Bokod. The Municipal Mayor
stated that as of now, the Ambuklao Dam is still operating, and is one of their major sources of
income. Thus, the presence of Aboitiz is not a problem because of the CSR fund that they are
providing.
8

b. Economic
The residents of Barangay Ambuklao were provided means of livelihood by allowing
them to build their fish cages within the dam, but on a limited basis only. Accordingly, there are
83 other fish cage operators who have been making the Ambuklao Dam their source of
livelihood since 1994. The fisher folks supply 30 vendors in Baguio with as much as 1,000 kg of
fish every day. Ambuklao fish is virtually a brand because of an increasing demand. In contrast,
because they are restricted by the Bureau of Fisheries and Aquatic Resources to 6.8 hectares of
fish cages, which can accommodate only 10 fish for every cubic meter of water. (Espiritu, 2013)
According to one of the respondents, the reconstruction of Ambuklao Dam gave positive
effects which are as follows: (1) benefits were equally at par, (2) helped the barangay recuperate
after the stagnation of the dam for 12 years, (3) locals that were employed during the
construction.
c. Socio-cultural
The Mayor of Bokod stated that they have an organization called Indigenous People
Organization, an association that manages the cultural heritage with the SN Aboitiz and the NPC.
The Memorandum of Agreement signed in 2009 establishing the Indigenous Peoples
Cultural Heritage Site with the purpose of granting the concerned Indigenous Peoples the right to
use the residual areas of NPC in the areas of Marian Village and Sombero. The purpose of the
Cultural Heritage Site is to empower the concerned Indigenous People to obtain the benefits in
the community improving the quality of their life and for the use of future generation. The
residual areas are the common facilities that can be used by the residents of Marian Village and
Sombrero. The concerned Indigenous People were the one who administers the residual areas
with the authorization of their Barangay and Municipal authorities.
d. Environment
The barangay captain of Ambuklao stated that there are no existing environmental issues,
if ever there were any mentioned problems before it has been settled. One problem that was
determined was on waste materials that were products of the rehabilitation of the dam, but was
easily resolved.
Problem 2: What significant issues surfaced during the 1950s implementation up to the present?
EXISTING PROBLEMS AND IMPACTS
With the interview with the President of the Senior citizen organization and a Lupon
Member there were two major problems which according to him existed during the 1950s
implementation of the dam projects. First, the employment of the people during the construction
and reconstruction of the dam was more on manual labour. The lack of educational attainment of
the majority of the residents became a huge factor on why there was a minimal amount of
employment in the construction and reconstruction of the dam. Second the displacement of the
residents from their domain. Members of the Ibaloi tribe are known to be family oriented. One of
the respondents stated that their claim for the land that was used in the construction of the dam
was never settled until the present time. Majority of the respondents also mentioned that lands
falling under the category of Pasteur Lands were paid to them twenty-five centavos (25 cents)
per sq. meters.

The Binga Experience

Problem 1: How did the dam projects contributed to the sustainable development of the
residence of Ambuklao and Binga in the areas of:
a. Institutional
According to one of the respondents, there is an increase in national wealth because of
the CSR fund. 80% of the funds are directed to lowering the cost of electricity.
b. Economic
The dam projects greatly contributed to sustainable development in Barangay Tinongdan.
First, with regards to the economic prowess it brings to the town of Itogon, tax profits greatly
increased. Second, CSR fund augmented the developmental capabilities of the barangay of
Tinongdan. The money given was used mostly in development projects. Third, it contributed to
the influx of tourist, which served as another source of income for the town. Lastly, it opened
door for another livelihood for the residents such as fish culturing.
One of the respondents stated that the state power industries contributed to the
communitys development in terms of livelihood, educational assistance and subsidized
materials.
c. Socio-cultural
Indigenous People's Notion of Land- Indigenous people (IP) believe that land was
granted to them by Kabunian and entrusted to them to harness, to cultivate and develop, to take
care, sustain and patronize. To them, private property is non-existent because they adhere to the
value of collectivism. In fact peaceful co-existence and harmonious relationship with nature
defined the peoples role as stewards or guardians of the land. Since time immemorial the
indigenous peoples (IPs) has been occupying the territory that they are presently in. Historical
accounts show that even before the coming of the colonizers, the people were already in
possession of the land. They have developed systems of how to exploit the resources within the
land. They have built their permanent settlements, constructed their rice terraces, identified their
territories from boundary to boundary, and they were living peacefully. They have developed a
culture that defined their actions, their behaviours, in order to survive. (NCIP)
The Theory of adaptation states that adaptation is a necessity to survive. Relating this
with the study, SN Aboitiz cannot be indifferent because they should help the community. Under
this theory is the principle of chain reaction which would mean that if they are not going to
conform to the community then they are putting their company for possible future threats.
During the construction of the dam, many families lost their lands and were displaced.
Along with their lands were their livelihoods. In the highlands however, the lands are not just
simply a means for livelihood. It can be said that the relationship of the land and the people is
more intimate than most. That is why when the people lost their lands during the construction of
dam. They lost their culture and identity as well. For these reason, the dam projects did not
contribute to sustainable development in the socio-cultural aspect. The violation of the collective
rights of the indigenous people in terms of their concerted rights to self-determination and
cultural preservation which is the basis of their continued existence and identity were curtailed.

10

d. Environment
Indigenous people have suffered and will continue to suffer immense danger to their
lands' and environment due to the long-term impact of dams. The dam has caused the loss of
ancestral lands due to siltation. Siltation of rivers is a serious problem in Benguet resulting from
mining operations and dam construction. The Ambuklao and Binga dams are stark examples of
the detrimental impacts of siltation and mega dams on rivers. The steadily rising level of silt in
the dam reservoirs and along the Agno River upstream of the dams is covering a wider and wider
area around the dams and continues to destroy more and more rice fields. In the case of the
Ambuklao dam, the communities of Bangao and Balacbac were located far above the predicted
water level of the dam and 17 kilometers away from the predicted edge of the reservoir. These
two communities are now inundated because of the rising water level and accumulation of silt
upstream along the Agno River. Government authorities dismiss the increasing siltation as a
natural phenomenon. However, the Ibaloi people know that the dams are the real culprit. The
farmlands and communities were never affected by silt before the dams were built despite storms
and earthquakes. The dams blocked the free flow of water and silt down to the lowlands. (CPA,
2007)
In the environmental area, we can surmise that the dam projects contributed to
sustainable development. In an environmental friendly way, the country is able to harness
electric power by using the dams made in Tinongdan. The dams are able to last for a long time
and stay productive in generating electricity. During the construction of the dam however, the
environment was greatly altered. The land was flooded with water and many trees were cut
down.
Problem 2: What significant issues surfaced during the 1950s implementation up to the present?
The first issue to be noted is the displacement of the residents when the Binga dam was
built in the 1950s. According to the testimonies of a former barangay captain of Tinongdan and
a member of the displaced families, the local employees were deprived of just compensations
during that time. The salaries given were too low and cannot suffice their basic needs.
Second, the displaced families lost their means of livelihood right after they lost their
lands. The government had given them insufficient compensations and suggested relocation
areas. However, they were discriminated by natives of the province, and jobs are not suitable for
them left them with no choice, they returned to their land having impoverished lives.
The third issue is with regards to the mandate of EPIRA which is to provide cheap
electricity cost for all Filipinos. What is being observed as a result is, only the residents of
Tinongdan and Ambuklao are reaping the benefits of cheap electricity. 80 % of the CSR will
cover the cost of the electricity of the community as what is stated by the barangay treasurer. But
as stated in the previous chapters, the threat of power supply shortage is always looming and the
cost of electricity is on the rise constantly.
The fourth issue focuses on to the employment of the people. It is stated by the former
captain that many people in the community were employed during the reign of the NPC and he
was one of them. During the reign of the SN-Aboitiz however, few were employed and they are
not even from Tinongdan and Itogon but from other provinces.

Chapter IV
11

Conclusions and Recommendations

After finding the results of each problem the researchers formulated and provided conclusions
and possible recommendation for such.
Conclusion Problem 1: The dam projects in the Ambuklao and Binga area contributed to the
development both positively and negatively in the four areas (Institutional, Economic, Sociocultural, Ecological) through different ways. The subsidies, social obligation or the so called
CSR fund of SN Aboitiz to the local government units (Barangay and Municipal) are greatly
appreciated by the authorities concerned because it is through these that most of their community
projects were implemented. (See Appendix for CSR Funds Project) .The livelihood projects
that emerged in the construction of these dams gave residents employment that is presently used
to sustain their necessities. Influx of tourists in both areas contributed also to the development of
their community. The signing of the Memorandum of Agreement by both parties (SN-Aboitiz
and LGUs) gave Indigenous People of the communities the right to use the facilities that
innately gave the basic needs of the people (school, church, bridges, etc.). As discussed above
environmental development is seen as lesser concern in Binga area rather in Ambuklao Area.
Projecting the four areas of sustainable development presented, there exist certain
benefits and repercussions at the same time. Among the four areas others are considered
important in development while other will remain unsolved creating a greater problem to the
community as with the case of Binga area in their environmental aspect.
Conclusion Problem 2: In the construction of dams in the Ambuklao and Binga, residents
suffered and surfaced the same issues. The displacement of the families became one of the main
issues that flourished during its construction. Complementing the issue of displacement is the
improper compensation of the affected families and their supposed corporate benefits. The basis
of employment was on the educational attainment of the residents in the areas of Ambuklao and
Binga thus employing them more on manual labor.
As an overview to the purpose of the dams that continues to benefit Filipinos, it cannot be
repudiated that there were people who sacrificed, lost their rights, properties and were
improperly compensated. We still procure the product of the dam (economically advancing and
benefiting from it) but we cannot resolve the problems that occurred in the past and will continue
to occur in the present.
Recommendation
Recommendation for Problem 1: The researchers further recommends the following that for
problems like this to be resolved in the future, unilateral actions from the state must be absent, it
is not necessarily that though the state has power, it doesnt mean that it must always do its
actions unilaterally. On the other hand, these dam projects benefit the majority, but reciprocal to
the suffering brought upon to the minorities. The compensations not being enough for them, i.e.
displacement, disintegration of families, loss of economic means; means that they are greatly
harmed rather than benefitted, it created both positive and negative results as for the
communities they have benefits in contrast, for locals it isnt enough. As a recommendation,
future projects and actions similar to this, the following factors must be present, proper
compensation to the displaced; a dialogue must be present for all parties, so that all the 4 areas
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will have a meeting point resulting in an efficient compromise in order for the development to
really be sustainable.
Recommendation for Problem 2: The issues that surfaced for both situations have manifested
because of how the displaced indigenous people were not properly compensated, and how some
government and corporate promises were never fulfilled, thus resulting in the disdain of both the
people and the community,and to a certain extent, towards these institutions, thus for this to be
avoided, as much as possible, the institutions who were supposed to give back to these people
and these communities, must fulfil their end of their bargain efficiently, but if they cant, then at
least they must give what is really due. The benefits at present that they get for some are enough
but due to the past mistakes that these institutions committed, these people still have doubts, thus
another prong of recommendation can be to give or compensate for the past mistakes that these
institutions have done, due to the fact that they committed harm to these people in and
intergenerational way.
If any one of the four key components of sustainable development is not properly addressed by
society, the other two will suffer as a result. For this reason, all four parts are equally important.
Issues about environment, economics, socio-cultural and politics are inter-related through the
way humans interact with their surroundings and with each other. There is often a mainstream
belief that for poor countries to develop, environmental concerns have to be sacrificed.

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