THE Tampakan Copper Gold Project operated by the Sagittarius Mines Inc. in the triboundaries of South Cotabato, Davao del Sur and Sarangani is said to be one of the most dangerous mining projects in the world, according to an expert who made a study on the mining project few years ago.

Clive Montgomery Wicks, conservation and development consultant specializing in the impact of extractive industries, said the Tampakan mining project is estimated to produce 2.7 billion tons of mine wastes.

He said the plan was to place the mine wastes on top of the mountain above the open pit mine site. If this is materialized, he said, the mine wastes will be stacked up to 300 meters high and will cover about 500 hectares.

Wicks said considering that the mining area is located just ten kilometers away from Mount Matutum, which is an active volcano, seismic activities within the mining area is high and thus the possibility of all the mine wastes going down to the populated area and down into the water sources is extremely possible.

He said the drilling of about 800 meters around the area of Mt. Matutum would also result to “induced seismic activity.”

He said despite the assurance by the mining corporation that their mine tailings dam will be strong enough, constant seismic activity would eventually destroy the dam and its toxic wastes would cover a very large farming area down the mountain.

In a statement, SMI corporate communications and media relations manager John Arnaldo dismissed Wicks’s doomsday scenario. He said they have complied with all the necessary measures to prevent such a disaster from happening.

“We have completed our Environmental Impact Assessment (EIA) studies in accordance with relevant local and international standards. These robust, evidence-based studies involved both Filipino and international experts and have taken a number of years to complete as part of our integrated mine planning process. The EIA identified the proposed measures to mitigate and manage the potential environmental and social risks,” Arnaldo said.

“The EIS and ESIA document the project risks and SMI’s commitments to mitigate these risks. We are confident all risks can be mitigated,” he added.

As to the project’s proximity to the active volcano, Arnaldo said a site specific hazard assessment was completed as part of the EIS, which included consideration of volcanic hazards.

Wicks, meanwhile, urged the Philippine government to involve not just one agency in the issuance of mining permits. He said the agriculture and fisheries agencies must also have their say on allowing mining companies to operate considering that mining has a direct impact on the destruction of crops and aquamarine resources.

“We don’t think the government has the ability to control what the mining corporations are doing. And we don’t think that even if you allowed mining that you are going to make money out of it. What you are making is enormous liability. The impact on food and water is going to be huge,” Wicks said.

“You have to have an interdepartmental, no one person must decide whether to have a mine or not. There must be involvement of other agencies like the agriculture and fisheries that will also be affected by the mining pollution,” he added.

STRESSING that Lake Lanao and its watersheds are now in the middle of an ecological crisis, Senator Loren Legarda is pushing for the creation of the Lake Lanao Development Authority.

Legarda said a 2006 study made by the Mindanao State University found that the Lake suffers from massive algae contamination brought about by indiscriminate logging, extensive land-use and farming.

She said the continued deterioration of Lake Lanao is most unfortunate, given its historical, cultural, economic and ecological importance to the country.

“Being the only ancient lake in the country, Lake Lanao is considered of prime ecological importance, which justified the establishment of the Lake Lanao Watershed way back in 1992 pursuant to Presidential Proclamation No. 871,” Legarda said.

Considered as part of their ancestral domain, she said Lake Lanao is also of significant historical and cultural importance to indigenous peoples, particularly the Maranaos who continue to live in areas surrounding the lake.

“It also plays an important role in securing Mindanao’s energy needs as it supplies water for six of its existing hydroelectric power plants, collectively responsible for 70 percent of the island’s energy needs,” Legarda added.

She pointed out that although the poor state of the Lake is attributed to man-made activity, this was further compounded by the absence of a clear framework in managing its water and watershed resources.

With this, Legarda filed Senate Bill 3097 that seeks to establish an effective policy and regulatory administration over Lake Lanao thru the Lake Lanao Development Authority, thereby ensuring the promotion and development of Mindanao’s important natural resource base in a sustainable manner.

“The Authority shall have the exclusive jurisdiction to issue Environmental Compliance Certificates (ECCs)/Certificate of Non-Coverage (CNCs) and grant permits for any projects or activities in or affecting the Lake Lanao Area. The proposed measure also aims to adopt the integrated water resources management to promote sustainable development in the same area,” she said.

Legarda added that the bill also seeks to create the Public Hearing Committee to strengthen Lake Lanao Development Authority’s ability to resolve disputes; and the Lanao Lake Police exclusively for the Lake Lanao Area trained especially for the enforcement of fisheries and environmental laws and the rules and regulations duly promulgated by the Authority.

DAVAO CITY — This city’s planning and development office has completed a new comprehensive land use plan that will be submitted to Mayor Sara Duterte-Carpio for approval before the end of the month.
Chief city planner Roberto P. Alabado III said the plan, to be observed for the next 10 years, addresses four concerns, namely: disaster risk reduction, climate change impact mitigation, transport system integration and sustainable development.

“Once you apply for… clearance, you are instructed to build your house or building according to the level where the floods rise the highest,” Mr. Alabado explained, noting that the city has seen floods as much as a meter deep.

The new plan, Mr. Alabado added, also requires commercial establishments to provide easements for loading and unloading of passengers in order not to impede vehicular traffic along main roads.

He said the envisioned new zoning ordinance will likely take effect early next year. — J. B. Escovilla

REPRESENTATIVE Rufus B. Rodriguez of the 2nd District, this city supports the idea of renaming the Laguindingan Airport Development Project (LADP) into the “Cagayan de Oro-Misamis Oriental Airport” to attain global impact.

The suggestion to rename the airport came from Secretary Sonny Coloma of the Presidential Communications and Operations Office (PCOO), when he was here for the inauguration of the newly-renovated Radio Ng Bayan-DXIM of the Philippine Broadcasting Services (PBS) along San Agustin-Velez Sts., this city, recently.

“Renaming LIA to CDO-MisOr Airport would give way for ‘easy recall’ to the foreign tourists and can ride on the popularity of CDO, which has already carved a niche in the world tourist map,” the PCOO Secretary said.

A former Undersecretary of the Department of Transportation and Communication (DOTC), the government agency that implements the construction of the LADP, the PCOO Secretary said the airport, should lure more foreign tourists into Northern Mindanao.

Once operational, the airport would now truly become the “Gateway to Northern Mindanao,” which is a very good destination for tourists.

Meanwhile, Rodriguez said he is looking into projects that would improve the tourism industry in the region, because of its many potentials to improve the livelihood of the residents, not only of those living near the LADP, but also in the neighboring areas.

He said tourism has many downside industries that can benefit the residents, because tourists would need transportation in going from one destination to another.

They need food to eat. They need places or hotels to stay. They need souvenirs to bring home. They need tourist guides. They need people to do their laundry and they are willing to spend their money to make their visit worthwhile.

So far, the region has many destinations which can be reached in just a single day from the LADP, so that government projects leading towards these areas must be put in place before the it operates, he said.

“In fact, I demanded that the Department of Tourism (DOT) Budget for 2012 be revised, during the recent budget hearing, when I saw that the road improvement leading to the White Water River Rafting and F.S. Catanico Falls in the city, were not included in their budget proposal,” Rodriguez said.

He said DOT now have allocated Php20 million, each, for the improvement of the roads leading to these areas, next year.

Among others, the Congressman mentioned the following destinations, which are accesiblen to the tourists:

Eco Gardens of Malasag in Cagayan de Oro City and the Nature’s Adventure Park in Initao, this province.

Dahilayan Zip Line, Transfiguration Church, Del Monte Pineapple Plantation and the Flower Farms in Bukidnon.

Maria Cristina Falls, Timoga Cold Springs and Macapagal Ancestral Home in Iligan City and Tinago Falls in Linamon, Lanao del Norte. (pia-10)By: Richie Cabahug-Aguhob

AYALA CORP. is looking to bid for the operation and maintenance (O&M) contract of an airport that will serve Cagayan de Oro, an area where the conglomerate is already building a mall and housing complex.
This comes on top of the firm’s interest in other infrastructure projects lined up by the government for privatization, marking a further foray out of its core businesses.

“We are looking at the new airport in Cagayan de Oro that will start operating I think in 2013,” Delfin C. Gonzalez, Jr., Ayala’s chief finance officer, told reporters last week, referring to the Laguindingan facility in Misamis Oriental, roughly 50 kilometers away from the existing Lumbia airport.

“It actually sits on a property that we donated to the government,” Mr. Gonzalez said.

“[Ayala] also owns about 500 more hectares around it,” he said. “We are also looking at participating in that so that it can also help to spur the development of [the area].”

The Aquino government has included the privatization of Laguindingan Airport’s operation and maintenance project among the 10 vital infrastructure projects to be opened for private investment under the Public-Private Partnership (PPP) program.

The 20-year operations concession is seen to reduce government expenditures and improve the quality of service at the airport.

According to PPP Center, the new airport on a 393-hectare property is seen to accommodate 1.2 million passengers per year based on its master plan.

The tender period had earlier been slated to end by next month but a government decision to review all projects up for bidding is expected to delay the contract’s awarding.

Ayala, through its subsidiaries, is already building a mall in the area via a joint venture. It is also developing a subdivision and is looking to construct a hotel as well, earlier reports show.

Ayala officials have said that the company is interested in other PPP projects offered by the government, particularly the Daang Hari-South Luzon Expressway road project.

“We need an operator partner [which is a] foreign [firm],” Mr. Gonzalez said, when asked about the firm’s progress in bidding for the road project.

The interest in infrastructure comes as Ayala is looking to venture into other industries including power.

The conglomerate announced in March its bid to build a portfolio of over 1,000 MW in generating assets. It has already formed joint ventures with partners for coal, wind and hydroelectric power projects.
Mr. Gonzalez reiterated the company would spend P100 million in the next five years for its power ventures.

“But there is no immediate fund raising that we are looking at right now,” he said
Ayala’s first-half net income climbed by 12% to P4.9 billion over year-ago levels, propelled by its property, banking, water distribution and telecom units.

CAGAYAN DE ORO — The Iligan City council has deferred the Swiss challenge for the 103-megawatt Iligan diesel-fired plant complex as it awaits the Commission on Audit’s recommended updated ceiling price for the power asset.

Conal Holdings Corp., under the Alcantara Group, last year submitted an unsolicited offer of P300 million for the two-plant complex.

While the period for the Swiss challenge was originally scheduled to end on Oct. 13, the city council decided last week to hold off the exercise until the Commission on Audit (CoA) recommended a ceiling price, Councilor Moises G. Dalisay, Jr., chairman of the ad hoc committee on the power plants’ disposal, said in a telephone interview last weekend.

Norberto J. Oller, vice-president of the Lanao Power Consumers Federation, noted in a separate phone interview that previous appraisals placed the power complex’s value at P2.1 billion (CoA, in a 2007 report), P1.9 billion (National Power Corp.) and P1.8 billion (Lanao Consumers Federation).

The City of Iligan acquired the 7.9-hectare power plant complex under a compromise agreement with the Power Sector Assets and Liabilities Management Corp., following the latter’s failure to settle real estate tax liabilities for the asset.

The $110-million power plant complex was commissioned in 1993 as a joint build-operate-transfer (BOT) undertaking of the Alcantara Group and Tomen Corp. of Japan, called Northern Mindanao Power Corp. (NMPC).

Previously designated as NMPC-1 (60.9 megawatts) and NMPC-2 (42 megawatts), the plants were renamed as Iligan Diesel Power Plant 1 and 2 when ownership of the two units was turned over to the National Power Corp. on July 31, 2003 and on Feb. 9, 2006, respectively, after the BOT contract expired.

Three investor groups subsequently expressed interest to bid for the power plant complex and conducted due diligence on the units.

However, only Conal Holdings and Energy Developer Co. Ltd. of Seoul, South Korea — a company involved in renewable energy generation — were eventually deemed qualified by the city’s bids and awards committee to vie for ownership of the plant. — M. D. Baños

BONGAO, TAWI-TAWI — Once considered one of the most inaccessible provinces in the country, Tawi-Tawi is experiencing a surge in business activity and investor interest. Through a partnership between the Philippine and US governments, the Tawi-Tawi airport runway was upgraded.

This month, Cebu-Pacific begins new commercial flight routes daily from Zamboanga City to Sanga-Sanga airport in Bongao, Tawi-Tawi, using an Airbus A319.

Earlier, Airphil Express began flying a 77-seater along the same route, with connecting flights to Manila and Davao.

“The presence of two commercial airlines means more competitive transport rates, which is good for business,” said a local entrepreneur.

The Department of Transportation and Communications, the provincial government of Tawi-Tawi, the Civil Aviation Authority of the Philippines (CAAP) and the US Agency for International Development (USAID) through its Growth with Equity in Mindanao (GEM) Program implemented the runway project.

“Linking Tawi-Tawi to the rest of the country and the world is in line with the Philippine Government’s efforts to ensure the physical integration of Mindanao through major transport infrastructure,” said Secretary Luwalhati Antonino, chairperson of the Mindanao Development Authority, which oversees implementation of USAID’s GEM Program.

The Tawi-Tawi runway was extended by USAID from 1,608 to 1,920 meters, and widened from 18 to 30 meters. It is now all-concrete, and able to accommodate larger aircraft such as Boeing 737s and Airbus 320s.

“The A319 has a large cargo hold, which is convenient for shipping live fish to buyers in Manila, Hong Kong and other destinations, without having to repack the cargo,” said Nazrullah Masahud, vice-president of the Tawi-Tawi Chamber of Commerce and Industry.

He added that the air links would support the expansion of the mariculture industry in Tawi-Tawi, home to the Sulu Archipelago’s only multi-species hatchery.

The chamber and the provincial government worked with the airlines and the CAAP to expedite the establishment of the new flights

Previously, travelers going from Zamboanga to Tawi-Tawi had to endure a 17-hour ferry ride.

The easy access by air has drawn investors and domestic tourists to the island-province, where in recent months two small beachside hotels have opened, in addition to the expansion of existing resorts.

Redentor Lauddin, director of the Tawi-Tawi Board of Investments-Autonomous Region in Muslim Mindanao, said that Malaysian investors have expressed interest in linking Tawi-Tawi with the thriving tourism industry in nearby Sabah.

In addition to resort development, there are investment opportunities in power generation, cold storage, and housing development which are opening up in the wake of the new flight routes, said Mr. Lauddin.

Pagadian City – The Mindanao Development Authority’s (MinDA) advocacy for an increased budget has finally paid off following the approval of the P157-million budget for tourism development in Mindanao this year by the Tourism Infrastructure Enterprise Zone Authority (TIEZA).

Speaking before the 20th Mindanao Business Conference (Minbizcon) held in Pagadian City, Secretary Luwalhati Antonino, MinDA chairperson, said that in the last 10 years, Mindanao only got an average of 7-10 percent budget share from TIEZA (then Philippine Tourism Authority).

“I am happy to report that in our recent meeting with the TIEZA board, Mindanao got a hefty share of 35 percent from the P448.84-million TIEZA priority infrastructure projects this year,” said Antonino.

Antonino, who sits as member of the TIEZA board of directors, also said that Region 9 or the Zamboanga Peninsula got two of the 29 approved projects for Mindanao, namely, the development of Pulacan falls in Labangan, Zamboanga del Sur and the construction of the Cogon Eco-tourism development project in Dipolog City, Zamboanga del Norte.

Antonino added that MinDA shall continue in its efforts to secure financing support for the Mindanao imperatives by engaging more public-private partnerships while advocating for a fair share in the national budget.

“Unlike before that we only had a measly share of their [TIEZA] budget, Mindanao is now given attention”, said Antonino adding that tourism has a multiplier effect in terms of job creation.

The Mindanao tourism industry welcomes the increased budget of the island-region, which has been their clamor for the past decade.

“TIEZA has made an unprecedented move to develop a strong backbone for tourism in Mindanao”, said Mr. Art Boncato, Department of Tourism (DOT) regional director for Region 11. Boncato said that tourism is a major economic driver for Mindanao. The island-region’s potential for nature-based and cultural tourism is one of the bests in the country and that “strategic infrastructure support ensures its sustainability”, he said.

The advocacy for Mindanao’s equitable share in the national budget is one of the strategies identified toward achieving the overall peace and development goals for Mindanao in the next 20 years.

According to the Mindanao 2020 Peace and Development Framework Plan (Mindanao 2020), tourism development can be a win-win for the economy and environment and must be pursued vigorously through policy reform and public investments.

The promotion of the Brunei Darussalam-Indonesia-Malaysia-Philippines East Asean Growth Area (BIMP-EAGA) as premier ecotourism destination also provides substantial growth potential in Mindanao tourism.

In the medium term (2011-2016), DOT has taken a cluster approach in pursuing tourism promotion, with nine defined clusters for Southern Philippines (Mindanao) highlighting various types of tourism assets.

The clusters include the Surigao-Dinagat islands, Cagayan de Oro-Tangub Coast and Hinterland, Zamboanga Peninsula and the Bukidnon highlands among others.

CAGAYAN DE ORO — Plans to build a P500-million highway leading to the new Laguindingan international airport have been endorsed to the national government by a group of public and private sector officials in Northern Mindanao.
The interagency group, the Regional Development Council-Region 10, proposed a road interchange project consisting of a two-lane elevated highway with an estimated length of 1.5 kilometers, coordinator Jaime H. Pacampara said.

The road will include a 25-ton, 60-lineal-meter bridge, Mr. Pacampara said.

This should address traffic congestion prior to the airport’s opening which could be next year, he said.

Plans for another road said to be complementary to the airport, meanwhile, has moved forward after the Cagayan de Oro City council agreed to expropriate a private property lying in the highway’s path, Rep. Rufus B. Rodriguez (2nd district, Cagayan de Oro) said.

The P1.2-billion Cagayan de Oro Coastal Highway whose first phase runs from the Bitan-ag Creek in San Juan, Lapasan to Barangay Puerto is seen to be a four-lane concrete highway with a four-meter jaywalk.

It will ultimately link the Puerto flyover now under construction with the Puntod-Bonbon Third Bridge.

Intra-city traffic will have a bypass road through which they can quickly negotiate the city from east to west.

Emmanuel D. Abejuela, city council committee on infrastructure, said the city government would pay the property owner with the fair market value of his property.

He also committed to initiate an ordinance that would compel truck and bus operators to use the coastal superhighway when traveling through the city from points outside it.

These proposed highways come on top of other plans to improve roads in the region.

Cagayan de Oro is also looking to complete by the end of this month the P363-million Puerto-Sayre flyover in Barangay Puerto at the junction of the Iligan-Cagayan-Butuan Road and the Sayre highway of Bukidnon.

Oscar Villanueva, President’s Bridge Program officer, said the 195-lineal-meter double-lane permanent flyover is part of the so-called Mega Bridges for Urban and Rural Development Project bankrolled by a loan from the French government.

District engineer Cesar L. Hipona, Jr. said the flyover is just one of a package of intercity projects intended to address the increasing traffic volume along the national highway, specifically along the Iligan-Cagayan-Butuan Road.

Two other flyovers are now under construction by the city government: the P107.8-million Velez-C.M. Recto flyover and P119.7-million Macanhan-Carmen junction flyover. — Michael D. Baños

MANILA, Philippines – The Board of Investments (BOI) has given its approval to the P174.4 million project of Nakeen Corp.

The firm is a new domestic producer of oil palm fruits and is a wholly owned subsidiary of A Brown Energy and Resources Development Inc. (ABERDI) which is a BOI-registered domestic producer of crude palm oil and palm kernel oil. Nakeen has an existing oil palm plantation at Impasugong, Bukidnon.

The project involves the growing and cultivation of oil palm trees in a 600-hectare public land located in Sitio Tingalan, Salawaga, Opol, Misamis Oriental. It is awaiting Department of Natural Resources (DENR) approval on its application for 25- year lease of the land under the DENR’s Upland Agro-Forestry Program (UAFP).

Oil Palm trees bear small reddish fruits in large bunches which are called Fresh Fruit bunches (FFB). The Palm fruits are made up of oily, fleshy pulps (called pericarp), with seeds (palm kernel) which are also rich in oil. Oil Palm trees grow up to 30 feet tall and reach a life span of 25 years. Fruiting starts three years from planting. Average weight of FFB is around 25 kilos.

Oil Palm Seedlings will be imported from Thailand and Papua New Guinea while farm inputs such as fertilizer and other inputs will be sourced from local suppliers.

The proposed P174.4 million plantation will have a full production capacity of 13,000 metric tons (MT) of FFB per year and a manpower requirement of 209 personnel. Start of commercial operation is slated to start on January 2014. Total production of FFB will be sold to ABERDI.