Napocor seeks release of P153.2 million for watershed protection program

MANILA, Philippines - The National Power Corp. (Napocor) is seeking the release of P153.22 million from the universal charge funds lodged at the Power Sector Assets and Liabilities Management Corp. (PSALM) for its watershed management program for 2010.

In a petition to the Energy Regulatory Commission, Napocor said it needs funds to support the maintenance of watershed protection. Specifically, the amount will be used on projects for watershed rehabilitation, watershed protection, biodiversity conservation and ecotourism, and the institutionalization of a Watershed Management Council.

Under Republic Act 9136 or the Electric Power Industry Reform Act of 2001, Napocor is allowed to tap funds from the universal charge an environmental share of 0.0025 centavo per kilowatthour sales.

The allocation is intended for the rehabilitation and management of watersheds to sustain the operations of power plants that rely on these areas, such as hydroelectric power plants.

Napocor’s petition to avail of the environmental share, including the costs and standards used, is premised and anchored on a five-year watershed management program from 2003 to 2007.

According to Napocor, the proposed fund will support the 2010 program for watershed areas which forms part of the remaining projects under an existing five-year program.

Under the program, Napocor will undertake rehab programs in 11 watershed reservations. Of the 11, seven are under Napocor’s jurisdiction: The Upper Agno, San Roque, Angat, Caliraya-Lumot, Makiling-Banahaw, Buhi-Barit and Tiwi watershed reservations; and the Magat, Pantabangan, Lake Lanao-Agus and Pulangui, Agusan and Talomo which are under co-management arrangement with other government instrumentalities.