Will it be business as usual for dam building? The case of the San Roque Dam Will it be business as usual for dam building? The case of the San Roque Dam.

Will it be business as usual for dam Will it be business as usual for dam building? building?

The case of the San Roque DamThe case of the San Roque Dam

Presentation by Joan Carling, Presentation by Joan Carling, Cordillera Peoples AllianceCordillera Peoples Alliance

AGNO RIVER IS ONE OF THE MAJOR RIVERS IN THE CORDILLERA REGION, which is very important to the life and culture of the ibalois and kankanaey indigenous peoples

AMBUKLAO DAM WAS BUILT IN THE 50’s

BINGA DAM WAS BUILT 60’s

San Roque Dam is the

3rd dam along the Agno river

•Construction begun in 1998•Impoundment of reservoir started in August 2002

Construction completed and became　　　　　 Operational in May 2003

SAN ROQUE DAM

Height: 220 meters

Length: 1.13 km

Reservoir capacity: 850 million c

Surface area of reservoir: 12.8 km

Purposes:Power generation: 345 megawatt: present level of power generation- 270-280 Irrigation: 7,800 hecFlood controlWater quality improvement

Cost of the project and ownershipCost of the project and ownership

Cost: US $1.2 billionCost: US $1.2 billion> $ 800 loan by project proponent> $ 800 loan by project proponent

guaranteed by Philippine guaranteed by Philippine governmentgovernment

> $ 400 loan by Phil. Government > $ 400 loan by Phil. Government as subsidy to the projectas subsidy to the project

***MAINLY FUNDED BY EXPORT CREDIT ***MAINLY FUNDED BY EXPORT CREDIT AGENCY (ECA)AGENCY (ECA)

Ownership: privately owned by San Roque Ownership: privately owned by San Roque Power Corporation-100% foreign companyPower Corporation-100% foreign company

CONTRACTCONTRACT Power Purchase Agreement (PPA): BOT for 25 Power Purchase Agreement (PPA): BOT for 25

yearsyears• National Power Corporation-NPC(government) needs National Power Corporation-NPC(government) needs

to pay to pay $9 to $10 mil / month$9 to $10 mil / month to SRPC regardless of to SRPC regardless of whether there is sufficient water available to generate whether there is sufficient water available to generate power for 10 yearspower for 10 years

• No accountability of project proponents to No accountability of project proponents to environmental and social impactsenvironmental and social impacts

• Project proponent can pull out of the project if deem Project proponent can pull out of the project if deem not commercially viablenot commercially viable

** the contract guarantees return of investment and big ** the contract guarantees return of investment and big profit, while environmental and social adverse impacts profit, while environmental and social adverse impacts are not accounted forare not accounted for

Did it lead to poverty alleviation in line with the Did it lead to poverty alleviation in line with the

Millennium Development Goal (MDG)Millennium Development Goal (MDG) ? ?

•More than 2,000 hectares of agricultural land was used for the dam site which used to provide food security for hundreds of peasant families

Relocation of 781 peasant families who used to have sustainable and self sufficient livelihood

More than 2,000 hectares of agricultural land was used for the dam site which used to provide food security for hundreds of peasant families

life is not better off as promised because of lack of livelihood sources for them

Most cannot even pay their water and electric bills

The amount given for compensation was lower than what was written in papers. Agreement for relocation was not well explained and written in english which most of those relocated cannot understand

Families at the reservoir refused to moved out but were forcibly airlifted by the military

The reservoir area before water impoundment

Livelihood projects provided are not sufficient and sustainable , leading to and increasing problem of hunger and poverty amongst relocated families

At least 3,000 gold panners were economically displaced. This is a major source of cash for farmers to support the basic needs and education of their children

As many as 10,000 people do gold panning along the Agno river

IMPACTSIMPACTSGathering of scrap metal in the dam site out of desperation, but declared as illegal lead to the shooting of 3 people with 1 dead and 2 seriously wounded in 2002

Is it environmentally sustainable vis a vis Is it environmentally sustainable vis a vis commitments made to the World Summit on commitments made to the World Summit on

Sustainable DevelopmentSustainable Development ? ?

The reservoir is a depository of toxic mine-waste due to decades of massive mining activities in the upstream of the dam

Flooding caused by the release of water from San Roque Flooding caused by the release of water from San Roque dam after just over a year of operation: rice fields and dam after just over a year of operation: rice fields and hundreds of fishponds destroyed affecting 250,000 farmers hundreds of fishponds destroyed affecting 250,000 farmers and fisher folksand fisher folks

Siltation build-up in the upstream= destruction of the Ibaloi’s land and culture

Siltation of the dead ambuklao dam is more than 18 kilometers long and still growing. Binga dam is partially operational due to serious siltation problem. San roque dam will easily get filled up with silt coming from Binga and ambuklao

The Environmental Impact Assessment of San Roque Dam was issued in 1985 which was based on a feasibility study done in 1979

Inspite of the protest and concerns raised by the Ibalois, the project commenced like business as usual

Ibaloi ricefields which sustained them for generations will be inundated by siltation

Was it socially acceptable?Was it socially acceptable? The project did not have the Free, Prior The project did not have the Free, Prior

and Informed Consent (FPIC) of the Ibaloi and Informed Consent (FPIC) of the Ibaloi people as reported by the National people as reported by the National Commission of Indigenous Peoples (NCIP): Commission of Indigenous Peoples (NCIP): FPIC is part of the national law- Indigenous FPIC is part of the national law- Indigenous Peoples Rights Act (IPRA of 1997)Peoples Rights Act (IPRA of 1997)

At the start, the ibalois upstream were not At the start, the ibalois upstream were not considered as affected communitiesconsidered as affected communities

Consultations centered on promises of Consultations centered on promises of community projects and not on the community projects and not on the potential impacts of the dampotential impacts of the dam

Economic upliftment of the Economic upliftment of the Filipino people?Filipino people?

Debt burden: $ 10 million every month of Debt burden: $ 10 million every month of payment for power surplus generation below payment for power surplus generation below target- a public burden for power consumers and target- a public burden for power consumers and tax payerstax payers

Massive economic displacements of thousands of Massive economic displacements of thousands of farmers, gold panners and fisherfolks due to land farmers, gold panners and fisherfolks due to land destruction, siltation, floodingdestruction, siltation, flooding

Destruction of productive land and poor water Destruction of productive land and poor water quality due to toxic minewaste pollutionquality due to toxic minewaste pollution

lessonslessons The San Roque Dam, like most large dams The San Roque Dam, like most large dams

did not lead to sustainable development did not lead to sustainable development nor alleviate povertynor alleviate poverty

Did not meet the target of the Millenium Did not meet the target of the Millenium Development Goal (MDG) on poverty Development Goal (MDG) on poverty alleviation and of the World Summit of alleviation and of the World Summit of Sustainable Development Sustainable Development

lessonslessons Large dam projects do not necessarily deliver or Large dam projects do not necessarily deliver or

meet its objectives: target power generation, meet its objectives: target power generation, irrigation, flood control and water quality irrigation, flood control and water quality improvementimprovement

The environmental and social impacts are The environmental and social impacts are tremendous and irreversible- most of which tremendous and irreversible- most of which cannot measured in monetary terms for cannot measured in monetary terms for compensation or can be mitigated compensation or can be mitigated • -The inherent siltation build-up of upstream -The inherent siltation build-up of upstream • -Flooding of downstream-Flooding of downstream

-Destruction of lands and livelihoods, -Destruction of lands and livelihoods, aggravating food insecurity and povertyaggravating food insecurity and poverty

Lessons:Lessons:

Need for greater transparency and Need for greater transparency and accountability of project proponents accountability of project proponents and funders to adverse social and and funders to adverse social and environmental impacts, proper environmental impacts, proper compensation, provision for compensation, provision for sustainable livelihoods and sustainable livelihoods and rehabilitation of the damaged rehabilitation of the damaged environmentenvironment

WAY FORWARD: WAY FORWARD:

The objectives of any dam project must be The objectives of any dam project must be reviewed in terms of meeting actual reviewed in terms of meeting actual peoples needs and of other more viable peoples needs and of other more viable options ( options assessment) which are options ( options assessment) which are more sustainable and with minimal more sustainable and with minimal adverse environmental and social impacts.adverse environmental and social impacts.

Recognition of the right of affected Recognition of the right of affected communities on Free, Prior and Informed communities on Free, Prior and Informed Consent (FPIC)- this is a workable Consent (FPIC)- this is a workable mechanism with clear guidelines on mechanism with clear guidelines on community decision making processescommunity decision making processes

Participation of affected communities in all Participation of affected communities in all stages of the projectstages of the project

WAY FORWARDWAY FORWARD Stronger criteria and guideline on environmental and social Stronger criteria and guideline on environmental and social

adverse impacts must be given serious consideration over adverse impacts must be given serious consideration over commercial viability of the project prior to project fundingcommercial viability of the project prior to project funding

- inherent problem of siltation and other adverse- inherent problem of siltation and other adverse environmental impacts to marine and biodiversity environmental impacts to marine and biodiversity

- destruction of peoples sustainable livelihood sources- destruction of peoples sustainable livelihood sources

- Free Prior and Informed Consent (FPIC) of affected - Free Prior and Informed Consent (FPIC) of affected communities and accountability to human rights communities and accountability to human rights violationsviolations

*** independent and comprehensive environmental and *** independent and comprehensive environmental and

social feasibility studies which are participatory to include social feasibility studies which are participatory to include mechanisms on social acceptability and not simply on mechanisms on social acceptability and not simply on mitigating measures and “benefits”mitigating measures and “benefits”