| Abstract |
This paper shows the compensatory measures that facilitated Tiwiís social development. The Tiwi field is the first geothermal area in the Philippines to be commercially developed on a large-scale basis. The project started in 1972, prior to the onset of regulatory requirements on environmental and social aspects. Hence, due to the absence of such framework, the early years of geothermal exploration, development and operation were beset with problems. Community rallies and rift with the regulating agencies and the local government haunted the National Power Corporation (NPC) during its first 10 years of operation. Though NPC was government-owned and the geothermal resource was a timely answer to the countryís oil crisis, the project lacked social acceptability. Transition began when the Supreme Court awarded the Tiwi local government with NPCís payment of real estate taxes starting 1992. Likewise, by virtue of the Local Government Code of 1991, the Tiwi local government received national wealth tax from the company starting 1993. This provided for the 80% electricity subsidy subsequently enjoyed by the community. In 1994, the passing of the Energy Regulations No. 1-94 provided the host community and local government with a one-centavo share for every kilowatt-hour energy sales of the power plant. This was allocated for the funding of projects related to electrification, livelihood and development, reforestation, watershed management, health and/or environment enhancement. The creation of the Tiwi NPCPGI Environmental SubCom in 1990 has likewise facilitated immediate action on the communityís environmental concerns. Furthermore, a Memorandum of Agreement signed in 1998 created the Tiwi Geothermal Task Force and formalized the communityís participation in the geothermal industryís affairs on environmental, health, safety and social aspects. Though the transition came later, it proved the National Power Corporationís commitment to public service, with the allocation of benefits for Tiwiís social development. It also highlighted the importance of the government in the formulation of laws, regulations and policies to protect and promote the host communityís interest and right to quality life. |