Republic of the Philippines Province of Misamis Oriental OFFICE OF THE SANGGUNIANG PANLALAWIGAN 2F Provincial Capitol Bullding, A. Veer St, Cagayan de Oro Gty 9000, EXCERPTS FROM THE MINUTES OF THE 19TH REGULAR SESSION OF THE SANGGUNIANG PANLALAWIGAN OF MISAMIS ORIENTAL HELD ON MAY 25, 2015, MONDAY, AT THE SANGGUNIANG PANLALAWIGAN SESSION HALL, PROVINCIAL CAPITOL BUILDING, CAGAYAN DE ORO CITY. Present: Hon. Jose Mari G. Pelaez Provincial Vice Governor Presiding Officer Hon. Vincent kK. Pelaez Provincial Board Member Hon. Virgelia F. Dumadag Provincial Board Member Hon. Jabi |. Bernaldez Provincial Board Member Hon. Heckert V. Emano Provincial Board Member Hon. Mercy Grace J. Acain Provincial Board Member Hon. Nancy S. Madjos Provincial Board Member Hon. Emmanuel $. Mugot Provincial Board Member Hon. Boris Olivier H. Actub Provincial Board Member Hon. Mario K. Emano, ABC Provincial Board Member Hon. Donato N. Chan, PCL Provincial Board Member Absent: Hon. Susan M, Lagbas Provincial Board Member Hon. Benedict P. Lagbas Provincial Board Member RESOLUTION NO. 143-2015 AUTHORED BY: HON. JOEY G. PELAEZ Vice Governor RESOLUTION STRONGLY OPPOSING THE PRIVATIZATION OF THE AGUS-PULANGUI HYDROELECTRIC POWER COMPLEXES AND SUPPORTING THE CREATION OF THE MINDANAO POWER CORPORATION WHEREAS, Agus-Pulangui Hydroelectric Power Complexes (APHC) is a crown jewel of Mindanao’s power assets consisting of six cascading power plants and one run-off the river type of power plant with a combined capacity of 982 megawatts; WHEREAS, the APHC, being a state-owned hydropower plant, continues fo be an affordable source of energy in Mindanao, producing a generation rate significantly lower than the average generation rate in the Luzon and the Visayas regions and effectively mitigating price hikes in power rates as it is blended with other power sources; WHEREAS, several reports have revealed that the APHC has earned a total Of 68 Billion Pesos from 2001 to 2011, a profit-yielding investment for Mindanao; WHEREAS, by virtue of the Electric Power Industry Reform Act (EPIRA), the Power Sector Assets and Liabilities Manangement (PSALM) is mandated to privatize all assets owned by the National Power Corporation (NPC); A wey ‘Tel/Fax No (08822) 714545, Tel No (08622) 721254 MisOr+ Page 20t Resolution No, 143-2015 WHEREAS, per its Board Resolution, PSALM has set the year 2017 as the earliest date to proceed with the sale of the Agus-Pulangui Hydroelectric Power Complexes (APHC): WHEREAS, in an attempt to provide solutions to the perennial move of privatizing APHC, legislative measures were filed before Congress creating the Mindanao Power Corporation (MINPOCOR], a Government Owned and Controlled Corporation (GOCC) which shall own, manage, rehabllitate and ‘operate APHC; WHEREAS, three bills have been filed in Congress that aim to create the Mindanao Power Corporation (MINPOCOR) that include HB 676 filed by Representative Edgardo Masongsong, HB 2621 filed by Representative Celso Lobregat, and HB 4883 filed by Representative Rufus B. Rodriguez; WHEREAS, the creation of this new entity will enhance the operations and maximize the potential of the APHC, and capacitate it to earn additional funds for Mindanao in order to achieve a regime of affordable, reliable and sustainable energy; WHEREAS, the rehabilitation of the APHC thru MINPOCOR will create a significant impact on the environment considering the ecological effects of the increasing eniry of coalfired and bunker-fuel power plants: WHEREAS, the continued ownership of the govemment of the APHC is in the best interest of Mindanao because it will ensure affordable electricity rates, prevent the monopoly of the electricity market in Mindanao, and earn from the windfall profits of the hydroelectric power plant; WHEREAS, even with the participation of government in the energy market, research has revealed an increasing number of private investors in the energy industry because of the growing and rapidly increasing demands for energy of the country, thus stil consistent with the policy and core purpose of the EPIRA law which is to create a regime of free and fair competition in the supply of electricity among existing and incoming power plants and consequently, a regime of affordable electricity for all; WHEREAS, Mindanao cannot afford to give its prized possession in the energy industry to the hands of profit-driven private entities; WHEREAS, the non-privatization of the APHC will serve to protect the interest of the already burdened poor and the less-privileged from enjoying, what modem day dictates as a necessity, affordable electricity; NOW THEREFORE, after due deliberation and on motion of Hon. Jose Mari G. Pelaez and severally seconded by all the Members of the Sangguniang Panlalawigan in Session duly assembled, it was; RESOLVED, AS THE SANGGUNIANG PANLALAWIGAN HEREBEY RESOLVES, TO STRONGLY OPPOSE THE PRIVATIZATION OF THE AGUS-PULANGUI HYDROELECTRIC POWER COMPLEXES AND TO SUPPORT THE CREATION OF THE MINDANAO POWER CORPORATION (MINPOCOR). RESOLVED FURTHER, TO FURNISH ALL THE SANGGUNIANG PANLALAWIGAN OF MINDANAO THRU THEIR RESPECTIVE VICE GOVERNORS AND TO REQUEST THEMPage 3 of Resolution No. 143-2015 TO PASS A SIMILAR RESOLUTION SUPPORTING THE CREATION OF THE MINDANAO POWER CORPORATION (MINPOCOR); RESOLVED MOREOVER, TO FURNISH THE PRESIDENT, VICE PRESIDENT, THE ‘SENATE PRESIDENT, THE SPEAKER OF THE HOUSE OF REPRESENTATIVES, SENATORS AND REPRESENTATIVES FROM MINDANAO FOR THEIR SUPPORT AND APPROPRIATE ACTION; RESOLVED FINALLY TO FURNISH SENATE COMMITTEE ON ENERGY CHAIR SENATOR SERGIO R. OSMENA Ill, HOUSE COMMITTEE ON ENERGY CHAIR REPRESENTATIVE REYNALDO V. UMALI, REPRESENTATIVES EDGARDO R, MASONGSONG OF THE 1CARE PARTY LIST, RUFUS B. RODRIGUEZ OF THE 2% DISTRICT OF CAGAYAN DE ORO CITY, CELSO L. LOBREGAT OF THE 157 DISTRICT OF ZAMBOANGA CITY, PETER M. UNABIA OF THE 1°" DISTRICT OF MISAMIS ORIENTAL AND JULIETTE T. UY OF THE 2"° DISTRICT OF MISAMIS ORIENTAL, AND GOVERNOR YEVGENY VINCENTE B. EMANO OF THE PROVINCE OF MISAMIS ORIENTAL, FOR THEIR SUPPORT AND APPROPRIATE ACTION. | HEREBY CERTIFY to the correctness of the foregoing Resolution. H ly MELINA'C, HOQUINTO Board Secretary IV APPROVED: 2 hk NANCY S. \DJOS Provincial Board Member §. MUGOT Provincial Board, Member HECKERT V. EMANO. Provincial Bogrd Member Proviricial Board MemberPage 4 of Resolution No. 143-2015 ATTESTED: JOSE MARI G.\PELAEZ Vice Governor