Working Towards Building a Green Economy and Sustainable Local Communities

DILGUNEPUNDP

Municipality of Villanueva, Misamis Oriental: Ensuring local communities benefit from hosting energy projects

SOCIAL EMPOWERMENT THROUGH EDUCATION (SEED) PROGRAM; RURAL ELECTRIFICATION AND ENERGIZATION PROGRAM; REINFORCE FIREBRICKS AND BLOCKS MAKING PROJECT (PHOTO: MUNICIPAL GOVERNMENT OF VILLANUEVA)

Based on the Department of Energy (DOE) Energy Plan 2002-2011, by the end of 2006, existing power producers in Mindanao were unable to meet the electricity demands in the Island.  As a response, the 210MW (net) Mindanao Coal-fired Power Plant owned by STEAG State Power Inc. (SPI) was set to address the challenge of attaining stability in the supply of power.

In 2007, Villanueva became the host municipality of Mindanao`s first and most modern power generating facility in the Island. With its timely start of operation on November 15, 2006, the power plant has helped stabilize electricity supply in the island by increasing the grid’s reserve margin from a critically low level of 13% to a system-compliant reserve level of 24%. 

Twenty per cent of Mindanao’s power is now coming from Villanueva.


VILLANUEVA’S SUCCESS STORIES WITH SPI

Direct benefits
•    Investment Destination
Following the location of Mindanao Coal-fired Power Plant, Villanueva emerges as a preferential investment destination of large multinational corporations, such as Coca-Cola, San Miguel B-Meg, Cargill Villanueva Plant, Yan-Yan Foods International, among others.

•    Increase in Revenue Collection
With the subsequent influx of large industries in Villanueva, revenue collection has increased dramatically over the years. Villanueva is now a 2nd class municipality from a 4th class status.

•    Project SKILLS and Job Generation
During construction phase, about 4,000 skilled and non-skilled workers were employed.  About 70% of Project SKILLS graduates are now gainfully employed or engaged as service contractors in various private and public business establishments in Villanueva and in abroad

Indirect benefits
•    Villanueva Water System Project
 The people of Villanueva now have access to clean and reliable supply of potable water.

•    School Improvement Projects
SPI helps address the perennial lack of classrooms and school chairs.  Public schools in Villanueva now have achieved a 1:1 chair ratio.

•    Rural Electrification and Energization Program
98% of Villanueva’s villages are now energized. 

•    Reinforce firebricks and Blocks Making Project  (Villanueva green Products)    
Villanueva green products are first in the Philippines to utilize industrial by-products as raw materials in manufacture of reinforce firebricks, pavers and hollow blocks. The products are used to build durable and affordable houses at the Relocation Site. The products are also used for curbs & gutters and other applications.

(Municipal Administrator Norman A. Ricacho of Villanueva shared how they have utilized the additional revenues and benefits generated from hosting energy projects for sustainable development programs and projects that help alleviate poverty and protect the environment during the NG-LG Joint Energy Forum held last 6 September 2013, at Heritage Hotel, Pasay City).