Power sector commits to red flag biz principles PDF Print E-mail
Monday, 21 February 2011 13:41

To promote an environmentally-sound power industry, the Mindanao energy sector commits to peace-based approach of doing business in the island-region.

The Mindanao Electric Power Alliance or MEPA, a private-sector led power alliance in Mindanao, signed here recently a Memorandum of Understanding to adopt the internationally recognized Red Flag principles in their business operations.

Vicente Lao, chair of the Mindanao Business Council and MEPA, said that the Mindanao business community has been working closely with key power industry players to address the collective energy concerns in Mindanao.

“The advocacy of MinBC and MEPA on the formulation of mechanism and modalities that would maintain and sustain the preservation of the conservative and competitive power in Mindanao will mean that Mindanao consumers will continue to enjoy reasonable cost of electricity,” Lao said.
But he said these modalities have to adopt a sustainable and responsible investment framework that would integrate conflict-sensitive principles.

In 2009, MinBC signed an MOU with International Alert to “alert” companies to some critical “red flags”, or a set of national and international liability risks that companies, especially those engaged in the energy, extractive, and agribusiness sectors, may face in the course of their operations and investments in areas of crisis and conflict.

Recently, the MinBC, International Alert and MEPA agreed through an MOU to expand the scope of buy-in to the red flags to the Mindanao energy sector.
The MOU on the expansion of Red Flags to Mindanao energy sector was signed here early this month by key members of MEPA who are mainly into energy generation, distribution and transmission businesses in Mindanao .

The signing was also witnessed and supported by British Ambassador Stephen Lillie, Sec. Luwalhati Antonino of MinDA and Davao City Councilor Pilar Braga who unanimously expressed support to the continuing efforts of business organizations, civil societies, and local government units (LGUs) in Mindanao to adhere to conflict-sensitive business practices.

This MOU signals a first step in the development of partnerships between local communities, local and national government, and private sector firms in inclusive and conflict sensitive economic governance.
Sec. Luwalhati Antonino, Chairperson of Mindanao Development Authority lauded the energy sector’s common desire to push for conflict-sensitive business practices.

“We stand in support of the principles and philosophies that must guide for quest for the attainment of sustainable and environmentally-sound power generation sources in the immediate future,” she said.

Antonino added that under the Mindanao 2020 Peace and Development Framework Plan, Mindanawons envision a reliable and efficient power industry that will help accelerate growth and sustain peace in Mindanao .

To achieve this, one of the key strategies identified in the plan is to formulate a Mindanao Energy and Power Development and Sustainability Plan that sets clear policies and strategies, coherent programs and projects that set the stage for the long-term reliability of power.