A STAKEHOLDER ANALYSIS ON THE ENERGY DECISION-MAKING: THE CASE

OF THE OPERATION OF A COAL (+BIOMASS) FIRED POWER

PLANT IN ILIGAN CITY
By Norjanah A. Macmac, Leslie Ann M. Sumagaysay
And Marilou F. Siton Nanaman
Problem Description:
Coal-fired power plants (CFPP) are the biggest source of man-made Carbon Dioxide
emissions (Green Peace, 2015). This makes coal energy the single greatest threat facing climate
change. It also causes irreparable damage to the peoples health and to the community. However,
the Philippine government has continued to allow investors and industries to put up CFPP most
particularly in Mindanao. A Resolution No. 14-1214 of No Objection was issued on November
of 2014 allowing the construction and operation of 20 MW-CFPP inside CRH-Aboitiz Iligan
Plant (CAIP) in Barangay Kiwalan, Iligan City in Mindanao to be operated by Power Source
Philippines Energy Inc (PSPEI). In relation to this, this study focused on the stakeholders
involved in the energy decision-making of the CFPP which identified and analyzed the
stakeholders role and position, their interest and the types of action and resources mobilized to
affect the outcome of the decision-making process. The result of this study serves as a guide for
the future energy policies of the city.
Methods
The research design employed the qualitative method. It used key informant interviews
and observational collection method. Descriptive statistic was also used to show the variation of
data of profile of the respondents and the bases and interests of the positions of the stakeholders.
In treating the quantitative method, frequency and distribution percentage was used. The study
mainly focused in Iligan City which is located in the south of the Philippines, Mindanao. This
study used purposive sampling technique under non probability sampling. The study purposively
selected and interviewed (25) twenty-five respondents as key informants who had role and
interest on the decision-making of the CFPP with the use of guide questionnaire. Hence, the total
sample size for this study is twenty-five respondents from different sectors of stakeholders. The
data collected from the KII was analyzed through qualitative-coding and content analysis.
Results
Majority of the respondents are relatively middle aged. Majority of the respondents
belong to 30-50 age group and are male. Most of them are government officials and majority
served within 9 years. And, majority are college graduates.
The stakeholders of the energy decision-making are the decision-makers from the
Sangguniang Panlungsod (SP) and the Barangay Council of Kiwalan. Other stakeholders referred
in the study as Beneficiary stakeholders are the (2) two NGOs, (2) two Religious Groups, (3)

three Industries, (1) one media and (2) two Academe Experts. The energy decision-making on
the construction on CFPP went through public hearings, site-inspection of a CFPP in Villanueva
and deliberation process for 4 months (September December 2014).

City Resolution 14-1214 of No

Objection
Energy Policy
Response

Energy Policy
Passed

Power Shortage

Deliberation Process by
the SP

SP, NGOs, Media,

Barangay
Councils

Alternative Solution

Coal (+Biomass) -fired

Power Plant (CFPP)

Public Hearings and

Site Inspection on
STEAGs CFPP

Figure 4.2. A Schematic Diagram on the Decision-making Process of

the CFPP
The table 1 below shows the distribution of position of the 25 stakeholders. It shows that
the positions, supporter and opponent, are equally divided among the stakeholders of the CFPP.

50
%

50
%

Figure 1. Distribution of Percentage of Positions of the

Stakeholders on CFPP

The decision-making was mainly based on the issue of power shortage and the interest of
additional electricity. Lastly, the decision-making was mainly influenced by the decision-makers
such as the SP and the Barangay Council of Kiwalan. The non-decision-makers such as the
NGOs did not had any influence to the outcome of the energy decision-making of the CFPP.
The stakeholders who had the influence on the energy decision-making process were the
stakeholders like the decision makers particularly the Sanguniang Panlungsod and the Barangay
Council of Kiwalan since they have the political authority to be involved like using their power
to vote whether to support or oppose the CFPP. While on the other hand, the NGOs, industry,
media and academe expert were not able to influence the decision-making. They had only
participated in the public hearings.
Conclusion
The study concludes that the major bulk of the support on the construction of the CFPP is
from the Government while the major bulk of opposition is from NGOs. While there are
stakeholders from NGOs and religious groups who strongly opposed the construction of CFPP,
the stakeholders role were monopolized mainly by the decision-makers from the SP. The public
hearings and site inspection of a CFPP in Villanueva were satisfied but this study concludes that
there was no proper consultation before the passage of City Resolution. More so when the
Barangay Resolution of Kiwalan was passed only after the City Resolution. Much of the data
gathered from KII showed inconsistencies and imperfect knowledge from the decision-makers
from the Barangay Council of Kiwalan. There was no proper information dissemination
regarding CFPP and the decision-making of the SP. Furthermore, the stakeholders who are
opponents even how much action and resources mobilized by them, they could not influence the
decision-makers and could not retract the City Resolution because of the firm support of the City
Government on the CFPP.

Majority of the decision-makers were after the positive benefits like additional electricity
the CFPP will produce with only very few of them mentioned and considered the environmental
effects of CFPP. However, this study also concludes that the power shortage was not really the
problem because if only the host community, Iligan City, was given the 25% percent of the
available power supply from the three Agus grid in times of power shortage by NAPOCOR. In
addition, the CFPP was not the solution that the decision-makers thought in the first place to
solve power shortage. Respondents from the decision-makers validated that the CAIP asked the
SP first to allow them to have an independent power supply and that is when the PSPEI appeared
offering the SP to put up CFPP.
While it is true that there is power shortage in the city, the CFPP basically will be
constructed to serve the interest of CAIP to have an independent power supply which is the
8MW of the 20MW that the CFPP will produce once it is constructed and operated. Furthermore,
the stakeholders who are opponents even how much action and resources mobilized by them,
they could not influence the decision-makers and could not retract the City Resolution because of
the firm support of the City Government on the CFPP.
References:
Green Peace (2015). Coal. Green Peace International. Retrieved December 2, 2015 from
http://www.greenpeace.org/international/en/campaigns/climate change/coal/