Is Gokongwei's Petrochem, a benchmark of its proposed coal power plant in Batangas Bay?

(The author could have conveniently avoided getting involved with this issue because he was JGSPC’s Community Relations staff from Sept. 1998 to July 2000. But a conscientious citizen cannot just abrogate his duties to country and community just because he was a former employee. Notwithstanding the fact that JGSPC has never paid his earned/pro-rated 13^th month pay for Jan-July 2000 plus last pay until  now, despite the fact that he had no liabilities or unsettled obligations with the company when he resigned).

How can you trust mega billionaire Gokongwei  to do business  in our community?

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When I joined JG Summit Petrochemical Corp. (JGSPC) Simlong Plant in 1998 (same year it started commercial operations) until I left in mid-2000, I can say that I had no remorse because my work with them at the time and the company’s efforts to reach out to the communities was fairly a good practice of Corporate Social Responsibility (CSR). Back then, there was no law mandating it to undertake community development, but it did just the same, providing Barangay Simlong with infrastructure and social services (barangay hall, ambulance, medical missions, livelihood projects, etc.) Some of these assistance extended to the barangays along the road from the last concrete part then (near Shell Tabangao)  leading to Simlong, including the Pinamucans (Ibaba and Proper).

At the time, consulting with local leaders was a regular activity with my immediate superior, Rene Casas (something that is missing now, so I heard).  Among the major contributions it did was paving for the electrification of Simlong and the coming of telephone landlines (Digetel).  Our participation to City events was something the LGU looked  forward to. On Christmas holidays, I would deliver boxes of Universal Robina Corp. products (Jack & Jill, Nova, etc) and wines to public officials. As much as we could, we avoided giving money as gifts (except for certain situations, which is a highly management prerogative).

Unfortunately, however, the good practices seemed to have dwindled, if not vanished slowly over the next years to the point that JGSPC seemed to have become oblivious of the growing negative sentiments of its communities. Broken promises such as compensating for damaged tress and crops in the course of its clearing operations were just simply forgotten or ignored. The company officers have gone confident of their stable standing in the community, neglecting the very core of community relations.

JG Summit Complex includes the beach (google photo)

 Years after, it levelled a portion of the hill at the back of its plant (if you are going to Simlong or Pagkilatan, there is a steep downward road (now Batangas-Tabangao-Lobo Road) after this area, and going back to the city for ordinary vehicles is a nightmare because you are literally climbing an almost 45 degrees slope as if this was deliberately designed to make traveling difficult). This alternate road is in exchange for its right to close the coastline opposite its complex, having exclusive access to the shoreline covered by its 100-ha exclusive economic zone (depriving the public access to the coastline). Now it actually operates on a 250-hectare petrochemical manufacturing complex, expanded to accommodate a naphtha cracker facility.

According to its website, JG Summit Petrochemical Corporation (JGSPC) is the pre-eminent world-class manufacturer and supplier of polyolefin products in the Philippines. It is the first and only integrated Polyethylene and Polypropylene resin manufacturer in the country, producing the Evaleneâ brand of High Density Polyethylene (HDPE), Linear Low Density Polyethylene (LLDPE) and Polypropylene (PP).

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The Company is a core subsidiary of JG Summit Holdings, Inc. (JGSHI), one of the largest business conglomerates listed in the Philippine Stock Exchange. JGSHI has substantial interests in property development, hotel management, textiles, banking and financial services, telecommunications, petrochemicals, air transportation and power generation. In addition, JGSHI has significant interests in other sectors, including printing, and packaging.

Clear and imminent danger

Flaring by day

Then early last year, 2014, the people of Batangas were surprised by a media announcement that JGSPC is going to build a 300-MW coal-fired power plant in barangay Pinamucan. This raised a lot of concerns particularly from the Church and civil society organizations, considering the globally acknowledged ill effects to health and the environment of coal.

Coal accounts for 40% of the world’s electricity supply, but the trend is now veering away from coal and towards more environmentally-sound technologies such as biomass, natural gas, solar, wind and other forms of energy.

The reason: JG Summit Olefins, a JGSPC sister company owns the country’s first naphtha cracker facility in the same JGSPC complex in Simlong and needs power, and by building a coal-fired power plant worth $800 million, it will be able to sustain the operations of its naphtha cracker plant to primarily produce polymer grade ethylene and propylene, which will be feedstock for the polyolefins plant.

Economically speaking, this will concentrate the entire process in one complex, with less importation expenses and greatly boost the Gowkongwei plastics business. They will no longer need to import their feedstock or rely to suppliers in Bataan,

This explains why, that among the many businesses of John Gokongwei, the Batangas-based business is slowly becoming a flagship. Gokongwei is listed as the world’s 254^th richest man, and 2^nd in the Philippines this year by the Forbes Magazine. His net worth is US $5.5-B or roughly 254 Billion Pesos.

 Business track record

However, a series of reputation damaging incidents occurred, including being cited by the DENR-Environment Management Bureau for violating environmental standards, leading to the release of foul odor and black smoke that affected nearby villages. (Rappler.com)

A Notice of Violation was issued and EMB is supposed to conduct an in-depth investigation that would include requiring the explanation of JGSPC.

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Black smoke and noisy glaring flare was seen from its stack and EMB admitted that “when the smoke is black, it's bad because anything black is unburnt. The combustion process was not completed. This means a release of hazardous compounds that may have a long-term impact on people.”

This can be seen as far as the communities in Verde Island, just opposite the mainland.

Aside from noise, nauseating odor caused people to experience dizziness and stomach pains. Some complain of lingering cough.

But the woes of the Gokongwei business is not limited to Batangas. In Negros Oriental,  environment authorities suspended the operations of an ethanol plant of Universal Robina Sugar Milling Corp. (URSMC) after finding that its untreated wastewater caused fishkill that economically dislocated 200 fishing families in Bais City and Manjuyod. As a matter of fact, it was fined P350,000.00for violating its environment compliance certificate (ECC).

A minimum of P 50,000.00 is usually imposed by MGB for each ECC violation, but people would ask, if that is enough for the trouble these plants create. Although, alternatively, because social acceptability is now a mandatory pre-requisite, affected communities can petition to either shut down or relocate the plant operations.