VZCZCXYZ0015
OO RUEHWEB
DE RUEHML #1999/01 1660900
ZNR UUUUU ZZH
O 150900Z JUN 07
FM AMEMBASSY MANILA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6977
RUEHRC/USDA FAS WASHDC IMMEDIATE 1376
RUEATRS/DEPT OF TREASURY WASHINGTON DC IMMEDIATE
UNCLAS MANILA 001999
SIPDIS
SIPDIS
STATE FOR EAP/EP
STATE FOR EEB/EPPD NSMITH-NISSLEY
STATE PASS EXIM, OPIC AND USTR
TREASURY FOR OASIA
USDA FOR FAS/OA AND FAS/OFSO
E.O. 12958: N/A
TAGS: BEXP EINV ELAB ETRD KSEP SENV RP
SUBJECT: NOMINATION FOR CORPORATE EXCELLENCE AWARD: CAL ENERGY
GENERATION
REF: STATE 00047222
NOMINATION
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1. Post is pleased to nominate CalEnergy Philippines, an independent
power producer with three geothermal power plants in Leyte and a
hydro-electric power plant in Casecnan. All four plants sell 100
percent of their capacity to the Philippine National Oil
Company-Energy Development Company for resale to the National Power
Corporation and distribution to the Luzon and Cebu Grids.
Good Corporate Citizenship
--------------------------
2. CalEnergy Philippines corporate citizenship efforts focus on
providing educational opportunities to youth and young adults. It
currently sponsors 79 elementary and tertiary scholars and offers
vocational training to 18 students. Additionally, CalEnergy has
built or rehabilitated 20 class rooms and donated over 100,000 books
to various schools and public libraries in the communities around
Leyte and Casecnan.
3. Employee volunteerism is another strategic component of
CalEnergy's corporate social responsibility program; its employees
logged 3,500 days of service hours in 2006.
Exemplary Employment Practices
------------------------------
4. In 2001 CalEnergy initiated a certification program for its
operators and technicians to ensure competency for three different
occupations: Geothermal Power Plant Operator, Instrumentation
Technician, and Non-Destructive Testing Technician. Its in-house
certification program has since been accredited by the Technical
Education and Skills Development Authority, which sets the national
standards for various trades and crafts. On August 23, 2002, this
authority awarded CalEnergy the "Partnership" Award in recognition
of its efforts to develop and professionalize technicians, craftsmen
and artisan workers, as well as for its contribution to community
development.
Provision for a Safe and Healthy Workplace
------------------------------------------
5. CalEnergy's safety program is based on cooperative efforts among
colleagues and affords employees the opportunity to audit safe and
unsafe behaviors at the workplace. The program's objective is to
continuously train and encourage all employees and contractors to
eliminate incidents and injuries by observing and discussing the
safe and unsafe behaviors of their colleagues in the workplace.
Responsible Environmental Stewardship and Practices
--------------------------------------------- ------
6. At its core, CalEnergy exemplifies environmental stewardship
through its production of energy from a hydro-electric plant that
also provides consistent irrigation for nearby farms.
7. In 2005, CalEnergy began to implement a 6-year pilot
reforestation program of the Casecnan Watershed. This program aims
to rehabilitate 3,500 hectares of the lower Casecnan Watershed. To
date, some 453 hectares have been reforested with 800,000 trees. In
2005, the Public Relations Society of the Philippines presented an
Anvil Award of Merit to CalEnergy's Casecnan Watershed Pilot
Reforestation Program for successfully implementing an educational
campaign to increase community awareness of the importance of
watersheds and the need to protect them from degradation. In 2006,
CalEnergy also received two Gold Quill Awards of Merit in
Communication Management for the Casecnan Watershed Pilot
Reforestation Program and the Cal Energy Book Donation Program from
the International Association of Business Communicators of the
Philippines.
Contribution to the Rule of Law and Economic Growth
--------------------------------------------- ------
8. CalEnergy's Casecnan projects have supplied the community with
roads, irrigation, and electricity. In North Luzon, the project
irrigates 35,000 new hectares of agricultural lands, and stabilizes
the water supply for 102,000 hectares of existing irrigated
farmlands. Upon completion, the CalEnergy project, in partnership
with the National Irrigation Administration, will result to a
465,000 ton increase in annual rice production.
Contribution to Local Science and Technology
--------------------------------------------
9. The latest geothermal and hydro technologies have been
incorporated into four "Build Operate and Transfer" projects so that
the Philippine energy sector can utilize renewable energy assets on
the islands of Leyte and Luzon. Upon transfer, the Philippine
government will acquire the capital projects along with the
scientific knowledge and institutional memory.
Compliance with U.S., International and Local Laws
--------------------------------------------- -----
10. CalEnergy has implemented purchasing procedures which increase
transparency and eliminate bribery by defining employee conduct and
processes with regards to services or goods purchases. Suppliers
are selected through a formal bidding process that prohibits any ad
hoc supplier selection. The list of accredited suppliers is
reviewed continuously to ensure that they are still performing well
in terms of products and services delivered, professionalism, and
adherence to Philippine law.
KENNEY