Toledo: ‘Power City’ fueling Cebu’s economic engines

CEBU, Philippines — Situated on the western coast of Cebu, Toledo City plays a critical role in powering the economic engines of Cebu. Known as the “Power City,” Toledo is home to eight of Cebu's major power plants, which provide the energy stability needed to support the province's diverse and fast-growing economy.

But beyond powering Cebu's economy and society, Toledo has emerged as a competitive city in its own right, ranking among the highest of Cebu's component cities in the Cities and Municipalities Competitiveness Index (CMCI) — a national ranking developed by the National Competitiveness Council in partnership with USAID.

In 2023, the Central Visayas region recorded a 7.3 percent economic growth rate, the highest among the Philippines’ 17 regions. This growth is driven in large part by the cities of Lapu-Lapu, Mandaue, and Cebu City, which ranked in the Top 10 fastest-growing highly urbanized cities (HUCs) in terms of per capita GDP.

The continued growth through 2024 and beyond of Cebu’s industrial, manufacturing, tourism, and service sectors is heavily reliant on a consistent energy supply. But with the rapid pace of economic activity, the demand for electricity in Cebu is projected to soon outstrip supply, further highlighting Toledo’s essential role in keeping the region's economy on track.

But the story of Toledo City is not just about the power plants that drive Cebu; it’s about how responsible industrial operations can contribute to economic competitiveness, environmental protection, and improved quality of life.

As the “Power City” continues to propel a surging Cebu province, Toledo's competitiveness ranking as a city speaks of its ability to balance industrial growth with the needs of its citizens.

The CMCI measures local competitiveness based on five pillars: economic dynamism, government efficiency, infrastructure, resiliency, and innovation. Toledo’s strong performance in these areas underscores how the city maximizes its resources — including its energy sector — to uplift the standard of living for its residents.

Central Visayas ranks among the top regions in the Philippines in terms of HDI – a composite measure of life expectancy, education, and standard of living. While often overlooked, the presence of well-managed industrial activities like Toledo’s power plants plays a critical role in contributing to this high quality of life.

Drawing a parallel to Benguet Province, which hosts large-scale mining operations yet maintains one of the highest HDI scores in the country, it becomes clear that economic development and a high standard of living coexist with responsible industrial practices. This balance is crucial in regions like Cebu and Toledo, where both the economic engine and the well-being of citizens are powered by large industries like energy generation as well as mining.

"Copper City"

Mining was an initial catalyst for Toledo's growth and is still one of its biggest industries, earning it another moniker, "Copper City." The mineral reserves of Carmen, Lutopan, and Biga town, collectively known as the Toledo Copper Mine, are the third largest producer of copper in the world. The company that operates the mines has also built a 13 million cubic meter water reservoir that generates hydroelectric power for the mines while supplying bulk water for Toledo City and even Metro Cebu.

The presence of large-scale industries has been a boon for Toledo’s local economic development. They have not only created thousands of direct jobs, providing stable income for many families but have also fueled the growth of ancillary industries. Local businesses, suppliers, and service providers have thrived, thanks to livelihood and employment opportunities generated by these industrial operations.

Additionally, Toledo’s infrastructure has seen significant improvement, from better roads and utilities to enhanced public facilities. These developments make the city more attractive to investors and more livable for residents, positioning it as a key contributor to Cebu's overall resurgence.

Environmental stewardship and health considerations

While protests have occasionally emerged around the coal plants, with critics citing environmental and health concerns, these claims have been consistently refuted by local government units.

On the other hand, health data from local health departments and community surveys show no significant deterioration in health outcomes. In fact, improved access to healthcare, combined with better infrastructure and livelihood opportunities, may even be contributing to improved life expectancy in the region.

Moreover, joint public and private environmental stewardship efforts are evident such as in a recent coastal clean-up where workers from private companies, organizations, and government agencies such as the Philippine National Police (PNP), Bureau of Fire Protection (BFP), Bureau of Jail Management and Penology (BJMP) and LGUs gathered some 500 kilos of trash. The program dubbed "Scubasurero" is conducted twice a year as a commitment to help protect the Bato Marine Sanctuary and the Tañon Strait – a protected seascape that Toledo City's coastlines share.

At a national level, the Philippines' energy choices must be seen within a global context. Despite its reliance on coal – essential to balance the country's energy trilemma of security, equity, and sustainability – the country contributes only less than 0.5 percent of global carbon emissions, a tiny fraction compared to industrialized nations that have historically relied on coal for their economic growth. These same nations, now among the highest carbon emitters, enjoy the benefits of industrialization and economic prosperity, highlighting the need for balanced energy solutions in developing economies.

For Cebu, and Toledo, a diverse energy mix, including the inland power plants of Toledo is essential to meet the rising electricity demand, especially as Cebu cements its place as one of the Philippines’ economic powerhouses. To deprive Cebu of the reliable energy that baseload power plants provide would be to risk energy shortages, undermine economic growth, and endanger the well-being of millions of people.

In the face of increasing global scrutiny on energy sources, it’s important to embrace a balanced approach—one that ensures sustainable economic growth while minimizing environmental impacts.

The Freeman, a publication of the PhilStar Group, hosted a half-day power forum titled “Powering Cebu: A Cebu Energy Talk” on November 6, 2024, at the Waterfront Cebu City Hotel and Casino from 1:00 PM to 5:00 PM.

The event brought together key stakeholders from the business, academic, and government sectors to discuss deeply the power situation in Cebu province and its solutions.

Cebu Governor Garcia delivered the keynote address, with Department of Energy (DOE) Assistant Secretary Mario Marasigan. — (FREEMAN)