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NEDA sees cabinet decision this month on NAIA rehab, Panglao

ECONOMIC planners are expecting a cabinet committee decision by the end of the month on the Ninoy Aquino International Airport (NAIA) rehabilitation project and the Panglao, Bohol International Airport privatization.

The National Economic and Development Authority (NEDA) said in a statement Wednesday that the NAIA rehabilitation and the unsolicited proposal for the new Panglao, Bohol International Airport will be up for cabinet committee action in the last week of September after hurdling a review by NEDA’s Investment Coordination Committee (ICC) Technical Board (TB).

A total of 20 unsolicited proposals have been submitted to NEDA’s ICC as of Sept. 20. Meanwhile the NEDA Board has approved one public-private partnership (PPP), the unsolicited build-operate-transfer Bulacan International Airport.

The Department of Transportation (DoTr) recently awarded the P734-billion Bulacan airport project to proponent San Miguel Holdings Corp., and the company could start construction of the gateway by December.

NEDA added that 10 proposals have been presented to the ICC-TB and approval is awaiting compliance with various requirements.

Those awaiting further review by the ICC-Technical Working Group are the unsolicited proposal for the Davao People Mover Project and the unsolicited proposal for the C5 MRT 10 Project, both under the DoTr.

Other projects are the unsolicited Build-Transfer-Operate proposal for the Fort Bonifacio-Makati Sky Train Project, the unsolicited Build-Operate-Transfer proposal for the 50-Year Integrated Development Plan for the Mactan-Cebu International Airport (MCIAA) and the unsolicited proposal for an IT project for the City of Naga, Cebu known as UNLAD BAYAN Local Government Information.

Those with pending compliance requirements at the ICC-TB level are the unsolicited Operate-Add-Transfer proposal for Laguindingan Airport, the unsolicited OAT Proposal for the Davao International Airport, the unsolicited Operate-Maintain-Upgrade-Transfer Proposal for the Operation and Maintenance and Facility Upgrade of Kalibo International Airport, the unsolicited proposal for the Light Rail Transit (LRT) 6 Cavite Line A Project, and the unsolicited proposal for the MRT-11 Project.

“The remaining seven project proposals are still under ICC secretariat evaluation and undergoing refinements based on technical discussions with ICC member agencies,” according to NEDA.

“We view these unsolicited proposals as an indication of private sector confidence in the Philippine economy. NEDA is doing its best to efficiently and speedily process these, allowing the private sector to innovate, while keeping in mind the public’s interest over the medium and long term,” Economic Planning Secretary Ernesto M. Pernia was quoted as saying. — Beatrice M. Laforga

House approves extra year of 2019 budget validity

THE House of Representatives, sitting as a plenary body, approved on second reading Wednesday a resolution extending the validity of the 2019 budget until December 2020.

House Joint Resolution No. 19, which consolidates House Joint Resolution No. 9 by Antique Rep. Loren Legarda and House Joint Resolution No. 10 by San Juan City Rep. Ronaldo B. Zamora and Davao Oriental 2nd district Rep. Joel Mayo Z. Almario, was approved also on Wednesday morning by the Appropriations Committee.

House Appropriations committee chairperson Isidro T. Ungab, representing Davao City’s third district, said the extension of the validity of 2019 budget will permit the full utilization of the appropriations.

“First, We will give more time for agencies to implement… second, Inabot tayo ng election ban (the election ban hindered spending)… So i-extend natin up to the end of 2020. (The solution is to extend validity the end of 2020),” Mr. Ungab said in chance remarks to BusinessWorld.

The budget passage was delayed by nearly four months, and when President Rodrigo R. Duterte signed the spending plan in April he vetoed about P95.3 billion in public works items.

The 2019 budget was the first use-it-or-lose-it spending plan passed under new “cash-based” budgeting rules, which gave agencies only a year to disburse the appropriations in order to ensure that funds were spent quickly. The budget languished in Congress past the turn of the new year, causing the government to miss the dry-season construction window for key infrastructure projects, which was cited as a drag on economic growth in the second quarter.

The passage of the 2019 budget was also delayed by wrangling between the two chambers about “insertions” allegedly made after the document’s finalization by virtue of bicameral approval. Many of the insertions fell foul of the presidential veto.

Mr. Ungab added that the House is also studying ways to make the second year of the cash-based budgeting rules more flexible.

Pinagaaralan natin ng husto, yung 2019 kasi may birth pains yung start ng cash-based budgeting. (We have studied intensively the 2019 budget, which marked the start of cash-based budgeting) Kaya bigyan natin ng more leeway. So itong sa 2020, hopefully, second year na ito ng implementation ng cash-based budgeting. Hopefully, efficient na at may acceptance na (We believe we need more leeway in 2020. We hope that by the second year of cash-based budgeting the process will be more efficient and widely accepted),” he said. — Vince Angelo C. Ferreras

Mindanao-Visayas grid connector on track for 2020 completion

PRIVATELY OWNED National Grid Corp. of the Philippines (NGCP) expects to complete as scheduled next year the P52-billion project that will link the power grids of Mindanao and the Visayas despite continuing right-of-way and permitting issues.

“MVIP (Mindanao-Visayas Interconnection Project) is underway. I hope we finish as scheduled. We have already awarded part of the submarine cable,” Nanette Nancy G. Bugnosen, NGCP chief finance officer, told reporters.

“We are still negotiating with some local government units for the necessary permits to proceed with the work, and also we are negotiating with some landowners for right-of-way clearance,” she added.

MVIP, which was classified in May 2018 by the Energy department as an energy project of national significance (EPNS), will undergo a streamlined permitting process while speeding up its required documentation for its faster construction and completion.

In November, NGCP announced that it had simultaneously broke ground on the project’s cable terminal stations in the municipality of Santander in Cebu, and Dapitan City in Zamboanga del Norte.

The cable terminal stations serve as the landing points of the two 92-kilometer submarine cables that will carry around 450 megawatts (MW) of power from the Visayas and Mindanao, and vice versa.

Considered the biggest power infrastructure project in Philippine history, the project also requires the installation of 526 circuit-kilometers of overhead transmission lines, high-voltage direct current converter stations, and upgrades to substations in both regions.

Ms. Bugnosen said once the negotiations with local governments and landowners are complete, NGCP will proceed with the needed construction.

“In the meantime, we have worked with the providers and consultants to make sure that we make the deadline — that’s end -2020,” she said.

MVIP is one of the 29 NGCP projects that were certified as energy projects of national significance by the Department of Energy. An executive order gives an EPNS faster issuance of regulatory and documentary requirements from local and national government agencies.

The perks include action on applications for permits and requirements within 30 days, and the automatic approval of all applications within five working days if no action of a government agency is made after 30 days.

The 29 projects will cost a total of P90.291 billlion as approved by the Energy Regulatory Commission. — Victor V. Saulon

House discussing extended foreign farmland leases

THE House of Representatives received bills and resolutions seeking to ease restrictions on foreign investment, including a proposal to increase the term foreigners can lease farmland.

Among the bills and resolutions filed at the House seeking various amendments to the 1987 Constitution was Joint House Resolution No. 4, introduced by Pampanga 3rd district Representative Aurelio D. Gonzales, Jr.

“We propose the qualified owning of land for foreigners to entice them to invest in our country and invite foreign direct investment. Additionally, this will ensure that our country produces enough food for our people,” Mr. Gonzales said at a committee hearing.

He said he proposes an amendment to allow the renewal of foreign leases of agricultural land for another 25 years.

“Foreign investors must be assured that our economic environment is conducive. That’s why we propose that we increase the renewal of the lease period of agricultural lands for another 25 years to ensure continued economic growth and development,” he said.

Asked to comment, American Chamber of Commerce of the Philippines, Inc. Senior Adviser John D. Forbes said that in general, the Constitutional restrictions on foreign investment are out of date.

“The restrictions were originally protectionist. But… the world has changed. A lot has changed since 1987. The restrictions, the way they are in the Constitution, are inflexible and difficult to change,” Mr. Forbes said.

He added: “The Philippines has tremendous investment potential. There are now more foreign investments coming into ASEAN than China… I don’t think one has to fear foreign investors if you can regulate foreign investors.”

Competition Commissioner Johannes R. Bernabe, also asked to comment, said: “Even as we generally support liberalization in so far as economic activity is concerned, because this fosters greater competition in the markets, regulation should also accompany such liberalization.”

John Paul P. Corpus, a supervising research specialist at the Philippine Institute for Development Studies, said he supports the power of Congress to “legislate exemptions” to foreign investor restrictions.

“We support the proposed amendments giving the Congress’s ability to legislate exemptions to foreign equity restrictions in order to attract greater foreign investments and improve competitiveness. (However)…there is a need to balance the pursuit of economic goals while protecting the national patrimony and the public interest,” Mr. Corpus said.

According to the United Nations Conference on Trade and Development’s (UNCTAD) 2019 World Investment Report on special economic zones, Foreign Direct Investment flows to the Philippines fell 25.75% to $6.46 billion in 2017. — Vince Angelo C. Ferreras

Duterte signs law allowing foreign universities to offer degree programs in Philippines

PRESIDENT Rodrigo R. Duterte has signed a law allowing foreign institutions of higher education to establish commercial enterprises in the Philippines providing educational services and to collaborate with universities here.

Mr. Duterte signed Republic Act No. 11448, also known as the Transnational Higher Education Act, on Aug. 28, according to a statement issued Wednesday by the Palace.

The law cites the need to provide quality education relevant to the changing needs of Filipinos in light of the “rapid developments brought about by globalization, including liberalization of goods and services and expanding use of information and communication technologies, have created a climate for borderless teaching and learning.”

The transnational higher education (TNHE) industry, as defined by the law, covers all types and modes of delivery of higher education study programs, sets of courses of study, or educational services.

Under the law, foreign higher education institutions (FHEI) may establish a commercial presence or provide educational services in the Philippines through various modes or arrangements with a Philippine counterpart.

The law recognizes business models such as Academic Franchising, the establishment of a Branch Campus, and the offering of Joint Degrees with Philippine counterparts.

The law also permits Online, Blended, and Distance Learning; Twinning Arrangements with foreign study components, and Validation, under which an FHEI awards degrees to students who complete a program while studying with its Philippine partners. — Arjay L. Balinbin

Freeze on loan talks affects BRT, climate change funding

THE Department of Finance (DoF) said on Wednesday that two loan agreements being negotiated by the department were affected by a presidential order to suspend such talks with countries that backed a United Nations human rights investigation against the Philippines.

“There are two loans we are looking at. [The] 21 million euros from France supporting the BRT (Bus Rapid Transit) program of DoTr (the Department of Transportation). We already found a substitute for that portion… that is a soft loan but we can get very similar terms from a multilateral agency,” Finance Secretary Carlos G. Dominguez III said during a budget hearing before the Senate Finance Committee.

“The other set of loans is from Germany [which is] $46 million and that has to do with funding studies for climate change. It’s mostly the study and we are looking for a substitute for that program,” Mr. Dominguez said.

Minority leader Franklin M. Drilon had asked Mr. Dominguez about the effects of the suspension of loan talks.

Mr. Dominguez said that agencies have to inform the DoF or the Office of the President of loan programs that have been affected by the presidential order.

A total of 18 countries backed a United Nations resolution calling for a human rights investigation into the Philippines’ handling of its drug war: Australia, Argentina, Austria, Bahamas, Bulgaria, Croatia, Czech Republic, Denmark, Fiji, Iceland, Italy, Mexico, Peru, Slovakia, Spain, Ukraine, the UK and Uruguay.

France and Germany did not vote but were co-sponsors of the resolution.

Meanwhile, the committee approved for plenary discussion the proposed P17.3-billion DoF budget for 2020.

“We will refer your budget to the plenary,” Finance Committee chairperson Juan Edgardo M. Angara said during the hearing.

The DoF proposed a budget 8% lower than its 2019 funding plan.

In the first eight months, the DoF said revenue collection by its agencies hit P2.09 trillion, up 9.5% from a year earlier, including P1.9 trillion from taxes.

The Bureau of Internal Revenue’s (BIR) collections rose 10.6% during the period, while revenue generated by the Bureau of Customs rose 7.2%.

“We are confident this growth will be sustained in the coming period through continuing administrative reforms and the completion of the comprehensive tax reform program that will make our tax system simpler, fairer and more efficient. In both revenue agencies, we are automating processes and strengthening control measures against slippages,” Mr. Dominguez added.

The BIR proposed budget was P8.46 billion, a funding level expected to help “further improve the agency’s tax administration and enforcement capabilities.” — Marc Wyxzel C. dela Paz

South Korea poised to resume chicken imports from PHL this year

SOUTH KOREA is set to accredit new poultry facilities in the Philippines amid plans to resume chicken imports, Agriculture Secretary William D. Dar said.

“The accreditation, which is a follow-up to the lifting of the temporary suspension of imports of poultry and pet birds from the Philippines on July 4, 2019, will also pave way for the resumption of the market access of Philippine duck meat and poultry eggs to South Korea,” the Department of Agriculture (DA) said in a statement.

The start of accreditation was confirmed during a meeting between Mr. Dar and a delegation from South Korea’s Ministry of Agriculture, Food, and Rural Affairs on Sept. 23.

South Korea, along with Japan and Singapore, banned the import of poultry products and pet birds from the Philippines in 2017 after an outbreak of bird flu.

The facilities to be accredited are located in Davao City, Batangas, and La Union. South Korea will bring an audit team to the Philippines to conduct inspections to facilitate the resumption of imports from the Philippines this year.

Mr. Dar said he hopes to increase poultry exports to South Korea.

South Korea imported 140,000 metric tons (MT) of chicken in 2018 from all markets. This is expected to increase to 145,000 MT this year amid continued demand for processed chicken and the attractive prices of imports relative to domestically-produced poultry.

According to the Philippine Statistics Authority (PSA), chicken production in the second quarter rose 3.1% year-on-year to 477,110 metric tons. — Vincent Mariel P. Galang

Global slowdown seen as main risk to PHL financial sector

THE main risk to Philippine financial system is the global economic slowdown, according to the inter-agency Financial Stability Coordinating Council.

In its Financial Stability Report reviewing the events of the second half of 2018 and the first half of 2019, the council identified slowing economic expansion as the “principal risk” to financial stability, and the effects of the slowdown are starting to become apparent in the ASEAN region.

“The effect of the slowdown will be seen through the changes in market prices. And those market price changes will then affect the banking and capital market sectors,” according to Johnny Noe E. Ravalo, the central bank’s Assistant Governor at the Office of Systemic Risk Management and the Head of the FSCC Technical Secretariat, who was speaking at a media.

The FSCC’s members are the Bangko Sentral ng Pilipinas (BSP), Department of Finance (DoF), Philippine Deposit Insurance Corp. (PDIC), and the Securities and Exchange Commission (SEC).

He said unlike previous financial crises, no region is expected to be immune from the impact of the slowdown.

“We’ll see that in terms of (lower) incomes, and therefore also ability to repay outstanding obligations, and the changes in the currency markets,” Mr. Ravalo said.

The effects on the Philippines have led the BSP to cut rates by a total of 50 basis points (bps) this year — lowering by 25 bps each on May 9 and Aug. 8 — to 4.25% for the overnight reverse repurchase rate, 4.75% for overnight lending and 3.75% for the overnight deposit rate, partially dialing back the 175-bp worth of rate hikes triggered by the 2018 inflation crisis, which helped bring rates to a nine-year high.

Despite the global slowdown, Mr. Ravalo said Philippine growth is only “moderating.”

“Unlike the rest of the world (which is) probably growing at close to two and a half to 3%, the Philippines is still growing at 6%. So if there’s going to be a slowdown, we do have a little bit of a buffer,” Mr. Ravalo said.

As of March, the government projects gross domestic product (GDP) in 2019 to come in at 6-7%.

The FSR’s multi-period coverage allows the council a more complete view of the system’s performance, according to BSP Governor Benjamin E. Diokno.

“The fluidity of evolving issues H1 2019 made it imprudent to limit ourselves to 2018 issues only, and thus, we cover the first semester of 2019 as well. This better represents how market volatility has changed, not just between more versus less but also between volatility heading upwards versus volatility heading the other way,” the central bank chief said at the launch of the FSR. — Luz Wendy T. Noble

Re-establishment of the prior disclosure program

With the issuance of Executive Order No. 46 on Oct. 20, 2017, the duty of conducting the post clearance audit on imports was transferred to the Bureau of Customs (BoC) from the Department of Finance’s Fiscal Intelligence Unit. Along with the reversion of the Post Clearance Audit (previously known as the Post Entry Audit) to the BoC, it also brought back the Voluntary Disclosure Program (VDP) now called the Prior Disclosure Program (PDP).

Under Customs Administrative Order (CAO) No. 01-2019, the PDP allows importers to voluntarily disclose and report to the BoC simple errors in their import declarations and payment of duties and taxes for correction. However, unlike the previous VDP where no penalties were imposed, the PDP imposes penalties that may be waived with the approval of the Secretary of Finance.

As in the case of the VDP, the PDP is available under two scenarios: (a) before the receipt of an Audit Notification Letter (ANL) or (b) upon receipt of an ANL but before the field audit to be conducted by the Post Clearance Audit Group (PCAG).

The penalty rules under the PDP are enumerated below:

• For importers who have not yet received an ANL, deficiency duties and taxes will only be subject to 20% interest per year which is counted from the date of the final assessment of imported goods. However, additional duties and taxes paid due to royalty payments, filed within 30 days from the date of payment or accrual of the proceeds, are not subject to any penalties.

• For importers who have already received an ANL, deficiency duties and taxes will be subject to a 20% interest with a penalty of 10% of the deficiency duties, taxes and interest.

To avail of the PDP, the following procedures will apply:

1. The applicant shall accomplish BoC Form B (PDP application form) with an Affidavit of Undertaking signifying the importer’s agreement that should the application be denied, they will be subject to a full audit by the PCAG, and any resulting deficiency duties and taxes shall be subject to the corresponding penalties and 20% interest. Once accomplished, include the above with the payment of the disclosed amount as indicated in the form to the BoC — PCAG, which shall in turn issue the corresponding BoC official receipt (BCOR).

2. The applicant shall submit the duly accomplished BoC Form B, Affidavit of Undertaking, and BCOR to the PCAG for further verification and approval.

3. Upon approval of the PDP application by the PCAG and the Commissioner of Customs (CoC), the application papers shall be forwarded to the Secretary of Finance for final approval, if there is a request for waiver of penalties, interest, fine or surcharge.

4. Upon approval of the PDP application by the PCAG, the CoC, and the Secretary of Finance, the BoC shall inform the applicant in writing about the close of the audit.

However, the PCAG may opt to deny the PDP application and recommend a full audit of the applicant with the approval of the CoC. Consequently, the applicant will be subject to a full audit, and any resultant deficiency duties and taxes shall be subject to the imposition of 25% to 600% penalties and 20% interest. Any payment made through the PDP application by the importer shall be credited against the deficiency assessment that may be issued by the BoC.

In the processing of the PDP application, the following issues may arise upon review of the applicant’s import applications: the proper valuation of imported goods, computation of royalty payments, non-inclusion of fees or charges on the dutiable value or the landed cost, etc.

In consideration of these concerns, applicants of the PDP should make a complete disclosure of their issues to ensure that their application will not be denied after review. Applicants may consider seeking expert advice and assistance to mitigate the risk of denial, to fully maximize the benefits and available rights they are entitled to under the BoC rules and regulations, and to raise defenses in the protection of their rights.

Although the benefits of the PDP are not as liberal as those in the previous VDP, it could still be considered a good opportunity for the importers to correct their import declarations, evaluate their customs practices in compliance with the customs rules & regulations, and reduce the penalties that could be incurred if the BoC–PCAG proceeds with the audit of their import transactions. The PDP not only assists the importer applicant with the proper declaration of their import transactions but also supports the BoC in its bid to increase revenue collection and spur economic growth in the country.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for specific advice.

 

Mikhail J. Escoto is a senior associate at the Tax Services Department of Isla Lipana & Co., the Philippine member firm of the PwC network.

+63 (2) 845-2728

mikhail.j.escoto@ph.pwc.com

Journey to wholeness: Material development

Filipinos are generally spenders. This is our nature in terms of handling finances. After all, we only recognize the importance of savings and investments when in a crisis, we do not have enough money to spend.

I remember when I was in high school, we had this subject called Cooperative. Students were encouraged to save money from our daily allowances and deposit in the Coop. We were given passbooks and the money earned interest. However, there were no guidelines on how much do we needed to save or how to grow our money.

It would be helpful if schools, as early as grade school, introduce financial management using terminology that is easy to understand. Further, the school needs to inculcate thriftiness among students in the use of personal and school resources. If students know the value of saving money, they will start to allocate money for emergency and future use. Saving will then be second nature to them.

Sadly, I did not get into the habit of saving money early on, but since I have decent earnings, I can afford to rent a small apartment and spend for all my basic necessities and even graduate school tuition fees. I also provide funds to cover some of the expenses of my senior citizen parents.

As they say, it is not how much you earn but how much you are willing to save that matters most. This is my story and I urge you to learn from my experience.

I invested heavily in my education. In 2005, I took up graduate studies in Teaching at De La Salle University, which I was able to complete in 2008. It was only in 2009 that I was able to invest money in buying stocks from blue chip companies like Ayala Land, SM, and Aboitiz Power through COL Financial, an online brokerage firm. I learned investment tips from a seminar I attended through Bro. Bo Sanchez. It was just a trial on my part. Though inconsistent, whenever I had money, I added a few thousands and bought more stocks. Every year, I noticed that dividends were coming in and my shares of stocks were really earning. I did not sell my stocks since I consider myself as a long-term investor. I knew that my investment would grow over time.

In 2011, after 11 years of working, my brother became a sales agent in a memorial company and since he needed to have three immediate sales, I bought one memorial plan, which includes a decent coffin and a three-day memorial service, and with investment component which I paid in five years.

In 2013, my sister encouraged me to buy an investment fund with a bond and equity component from Philam Life. My brother-in-law used to work with Philam Life. So, I bought a one-time money tree investment at P125,000 and the investment portfolio was managed by a fund manager.

In 2014, I decided to buy a personal health card worth P200,000 payable in five years and with an investment component too. I was just thinking I might be able to use it when I am not working anymore or when I am already old since my company health card can only be used while I am employed in the company.

In December 2017, through an Initial Public Offering, I bought a Retail Treasury Bond (RTB) from Security Bank. I used my 13th month pay to fund this investment.

In 2018, I decided to fast track the completion of my MBA, which had been taking too long for me to complete. While studying, I took a full-time job in a medium-scale company with a much lighter workload than my previous job, to have more time to research and study and, at the same time, I can pay for most of my bills and other personal expenses.

In December 2018, I resigned from my job and underwent an operation. Fortunately, I was able to use the personal health card which I bought in 2014. Although my hospitalization expenses were not fully covered, my card covered P50,000 of my bill, almost all my laboratory tests, and check-ups. Having the card was such a big relief!

Now that I am completing my studies as a full-time student, I realized I should have saved and invested more while I was working. Nevertheless, my previous investments in COL Financial, Philam Life, and Security Bank have helped me. I was able to pay for my basic needs using my investments. Because of my health card, I do not worry about doctor’s fees. Having sufficient means in the material aspect of life is such a blessing and it does affect all other aspects of integral human development such as bodily, cognitive, aesthetic, cultural, emotional, social, spiritual and moral in one way or the other. They are all intertwined to make you whole.

 

Jerrel G. Lopez is an MBA student at De La Salle University. This article is part of her reflections on her experiences in the course, Integral Human Development.

https://integralhuman developmentflower.blogspot.com/

University parking

When I went to UP Diliman, parking was not a problem. Far more students stayed in dormitories or commuted to and from school in those days. And of the few who drove to school, many of them were in car pools. In my case, I was lucky enough to be in such a pool, and there were five to six of us regularly taking the same ride going home to the south.

Nowadays, however, a lot more cars are going through the university and its vicinity. Vehicular traffic is almost always heavy in the areas of UP, Katipunan, Loyola Heights, Balara, Capitol Hills, Ateneo, and Miriam College, even on weekends. More significant intervention, and meaningful infrastructure, are urgently needed to ease the congestion and the pollution.

From the corner of University Avenue and Commonwealth, all the way to UP’s administration building, is a vast open space that I estimate to stretch about 800 meters long and about 150 meters wide. That’s an area that is perhaps bigger than UP Town Center on Katipunan, and maybe about half of UP TechnoHub on Commonwealth Avenue.

The property is right beside the light rail transit now being constructed along Commonwealth Avenue (MRT-7) that will run from North Avenue in Quezon City all the way to San Jose Del Monte in Bulacan. The MRT-7 is planned to have an underground or “depressed” station at University Ave.

I believe the property has big potential, and that it can be developed in a way that it can better serve not only the UP community but the neighboring communities as well. While Commonwealth Ave. is commercial, most of the areas behind the commercial properties are residential. And many of these residents will surely be using the MRT-7 once it operates.

Perhaps UP can convince MRT-7’s developer San Miguel, or Ayala Land — which took on the long-term lease for the commercial development of UP Town Center and UP TechnoHub — to also consider developing the corner of Commonwealth and University Ave. into what can be called the “UP TranspoHub.” The place will primarily be a bus depot and parking facility, and ideally, should be operational by the time MRT-7 starts running.

What I envision is something that can be quickly built, and can be removed just as fast. No permanent structures will be put up. Instead, a vast three- or four-level steel parking can be set up on the property — similar to the steel parking building that Ayala Land had put up at UP Town Center, or the Parkade buildings in Bonifacio Global City.

The first level can be used as a station for electric buses that will run from Commonwealth Ave. all the way to the Katipunan North Entrance of the LRT-2 on Aurora Blvd. The electric buses will go around UP, then Katipunan and UP Town Center, then Miriam College and inside Ateneo, and then onto the LRT-2 station on Aurora. And then it returns to University Ave. via Tandang Sora and Commonwealth, passing TechnoHub along the way.

Of course, the buses must be electric. UP Ikot jeeps as well as diesel buses servicing these areas — maybe UP Katipunan jeeps as well — will all have to go. Only UP residents will be allowed to bring cars into the university via the peripheral roads. But, University Ave., the Academic Oval, and parallel streets will all be car-free, permanently. Old parking lots within the Oval and parallel streets will be redeveloped into “green” areas. UP Diliman will become a “green” zone.

The three-level steel parking will have a bus depot and some shops in the first level, and then pay parking spaces for students and other people in the second and third levels. Teachers and UP staff will have reserved spaces for long-term parking. All UP-bound cars will have to be parked in the building — absolutely no cars on campus except for residents, and only on limited access to and from residences.

Access to the university will be through the electric buses going to designated stops; via bicycles from the parking depot; or, by electric scooters or walking from the parking. Covered walkways along University Ave. will allow students to access buildings even on rainy days. With the oval car-free, these walkways need not be elevated like the ones on Dela Rosa in Makati.

The parking building will also be per-hour pay parking for Diliman residents who wish to leave their cars and take the MRT-7 to Bulacan or to North Avenue, and connect to MRT-3 or LRT-1 to go to Pasay, Manila, or Makati. For those intending to take LRT-2, they can take the electric bus to Katipunan and Aurora Blvd. Those intending to take the P2P bus to Makati City can get off the electric bus at UP Town Center.

An important element of this proposed parking project is that the topmost floor of the parking facility as well as two or three sides of the building will be installed with solar panels. The facility should be made energy self-sufficient, and should have enough power to recharge the electric buses. Any surplus energy can be made available the university for its use.

In line with this initiative, other solar panels can also be put up in other unused open spaces of the university, for self-generation of electricity. All building rooftops should have solar panels. The gymnasium’s roof alone can already carry hundreds of panels that can help generate power for the university.

Depending on the agreement with the developer, UP can earn from the long-term lease of the property and perhaps get a share in the income from the operation of the parking facility and the electric buses; and the rental fees from commercial spaces. Moreover, UP can generate electricity from its own solar panels. In addition, the Diliman Campus becomes a green zone and addresses the issues of congestion and pollution.

And when the long-term lease ends, all the improvements can be retained by UP and it can opt to continue operating the parking/solar facility and the electric buses. Or, the lessee can dismantle everything and return the land to UP, which can opt to use it for other purposes by then. Either way, UP — and the public — lose nothing by moving now to make use of the idle property.

 

Marvin Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippines Press Council.

matort@yahoo.com

Energy leftism will plunge the Philippines into darkness

The continuing anti-coal paranoia of many leftist political groups and greenie environmentalists is largely based on emotion and alarmism, far away from reason and energy realism. And based on watermelon activism — green on the outside, red on the inside.

I constructed this table below to show why I said this. The data on coal consumption in million tons oil equivalent (mtoe) is from the BP Statistical Review of World Energy (June 2019), the data on population is from the IMF World Economic Outlook database (April 2019). Simply dividing coal consumption over population we can derive the kilos of oil equivalent (koe) per capita. (See Table 1).

Does the Philippines’ coal consumption of only 153 koe per person in 2018 appear to be “too scary, too Frankensteinin,” that the country should limit — if not stop building — new coal plants and phase out old coal plants? If it is too scary, then how would the watermelon activists call the coal consumption per capita of Australia, South Korea, Taiwan, and China which are nine times to 11 times larger than the Philippines’ — horribly Frankensteinly scary?

Aside from the mythical claim that the Philippines already has big coal power capacity, another dishonest claim by the paranoid anti-coal groups is that coal power will only produce more expensive prices as “stranded costs” that the consumers have to pay for decades. Far out.

The biggest private distribution utility in the country, Meralco, has successfully conducted a Competitive Selection Process (CSP) bidding and got contracts for 1,200 MW of baseload (power plants running 24/7) power with the following all-in prices, VAT inclusive: South Premiere Power for 670 MW, P4.93/kWh; San Miguel Energy for 330 MW, same P4.93/kWh, and PHINMA Energy 200 MW, P4.88/kWh.

Two things are notable about these future fixed generation prices: One, they are cheaper than recent generation charges by the company which were P5+ per kwh. (See Table 2)

And two, coal prices would go up further in 2020 and beyond because of the higher excise tax on coal under the TRAIN law, from P10/ton to P50/ton in 2018, P100/ton in 2019, and P150/ton in 2020. And yet future prices of coal power for electricity will go down to below P5/kWh.

Another group of energy leftists rallied to oppose the 1,200-MW Atimonan One power plant because it is a coal plant. Going back to Table 1 as previously mentioned, we have very little coal power consumption despite having zero nuke power, little natgas power from the ageing Malampaya gas field, and ageing hydro, geothermal, and coal plants. If the lefties succeed in opposing new coal plants, we are courting a scenario of frequent blackouts in the coming years.

The anti-coal groups and activists can only mouth slogans and emotional statements, not facts-based research. They should not brag in their lousy and emotional campaigns, they should be ashamed instead because they are dragging the country towards darkness and frequent blackouts, of less power reserves but more political noise.

 

Bienvenido S. Oplas, Jr. is the president of Minimal Government Thinkers.

minimalgovernment@gmail.com

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