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Business groups weigh in on charter change

By Minde Nyl R. dela Cruz

THE SENATE is looking to invite business groups Makati Business Club (MBC), Management Association of the Philippines (MAP), and the Financial Executives Institute of the Philippines (FINEX) in its next hearing on charter change following a joint statement recommending a focus on amending the economic provisions of the 1987 Constitution.

“We welcome their inputs, especially on [separate voting and constitutional convention]. The Senate committee on constitutional amendments would invite them in the next hearings,” Senator Francis N. Pangilinan, chair of the Senate committee on constitutional amendments and revision of codes, said in a text message to the BusinessWorld.

In a joint statement issued on Sunday, Jan. 21, the business groups called for separate voting of the two chambers of Congress as being “more democratic.” They also urged the holding of a constitutional convention as “the appropriate body to amend the Constitution.”

The business groups also expressed “strong support” for Resolution of Both Houses (RBH) No. 2, as filed by former House Speaker and Quezon City Representative Feliciano R. Belmonte, Jr. That resolution, from way back the 16th Congress, proposes the lifting of economic restrictions by inserting the phrase “unless otherwise provided by law” in the 1987 Constitution.

RBH No. 2, however, is also adopted by the much more recent House Concurrent Resolution (HCR) No. 9 which the House of Representatives approved last Tuesday, Jan. 16. HCR No. 9 calls on Congress to be convened into a constituent assembly, ahead of provisions being crafted on the watch of the House committee on constitutional amendments that aim to overhaul the present system of government into a federal structure.

The business groups, for their part, noted that amending the economic provisions “would allow Congress to pass future laws to change the current Constitutional restrictions.”

“The Philippines’ population has more than doubled since 1987. Government should maximize the amount of foreign investment generated as a means to drive down unemployment and underemployment levels. While there has been a very significant increase in FDI since 2010, amounting to over $8 billion in 2016 and the same level forecasted in 2017, this represents only 8% of total FDI in ASEAN, which is small, considering that the Philippines accounts for 16% of the population of ASEAN,” the joint statement in part reads.

The businessmen added that removal of the economic restrictions “would mean a fresh infusion of financial resources for our undercapitalized sectors, the introduction of new technologies to spur greater innovation and efficiency in our industries, and the promotion of healthy competition that will drive businesses to operate more efficiently, leading to better-quality and more competitively priced products and services for the people.”

MBC, MAP, and FINEX said “there is no better time than now to begin the process of updating the outdated economic restrictions in our Constitution,” and stressed that “it will be unfortunate if the Philippines fails to take advantage of this golden opportunity.”

The businessmen further stated that a separate voting of the two chambers of Congress will “avoid diluting the voice of our Senators in this critical process,” and added that a Con-con will “offer a more diverse, independent, and prospective approach.”

“While such mode would entail greater costs to implement and probably more time, it should be seen as a justifiable investment that will result (in) significant social returns in the long run,” the group stated.

House Speaker Pantaleon D. Alvarez has been pushing for joint voting in amending the Charter by the Senate and the House as a constituent assembly. The Senate, on the other hand, maintains its position on separate voting, and thus the matter of Congress convening as a constituent assembly has reached a deadlock.

BUDGET REFORM
For his part, Senator Panfilo M. Lacson said he plans to revive a bill he filed in 2016 called the “Budget Reform Advocacy for Village Empowerment (BRAVE).”

“Now I’m thinking of reviving it and reporting it out on the floor so that we can have an alternative in case, for example, disagreements continue regarding discussions on (charter change) paving the way for federalism. This is the best alternative method or means to spread out development in many areas of our country,” Mr. Lacson said in Filipino in a radio interview Sunday.

This would, in part, address the matter of local government leaders flocking to Congress during budget deliberations to ask funds for their projects, he added.

“The proposal aims to assign funds to all provinces, municipalities, cities, and barangays from the national budget. It would allocate P5 million per barangay, P100 million per municipality, and P1 billion each for all the 81 provinces. But these funds would only be used for development, livelihood and infrastructure, and not for MOOE (Maintenance and Other Operating Expenses) because it might be abused. Development will then spread,” Mr. Lacson also said.

The senator said he had presented this proposal to Cabinet Secretary Leoncio B. Evasco, Jr.

“He (Mr. Evasco) said after my presentation, ‘If the President sees this, he will forget federalism because this is his goal,’” Mr. Lacson said.

The senator also noted that his budget reform bill does not yet have a counterpart bill in the House of Representatives. — with Camille A. Aguinaldo

Debt to remain at ‘prudent levels,’ DBCC says

THE Development Budget Coordination Committee (DBCC) said that national government (NG) debt will remain at prudent levels over the medium term even though the government is pushing to finance infrastructure investments with loans.

“A debt sustainability analysis (DSA) projects NG debt-to-GDP (gross domestic product) ratio remaining within prudent levels,” the DBCC said in its Fiscal Risk Statement 2018.

The DBCC projects a 90% probability that the debt-to-GDP ratio will settle below 43.9% by 2022, and a 50% likelihood it will stay between 36-41.4%.

The government targets a 37.9% debt share of GDP in 2022, from 42.5% in the first half of 2017.

“The DSA shows that NG debt continues to demonstrate resilience against various macroeconomic shocks, and despite higher funding requirements over the medium term,” it added.

Outstanding national government debt was P6.437 trillion at the end of November, up 5.4% from a year earlier.

Assumptions for the latest Fiscal Risk Statement for the year include 6.4% GDP growth in the first half of 2017 and a 3.1% inflation rate in the eight months to August 2017.

Among the macroeconomic risks that it identified were the impact of the government’s fiscal reform program, and the pending petitions for adjustments in electricity rates, which present upside risks for inflation.

“Meanwhile, slower global economic growth due to policy uncertainty in advanced economies and geopolitical tensions continues to be the main downside risk to inflation,” the DBCC said.

It added that a faster-than-expected interest rate hike by the Federal Reserve could trigger further portfolio rebalancing, resulting in tighter financial market conditions, and could contribute to higher domestic and foreign interest rates.

A potential shift to inward-looking trade and investment policies in the US could dampen overseas remittances — money sent from that country currently accounts for 33.1% of overall remittances — weaken the Philippines’ business process management sector that currently caters mostly to US companies, result in withdrawals from free trade agreements, and possibly introducing an element of foreign exchange volatility.

Moreover, the DBCC also cited the absorptive capacity of government agencies as continuing to pose “one of the major sources of fiscal risk,” with government underspending attributed to “structural weaknesses in program/project preparation and implementation.”

Local government units (LGUs) likewise face fiscal risks over the cancellation, closure and suspension of mines and mineral production sharing agreements by the Environment department in February 2017.

The DBCC said that affected LGUs stand to lose some P899.35 million in revenue collected from mining firms amid their already-deteriorating position in terms of locally sourced funding.

Locally raised revenue growth from provinces slowed to 10% in 2016 from 28% in 2016, while cities’ growth was 10% in 2016 from 12% in 2015.

“If this continues, local revenues will be overshadowed by the growth of NG revenues, which means LGUs will continue rely on the national transfers for the delivery of public goods and services,” the DBCC said. — Elijah Joseph C. Tubayan

TNT races to 2nd win in row

By Michael Angelo S. Murillo
Senior Reporter

AFTER having it up and down early in the PBA Philippine Cup, the TNT KaTropa finally got some semblance of winning pattern after defeating the Meralco Bolts, 99-81, yesterday in their matinee engagement at the Ynares Center in Antipolo City

Towed by their steady shooting, especially from beyond the arc, the KaTropa kept the Bolts at bay throughout the contest to finally win back-to-back games in the season-opening Philippine Basketball Association (PBA) tournament and improve to 3-2 while adding to the woes of Meralco (1-3) which has now lost three straight games.

TNT got off to a flying start with forward Troy Rosario leading the way.

The former National University stalwart strung up three straight triples in the first two minutes of the opening frame to help his team to an early 9-1 advantage.

The KaTropa held a 16-3 lead midway into the first canto before settling for a 27-18 advantage at quarter’s end.

Control remained on the side of TNT at the beginning of the second quarter as it outscored Meralco, 11-7, to hold a 38-25 cushion with seven minutes to play in the first half.

Meralco would go on a 7-0 mini run to come within six points, 38-32, at the 3:18 mark before Jayson Castro, Mr. Rosario and Ryan Reyes led a counter by TNT to jack up their lead back to double digits, 46-36, by the halftime break.

In the third period it was the Bolts’ turn to have a fast start, racing to an 11-6 run with just three minutes lapsing to come within 52-47.

But the KaTropa would stand their ground, making sure not to give their opponents much real estate thereafter to close out the third canto with a 73-62 distance.

TNT opened the payoff quarter with back-to-back triples care of Anthony Semerad and Mr. Castro to extend its lead to 16 points, 79-63, with 10:42 left to play.

The KaTropa stretched it further to 22 points, 92-70, six minutes later, which pretty much took the game away from the reach of the Bolts.

Mr. Rosario led TNT with 22 points, 18 of it coming from beyond the arc, to go along with 10 rebounds.

RR Garcia had 18 points and eight assists while RR Pogoy and Mr. Castro came off the bench to chip in 15 and 12 points, respectively.

Meralco, meanwhile, was paced by Baser Amer with 20 points with Jared Dillinger finishing with 14 points.

“I just felt the rhythm early on so I just kept on shooting,” said Mr. Rosario of his steady shooting from three-point land during the game, going 6-of-10, which started it all for TNT.

“It’s something I practice a lot and give time to develop so I’m happy I hit the mark today,” he added.

TNT returns to court on Saturday, Jan. 27, against the Magnolia Hotshots (4-1) while Meralco makes another go at snapping its skid against the Kia Picanto (1-4) on Wednesday.

Ruthless Wozniacki joins Suarez Navarro in quarters

MELBOURNE — Ruthless Caroline Wozniacki kicked into full gear Sunday to storm into the Australian Open quarterfinals where she will pit her wits against experienced Spaniard Carla Suarez Navarro.

On an overcast and muggy day at Melbourne Park, the world number two turned on the style to take another step towards a maiden Grand Slam title.

The assured Dane, a semifinalist in 2011 who has never quite lived up to the hype in the majors, annihilated 19th-seeded Magdalena Rybarikova 6-3, 6-0 on Rod Laver Arena in her most impressive performance to date.

“She really mixes up the pace, I just tried to calm down, get my returns in and wait for the opportunities to attack,” she said after crushing the Slovak, who made the semifinals at Wimbledon last year.

“I think you can tell my confidence is pretty good at the moment.”

Her easy passage sets up a last eight clash with the gritty Suarez Navarro, who battled back from a set and 4-1 down to shatter the hopes of 32nd seed Anett Kontaveit.

The Estonian had been bubbling with confidence after despatching French Open champion Jelena Osteopenia in the third round, but nerves got the better of her.

The Spaniard, who has made the quarterfinals in Melbourne twice before, most recently in 2016, credited her fightback with a conscious decision to be more aggressive.

“I was thinking that I was playing good, but not too aggressive. I want to play like this, but sometimes you cannot,” said Suarez Navarro, one of the few who still use a one-handed backhand.

“My team all the time they say me, play aggressive, play aggressive. That’s I think what I did.”

Looking ahead to Wozniacki, she added: “I know how she plays. I know how tough she is. It will be a really interesting match.”

FORM PLAYER
Spanish world number one Rafael Nada has been in imperious form, showing no mercy in dismantling his first three opponents as he sets his sights on a 17th Grand Slam title.

The top seed is up later on center court against 24th seed Diego Schwartz man, ahead of an anticipated night match between Nick Kyrios and Gregor Dimitrov.

Nadal is gunning to make the last eight for the 10th time and knows he needs to be at his best to get past the dangerous Argentine.

“He’s won three matches here, playing at very high level. He’s a very complete player,” said Nadal, who is chasing his second Melbourne title after beating Roger Federer in the 2009 final.

“He’s a player that if I don’t play my best, probably I am not going to win. Tough one.”

If he does progress, sixth seed Marin Cilic will be waiting for him.

Croatia’s Marin Cilic won his 100th Grand Slam match as he mastered Spain’s Pablo Carreno Busta in four sets to reach the quarterfinals of the Australian Open on Sunday.

The former US Open champion won the big points in putting away the 10th seed 6-7 (2/7), 6-3, 7-6 (7/0), 7-6 (7/3) in 3 hours 27 minutes on Margaret Court Arena.

Ordinarily Nadal, as the top seed, would have top billing on Rod Laver in the evening, but not with local star Kyrgios in action.

The maturing Australian 22-year-old dispatched French veteran Jo-Wilfried Tsonga in the last round and now faces third seed Dimitrov, who has struggled so far.

Kyrgios has an edge — he beat the Bulgarian on his way to winning the Brisbane International earlier this month.

The winner will play either Briton Kyle Edmund or Italian veteran Andreas Seppi.

Fourth seed Elina Svitolina — one of the form players after winning in Brisbane — is also in action as she looks to make the quarterfinals for the first time.

She will fancy her chances against Czech qualifier Denisa Allertova and a date with either 81st-ranked Croat Petra Martic or Belgium’s Elise Mertens. — AFP

LTFRB to lift moratorium on ride-sharing franchises Feb. 3

By Patrizia Paola C. Marcelo
Reporter

THE LAND Transportation Franchising and Regulatory Board (LTFRB) is set to lift on Feb. 3 its moratorium on acceptance of franchise applications for ride-sharing vehicles.

“By Feb. 3,” Chairman Martin B. Delgra III said in a phone interview. “We gave ourselves and TNCs [transport network companies] time to prepare.”

The LTFRB last week set its common base supply of TNC vehicles at a cap of 45,000 vehicles in Metro Manila and nearby provinces, 500 for Metro Cebu, and 200 for Pampanga.

Mr. Delgra said in an earlier statement the idea of a common base supply came from the transport network vehicle service (TNVS) operators and “dual citizen” drivers or those accredited in more than one TNC, adding that with the new order, TNCs are now “free to get the supply” for their networks.

He noted that the ceiling of 45,000 for Metro Manila was determined in light of the churn rate, number of full-time and part-time TNVS drivers, peak and off-peak hours, number of bookings, and others.

The LTFRB will review the number or the cap every three months.

Board Member Aileen Lourdes A. Lizada previously said they aimed to put a cap to also avoid the increasing number of vehicles on the roads.

The cap would take effect on Feb. 3, and acceptance of applications for franchise can then resume.

The LTFRB last year ordered TNCs to stop the processing of applications while it set out to craft regulations on ride sharing. It held several technical working group (TWG) meetings with TNCs.

Uber Philippines (Uber Systems, Inc.) has yet to give a statement, but Grab Philippines (MyTAXI.PH, Inc.) head of public affairs Leo Emmanuel Gonzales said the cap is not enough, noting that around 75,000 to 80,000 vehicles are needed to cover demand.

DoE allows power firms with pending CoCs to trade on WESM

THE Department of Energy (DoE) said it had agreed with the Philippine Electricity Market Corp. (PEMC) to allow power generation companies with expired certificates of compliance (CoC) — including those with pending applications — to continue operating and trading at the wholesale electricity spot market (WESM).

“The move aims to protect electricity consumers by preventing disruptions in WESM transactions while the ERC (Energy Regulatory Commission) issue is being sorted out, “ DoE Secretary Alfonso G. Cusi said in a statement on Sunday.

The resolution on the agreement between the DoE and the board of directors of PEMC, the operator of the spot market, is in line with Mr. Cusi’s pronouncement that he would not allow any disruption in the country’s power supply.

The move comes in view of fears about possible delays in the processing of CoC applications with the ERC as a result of the suspension of four commissioners.

“The paramount consideration is the overall protection of public interest and the security of the supply of power. This is needed for the Philippines to meet its economic targets. This should take precedence over administrative issuances especially when an administrative body is unable to act,” Mr. Cusi said.

ERC Chairman Agnes T. Devanadera did not immediately respond when asked to comment on the DoE issuance. The DoE said it asked the Office of the President thrice last year to give it supervision over ERC administrative matters.

In its statement yesterday, the DoE said Mr. Cusi had directed PEMC and his department to work closely with the ERC to ensure the continuing operation of existing plants and to allow power generation from new plants that will be completed.

The CoC is proof that a power plant complies with the applicable regulations clearing it as safe to switch on and operate. Revised ERC CoC Rules of 2014 state that no person or entity may engage in electricity generation unless it has secured a CoC from the ERC to operate a generation facility.

Under the DoE-PEMC resolution, which was approved on Thursday, power generation companies with expired certificates can continue trading upon proof of submission of their application for the renewal of their CoC with ERC.

“New plants will also be permitted to trade or submit offers to the WESM upon proof of completion of testing and commissioning and other requirements for the issuance of a CoC,” Mr. Cusi said.

He explained that the certificate is a requirement for the registration and continuing participation of generation companies in the WESM.

“About 26 generation companies with a total of 3,314.60 MW generating capacities have expired or have expiring CoCs in 2018,” he said.

“Additional new capacities of at least 720 MWs are also expected to go into commercial operation within the next few months. If not allowed to participate in the WESM, the available electricity supply in the market will be curtailed, which can result in higher market clearing prices,” he said.

Mr. Cusi said that as the dry season approaches, the use of electricity is anticipated to increase. He said the DoE “is monitoring the situation to ensure the sufficiency of supply to meet the rising demand.”

The four ERC commissioners, along with the previous ERC chairman, were ordered suspended for one year by the Office of the Ombudsman in connection with the revised implementation date of the competitive selection process (CSP), which it said favored a few power supply contracts. — Victor V. Saulon

Gov’t decided on nonrenewal of Miascor contract

THE GOVERNMENT has rejected the appeal of Miascor Groundhandling Corp. for the reinstatement of its contract in major airports after President Rodrigo R. Duterte ordered its termination last week due to theft complaints.

“There is nothing to appeal as government has no existing contract with Miascor Groundhandling Corp. The Manila International Airport Authority’s (MIAA) lease and concession agreement contract with Miascor has already expired,” Presidential Spokesperson Herminio Harry L. Roque, Jr. said on Sunday, Jan. 21.

The spokesman added that “the position of the MIAA is not to renew the contract following its expiration because of many cases/instances of pilferage, both in the Ninoy Aquino International Airport and Clark International Airport. These include the theft committed to the wife of a Turkish diplomat and the alleged involvement of a Miascor supervisor with illegal drugs.”

Mr. Roque also stressed that “we have to look at the bigger picture: Our national interest is of paramount importance. In particular, we need to protect airport travelers from baggage theft, especially overseas Filipino workers who work so hard to earn a living, and to make sure that potential tourists and investors are not turned off by such incidents at the airport.”

On the proposal to create presidential action desks at the country’s airports, Mr. Roque said: “NAIA authorities have been proven effective in this regard. Our airport authorities have assured us that there will be no service disruption that will affect the traveling public.”

Apart from NAIA and Clark, Miascor also operates at the airports in Cebu, Davao, and Kalibo. — Arjay L. Balinbin

Titlists Stipe Miocic and Daniel Cormier retain UFC belts

By Michael Angelo S. Murillo
Senior Reporter

ULTIMATE Fighting Championship (UFC) titleholders Stipe Miocic and Daniel “DC” Cormier retained their respective belts following victories at “UFC 220” yesterday in Boston, Massachusetts.

Mr. Miocic made it three straight successful title defenses of his heavyweight championship by outlasting and outworking challenger Francis “The Predator” Ngannou in their headlining five-rounder while Mr. Cormier retained the light heavyweight title with a dominating performance over challenger Volkan “No Time” Oezdemir that culminated with a technical knockout win by way of punches in the second round.

The heavyweight title clash got off to an exhilarating start with both fighters connecting with hits as they jockeyed for position in establishing control of the match.

As the fight wore on though, Mr. Ngannou, who is accustomed to short finishes in the cage on the strength of his power, just could not sustain the high energy as he fell prey to the takedowns and ground and pound of the champion which proved to have drained him a lot.

In the fifth round, Mr. Ngannou just did not have enough left and just spent most of the time surviving en route to the unanimous decision loss, 50-44, 50-44 and 50-44.

“I’m the scariest. I’m the baddest. But it was tough. The fight was the way I expected it,” said Mr. Miocic (17-2) after the win.

For Mr. Ngannou (11-2), he said he might have underestimated Mr. Miocic and nonetheless congratulated the latter for a deserving victory.

BACK TO WINNING
In the co-main event light heavyweight title showdown, Mr. Cormier (20-1, one no contest) stamped his class as a champion fighter by dominating Swiss Oezdemir.

Mr. Oezdemir did not waste much time engaging, landing some solid hits to the head of Mr. Cormier.

The American champion eventually hit his strides as the opening round progressed. He managed to hurt his opponent with jabs and punches before bringing him down after grabbing one of his legs.

On his back, Mr. Oezdemir tried desperately to fend off the rear-naked choke that Mr. Cormier put on him in the closing seconds and was just lucky to have been saved by the bell.

Mr. Cormier sustained his fine form in the second round, going for the challenger’s leg anew and successfully pulled him down to the ground.

It was only a matter time before Mr. Cormier went for the finish, going on a crucifix position and creating damage then unleashing a barrage of punches to which Mr. Oezdemir had answer to, prompting the referee to stop the fight with 120 seconds left in the second.

Considering the rough patch of late he had in the Octagon, the significance of the victory was not lost to Mr. Cormier.

“It’s great to win again,” said the champion in the post-fight interview inside the cage.

“It’s because of my greatest rival, but it feels good to get back in here and get a victory. I’ve lost twice to Jon Jones. As I came into this fight, I felt as though I was fighting for a vacant title again because (Jones) beat me last time. I fought for a vacant title and I got the job done, so I’m the UFC champion again,” he added.

With the loss, Mr. Oezdemir (15-2) saw his five-fight winning streak come to an end.

In earlier fights, featherweight Calvin Kattar defeated Shane Burgos by TKO (punches) in the third round, light heavyweight Gian Villante edged Francimar Barroso by split decision (30-27, 28-29 and 30-27), bantamweight Ron Font beat Thomas Almeida by TKO (head kicks and punches) in the second round.

Next for the UFC is “UFC on Fox” on Jan. 28 (Manila time) in Charlotte, North Carolina, that will be headlined by the middleweight rematch between Ronaldo “Jacare” Souza and Derek Brunson.

In the Philippines, Cignal TV, the country’s foremost direct-to-home (DTH) company, is the home of the UFC after the two groups agreed to an extensive deal that will see the UFC beamed on various platforms.

Maharlika Pilipinas Basketball League teams rise to 10 as Quezon City, Imus make last-minute entry

QUEZON CITY and Imus have become the latest inclusion in the growing Maharlika Pilipinas Basketball League (MPBL) family, becoming the ninth and 10th member, respectively.

Their entry was formalized when they signed a contract just recently.

Quezon City was headed by Councilor Onyx Crisologo, a staunch supporter of the city’s sports program while Imus was represented by Mayor Emmanuel Maliksi.

“Quezon City is a late entry and I would like to thank Commissioner Kenneth (Duremdes). We prepared for this for two weeks. Our squad is composed of ex-pros, but most of our players will be coming from the collegiate ranks. We were not able to join the pre-season, but Quezon City has been joining many leagues. We’re very competitive,” said Mr. Crisologo.

Coaching Quezon City Capitals is Vis Valencia.

Speaking on behalf of Imus, former PBA player Nandy Garcia told BusinessWorld that they’re surprised to be included in the MPBL.

“We’re surprised and that’s what we intend to do as well in the coming MPBL, to surprise the other teams,” said Mr. Garcia, who played for Ginebra San Miguel, Sarsi and Alaska in the PBA.

These two teams will join Batangas Athletics-Tanduay, Bulacan Kuyas, Caloocan Supremos, Muntinlupa Cagers, Navotas Clutch, Parañaque Patriots, Valenzuela Classics and Bataan Defenders.

The inclusion of these two new members nearly overshadowed the announcement made by Bulacan and Bataan on the return to action of two of Philippine basketball’s all-time greats.

Bulacan coach Ogie Gumatay confirmed the participation of Marlou Aquino, the 6-foot-9 center, former PBA Rookie of the Year and three-time champion. Messrs. Aquino and Gumatay played together with the Sta. Lucia Realtors in the PBA.

Bataan also revealed that Gary David had also confirmed to join the Defenders in the coming MPBL season.

Chris Gavina, who just stepped down as coach of the Kia Picanto in the PBA, will also join the MPBL as head coach of Valenzuela.

“I’m really honored to become the head coach of Valenzuela. Regarding the preparation, I was just called a few days ago. But I’m really excited of the passion and the hard work of the players we put in. They reached the finals of the pre-season, so there’s high expectations. But it’s all come down to the level of our commitment and hopefully this translates to success,” added Mr. Gavina.

Mr. Gavina’s team has a core of ex-pros composed of Paolo Hubalde, Ford Ruaya, Jaymar Gimpayan and Jomar Soriano. — Rey Joble

DoE gives go signal for grid impact assessment

THE DEPARTMENT of Energy (DoE) has cleared 12 power generation projects to conduct studies assessing their impact on the country’s transmission system as they plan to add about 1,191 megawatts (MW) of generation capacity in the coming years.

Based on latest DoE data, the company with the biggest proposed capacity is Solar Philippines Commercial Rooftop Projects, Inc., which is planning to put up four solar power plants, three of which has a capacity of 300 MW each.

Solar Philippines plans to build a solar plant in Medelin, Cebu and two others in Iba-Palauig, Zambales. The fourth project, with a capacity of 100 MW, is to be built in Tarlac City, Tarlac, bringing the capacity of the company’s new projects at 1,000 MW.

The DoE clearance covers the two months into the fourth quarter of 2017, which also include a 45-MW solar project by Phinma Energy Corp.

In July, Phinma Energy was cleared for four new projects with a total capacity of 925.6 MW that will mark the company’s move to diversify its power generation portfolio to include gas and hydropower, company officials said.

“With all the coal plants being planned, you’ll have enough for 2025,” said Francisco L. Viray, Phinma Energy president and chief executive officer, about the company’s plan to try other technologies.

Next to Solar Philippines, the company with the most number of proposed projects is General Milling Corp., which is planning to build three diesel-fired power facilities at the GMC Complex in Lapu-Lapu City, Cebu. These three will have a combined capacity of 8.5 MW.

Two other entities secured clearance to conduct grid impact studies to build solar plants, namely: Puente Al Sol, Inc. with a 70-MW facility in Cadiz City, Negros Occidental; and Energence Renewable Energy Corp. with a 35 MW in Clark Freeport Zone in Clark, Pampanga.

Philnew Hydro Power Corp. and Isabela Power Corp. complete the latest DoE list with their respective hydropower plants.

Philnew Hydro sought approval for a 14 MW facility in Tumauini, Isabela while Isabela Power 19 MW in San Mariano and San Guillermo, Isabela. — Victor V. Saulon

EICC releases guidelines for EO 30 availment

THE ENERGY Investment Coordinating Council (EICC) has issued an advisory to power developers on how their projects can qualify under Executive Order (EO)30, the law that classifies a project as one of national significance and secure speedier regulatory approval.

“As provided in Section 2 of the EO 30, the DoE shall identify and endorse the energy projects to be considered as Energy Projects of National Significance (EPNS),” the Department of Energy (DoE) said.

The EICC, which is headed by the DoE, will require interested applicants or proponents to justify “in a clear and unequivocal manner” how their projects are in consonance with the goals and objects of the Philippine Energy Plan (PEP), the blueprint for the country’s long-term energy outlook.

The proposed projects should be included in the list of projects embodied in the PEP.

The proponent should submit a letter of intent addressed to the Energy secretary along with a copy to the DoE director of the energy policy and planning bureau.

“The proponent must be able to establish in a clear and detailed manner that the proposed project is qualified to be declared as EPNS,” it said, citing seven “attributes” for qualification.

The attributes are: capital investment of P3.5 billion; significant contribution to the country’s economic development; significant consequential economic impact; significant potential contribution to the country’s balance of payment; significant impact on the environment; significant complex technical processes and engineering designs; and significant infrastructure requirement.

REVALIDATION
The EICC said for project proponents with existing service contracts and certificate of endorsements, “a project revalidation shall be conducted to ensure that they comply with the EPNS requirements.”

It also said for new energy project applicants, the validation or evaluation for EPNS qualification is to be determined in parallel with the processing of appropriate service contracts and certificates of endorsements.

The certificate of EPNS shall be issued simultaneously with the service contract or certificate of endorsement.

The EICC was created pursuant to EO 30, which was issued on June 28, 2017, in order to spearhead and coordinate efforts to harmonize, integrate and streamline the regulatory processes, and forms relevant to the development of energy investments relating to energy projects of national significance.

The council is chaired by a representative from the DoE and is composed of representatives from the Department of Environment and Natural Resources, National Electrification Administration, National Grid Corporation of the Philippines and the National Power Corp.

Also represented are the Department of Finance, Department of Justice, Department of Transportation, Housing and Land Use Regulatory Board, Palawan Council for Sustainable Development and other agencies whose participation may be deemed necessary by the council. — Victor V. Saulon

EU’s GSP+ raised competitiveness of small firms, communities — DTI

THE SURGE in 2017 exports to the European Union (EU), led by agricultural products, was aided by the bloc’s Generalized Scheme of Preferences Plus (GSP+) import scheme, which helped Filipino communities and small businesses raise their competitiveness, officials said   

Trade Secretary Ramon M. Lopez in a statement on Sunday said that the Department of Trade and Industry (DTI) welcomes the 31% increase in 2017 Philippine exports to the EU to €2 billion, which came even as Brussels and Manila engaged in high-profile spats over human rights.

Specifically, the exports include fish and other marine products, prepared food and fruits. Apart from produce, it said automotive parts, leather, textile and footwear also rose considerably due to the GSP+.

“This trade preference has benefitted several communities in the Philippines and opened opportunities for our Micro, Small, and Medium Enterprises (MSME). In the same manner, it has allowed our MSMEs to be more competitive in the local and foreign market,” Mr. Lopez said.

The Philippines has been part of the GSP+ since December 2014 and is expected to retain the benefits for eight years. Mr. Lopez has said it usually takes three years before the effects of the GSP+ are felt in trade.

An EU Commission report issued Friday, “The second report on the effects of GSP and the special incentive arrangement for sustainable development and good governance (GSP+) covering 2016-2017,” evaluates the progress of the GSP scheme and the implementation of the 27 conventions which cover human rights, labor rights, environment and good governance.

It noted that the Philippines achieved considerable progress in gender equality.

Among the 10 countries in the GSP+ program, apparel and clothing make up the bulk of imports that the EU receives at 53% or €4 billion, with Pakistan as the top exporter to the bloc, followed by the Philippines.

The EU Commission in its report clarified that countries that violate human and labor rights, environmental and good governance conventions will have their GSP+ status withdrawn, but this will not necessarily extend to the standard GSP. It is up to the EU Parliament if the country maintains its GSP+ status.

In the case of the Philippines, there were concerns last year over human rights and labor issues raised by parties within the EU which were addressed by Mr. Lopez and special envoy to the EU Edgardo J. Angara in September.

The report noted improved socioeconomic development, education and health. In the field of good governance, the report said the Philippines is addressing red tape and corruption.

Likewise, improvements were noted in the juvenile justice system but the Commission expressed concern about the lowering of the age for criminal responsibility, the possible reintroduction of the death penalty and the campaign against illegal drugs.

“Together with statements by the President that can be seen as incitement to killings and fostering a culture of impunity, the conduct of the ‘war on drugs’ raises serious questions about the Government’s commitment to human rights,” the EC said.

As for labor issues, the report noted that more effort is needed to enhance enforcement, particularly the inspection and investigation of labor conditions and prosecution of violators.

The EC said that labor legislation should align with and adopt the International Labor Organization Convention 87 on freedom of association.

The report also noted the Philippines’ support for the Paris Climate Agreement but raised concerns over the lack of detailed plans to address the use of clean energy and solutions for climate change.

On the prospect that the Philippines may yet lose its GSP+ status, Philippine Exporters Confederation, Inc. President and Chief Executive Officer Sergio R. Ortiz-Luis, Jr. told BusinessWorld: “[Losing] it may not be fatal, but it’s [still] a big loss if the GSP+ is canceled.” — Anna Gabriela A. Mogato

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