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Philippine ship leaves Sabina Shoal after months of pressure from China

"BRP TERESA MAGBANUA”, the largest patrol vessel (97 meters) for the Philippine Coast Guard (PCG)

By Kyle Aristophere T. Atienza, Reporter

THE PHILIPPINES’ biggest coast guard ship left Sabina Shoal on Sept. 14 after five months of being deployed there and amid Chinese pressure to leave the disputed atoll.

BRP Teresa Magbanua left the disputed shoal, which Manila used as a staging ground for resupply missions to Second Thomas Shoal, because it had accomplished its mission, the Philippines’ National Maritime Council said in the statement on Sunday.

“After more than five months at sea, where she carried out her sentinel duties against overwhelming odds, BRP Teresa Magbanua is now sailing back to her homeport with her mission accomplished,” council Chairman and Executive Secretary Lucas P. Bersamin said.

The Chinese Coast Guard confirmed the departure of the ship after lingering there since April in what China viewed as an “illegal action,” according to state-owned Xinhua News Agency.

China took measures against Philippine vessel 9701 in accordance with the law, while repeated Philippine attempts to organize replenishment of the vessel had failed, Xinhua quoted China Coast Guard spokesman Liu Dejun as saying.

The Southeast Asian nation’s sustained presence at the feature, aiming to monitor what it suspects to be China’s small-scale reclamation activities has angered Beijing, turning the shoal into their latest flashpoint in the contested waters.

The pullout of Magbanua was not in compliance with China’s previous demands, National Maritime Council spokesman Alexander Lopez told reporters.

“This a unilateral action of the Philippine Coast Guard (PCG) considering the administration and operational factors mentioned in the National Maritime Council statement,” he said.

Mr. Lopez said the ship left the shoal on Saturday and was expected to arrive in Puerto Princesa, Palawan province by Sunday afternoon.

He added that the country’s presence at the shoal would “be sustained.” “We will keep on monitoring and documenting any or all illegal activities for our strategic purpose.”

“We will maintain our presence in whatever way, and we will continue to monitor and enforce our rights, exercise our rights, sovereign rights, sovereignty and jurisdiction over the area.”

Mr. Bersamin said the 97-meter PCG vessel needs to address the medical needs of some of its crew and undergo needed repairs.

It would also give its crew a furlough so its members could have a reunion with their loved ones, he added.

“After she has been resupplied and repaired, and her crew recharged, she will be in tip-top shape to resume her mission, along with other PCG and Armed Forces of the Philippines assets, as defenders of our sovereignty,” Mr. Bersamin said.

BRP Teresa Magbanua was deployed to Sabina Shoal in mid-April, as Manila accused Beijing of dumping the atoll with dead corals to alter its elevation.

Chinese and Philippine vessels have collided since last month near Sabina, which lies 140 kilometers off the Philippine westernmost island of Palawan.

“During her deployment at Escoda Shoal (Sabina), she challenged an encirclement by a larger flotilla of intruders, battled inclement weather, with her crew surviving on diminished daily provisions,” Mr. Bersamin said.

“What made this possible is the determination and dedication of the men and women on board, who crewed her in the finest tradition of our Philippine Coast Guard sailors, and in honor of the heroine for whom she was named.”

The Philippine Foreign Affairs department this month said it had expressed its displeasure with Beijing over an Aug. 31 collision in which BRP Teresa Magbanua was hit thrice by a Chinese vessel.

The China Coast Guard vessel caused significant damage to the Philippine ship and endangered the lives of its personnel, a Philippine task force said.

The Chinese side made a similar claim, with Mr. Liu saying that the smaller PCG vessel “deliberately” collided with their ship.

Sabina has been a staging ground for Philippine resupply missions to Second Thomas Shoal, where Manila grounded a World War II era ship in 1999 to serve as an outpost for a handful of Filipino soldiers.

Manila and Beijing came up with a resupply deal in July after a June 17 standoff where Chinese forces threatened, using bladed weapons, Filipino troops delivering supplies to the Navy outpost, according to the Philippine military.

SC sides with Crocodile Int’l in Lacoste lawsuit

PIXABAY

THE PHILIPPINE Supreme Court (SC) has favored Singapore-based Crocodile International Pte. Ltd. in a trademark lawsuit filed by French fashion giant Lacoste S.A.

The SC’s Second Division upheld decisions of the Court of Appeals (CA), Intellectual Property Office-Director General (IPO-DG) and Intellectual Property Office-Bureau of Legal Affairs (IPO-BLA), which all found no similarity between the two crocodile logos.

“The court finds no cogent reason to reverse the uniform rulings of the IPO-BLA, the IPO-DG and the CA in denying Lacoste’s opposition to Crocodile’s trademark application No. 4-1996-116672 for the mark ‘Crocodile and Device’ for goods covered by Class 25 of the [Nice Classification],” it said in a 15-page decision written by Justice Antonio T. Kho. The ruling was promulgated in November 2023 and released on Sept. 10.

“Absent of showing fraud and misrepresentation to the public, the court should allow enterprises, such as Crocodile in this case, to enter the Philippine market through, among others, the registration of their trademarks,” it added, citing the need to balance the protection of intellectual property rights and fair competition.

Lacoste filed the lawsuit in 1996 against Crocodile International’s trademark application for its “Crocodile and Device” mark, saying it resembled Lacoste’s emblem.

Crocodile International filed a trademark application for its logo with the Bureau of Patents, Trademarks, and Technology Transfer, the IPO’s predecessor, in 1996, which Lacoste opposed in 2004, citing possible confusion for consumers.

The French fashion brand, a company that has been in the Philippine market since 1963, argued that Crocodile International’s logo would confuse consumers.

The Singaporean brand, established in 1949, started exporting its products to the Philippines in 2002.

Crocodile International said its mark is a left-facing crocodile with the word “Crocodile” stylized above the image, while Lacoste has a right-facing crocodile emblem and the word “Lacoste” below the figure.

It argued that both logos have coexisted peacefully in other countries, such as Japan and Myanmar, where courts also ruled the logos were not confusingly similar.

It cited a Mutual Co-Existence Agreement signed between Lacoste and Crocodile International in 1983, when both parties agreed to coexist in specific markets, but Lacoste said this does not apply in the Philippines.

In 2009, the IPO-BLA rejected Lacoste’s opposition, applying the dominancy test and holistic test to determine whether the differences between the two logos were clear enough to avoid confusion.

The appellate court affirmed its ruling in 2015, saying the logos were visually distinct. — Chloe Mari A. Hufana

Analysts: Guo case not good for PHL bid for UN council

PHILIPPINE STAR/RYAN BALDEMOR

By Chloe Mari A. Hufana, Reporter

THE ESCAPE of a former town mayor accused of having ties with Chinese criminal syndicates could have dented the Philippines’ bid for a seat in the United Nations Security Council (UN SC), a diplomacy expert said.

“The very important implication [of ex-Bamban Mayor Alice L. Guo’s escape] is [that it reveals how] justice works in the Marcos regime,” Josue Raphael J. Cortez, a lecturer at the School of Diplomacy and Governance of De La Salle-College of St. Benilde, told BusinessWorld in a Facebook Messenger chat at the weekend

“We know that through [President Ferdinand R. Marcos, Jr.’s] initiative, we are clamoring for a seat in the Security Council,” he added.

The Philippines is seeking a nonpermanent seat in the council for 2027 to 2028.

“In line with this campaign, the government has been undertaking different projects [that] are reflective of the state of the justice system in the country, highlighting its milestones and how it ascertains the rule of law,” he added.

“Guo’s escape, however, and the extent of it, certainly left a dent and became an antithesis on this campaign.”

Ms. Guo, who is under Senate investigation for her alleged links to an illegal offshore gaming operator in the Philippines, escaped the Philippines in July despite a standing arrest warrant from the chamber.

Indonesian authorities deported her on Sept. 4 after her arrest in Jakarta, raising eyebrows about Philippine law enforcer’s ability to track down suspects.

National Union of Peoples’ Lawyers (NUPL) President Ephraim B. Cortez said her escape had left a “big dent” on Philippine law enforcement authorities’ integrity.

He reiterated Mr. Marcos’ pronouncement about the involvement of Immigration authorities in Ms. Guo’s escape.

“Our law enforcement agencies still cannot provide us with a clear narrative on how she left the country, and the chronology of her travel,” Mr. Cortez told BusinessWorld in a Viber message. “The Senate investigation, the National Bureau of Investigation, and Bureau of Immigration are trying to ferret these out from her,” he added, calling the investigation process “archaic.”

Benilde’s Mr. Cortez said a good strategy to covet a seat in the UN’s most exclusive council is not limited to launching initiatives or creating agencies tailor-fitted for the campaign.

“It would be better to show the world that all the work on their very purposes and mandates, particularly the newly established agencies, because more than opening and launching them, showing how [they] operate to promote peace, justice and security can be a more viable way for us to get the seat we aspire for,” he added.

He noted that one of the newly launched offices include the Office of the Presidential Adviser on the Peace Process geared towards ensuring that peace process strategies of the government will be strengthened. On the other hand, events including the Philippine Drug Policy Summit which was recently held was geared towards showing that the Philippines in addressing issues related to illicit drugs are dealt with in adherence to the rule of law.

Despite this, NUPL’s Mr. Cortez said the chances of the country getting a seat in the council boils down to the effective lobbying process.

“The vote for the seat is more political than anything else,” he said. “It will depend on how the Philippine government effectively lobbies with the permanent members and the members of the General Assembly,” he said.

He noted that the Philippines got a seat in the UN Human Rights council despite its human rights record.

The Security Council has 15 members, five of which are permanent, while 10 serve two-year, nonconsecutive terms. The council is responsible for maintaining international peace and security, according to its website.

In some cases, the council can impose sanctions or authorize the use of force to maintain or restore international peace and security.

The Philippines last held a seat in the council in 2004-2005.

Benilde’s Mr. Cortez said Ms. Guo’s escape showed how influential people could go above the law.

“Thankfully, the efficiency of our coordination with Indonesian authorities — and how swift Guo and her friends’ deportation process was — is in a way the saving grace of it all because it showed that our government is more than willing to collaborate for the sake of ensuring that law and justice will triumph over anything else,” he said.

Philippine authorities in March raided an illegal Philippine Offshore Gaming Operator in Bamban, Tarlac province, allegedly for human trafficking violations and scamming.

Increased social development funding pushed

PHILIPPINE STAR/KRIZ JOHN ROSALES

By Kenneth Christiane L. Basilio, Reporter

THE HOUSE of Representatives should look at increasing funding to agencies responsible for social development under the proposed P6.352-trillion national budget to spur inclusive socioeconomic growth next year, analysts said at the weekend.

The budgets allotted to the Health, Social Welfare, Labor, Agriculture, and Trade and Industry departments are not enough to alleviate economic pressures faced by Filipinos, such as the rising costs of commodities, they added.

“The budgets for agriculture, agrarian reform and irrigation, trade and industry, education, health and social welfare remain seriously underfunded when measured against the magnitude of current problems,” Jose Enrique “Sonny” A. Africa, executive director at think tank IBON Foundation, said in a Viber message.

“Decent standards of living for all Filipinos because of universal social services and an economy with robust Filipino industry and vibrant agriculture are among the foundations for meaningful nation-building. The proposed 2025 budget is unfortunately not oriented toward this,” he added.

The Department of Budget and Management (DBM) in July submitted to the chamber its proposed P6.352-trillion national budget for 2025, which is equivalent to 22.1% of gross domestic product and 10.1% higher than the P5.768-trillion budget this year.

Under the 2025 National Expenditure Program, the DBM slashed the proposed budgets for agriculture, health, and social welfare by 4.7%, 7.6%, and 3.4%, respectively. Allocations for labor were also decreased by 26.1%, with trade and industry receiving a 3.9% cut.

“Most of the key departments that are crucial in boosting economic growth and promoting socio-economic development suffered cuts,” Zy-za Nadine M. Suzara, an independent budget analyst and former executive director of policy think-tank Institute for Leadership, Empowerment, and Democracy, said in a Viber message.

Ms. Suzara said the government was unable to provide bigger allocations to “marginalized sectors” such as agriculture and health for 2025 due to limited fiscal space resulting from bloated unprogrammed appropriations in the previous years.

BLOATED UNPROGRAMMED FUNDS
“The national budgets in the past three fiscal years are defective because the bicameral moved priority projects to unprogrammed appropriations, which are merely stand-by appropriations,” she said. “By placing them there, priority projects have lost guaranteed cash cover.”

Unprogrammed appropriations for 2024 ballooned by more-than-double to P731.45 billion from the proposed P281.91 billion as Congress shifted funding for education and social protection projects into it.

“Priority projects that were reallocated to unprogrammed appropriations in the 2024 budget are the foreign-assisted projects of DoTr (Department of Transportation) and DPWH (Department of Public Works and Highways), as well as portions of funding for education, health and social protection programs such as the Universal Access to Tertiary Education, PUV (Public Utility Vehicle) Service Contracting, various agri-fisheries programs,” she said.

The ballooning of unprogrammed appropriations in the previous budget “is a result of the surreptitious insertion by Congress of pork barrel funds,” Filomeno S. Sta. Ana III, coordinator of Action for Economic Reforms, said in a Viber message.

House Speaker and Leyte Rep. Ferdinand Martin G. Romualdez in August said the unprogrammed appropriations cannot be considered as pork barrel funds, citing differences in their technical definition.

The Priority Development Assistance Fund, colloquially known as pork barrel, is a discretionary lump sum fund to members of Congress meant to finance local projects within their legislative districts. It was discontinued in 2013 following the Philippines’ Supreme Court decision declaring it unconstitutional after state auditors found gross misuse in prior years.

Minority lawmakers from the Makabayan bloc in August called the ballooning of unprogrammed appropriations a new form of pork barrel with Party-list Rep. Raoul Danniel A. Manuel arguing it “bastardizes” the budget process and weakens congressional oversight on the budget.

“As a consequence of prioritizing pork in the previous years’ national budgets, the allocative efficiency of the 2025 proposed budget is compromised,” Ms. Suzara said. “The Marcos government is neither expanding more targeted and strategic socio-economic projects because of chronic inefficiency and underspending of many government agencies.”

Lawmakers should “temper their greed” to make the proposed 2025 national budget more efficiently allocated, according to Ms. Suzara.

PLENARY DEBATES
The House will begin plenary debates on the proposed budget on Monday, with a target of passing the budget bill by Sept. 25, Mr. Romualdez said in a statement on Sunday.

The committee on Tuesday last week finished reviewing the proposed budgets of each government agency, with the panel submitting the 2025 General Appropriations Bill for plenary deliberations on Thursday.

The 2025 GAB mostly retained the proposed expenditures submitted by the Budget department, with reallocations only happening to the Office of the Vice President’s proposed budget.

The House appropriations panel unanimously slashed the OVP’s budget by 64% to P733 million from P2.03 billion due to project redundancies with the Health and Social Welfare departments.

The reallocated amount would be equally split at P646 million between the Social Welfare departments aid program for indigent Filipinos and the Health departments medical assistance initiative.

“This is a reasonable budget reduction as it re-channels these funds toward agencies which can more directly serve Filipino families,” Terry L. Ridon, a public investment analyst and convener of think-tank InfraWatch PH, said in a Viber Message.

Congressmen are likely to augment funding for the Social Welfare and Public Works departments, Ms. Suzara said, noting these are agencies where the budget for their localities’ infrastructure projects and social aids are lodged.

Reallocations to the Department of Public Works and Highways, however, should not come from agencies concerning social development, such as the Health and Social Welfare departments, Leonardo A. Lanzona, an economics professor at the Ateneo de Manila University, said in a Facebook Messenger chat.

Mr. Ridon said lawmakers should also look at boosting state funding to the Department of Information and Communications Technology (DICT) amid hacking incidents to government servers.

The DICT’s proposed 2025 budget rose by 33.6% to P9.2 billion from its 2024 P6.9-billion budget.

“With increasing government digitalization, cybersecurity should become a pillar of funding concern across agencies, led by the DICT,” he said.

There must be a consensus between leaders of both the Senate and the House for reallocations to be successfully augmented, Assistant Minority Leader and Party-list Rep. Marissa P. Magsino said in a Viber message.

DBM: Special rights laws funded

BW FILE PHOTO

THE DEPARTMENT of Budget and Management (DBM) has provided funding to special human rights for next year, a Budget official said, clarifying an earlier claim by the Commission of Human Rights (CHR) that special rights measures were unfunded under their proposed P1.1-billion budget for 2025.

The CHR in early September said that special human rights laws, including measures addressing human trafficking, violence against women and their children and crimes against humanity, did not receive a single centavo under the proposed P6.352-trillion 2025 national budget.

“The special laws being claimed by the CHR as unfunded are laws already integrated and part of the regular programs of the agency which are annually provided funding under the General Appropriations Act,” DBM Undersecretary Godess Hope Libiran said in a Viber message last week.

“The CHR represented that funding requirements for said laws are sourced from the existing programs of the CHR since the same are already part of the mandate of the agency,” she added.

The government has provided P471 million for the fulfillment for the commission’s human rights protection and promotion programs this year, according to document provided by Ms. Libiran. — Kenneth Christiane L. Basilio

Faster hiring of teachers needed

DEPED.GOV.PH

A PHILIPPINE senator urged the Department of Education (DepEd) to speed up its hiring process for educators to address the country’s need to fill 26,000 positions next year amid a teacher shortage.

In a statement, Senator Sherwin T. Gatchalian said DepEd can take up to six months to hire new teachers, with the country lacking more than 46,000 teachers to service 43,000 schools nationwide.

DepEd earlier said it is looking to create 20,000 new teaching positions next year to work on this shortage.

“The number of teachers we need continues to grow with our student population, and filling the 26,000 vacant positions would help address the teacher shortage,” the senator said.

DepEd is keen on using artificial intelligence-based education platforms to compensate for the shortage of teachers among other resources gaps next year, Education Secretary Juan Edgardo “Sonny” M. Angara told a Senate finance committee hearing last week.

Mr. Gatchalian also cited the need for more administrative officers at the Education department to lighten the nonteaching workload of public school teachers.

Under the agency’s proposed P793.177-billion budget next year, P3.43 billion will be used to hire employees for nonteaching positions.

Based on a report from the Second Congressional Commission on Education, each public school teacher has to deal with at least 50 administrative tasks. — John Victor D. Ordoñez

Mountain Province gets peace fund

BAGUIO CITY — The Mountain Province will receive a P105-million funding for projects that will boost the peace and development in the province.

The funds will come from the Office of the Presidential Adviser on Peace, Reconciliation, and Unity (OPAPRU).

OPAPRU Secretary Carlito G. Galvez said the fund will be used for various projects as part of the government’s anti-insurgency program, including infrastructure projects such as farm-to-market roads, among others.

Mr. Galvez said the Cordillera Region is the epicenter of peace and development, citing the highland region as once a stronghold of the communist movement in the 1980s.

OPAPRU has already earmarked around P600 million this year to fund 15 peace and development projects, mostly implemented in Kalinga, Apayao, Ifugao, and Mountain Province.

According to the OPAPRU chief, Cordillera is a model of peace and development compared to other regions vis-à-vis the insurgency issue. — Artemio A. Dumlao

Efforts against dirty money backed

COTABATO CITY — Various sectors have assured support for the government’s anti-money laundering thrusts in Maguindanao del Sur province, intended to stop circulation of funds for terrorism and other organized crimes, including trafficking of narcotics.

Radio reports on Sunday stated that the Department of Justice, Maguindanao del Sur Gov. Mariam S. Mangudadatu, Bangsamoro Regional State Prosecutor Rohaira A. Lao and officials of police units in the province cooperated in facilitating a workshop on detection and investigation of money laundering cases for law-enforcement agents based in the province from Sept. 10 to 12.

Members of the Islamic religious community in Central Mindanao and the chairman of the Bangsamoro Business Council, entrepreneur-lawyer Ronald Hallid D. Torres, had also relayed to reporters that they will support the government’s anti-money laundering campaign in Maguindanao del Sur and in other provinces around.

Brig. Gen. Prexy D. Tanggawohn, director of PRO-BAR also, and the commander of 6th ID, Major Gen. Antonio G. Nafarrete have also both directed their offices and units to support the program. — John Felix M. Unson

JICA narrowing down lineup of PHL projects to about 10

THE Japan International Cooperation Agency (JICA) is considering funding over 10 projects in the Philippines, including railway and other infrastructure, next year. 

“We are now preparing more than 10 candidate projects for the next year,” JICA Chief Representative in the Philippines Takema Sakamoto told reporters on the sidelines of an event on Friday.

These projects include bridges, railway, and road infrastructure, he said.

“But, of course, it depends on both countries’ screening processes and budget constraints… but JICA is keen to promote and formalize more projects in the double digits.”

Mr. Sakamoto has said he hopes to disburse Philippine loans exceeding the ¥300 billion to ¥400 billion (around P115 billion to P153 billion) approved last year.

JICA typically supports up to 80% of a project’s total cost, he said.

“I am in a position to convince Tokyo to get more resources, and from this point of view, one important element is a good track record of the ongoing projects. Otherwise, I cannot get more trust from our national taxpayers.”

“The Philippines is a very reliable partner. So, I stress the importance of the good progress of the ongoing projects,” Mr. Sakamoto said, citing the North-South Commuter Railway, Metro Manila Subway, and flood control projects.

In March, the Department of Finance and JICA signed the third tranche of a ¥150-billion loan agreement for the first phase of the Metro Manila Subway Project.

The 33-kilometer underground railway system will traverse eight cities in Metro Manila, including key business districts. It is estimated to cost P488.5 billion and is due for completion by 2029.

Last year, JICA also signed a ¥270-billion loan with the Philippines for the NSCR.

JICA and the Asian Development Bank are co-financing the P873-billion NSCR. The 147-kilometer railway will connect Malolos, Bulacan with Clark International Airport and Tutuban, Manila with Calamba, Laguna. It will have 35 stations and three depots.

Mr. Sakamoto also cited the need to speed up JICA-supported flood management projects.

The agency has been collaborating with the government on the Pasig-Marikina River Channel Improvement Project Phase 4, as well as river improvement projects in Cavite, Cagayan De Oro, and Davao.

In January, JICA and the Department of Public Works and Highways (DPWH) signed a new technical cooperation to improve the country’s flood control strategy. This includes the updating of masterplans and pre-feasibility studies.

‘ROOM TO IMPROVE’
Mr. Sakamoto said the Philippines has “much room to improve” in regard to the time it takes to implement foreign-assisted projects.

Longer decision-making and land acquisition processes, as well as untimely payments are the major reasons for project delays, he added.

Rene S. Santiago, former president of the Transportation Science Society of the Philippines, said loans extended to the Philippines may decrease with further project delays.

“Every lender has its own lending cap, similar to commercial banks’ single borrower’s limit. Poor utilization rate also signals to lenders that it’s time to trim their loan volumes,” he said via Viber.

Earlier this year, President Ferdinand R. Marcos, Jr. issued Executive Order No. 59, which seeks to fast-track its priority infrastructure projects. Administrative Order No. 20 was also signed to hasten land acquisition for railway projects.

Japan was the top source of official development assistance (ODA) in 2023 with a total portfolio of $12.07 billion. This accounted for 32.36% of the Philippines’ total ODA for the period. — Beatriz Marie D. Cruz

Incheon Airport seen helping elevate NAIA to international standard

Passengers are seen at the departure lobby of the Ninoy Aquino International Airport (NAIA) Terminal 3 in Pasay City. — PHILIPPINE STAR/MIGUEL DE GUZMAN

By John Victor D. Ordoñez, Reporter

INCHEON International Airport Corp.’s (IIAC) technical know-how is expected to help partner San Miguel Corp. (SMC) bring Ninoy Aquino International Airport (NAIA) to a global standard of quality, South Korean Ambassador to the Philippines Lee Sang-hwa said.

“We hope that they can leverage their expertise and worldwide reputation in modernizing NAIA… they are closely consulting with their counterparts including SMC and we hope Incheon’s expertise and views will be well reflected in the decision-making process,” he told BusinessWorld.

“I believe that (IIAC) have almost daily conversations with SMC… I hope things will improve faster than normal.”

The SMC-led New NAIA Infrastructure Corp., which includes the operator of South Korean’s main international airport, took over NAIA operations on Sept. 14, with plans to improve the airport’s roads, expand its terminal and capacity, and upgrade the passenger experience.

The NNIC also includes RMM Asian Logistics, Inc., a logistics company involved in infrastructure projects and RLW Aviation Development, Inc., a Philippine company.

Mr. Lee said IIAC has experts posted to Manila for discussions with their SMC counterparts on plans to improve NAIA.

“Incheon’s main role is to raise NAIA to global airport standards in order for Manila to compete with the region’s international hubs such as Singapore and Hong Kong,” Terry L. Ridon, a public investment analyst and convenor of the think tank InfraWatch PH, said via Messenger chat.

SMC President and Chief Executive Officer Ramon S. Ang told a forum last week that the conglomerate expects to show results and improvements to the airport within six months.

NAIA ranked 199th out of 239 airports in 69 countries in the 2024 global airport ranking report released by flight compensation company AirHelp.

Incheon International Airport was ranked 68th in the same global ranking.

SMC has said it would be spending about P3 billion and P5 billion on a new off-ramp from NAIA Expressway to Terminal 3, while also considering curb pricing schemes for the airport.

The Philippine Institute for Development Studies, in a study last year, said the airport suffered from both passenger and runway congestion.

Rene S. Santiago, former president of the Transportation Science Society of the Philippines, said that while Incheon has a world-class record and is capable of bringing about improvements to NAIA, SMC will ultimately call the shots.

“The situation here is vastly different from Korea’s… SMC is the dominant partner who will set the pace,” he said via Viber.

The Department of Tourism (DoT) is aiming for 7.7 million international tourist arrivals this year.

As of Aug. 7, the Philippines has received 3.62 million inbound visitors, with 92% of them being foreigners, the DoT said last month.

Senators have started floor debate on a bill seeking to provide non-resident tourists VAT refunds for purchases worth at least P3,000, to encourage more visitor spending.

“SMC’s main role is navigating the country’s complex regulatory environment and providing leadership, strategy and financing to the nation’s international gateway,” Mr. Ridon said.

Solicited bidding scheme considered for Davao Int’l Airport modernization

CAAP

THE Department of Transportation (DoTr) said it wants the auction to modernize and operate Davao International Airport to be a solicited process.

The DoTr has said a conglomerate expressed interest in submitting an unsolicited proposal for the airport project.

“They said they are interested in Davao airport, but they have not formally submitted a proposal,” Transportation Secretary Jaime J. Bautista said.

Mr. Bautista declined to identify the company.

“They just expressed interest, they must submit within this year. Because I am planning to make it solicited,” he said.

The DoTr tapped the Asian Development Bank as its transaction advisor for the project, Mr. Bautista said.

If the government takes the solicited proposal route, the terms of reference will already have been defined and thus will go faster, Mr. Bautista noted, judging from the experience of bidding out the Ninoy Aquino International Airport (NAIA) upgrade. This project is considered the fastest public-private partnership (PPP) to progress from submission to investment coordination committee approval and concessions signing.

“Look at our experience with NAIA, it is fast. If we take the solicited route, it will only take a year,” Mr. Bautista said.

On Sept. 14, the San Miguel-led New NAIA Infrastructure Corp. took over the operations and maintenance of the Philippines’ main gateway.

In June, the PPP Center said it delisted the unsolicited proposal for the development, operations, and management of the Davao International Airport, which likely signals the DoTr’s intent to go the solicited route for the project. — Ashley Erika O. Jose

OP control of NIA seen boosting funding prospects for irrigation

EMBASSY OF JAPAN HANDOUT PHOTO

THE government’s transfer of the National Irrigation Administration (NIA) to the Office of the President (OP) is expected to improve its access to funding, analysts said.

“Placing NIA under the OP would help the agency get proper and timely funding,” Federation of Free Farmers National Manager Raul Q. Montemayor said via Viber.

He added that the move could have knock-on effects on the funding of other agencies like the National Food Authority in the form of marketing support to farmers and the Department of Public Works and Highways in terms of building irrigation infrastructure and farm-to-market roads.

“There should however be proper coordination with Department of Agriculture (DA) programs and implementers,” Mr. Montemayor said.

Last week, President Ferdinand R. Marcos, Jr. issued Executive Order (EO) No. 69 transferring control of the NIA from the DA. EO 69 cited the need to streamline and rationalize the functions of the irrigation agency.

In his State of the Nation Address, Mr. Marcos pushed for more irrigation dams and bulk water projects to ensure sufficient usable water for communities.

“It is highly likely NIA will secure additional funding for irrigation projects,” University of Asia and the Pacific Center for Food and Agribusiness Executive Director Marie Annette Galvez-Dacul said via Viber.

She added that the transfer would hasten the decision-making and approval process for major irrigation projects.

On the other hand, Former Agriculture Undersecretary Fermin D. Adriano said that the NIA should have been kept within the purview of the DA. 

“Management-wise, NIA should be under the DA because the former’s services cater to DA’s major clients, which are the palay farmers,” Mr. Adriano said via Viber.

“This assumes that DA leadership understands the science of raising palay productivity, lowering production costs and increasing farmer incomes,” he added.

Leonardo A. Lanzona, Jr., a professor of economics at the Ateneo de Manila, said the NIA mandate is to support agricultural production, and thus should be headed by the DA.

“The NIA does not belong in the OP but in the DA. Irrigation is only of the inputs for production. If improperly applied, in certain situations it can be either ineffective or disruptive to other inputs, such as labor,” Mr. Lanzona said via Facebook messenger.

Only 68% of the country’s farmland is irrigated as of 2023, or an estimated 2.11 million hectares, leaving 1.1 million hectares yet to be irrigated. — Adrian H. Halili

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