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Biofuel decision seen requiring study due to impact on poor

REUTERS

THE decision to raise the biofuel blend must undergo an impact study to consider the possible impact on more vulnerable commuters, an economist said.

Leonardo A. Lanzona, an economics professor at the Ateneo de Manila, said that while the new policy “may be socially acceptable, the burden will be carried disproportionately by the lower-income populations who spend a larger proportion of their incomes on transportation.”

“While the long-term benefits of this program on health may be gained eventually by the poor, careful consideration and impact assessments would be necessary to ensure a just and equitable transition to more environmentally friendly fuels like biodiesel, without unduly burdening vulnerable populations,” he said via chat.

On Monday, the Department of Energy (DoE) announced the guidelines for raising the biofuel content of the biodiesel blend.

Oil companies have been directed to increase the coco diesel blend to 3% starting Oct. 1, to 4% by Oct. 1, 2025, and to 5% by Oct. 1, 2026.

The Biofuels Act of 2006 requires that all liquid fuels for motors and engines contain locally sourced biofuel components.

Since February 2009, fuel retailers have been required to offer a 2% biodiesel blend by volume on all diesel fuel.

Under the new policy, oil companies can also offer gasoline consisting of 20% bioethanol, on a voluntary basis.

At present, the DoE has required a 10% bioethanol blend by volume on all gasoline sold in the Philippines.

The DoE said an estimated net savings of P4.17 per liter of diesel could be realized with an increase of around 10% in mileage, based on a 30,000-kilometer road test using a coco methyl ester blend of 5%.

Meanwhile, increasing the bioethanol blend to 20% could result in a P3.21 per liter reduction in gasoline pump prices.

DoE Director for Energy Policy and Planning Michael O. Sinocruz said raising the biofuel content could help reduce pollution, and generate additional jobs. — Sheldeen Joy Talavera

Collins Aerospace may expand PHL aircraft interiors product lineup

PRNEWSWIRE.COM

COLLINS AEROSPACE, a division of US-listed RTX, is considering making more products at its facility in the Philippines over the next five years, in the process expanding its supply chains in the region.

“It would be interior aircraft products. So it would be a complement to what we do today, which is main cabin seating, galleys, lavatories, and galley inserts. So it would be along those product lines,” according to Mary DeStaffan, general manager of the Collin Aerospace facility in Tanauan, Batangas.

“This is all part of the strategic plan as we continue to grow the business here and support Asian customers. It is still in the works, but the Philippines has the commitment of Collins Aerospace, as (the facility) has a very competitive advantage,” she added.

She said the company prepares a strategic and financial plan over a five-year period, and the company is looking to roll out the additional product lines within the same period.

“Right now, we are looking to do the expansion at our current site. We have an additional footprint available, and once (we get the go signal) and the right products, we will consider expanding at our current location,” she added.

The Collins Aerospace facility is located at the First Philippine Industrial Park in Tanauan, Batangas. It is the largest US manufacturer in the country.

“So it could be a new assembly line, but truly, there is nothing firm right now. We are just exploring different options, and we continue to partner with airlines to understand what they need and how we can support that,” Ms. DeStaffan said.

Collins Aerospace supplies parts to Boeing and Airbus.

“Our (Philippine) site is one of the largest sites within Collins Aerospace, and so the investment that we’ve made here from 2012 until now shows our commitment to be here in the Philippines,” she said.

“I’m excited to lead the site, to continue to advocate for growth here in the Philippines, and to just be a good partner here,” she added.

Ms. DeSteffan said that regionalizing Collins Aerospace’s supply chain does not only mean more revenue for the Philippines but will also allow the company to respond faster to customer demands. — Justine Irish D. Tabile

Agri dep’t sees need for facility to condemn seized farm products

PHILSTAR/MIGUEL DE GUZMAN

THE Department of Agriculture (DA) said it is considering setting up a facility to condemn seized farm goods to prevent them from leaking out onto makets.

“It is better that the DA condemn all the products caught at the pier that are illegal, or probably diseased, or contraband,” Agriculture Secretary Francisco P. Tiu Laurel, Jr. told reporters.

He added that there have been reports of condemned good being diverted to unauthorized uses.

“But as far as the last few months are concerned all condemned goods were (handled) properly,” Mr. Tiu Laurel said.

Separately, Agriculture Assistant Secretary and Spokesperson Arnel V. de Mesa said that the Secretary is proposing to give the DA regulatory powers to condemn smuggled agricultural goods.

“That is to avoid the problem of (the goods) being diverted to the markets,” he added.

“To keep it from happening again, let the DA handle the condemnation,” he said.

Mr. De Mesa added that agricultural goods which have been apprehended should be handled by the Agriculture department.

“Right now there is a third party that’s condemning and (disposing) of the seized goods,” he said. — Adrian H. Halili

Red Planet Hotels targets 20% revenue growth

RED PLANET

By Justine Irish D. Tabile, Reporter

RED PLANET HOTELS is expecting revenue growth of 20% this year, driven by the opening of a new site in Taguig.

“In terms of revenue, we are expecting double-digit growth. We already started that way, and we expect a lot from this (Taguig) hotel. This hotel will be the number one in revenue for sure,” according to Florent Humeau, chief executive officer of Red Planet Hotels, in a roundtable discussion on Monday.

“I think (the revenue) will be 20% higher than last year, or maybe more. (The Department of Tourism) is working to bring more tourism, and I think what makes us also optimistic is that we saw a surge in demand in business last year,” Mr. Humeau added.

He said that revenue in the first four months of the year is already 20% ahead of the year-earlier pace.

“Usually, the best time for our hotel is in October, November, and December, as there is very high demand … So there is no reason for (revenue) to start going down,” he added.

He said that the company was already back at its 2019 occupancy levels as of this year.

“We’re back to what we used to do in 2019 in terms of occupancy… Some properties have already surpassed pre-pandemic sales, while others are in line,” he added.

He said that Metro Manila sites in general have recovered faster than Red Planet hotels outside Metro Manila.

“All the hotels were doing quite well. But the rate of flights has increased quite noticeably in the last few months and is somehow impacting destination hotels (or hotels in Cebu, Cagayan de Oro, and Davao),” Mr. Humeau said.

Set to fully operate this month, Red Planet Bonifacio Global City The Fort marks the company’s 14th branch in the Philippines. It will offer 245 rooms, the company’s biggest hotel in the country.

“There is no other budget hotel (in BGC) yet, so being the first one and the most affordable hotel within BGC, it definitely makes a good opportunity for Red Planet,” Mr. Humeau said.

To date, the company manages 14 properties in the Philippines, ten of which are in Metro Manila, with the others in Clark/Angeles City, Cebu, Cagayan de Oro, and Davao.

Asked about expansion plans, he said that the company is looking to acquire and manage four hotels in the next five years.

“We are looking more outside of Metro Manila. We already have 10 hotels in Manila, so we cover pretty much the whole Metro already. So, yes. We are looking more outside Manila,” he said.

Among the areas that the company is looking for expansion are Iloilo, Bacolod, and General Santos, which are being marketed heavily by the Tourism department.

El Niño farm damage hits P9.5 billion

REUTERS

AGRICULTURAL damage caused by El Niño has been estimated at P9.5 billion, with rice and corn the most affected crops, according to the Department of Agriculture (DA).

In its 11th El Niño bulletin, the DA said crop damage by volume as of May 16 was 426,798 metric tons across 163,694 hectares of farmland, with 175,063 farmers and fisherfolk affected.

Damage to rice was estimated at P4.6 billion or 48.5% of the total. The volume of rice lost was 185,561 MT spanning 83,862 hectares.

Agriculture Assistant Secretary and Spokesperson Arnel V. de Mesa said damage to the rice crop remained below the DA’s estimates.

“The total area affected is 83,000 (hectares)… Still below is our expected total area of 150,000 hectares to be affected,” he told reporters on Tuesday.

The DA said that 71.22% of the affected farmland was partially damaged, with the remainder suffering total losses.

“Most of the damage and losses involved rice in the reproductive and maturing stages,” it added.

Damage to corn was estimated at 180,807 MT valued at P3.17 billion. This made up 33.42% of total damage brought on by El Niño.

It added that high value crops lost amounted to 49,949 MT across 12,856 hectares of farmland. The losses were valued at P1.65 billion, or 17.36% of the total.

Damage to fisheries was estimated at P57.72 million, affecting 2,261 fisherfolk, while livestock and poultry damage was estimated at P10.47 million.

Malaking inakyat nito from the last bulletin. Kasi last bulletin 6.3 billion. So ito na siguro ’yung mga huling papasok ng mga report. (Damage estimates have gone up a lot since the last bulletin (which was) P6.3 billion. So these are probably the last reports to come in),” he added.

Mr. De Mesa said that Mimaropa had suffered the most damage with crop losses valued at P2.6 billion.

This was followed by Cagayan Valley with P2.1 billion and the Western Visayas P1.7 billion.

In a May 6 bulletin, the government weather service, known as PAGASA (Philippine Atmospheric, Geophysical and Astronomical Services Administration), said El Niño is weakening and the likelihood of La Niña to occur is 60% between June and August.

The hotter and drier conditions from El Niño are also expected to persist.

On Monday, the DA said that it had begun monitoring prices of farm goods as the climate transitions to La Niña. — Adrian H. Halili

Spot prices rise in early May on higher power demand

BW FILE PHOTO

ELECTRICITY spot prices rose in early May, driven by higher demand, the Independent Electricity Market Operator of the Philippines (IEMOP) said on Tuesday.

Average electricity prices at the Wholesale Electricity Spot Market (WESM) rose 12.1% to P7.85 per kilowatt hour (kWh) a month earlier.

“Demand in May is around 15,651 (megawatts) which is relatively high compared to the April billing as the heat index continues to increase,” Chris Warren C. Manalo, assistant manager of IEMOP’s market simulation and analysis division, said in a briefing.

Supply during the period was 19,786 MW, 3.1% higher compared to the 19,199 MW a month prior.

The WESM price in Luzon increased 18.9% month on month to P7.88 per kWh.

Supply was 14,144 MW, up 6.3% from a month earlier, while demand rose 10.1% to 11,348 MW.

In the Visayas, the average spot price declined 3.4% to P8.43 per kWh.

IEMOP said supply in the Visayas was 2,425 MW, up 3.2% from a month earlier. Demand rose 8% to 2,162 MW.

“For the ongoing May billing for Mindanao, the price is around P6.98 (per kWh),” Mr. Manalo said. The spot price in Mindanao a month earlier had been P6.43 per kWh.

Mindanao’s supply fell 9.4% to 3,218 MW from a month earlier while demand rose 3.7% to 2,140 MW.

Arjon B. Valencia, manager of corporate planning and communications at IEMOP, said that the demand is expected to ease during the transition to the wet season.

“The expectation is as we transition to the wet season, the temperature we’re experiencing will gradually fall, and with that, consumption will be lower,” Mr. Valencia.

“Historically, as you know, when the second half of June comes, that’s when it rains. Of course, that means our demand will ease,” IEMOP Vice-President for trading operations Isidro E. Cacho, Jr. said.

In its advisory, the government weather service, known as PAGASA (Philippine Atmospheric, Geophysical and Astronomical Services Administration), said that El Niño continues to weaken but impacts such as hotter and drier conditions still persist.

PAGASA said the likelihood for La Niña to develop from June to August is 60%.

YELLOW ALERT
In an advisory early Tuesday, the National Grid Corp. of the Philippines (NGCP) placed the Luzon grid on yellow alert between 1 p.m. and 4 p.m. and between 7 p.m. and 10 p.m.

The NGCP said that the available capacity was 14,687 MW while peak demand was 13,507 MW.

Some 18 power plants were on forced outage between 2023 and May 2024 while six are running at derated capacity, resulting in 2,075.8 MW lost to the grid, according to the grid operator.

The Visayas grid was also put under yellow alert between 2 p.m. and 4 p.m. and between 6 p.m. and 9 p.m.

Available capacity was 2,933 MW while peak demand was 2,614 MW.

One power plant in the Visayas has been on forced outage since 2022, two since 2023, and two between January and March. A total of 11 power plants were out between April and May while five are running derated.

Some 514.1 MW was unavailable to the grid.

A yellow alert is issued when the operating margin is insufficient to meet the transmission grid’s contingency requirements. —  Sheldeen Joy Talavera

Sugar farmers seen benefiting from higher demand after biofuel ruling 

FACEBOOK.COM/VICTORIASMILLINGCOMPANY

A GOVERNMENT order to increase the biofuel content in diesel and gasoline may benefit the sugarcane industry, the Sugar Regulatory Administration (SRA) said.

“It will bring more opportunity for our sugarcane farmers, as there will be bigger demand for cane or molasses,” SRA Administrator Pablo Luis S. Azcona said via Viber, referring to two ingredients in bioethanol production.

According to the US Department of Agriculture (USDA), Philippine fuel ethanol consumption is expected to increase by 8% this year, amounting to 682 million liters.

On Monday, the Department of Energy (DoE) required oil companies to offer gasoline with 20% bioethanol content.

“The increase in blend will also allow ethanol plants to maximize production using local feedstock,” Mr. Azcona added.

The USDA also projected fuel ethanol imports into the Philippines to increase to 280 million liters, servicing about 42% of demand.

“Also, the increase in blend will lower the price of gasoline and diesel. The five million people dependent on the sugarcane industry use fuel for farming and in their daily life,” he added.

The DoE said that the increase in the bioethanol blend could bring down gasoline pump prices by P3.21 per liter.

The SRA reported that milled sugarcane amounted to 21.45 million metric tons (MT) during the 2023-2024 milling season.

The USDA also estimates that sugarcane production will hit 21.5 million MT this year.

However, Mr. Azcona said earlier that El Niño has affected the sugarcane planted for the next harvest season.

It added that the supply of molasses was 1.08 million MT, higher than the 961.9 thousand MT the previous year.

The DoE will also begin increasing the biodiesel blend to B3 (3% coco oil content) by October. This begins the government’s plan to raise the blend to B5 (5%) in the next five years. — Adrian H. Halili

PHL shares retreat as peso sinks to P58:$1 level

BW FILE PHOTO

PHILIPPINE STOCKS retreated on Tuesday as the peso’s drop to the P58 level soured sentiment and amid a lack of catalysts.

The Philippine Stock Exchange index (PSEi) dropped by 0.73% or 49.12 points to end at 6,633.66 on Tuesday, while the broader all shares index fell by 0.36% or 12.93 points to close at 3,535.77.

“This Tuesday, the local market dropped by 49.12 points (0.73%) to 6,633.66 as investors worried over the weakness of the local currency against the US dollar,” Philstocks Financial, Inc. Research and Engagement Officer Mikhail Philippe Q. Plopenio said in a Viber message.

“The Philippine peso breached the P58-per-dollar mark, which has been the lowest in nearly two years. Also, the lack of strong positive leads weighed on the market,” Mr. Plopenio said.

The peso closed at a near 19-month low of P58.27 against the dollar on Tuesday, dropping by 37 centavos from the previous day’s finish of P57.90, data from the Bankers Association of the Philippines showed.

This was the local unit’s worst close since it ended at P58.275 on Nov. 8, 2022.

Year to date, the peso has lost P2.90 from its end-2023 close of P55.37.

“Philippine shares weakened as investors watched the peso slide below the P58 towards the US dollar,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan likewise said in a Viber message.

“Wall Street kicked off the week with a mixed start. The Nasdaq Composite hit a new high, fueled by Nvidia’s 2.5% rally ahead of its earnings report. The S&P 500 edged up slightly, while the Dow Jones Industrial Average dipped nearly 0.5%, largely due to a 4.5% decline in JPMorgan following Jamie Dimon’s retirement comments,” Mr. Limlingan added.

Wall Street was mixed on Monday while gold jumped to an all-time high as investors weighed hawkish statements from the US Federal Reserve against evidence of cooling US inflation, Reuters reported.

The tech-heavy Nasdaq led the pack with a boost from chips, while the blue-chip Dow dipped below 40,000 after closing on Friday above that level for the first time.

At home, almost all sectoral indices ended lower, except for services, which rose by 0.77% or 15.28 points to 1,986.40.

Property fell by 1.28% or 33.32 points to 2,567.48; holding firms went down by 1.09% or 64.53 points to 5,831.03; financials decreased by 1.09% or 22.37 points to 2,027.57; mining and oil retreated by 0.53% or 52.04 points to 9,666.46; and industrials declined by 0.53% or 49.44 points to 9,200.38.

Value turnover rose to P9.8 billion on Tuesday with 2.95 billion shares changing hands from the P5.8 billion with 513.47 million issues traded on Monday.

Decliners beat advancers, 99 against 86, while 48 names closed unchanged.

Net foreign selling declined to P70.56 million on Tuesday from P248.11 million on Monday. — R.M.D. Ochave with Reuters

DoH bucks travel curbs amid coronavirus spread

PHILIPPINE health authorities on Tuesday bucked travel limits on countries with rising coronavirus infections, saying the usual protocols are enough to stop the spread of more variants.

The Department of Health (DoH) is working with international health authorities, and its Bureau of Quarantine is keeping watch over points of entry nationwide, it said in a statement posted on its website.

“There is no scientific basis for travel restrictions to any country because of an increase in COVID-19 cases,” it said. “The voluntary use of face masks should be done properly, along with standard precautions like hand washing, avoiding crowds, and choosing good airflow.”

Five patients in the Philippines died from the coronavirus in the two weeks to May 13, the DoH said.

The agency said it continues to track coronavirus cases, and newly designated variants are under monitoring “in parallel with international developments.” “All Philippine regions remain to be at low risk from COVID-19.”

The World Health Organization (WHO) is monitoring the KP.2 and KP.3 coronavirus variants, and there is no evidence that they are causing severe to critical cases here and overseas, the DoH said.

As of May 12, 11% of 1,117 dedicated COVID-19 intensive care unit (ICU) beds in the Philippines were occupied, while 13% of 9,571 COVID-19 non-ICU beds had been used, the agency said.

There were 116 severe and critical COVID-19 patients admitted to various hospitals, it added, citing hospital reports.

The DoH said 877 new COVID-19 cases were reported on May 7 to 13, with an average of 125 daily cases.

“While there is an observed increase recently, it is small and lower than previously observed increases,” it said.

Out of the new patients, seven were severe or critical.

The Health department noted that by law, doctors, their clinics, hospitals and other facilities must report COVID-19 cases, whether tested by reverse transcription polymerase chain reaction (RT-PCR) or rapid antigen test.

“This will help guide public health decision-making.”

Three new coronavirus variants are being monitored by the WHO — JN.1.18, KP.2 and KP.3, all of which are descendants of the JN.1 variant, the DoH said.

Variants KP.2 and KP.3 are the proper names of what is informally known as the “FLiRT” variants, a nickname coined by some researchers to describe amino acid changes in the COVID-19 spike protein.

“The WHO observed that there are currently no reported laboratory or epidemiological reports indicating any association between variants of interest and variants under monitoring and increased disease severity,” the DoH said.

It said good respiratory hygiene — covering the mouth and nose when coughing, washing one’s hands, avoiding crowds and ensuring good airflow — “are tried and tested ways to prevent influenza-like illnesses including COVID-19.”

“It is also best for those who feel ill to stay at home for the meantime, or to properly wear a mask should there be a need to go out,” it added.

The coronavirus had sickened about 704.8 million and killed more than million people worldwide as of April 13, according to the Worldometers website, citing various sources including data from the WHO.

About 675.6 million people have recovered, it said.

The website is no longer being updated because most countries have stopped reporting COVID-19 cases.

In the Philippines. 4.1 million have been sickened by the coronavirus as of Jan. 8, with 66,864 deaths, according to DoH data. More than 4.1 million people have recovered, with 6,138 active cases. — Norman P. Aquino

Marcos: New Senate chief to lead passage of priority and ‘transformative’ bills

SENATE PRIB

By John Victor D. Ordoñez, Reporter

PHILIPPINE President Ferdinand R. Marcos, Jr. said he is banking on the new Senate president to lead the chamber in passing priority bills.

“Senator Chiz steps into this role following the commendable tenure of Senator Juan Miguel F. Zubiri, and I am confident that under his leadership, the Senate will continue to prioritize transformative laws to achieve our shared vision for a Bagong Pilipinas,” he said in a statement.

“His legislative record and commitment to public service have distinguished him as a dedicated leader,” he added, referring to Senator Francis “Chiz” G. Escudero.

Mr. Escudero on Tuesday replaced Mr. Zubiri, who said he was booted out because he had “ruffled some feathers.” He did not elaborate.

At a separate news briefing, newly elected Senate Majority Leader Francis N. Tolentino said the new Senate leadership would focus on the New Government Procurement bill before Congress goes on a break next week.

He added that some congressmen had asked the Senate to retain most committee chairmen to ensure deliberations on pending bills are not stalled.

“The instruction given to me is [that we are] full steam ahead with the procurement law,” Mr. Tolentino said in mixed English and Filipino.

Michael Henry LI. Yusingco, a senior research fellow at the Ateneo de Manila University Policy Center, said the change in Senate leadership is unlikely to dampen infighting between lawmakers.

“On the contrary, it might even embolden both sides to ramp up the vitriol against one another,” he said in a Facebook Messenger chat.

“The sad part here is that the Legislative-Executive Development Advisory Council’s list of priority legislation will likely take a backseat to intense partisan politics,” he added.

Mr. Zubiri on Monday said the push for constitutional amendments would likely weaken given the new Senate president’s opposition to easing the Charter’s economic restrictions.

Mr. Escudero on Monday said he does not plan on changing his mind about constitutional amendments.

Arjan P. Aguirre, who teaches political science at the Ateneo de Manila University, said Mr. Zubiri could have been seen by his peers as indecisive.

“In the two years of his leadership, the senate was seen as merely responding to whatever the House of Representatives counterparts were advancing,” he said in a Messenger chat.

“His way of doing politics no longer fits the kind of politics that has emerged, with increasing tensions between the factions within the ruling coalition,” he added.

Mr. Zubiri earlier said he was aware of criticisms from supporters of Mr. Marcos and ex-President Rodrigo R. Duterte.

“It is a question of whether they can still get things done in the remaining months,” Maria Ela L. Atienza, who teaches political science at the University of the Philippines, said in a Viber message.

“The expectation is they would be more supportive of the President’s agenda.”

Philippines says China Coast Guard rule against UNCLOS

BRP SIERRA MADRE, a marooned transport ship which Philippine Marines live in as a military outpost, sits on the disputed Second Thomas Shoal, part of the Spratly Islands in the South China Sea. — REUTERS

By Kenneth Christiane L. Basilio

THE PHILIPPINES on Tuesday said China’s policy of allowing its coast guard to detain foreigners trespassing in the South China Sea violates international law.

“We have to see what will happen but obviously whatever they said… is inconsistent with the United Nations Convention on the Law of the Sea (UNCLOS),” Foreign Affairs Secretary Enrique A. Manalo told reporters on Tuesday.

Last week, China’s coast guard published rules to enforce a 2021 law allowing authorities to fire on foreign vessels when its sovereign rights are infringed. The law also allows it to detain foreign fishermen.

The Philippines’ National Security Council (NSC) on Monday said China has no authority over the high seas, dismissing these as a “scare tactic” to intimidate and coerce Asian neighbors.

“The Philippines will not be intimidated or coerced by the Chinese Coast Guard,” NSC spokesman Jonathan E. Malaya told a news briefing. “We will never succumb to these scare tactics.”

He said countries like Vietnam, Malaysia, Brunei and Indonesia should continue to sail and fish in the South China Sea “to the extent that international law allows.”

Meanwhile, officials under ex-President Rodrigo R. Duterte said the government did not enter into any “gentleman’s agreement” with China regarding resupply missions to Second Thomas Shoal, where the Philippines grounded a World War II-era ship in 1999 to assert its sovereignty.

But Mr. Duterte did uphold a 2013 commitment by the government of the late President Benigno Simeon C. Aquino III that only food supplies would be delivered to the BRP Sierra Madre, former Executive Secretary Salvador C. Medialdea told a House of Representatives hearing.

“The information I gathered was that there was a previous commitment that [only] food and water will be allowed to be shipped to the dilapidated vessel,” he told congressmen.

Mr. Duterte is said to have agreed with Chinese President Xi Jinping to keep the status quo at the disputed shoal, known to Filipinos as Ayungin, by excluding building materials from its resupply missions.

“The narration shows that there’s no ‘gentleman’s agreement,’ however we maintained the status quo,” Party-list Rep. Ramon Rodrigo L. Gutierrez said.

Voltaire T. Gazmin, Mr. Aquino’s Defense chief, had committed to bring food stuff to the grounded vessel, Mr. Medialdea said, though there was no commitment to bar repairs for the BRP Sierra Madre.

“The status quo at Ayungin Shoal… was in a 2013 commitment of former Defense Secretary Gazmin to the Chinese ambassador Ma Keqing that he would only deliver food and water to the marines stationed at the vessel,” he said.

Mr. Duterte did not rescind the status quo commitment by Mr. Aquino, he added.

Former Defense Secretary Delfin N. Lorenzana said the Philippines had tried to repair the BRP Sierra Madre in 2021 despite an earlier commitment to only bring food supplies to it.

Chinese Coast Guard vessels started firing water cannons at Philippine resupply ships to Second Thomas Shoal in November 2021, accusing Manila of transporting building materials to the grounded ship.

The government only wanted to “repair the sleeping and living quarters” of a handful of Filipino soldiers stationed at BRP Sierra Madre. Beijing accused Manila of “strengthening the ship as a whole,” he added.

Mr. Lorenzana said Chinese Ambassador to the Philippines Huang Xilian had complained about the resupply missions at Second Thomas Shoal during a Nov. 16, 2021 conversation between him and the Chinese diplomat on the water cannon incident. — with John Victor D. Ordoñez

Senate OKs New Procurement bill

BW FILE PHOTO

THE PHILIPPINE Senate on Tuesday approved on third and final reading a bill that seeks to set up a single electronic procurement portal and allow agencies to buy equipment from electronic marketplaces.

All 23 senators approved Senate Bill No. 2593 or the New Government Procurement bill, which President Ferdinand R. Marcos, Jr. Has certified as urgent.

The measure aims to streamline the procurement process to 27 days from 120 days.

It will establish new modes of procurement that will allow the direct purchase of goods from suppliers with a good track record, and the direct purchase of goods used for research and development.

Under the bill, procurement conferences and bidding for goods costing more than P20 million, infrastructure projects above P50 million and consulting services above P10 million must be videotaped for transparency.

Representatives from the private sector and civic groups will observe all stages of the procurement process.

Agencies are also barred from splitting government contracts.

The House of Representatives passed its version of the measure on final reading last year.

The bill will set up a Government Procurement Policy Board headed by the Budget secretary that will oversee government procurement.

Senator Juan Edgardo M. Angara, who sponsored the bill, earlier said it was crucial to improve procurement since many agencies tend to go for the lowest bidder, which often short-changes the government with subpar goods. — John Victor D. Ordoñez