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Study identifying viable sites for offshore wind due in first quarter

INSUNG YOON-UNSPLASH

A STUDY identifying the most suitable sites for offshore wind projects is expected to be released “very soon,” the US Agency for International Development (USAID) said.  

“We are in the process and waiting for the results of the marine spatial planning study which would basically define eligible areas for offshore wind. We hope that comes out very soon,” Divina B. Chingcuanco, chief of party of the USAID Energy Secure Philippines program, said at an energy forum last week. 

The study, which is expected to provide guidance on how to integrate offshore wind energy with the power grid, is expected to be released by the first quarter of 2024, she said.

The Energy department has said that 79 offshore wind service contracts were awarded this year with a combined capacity of 61.93 gigawatts (GW). The government’s Offshore Wind Roadmap estimates a Philippine potential capacity of 178 GW in offshore wind resources.

In October, the Department of Energy and the Asian Development Bank identified at least nine ports including Iloilo City which can be repurposed to service offshore wind operations.

“We have requested local government units (LGUs) to identify potential sources of renewable energy. The LGUs are now actually looking into that, they are now considering and identifying areas,” said Rolando B. Distura a board member for Iloilo province. — Ashley Erika O. Jose

Expanded US chip collaboration could relegate Philippines to lower-value products

STOCK PHOTO

By Kyle Aristophere T. Atienza, Reporter

A PROPOSAL to expand the Philippines’ role in US semiconductor value chains could significantly reduce the value of Philippine exports, an economist warned.

Leonardo A. Lanzona, an economics professor with the Ateneo de Manila, said the price of semiconductors could significantly fall “once increased domestic production begins.”

“The Philippines will become just a source of cheap semiconductor imports for the US especially as countries like China, Taiwan and Singapore are already giving up these products and developing other higher value-added products,” he said in a Facebook Messenger chat.

Last week, the US announced that it will collaborate with the Philippines “to explore opportunities to grow and diversify the global semiconductor ecosystem” under the US CHIPS Act’s International Technology Security and Innovation Fund, a $52-billion subsidy program for US semiconductor manufacturers and research.

The initial phase will involve a comprehensive assessment of the Philippines’ semiconductor ecosystem and regulatory framework, as well as workforce and infrastructure needs. It was not immediately clear whether the partnership would involve technology transfer. 

The US, through the CHIPS Act, is seeking to incentivize chipmakers to relocate from China back to the US or to other friendly countries. It is also concerned about the vulnerability of Taiwan’s advanced chip industry to disruption from China.

While semiconductors involve complex manufacturing processes and advanced technology in their production, “these products are just inputs to higher value-added products such as consumer electronics, industrial automation and renewable energy,” Mr. Lanzona said, noting that prices have decreased by almost 45% since the 1990s.

“We have learned enough technology from the production of (semiconductors). It is time to fly our own balloon and create our own global value chains.”

Electronics are the leading Philippine export, accounting for just under half of all shipments.

“This collaboration between the US and the Philippines underscores the significant potential to expand the Philippines’ semiconductor industry, to the benefit of both of our nations,” the US State Department said.

Asked to comment on the US-Philippines partnership in the semiconductor value chain, SEIPI President Danilo C. Lachica said in a Viber message: “Electronics account for 62% of Philippine commodity exports,” adding that he hopes the US will become a bigger investor and market.

The US and the Philippines are deepening their defense relationship in the context of an increasingly hostile China.

Speaker Martin G. Romualdez, a cousin to Mr. Marcos, said in a statement following the partnership that “US investments into the semiconductor sector will create more jobs for our people” and “generate considerable revenue for the government.”

“While increasing and strengthening the ties with the US especially for security purposes is welcome, it is important that we don’t fall into the trap of being on the losing end of the deal,” Mr. Lanzona said. “While we sell these inputs at a cheap price, we will end up buying the processed products at a much higher price.”

Last week, President Ferdinand R. Marcos, Jr. told the US Semiconductor Industry Association (SIA) that the Philippines wants to play a bigger role in US value chains.

The Philippines is ready to “absorb and support the additional corresponding capacity for assembly, packaging, and test “as the US increases its front-end wafer capacity for advanced technologies and products under the CHIPS Act,” he said in a roundtable discussion with SIA on the sidelines of the APEC Summit in San Francisco.

He proposed the establishment of a wafer fabrication facility in the Philippines that can support a proposed SEIPI science and technology center.

“Another viable alternative is to have a Philippine-based US semiconductor company build a proof-of-concept wafer fab near their facility with the participation of promising candidates such as Texas Instruments and Analog Devices,” he added.

Taiwan has been beset by increasing pressure from China, which considers the island a rogue province that it hopes to reunify with.

Don Mclain Gill, who teaches international relations at De La Salle University, said the partnership marks a significant milestone in Manila’s economic ties with Washington.

“More can be done from both ends to maximize their potential at a time when China has once again registered as the Philippines’ largest trade partner,” he said via Messenger chat.

He said Manila must continue to make domestic conditions conducive for foreign investment as western countries seek to “diversify their production and sources (in light of the) burgeoning US-China big-power competition.”

“While Vietnam and Indonesia have cemented their positions as large beneficiaries, the Philippines must continue to improve its domestic economic climate to leverage the current geopolitical dynamics.”

Citing national security, Washington last month reduced the types of semiconductors that US companies can sell to China, in a move that further tightened a set of similar export controls that President Joe Biden first introduced in October 2022.

In response, China, which accounted for 36% of US semiconductors sales last year, accused Washington of “weaponizing trade and tech issues.”

Mr. Lanzona called on the Philippines to come up with a “comprehensive industrial policy” at the national level.

“We need to think about the unintended consequences of these negotiations and consider how we can improve our innovation and resiliency, beyond producing these inputs which can be used to trample further our economy,” he said.

“Included in this industrial policy should be a well thought out skills development program since we cannot possibly move up the ladder and catch up with the other higher income countries without improving our skills, qualifications and competencies in producing higher-end products.”

LGU share of tobacco tax set at P21 billion

BW FILE PHOTO

THE Department of Budget and Management (DBM) said P21 billion will be allocated to local government units (LGUs) as their share of excise tax collections on cigarettes and tobacco.

In a memorandum, the DBM said P17 billion of the allocation was generated from excise taxes on locally manufactured Virginia-type cigarettes to beneficiary provinces, pro-rated according to volume of production.

Some P4 billion was also generated from excise taxes on burley and native tobacco products, to be distributed among provinces depending on their burley and native leaf production.

The DBM distributes LGU shares for 2023 based on collections recorded in 2021.

It also said the funds from the locally manufactured Virginia-type cigarettes will be utilized to “advance the self-reliance of the tobacco farmers.”

This will be done through cooperative projects, livelihood projects, agro-industrial projects, and the like.

Funds from the burley and native tobacco shares will fund support programs for displaced tobacco farmers. — Luisa Maria Jacinta C. Jocson

Nuclear deal seen addressing PHL need for baseload power

PNRI.DOST.GOV.PH

THE Philippine’s nuclear cooperation pact with the US is expected to address the Philippines’ need for reliable baseload power currently filled by coal-fired power plants, analysts said, though its readiness for nuclear power remains in question.

“As we push for integration of more renewables in the Philippine energy mix, we fully understand the need for more baseload power to balance the system,” Jose M. Layug, Jr., president of Developers of Renewable Energy AdvanceMent, Inc., said in a Viber message.

Mr. Layug said that the accord “will result in more affordable baseload power to complement the increase in RE (renewable energy) power plants in the Philippines.”

Renewables suffer from an intermittency problem when wind is not powering wind farms or what solar arrays are not charging at night. The proposed solution is batteries to store the excess power generated in high-wind or intense-sunlight situations for later use, though battery technology remains immature.

“We laud the government in its earnest efforts to explore and look at all possible energy resources to meet its objective of ‘affordable, accessible, reliable and clean energy’ for Filipinos under the Philippine Development Plan,” Mr. Layug said.

On Friday, the Philippines and the US signed the Agreement for Cooperation Concerning Peaceful Uses of Nuclear Energy or the so-called “123 Agreement.”

Energy Secretary Raphael P.M. Lotilla signed on behalf of the Philippines as chairman of the Philippine Nuclear Energy Program Inter-Agency Committee while Secretary of State Antony Blinken signed on behalf of the US.

The signing ceremony was witnessed by President Ferdinand R. Marcos, Jr. on the sidelines of the annual Asia-Pacific Economic Cooperation Leader’s Week in San Francisco.

According to the Department of Energy, the bilateral deal will set the legal framework for potential nuclear power projects with US providers — taking into account the standards and safeguards set by the International Atomic Energy Agency.

The agreement will allow the transfer of “information, nuclear material, equipment, and components” directly between the Philippines and the US.

This will also lead for streamlining of licensing requirements for the private sector with respect to investment in nuclear-related intangible transfers of technology.

“Beyond nuclear power applications to combat climate change, the new agreement facilitates cooperation in a wide array of other peaceful uses of atomic energy — all supportive of various Sustainable Development Goals — including plant breeding, livestock production, insect pest control, soil and crop management, water use efficiency, plastic waste disposal, food safety, health and medicine,” Mr. Lotilla said.

Bienvenido S. Oplas, Jr., president of Minimal Government Thinkers, said that citing his own projections, the Philippines would need about nine terawatt-hours (TWh) of additional power if the economy is to grow 6-8% annually.

“Coal can easily provide that but since the Philippines killed greenfield coal (projects), only brownfield coal is allowed, hence additions will be limited. (That is why) we should go nuclear,” Mr. Oplas said in a Viber message.

“In 2022, wind and solar combined output was about 3 TWh, with incremental or extra increase of only 0.5 TWh or less a year. We will have massive blackouts nationwide if we rely on wind and solar; annual GDP growth might crawl to 2% or less,” he said.

The Philippines is also facing the prospect of a depleted Malampaya gas field, the country’s only indigenous commercial source of natural gas.

As part of its climate goals, the Philippines wants to increase the share of renewables in the power mix to 35% by 2030 and 50% by 2040.

Gerry C. Arances, executive director of Center for Energy, Ecology, and Development, said that the Philippines lacks the legal framework, nuclear energy expertise, safety and management framework plans, and other basic expertise to guarantee safety.

He said, “the absence of all these also dictate that nuclear will not be a solution to our near and mid-term power challenges.”

“Our abundant renewable energy potential, including 1,200 GW of solar and wind alone, makes it clear that we have no need for nuclear energy and other false solutions to bring affordable and clean energy within arm’s reach,” he said. — Sheldeen Joy Talavera

Innovating for green and sustainable growth

With the Philippines undergoing rapid urbanization, industrialization, and environmental degradation, the government is taking the initiative to steer the country towards green growth and sustainable development. To be globally competitive, the government and businesses alike must prioritize innovative approaches, fostering technological advancement, and implement incentive mechanisms that promote environmental protection while driving long-term economic growth.

 As such, the government has been actively ramping up efforts to encourage new and current investors to support this green and innovative drive through government-led incentive programs such as the Strategic Investment Priority Plan (SIPP) and the incentives under the Renewable Energy Act.

 For business owners and investors, the SIPP is a crucial policy that serves as a roadmap and guide to identifying priority sectors and industries that play a pivotal role in achieving the country’s development goals, including the creation of employment opportunities and export growth.

This is the fourth article in our series following the 2nd SGV Tax Symposium, which focused on how a sustainable and effective tax ecosystem can advance the sustainability agenda for both the public and private sectors. In one of the discussions by the Board of Investments, the speaker presented the SIPP goals for nation building briefly covered below.

THE LABOR-INTENSIVE ECONOMY
According to the Department of Finance (DoF), the unemployment rate in the first eight months of 2023 improved to 4.6% compared to the 5.3% rate from a year earlier. This is a positive development in a labor-intensive country. It is recognized that the workforce plays a vital role in growth and development. With a population of over 118 million in 2023, the Philippines presents a unique opportunity for labor-intensive industries to flourish. Noteworthy though is that being labor-intensive may also be the reverse of technological advancement; thus, it is a challenge to strike a balance between technological innovation and human involvement.

GLOBALLY COMPETITIVE INFRASTRUCTURE
Through the SIPP, the current administration acknowledges the need to hasten the transformation into a modern and efficient economy with highly developed infrastructure, such as efficient transportation systems, roads, bridges, and airports.

The National Economic and Development Authority (NEDA) in March announced that the administration approved high-impact infrastructure flagship projects worth P9 trillion, in line with the “Build Better More” infrastructure program.

Investors may want to delve into projects that will provide adequate infrastructure to promote and support the movement of goods and services across the country, thus reducing transportation costs and improving overall efficiency. Globally competitive infrastructure is also going to manifest in improved healthcare facilities, the availability of affordable housing, and enhanced education.

TECHNOLOGY
One of the focus areas of the SIPP is technology advancement and innovation. By embracing technology advancement, the Philippines seeks to develop a competitive edge, attract digital investment, foster entrepreneurship, and build a strong digital economy. The Department of Trade and Industry (DTI) is likewise pushing for the acceleration and growth of innovation.

As technology will depend on favorable factors, the focus areas for improvement ought to include lowering the cost of power and stabilizing the supply of energy, regardless of location in the Philippines.

CLIMATE CHANGE
With its goal of fostering green growth, the Philippines aims to position itself as a regional hub for carbon-reducing activities. The growth of the renewable energy sector and the transition to cleaner and more sustainable energy sources can be further promoted by making investors and stakeholders alike more aware of the fiscal and non-fiscal incentives on offer for those who invest in energy efficiency projects. 

During the 2nd Tax Symposium, the DTI speaker discussed the energy efficiency projects (EEP) under the 2022 SIPP. In relation, BoI Memorandum Circular 2023-006 was issued as an amendment to the Specific Guidelines on Registration of Energy Efficiency Projects covered by Republic Act No. 11285.

Under the circular, for the self-financed, the EEP shall only be entitled to the Income Tax Holiday (ITH) incentive and duty exemption on imports of capital equipment, raw materials, spare parts and accessories. The ITH incentive is limited to the prescribed ITH entitlement period under the CREATE Act or until the recovery of 50% of its capital investment, excluding cost of land and working capital of the registered EEP, whichever comes first.

STRATEGIC INVESTMENT PRIORITY PLAN INCENTIVES
 It can be inferred from the SIPP that these objectives for nation building are aligned with the global shift towards a sustainable and green economy through innovation and technological advancement. Businesses can be partners of government and align their investments and projects with the administration’s goal for the Philippines to be a regional hub for globally competitive, innovation- and sustainability-driven industries. Amplifying one’s knowledge of priority sectors vis-à-vis incentives can lead to opportunity and to expansive industries — these include electric vehicles, smart/high-tech light manufacturing, high-tech agriculture, renewable energy, and data centers.

To highlight these attractive incentives, PEZA presented during the symposium that the incentives granted to industries identified by the SIPP include the enjoyment of a four to seven-year ITH. The incentives will depend on the location, the industry, and whether the company is a domestic or export-oriented enterprise as provided under the CREATE law.

After the period of enjoyment, export enterprises can avail of a special corporate income tax of 5% or enhanced deductions. On the other hand, domestic enterprises are entitled to the latter after the ITH period. These deductions are in addition to the allowable ordinary and necessary deductions under the Tax Code, as amended. In addition, companies eligible are entitled to duty and VAT exemption for imports of capital equipment, raw materials, spare parts, and accessories directly and exclusively used in the registered activity. Local purchases directly and exclusively used in the registered activity are also entitled to VAT zero rating.

OTHER GREEN INCENTIVES AVAILABLE
Aside from the SIPP, the Philippines has placed a spotlight on the incentives under the Renewable Energy Act. As an overview, industries eligible under this act are entitled to an ITH of seven years from the start of commercial operations. The maximum period that can be availed of is 21 years, inclusive of the initial seven years. Further, after the ITH period, a 10% corporate tax on net taxable income may be availed of, provided that the savings must be passed on to end-users in the form of lower power rates.

When evaluating the incentives offered in the Philippines, businesses contemplating investment may need to carefully assess the available options to determine which are the most advantageous for their specific needs. Each company will have to consider the various applicable incentives and determine which can provide them with greater benefits.

The Philippines, being rich in natural resources including renewable sources, and having a pool of talented workers, is making strides towards sustainable development by leveraging innovative solutions and incentivizing green practices. By harnessing these incentives and supporting ongoing innovation, the Philippines is poised to become a regional leader in green growth and a model for other countries seeking sustainable development.  

 This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinions expressed above are those of the authors and do not necessarily represent the views of SGV & Co. 

 

Cheryl Edeline C. Ong is a tax partner and Anne E. Momongan-Lim is a tax senior manager of SGV & Co.

Marcos arrives in Hawaii for visit to US Indo-Pacific Command headquarters

PHILIPPINE STAR /KRIZ JOHN ROSALES

By Kyle Aristophere T. Atienza, Reporter

PHILIPPINE President Ferdinand R. Marcos, Jr. on Sunday arrived in Honolulu, Hawaii, where he was expected to have a “capability orientation” amid worsening tensions with China.

While in Honolulu, the last stop of his weeklong US trip, the President would visit the US Indo-Pacific Command headquarters, the presidential palace said in a statement on Sunday.

He will be briefed about the Joint Base Pearl Harbor–Hickam, which combines two historic bases into a single joint installation to support both US Air Force and Navy missions, and the West Philippine Sea Support, it said.

Mr. Marcos will also attend a roundtable meeting at the Daniel Inouye Asia Pacific Center for Security Studies.

His visit to the US Indo-Pacific Command and meeting with the Daniel Inouye Asia Pacific Center for Security Studies, which provides a forum for civilian and military leaders from the region to address regional and global security issues, comes on the heels of increasing tensions in the South China Sea.

The Indo-Pacific Command, the oldest and largest of the 11 unified commands of the US, is responsible for all US military activities in the region, covering 36 nations or more than 50% of the world’s population.

Its commander is responsible for more than 380,000 soldiers, sailors, marines, airmen, guardians, coast guardsmen and civilian forces of the US Defense department.

“A Philippine president visiting the oldest and of the largest commands in the US armed forces is symbolic and at the same time practical,” Joshua Bernard B. Espeña, who teaches foreign relations at the Polytechnic University of the Philippines, said via Google Meet.

It shows that the US commitment to defend the region amid a deteriorating security situation is credible, he added.

The growing involvement of the Philippines in the US Indo-Pacific strategy could spur negative responses from its neighbors who want to be spared from the escalating tension between the US and China, he said.

But Manila’s insecurity in the South China Sea is also the Association of Southeast Asian Nations’ (ASEAN) insecurity, Mr. Espeña said.

“Privately, some Southeast Asian nations will be happy with what we are doing,” he said, citing countries such as Vietnam that are also concerned about an increasingly belligerent China.

He said the Philippines has leaned on the US, which has vowed to make the region “free, open and prosperous,” due to ASEAN’s failure to come up with a collective response to China’s increasing assertiveness at sea.

Mr. Marcos’ visit to the Indo-Pacific Command headquarters signals the willingness of the Philippines, a rising middle power, to play a major role in keeping a rules-based order in the region, he added.

The US has focused on the Indo-Pacific region since 2021 after pulling its troops out of Afghanistan.

The world’s busiest international sea lanes and nine largest ports are found in the region, which is home to two of the three largest economies in the globe — the US, China and Japan.

The Indo-Pacific’s security feature is also unique because it is home to seven of the world’s 10 largest military powers and five of the world’s nuclear nations.

Aside from conflicts in the South China Sea, the Indo-Pacific region, which accounts for nearly two-thirds of the world economy, also must deal with tensions in the Taiwan Strait and nuclear threats from North Korea.

Mr. Marcos was expected to meet with the Filipino community in Hawaii, where his family stayed in 1986 after a popular uprising toppled the autocratic rule of his late father and namesake.

Swarm of Chinese militia ships seen off Sabina Shoal, says US think tank

AFP WESTERN COMMAND PHOTO

AS MANY as 14 Chinese militia ships entered Sabina Shoal at the weekend after months of waning presence, a US think tank said on Sunday, citing satellite images.

The ships were “working illegally” at the shoal, the Gordian Knot Center for National Security Innovation said on its website, based on sattelite images from Nov. 18.

“As recently as Nov. 12, there were only three ships visible there, but imagery from Planet Labs now clearly shows 12 ships, with suggestions that at least two more may be present but were partially covered by a cloud,” Gordon Knot said.

The Chinese Embassy in Manila did not immediately reply to a Viber message seeking comment.

The number of Chinese vessels at Sabina Shoal has increased but not at the level from early this year, when Philippine Coast Guard patrols saw as many as 26 ships there, it said.

The security think tank said the number of Chinese ships at Iroquois Reef had “dropped dramatically from Nov. 11 to 12, and “it isn’t clear whether any of the vessels now at Sabina were previously at Iroquois.”

The presence of Chinese vessels within the Philippines’ exclusive economic zone in the South China Sea comes just days after Philippine President Ferdinand R. Marcos, Jr. and Chinese President Xi Jinping sought ways to cool tensions in the South China Sea.

Mr. Marcos earlier told reporters they “tried to come up with a mechanism to lower tensions in the South China Sea” during a meeting on the sidelines of the Asia Pacific Economic Cooperation (APEC) Summit in San Francisco.

At their meeting, the Philippine leader also expressed concern over incidents between Chinese and Philippine vessels, including a recent collision.

He also raised the plight of Filipino fishermen, asking the Chinese leader to “go back to the situation where both Chinese and Filipino fishermen were fishing together in these waters.”

Gordon Knot said a segment of the People’s Armed Forces Maritime Militia called the Spratly Backbone Fishing Fleet is known to operate regularly at both Sabina Shoal and Iroquois Reef. 

The Asia Maritime Transparency Initiative said in a 2021 report these ships “are a subset of domestic fishing vessels that meet certain minimum requirements of length, tonnage and power that operate in the Spratly Islands to fulfill political goals on behalf of the Chinese government.”

It said each ship is required to operate in the contested areas for at least 280 days yearly to receive subsidies from the Chinese government worth $1 million yearly.

Tensions between the Philippines and China have worsened after the Chinese Coast Guard fired water cannons to block Manila’s attempt to deliver food and other supplies to a grounded ship at Second Thomas Shoal on Aug. 5.
The Philippines last month filed a diplomatic protest against China and summoned its envoy in Manila after Chinese ships collided with Philippine vessels on a resupply mission to Second Thomas Shoal, where it deliberately grounded a World War II-era ship in 1999 to assert its sovereignty.

China claims more than 80% of the South China Sea, which is believed to contain massive oil and gas deposits and through which billions of dollars in trade passes each year.

It has ignored the 2016 ruling by the United Nations-backed arbitration court that voided its claim based on a 1940s map.

The Philippines has been unable to enforce the ruling and has since filed hundreds of protests over what it calls encroachment and harassment by China’s coast guard and its vast fishing fleet. — Kyle Aristophere T. Atienza

Duterte told not to sow discord between House, AFP

RODRIGO DUTERTE — PRESIDENTIAL PHOTO/ ROBINSON NIÑAL

A CONGRESSMAN on Sunday urged ex-President Rodrigo R. Duterte to stop creating tension between the military and the House of Representatives.

“I respectfully appeal to former President Rodrigo Duterte to recognize the paramount importance of keeping our Armed Forces and national police free from partisan politics,” House Majority Leader and Zamboanga City Rep. Manuel Jose M. Dalipe said in a statement.

“These institutions serve as the bedrock of our nation’s security, and their effectiveness relies on unity and impartiality.”

The ex-President on Nov. 15 told SMNI channel TV in Filipino: “Watch the military as well as the police closely. You who are conniving in Congress, I am not scaring you, but watch the military and the police.”

“That’s why I’m not worried that they will prevail… because the military is there,” Mr. Duterte said.

Mr. Dalipe called Mr. Duterte’s remarks “baseless statements.”

“The Armed Forces of the Philippines and Philippine National Police have more important things to do than watch Congress, as claimed by the former President,” he added.

The congressman said the military and police must be insulated from partisan activities and should maintain the highest degree of professionalism.

The House on Nov. 6 passed a resolution upholding its “integrity and honor” after Mr. Duterte issued scathing remarks against the institution.

Mr. Duterte described the House as the country’s “most rotten institution” after congressmen on Oct. 10 stripped several agencies including the Office of the Vice President and the Education department of their confidential funds.

Lawmakers transferred P1.23 billion worth of these budgets to security agencies amid worsening tensions with China.

Mr. Duterte is the father of Vice-President Sara Duterte-Carpio, who is also Education secretary.

Ms. Duterte-Carpio in May resigned from Lakas-CMD after congressmen demoted her ally, former President and Pampanga Rep. Gloria Macapagal Arroyo, from the senior deputy speaker post. — Beatriz Marie D. Cruz

Labor, youth groups back transport strike

PHILIPPINE STAR/ MIGUEL DE GUZMAN

By Ashley Erika O. Jose, Reporter and Jomel R. Paguian

THE LAND Transportation Franchising and Regulatory Board (LTFRB) said on Sunday it expects the three-day nationwide transport strike beginning Monday to have a minimal impact, even as the group spearheading it has gained support from labor and youth groups.

The Pinagkaisang Samahan ng mga Tsuper at Operators Nationwide (PISTON) is waging a three-day strike to call for the suspension of the government’s Public Utility Vehicle Modernization Program (PUVMP), which effectively phases out traditional jeepneys in favor of new generation transport vehicles by the end of the year.

But LTFRB Chairman Teofilo E. Guadiz III reiterated that several transport groups have committed to operate and ply their routes, while the LTFRB will deploy about 250 vehicles to convey any stranded passengers in Metro Manila.

“In the event of a transport strike, rest assured that we are fully prepared to offer free rides to the public,” Celine B. Pialago, LTFRB spokesperson, said in a Viber message on Sunday.

The LTFRB has already coordinated with local government units to preposition vehicles at strategic areas to offer free rides to passengers who may be affected by the transport strike.

Also, the Metropolitan Manila Development Authority (MMDA) announced on Sunday the suspension of the expanded number coding scheme covering private vehicles on Monday.

In a statement in Filipino, PISTON President Mody Floranda said: “It’s (PUVMP) really not about improving public transport but making it easy for big businesses and corporations to take over the routes and livelihoods of small operators.”

London-based International Transport Workers’ Federation (ITF) expressed support for PISTON’s cause.

“Public transport is a major national asset and must be run in the interests of workers and passengers,” Alana Dave, ITF director of urban transport, said in a statement.

“Any modernization and investment in public transport must contribute to overcoming existing inequalities and achieving economic and social justice for the working class,” she added.

Youth activists’ group, Anakbayan, said it also stands in solidarity with PISTON, bewailing how the government program would replace jeepneys with foreign-made modern PUVs that cost P2.5 million to 2.8 million per unit. “In turn, the higher price of the modern jeepney means higher passenger fares,” it said in a statement.

Meanwhile, labor group Federation of Free Workers (FFW) called for the immediate suspension and review of the current modernization initiatives.

“FFW urges the government to halt and re-evaluate its modernization programs, which have been without comprehensive consultation with all affected stakeholders,” said the federation president Jose “Sonny” G. Matula in a statement.

“Despite challenges, the LTFRB remains optimistic for a constructive dialogue with PISTON’s participation in the PUV Modernization Program, as 60% of the transport groups have expressed their support for this initiative,” said Ms. Pialago.

Fisheries report quake damage

PHILIPPINE STAR /EDD GUMBAN

A TOTAL of 54 fishing boats were damaged as a result of Friday’s 7.2-magnitude earthquake in General Santos City and Sarangani province, the Department of Agriculture (DA) said on Sunday.

So far, only the fisheries sector has reported damage as a result of the tremor, which included pavement cracks at fish landing sites in Malapatan, Sarangani.

In addition, a DA building at the Prime Regional Government Center in Koronadal City was also damaged.

Since Agriculture Secretary Francisco T. Laurel, Jr. directed agencies of the department in Mindanao to assess the earthquake’s damage to farm infrastructure last Saturday, the DA has not yet received such reports that could hinder the food supply system.

The DA said it was still in the process of assessing, evaluating, and coordinating with various agencies for a complete its impact assessment and determine what assistance farmers and fishermen adversely affected by the quake would need.

“We are ready to extend assistance so that our stakeholders could quickly recover from this disaster,” Mr. Laurel said last Saturday. — Justine Irish D. Tabile

GSIS pensioners to get cash gift

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THE GOVERNMENT Service Insurance System (GSIS) will be releasing P3.47 billion in Christmas cash gifts to its more than 300,000 elderly and disability pensioners starting Dec. 6.

The GSIS said the cash gift, which will be credited to pensioners’ GSIS e-card, is equivalent to their one-month pension up to a maximum of P10,000.

“We are announcing this news early because we know that our pensioners are eagerly awaiting it, so they can plan when to withdraw and decide what to purchase with their benefits,” GSIS President and General Manager Jose Arnulfo “Wick” Veloso said in a statement in Filipino.

Mr. Veloso said that GSIS old-age and disability pensioners who are receiving their regular monthly pensions and are living as of Nov. 30 are qualified for the holiday gift.

He added that those who have their pensions suspended as of Dec. 31 because of failure to comply with Annual Pensioners Information Revalidation (APIR) will receive their cash gift after they finish the revalidation process. — Jomel R. Paguian

Phasing out plastics requires change in behavior — analyst

PHASING OUT certain plastics, as a bill in Congress proposes, must take consumer behavior into account and more time than just four years to be fully implemented, an analyst said.

“If phasing out is really the track, it can be managed by a staggered implementation as plastic use is behavioral. You cannot just abruptly remove plastic until the population is able to adjust,” John Paolo R. Rivera, president and chief economist at Oikonomia Advisory & Research, Inc., said in a Viber message on Sunday.

Last Nov. 13, the House Committee on Ecology approved the proposed Single-Use Plastic Packaging Regulation Act, which seeks to phase out in four years plastic plates and saucers, oxo-degradable plastics and film wraps less than 50 microns thick.

The bill also seeks to discontinue in one year the use of flexible drinking straws, stirrers, sticks for candy, balloons or cotton buds, buntings, confetti, and packaging less than 10 microns thick.

“It can be done but four years may be too short to change behavior unless stringent laws will be applied,” said Mr. Rivera.

Mr. Rivera said that the government should also focus on minimizing the use of plastics. “Plastics should be used when appropriate and plastic substitutes [should] be used…in products like [that use] dry goods packaging.”

He added that recycling, upscaling and a proper system on plastic disposal should be implemented.

Riedo A. Panaligan, project coordinator of Plastic Free Pilipinas, said the measure could be implemented as the single-use plastics targeted for phase out “have clear alternatives already available in the market such as plastic straw with metal straws, plastic bags with ecobags, etcetera.”

“The world is now facing a plastic crisis, it is about time to eliminate problematic single-use plastics and plastic with known hazardous chemicals,” Mr. Panaligan said in an e-mail.

He added that the measure should include incentives that could help lessen the demand for plastics such as the establishments of alternative delivery systems and refills.

Congressmen last year approved a separate measure that seeks to impose an excise tax of P100 per kilo on single-use plastic bags. The bill is still pending before the Senate Ways and Means Committee.

Mr. Panaligan also said that Ecological Solid Waste Management Act, which lists non-environmentally acceptable packaging and products has yet to be implemented.

The Philippines is projected to generate 92 million tons of waste from 2022 to 2025, data from the Environmental Management Bureau said. — Beatriz Marie D. Cruz 

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