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PHL touted as attractive emerging market for power after progress on energy transition

THE Department of Energy (DoE) said the Philippines is improving its position as an attractive emerging market for power due to the strides it has made in pursuing its energy transition.

In a statement on Sunday, the DoE was responding to the Philippines’ fourth-place ranking in the Climatescope report issued by BloombergNEF.

“The Philippines moved up six places to number four after India, China and Chile following the country’s significant progress in transitioning to renewable energy (RE) over the last two years,” the DoE said.

Climatescope provides an analysis of clean energy progress and attractiveness across 110 developing economies, which together accounted for nearly two-thirds of total global energy additions in 2022 and 82% of the world’s population.

According to the report, the Philippines made the top five for the first time thanks to its auctions, feed-in tariffs, net-metering schemes, tax incentives, and strong targets for RE.

The DoE aims to increase the share of RE to 35%  by 2030 and to 50% by 2040.

“Over the past two years, the Philippines’ significant progress in transitioning to renewable energy propelled the market into Climatescope’s top five,” the report said.

The report highlighted the DoE’s second green energy auction, in which it awarded 3.4 gigawatts (GW) of RE capacity. Of the total, 1.2 GW is earmarked for ground-mounted solar, rooftop solar, and onshore wind for 2024 to 2025. Some 2.2 GW is expected for 2026.

As of 2022, installed capacity and gross power generation from renewables amounted to 29% and 22%, respectively, according to the DoE.

The report also noted the release of an offshore wind roadmap and the removal of foreign ownership restrictions, which encouraged growth in offshore wind investment.

Clean energy investment rose 41% to P1.34 billion in 2022, the report said.

Meanwhile, the DoE is set to release the updated Philippine Energy Plan this year.

“The DoE is embarking on initiatives that would propel investment in the energy sector in different technologies and required capacities in the power generation mix by 2030 to 2050, underscoring its commitment to the global energy transition,” the DoE said.

“This roadmap comprises crucial elements such as implementation of RE sources energy efficiency and conservation measures, advancing alternative fuels and emerging energy technologies, adopting ICT through advanced smart grid technologies, and fortifying energy infrastructure to be resilient and climate proof,” it added. — Sheldeen Joy Talavera

Hydrogen developers may be required to disclose full project life cycle cost

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THE Department of Energy (DoE) said it may require hydrogen developers to estimate decommissioning and disposal costs when proposing projects.

“This broader coverage ensures a comprehensive approach in managing the entire cycle of facilities involved in the production, storage, transmission, distribution, and utilization of hydrogen energy resources for various applications, be it power or non-power related,” Patrick T. Aquino, director of the DoE-Energy Utilization Management Bureau, said in a public consultation last week.

According to a revised draft circular, decommissioning is “the permanent retirement of a hydrogen energy facility or unit from operation upon reaching its maximum economic life or discontinued operation in the facility.”

Disposal is defined as the “physical removal of equipment or material used that are no longer needed.”

Mr. Aquino said the DoE will have the authority to oversee decommissioning and disposal.

“The DoE, in collaboration with the DENR-EMB (Department of Environment and Natural Resources-Environmental Management Bureau) and other pertinent government agencies, (will) develop a separate guideline detailing the proper management of decommissioning and disposal activities specifically related to the hydrogen energy industry,” he said.

Mr. Aquino also said the revised draft expanded the classification of hydrogen production methods by adding chemical reactions, among others, to the list of energy resources.

“The revision broadens this classification by incorporating additional methods like chemical reactions without limiting the potential resources used for energy production,” he said.

The DoE seeks to introduce a national policy framework, roadmap, and guidelines for hydrogen in the energy sector. It recognizes hydrogen as “an innovative solution” for energy transition. — Sheldeen Joy Talavera

GOCC subsidies decline in Oct.

SUBSIDIES provided to government-owned and -controlled corporations (GOCCs) declined sharply in October, the Bureau of the Treasury (BTr) reported.

The BTr said budgetary support to GOCCs fell 76.98% to P9.189 billion during the month.

The government provides subsidies to GOCCs to help cover operational expenses.

The National Irrigation Administration (NIA) was the top recipient of subsidies in October, taking in P4.105 billion or 44.7% of the total.

This was followed by the National Food Authority, which got P2.01 billion and the National Housing Authority (NHA), which received P1.15 billion during the month.

Other top recipients in October include the Light Rail Transit Authority (P766 million), the Philippine Children’s Medical Center (P179 million),  the Philippine Heart Center (P178 million), and the National Kidney and Transplant Institute (P116 million).

GOCCs that were given at least P50 million during the month were the Philippine Coconut Authority (P92 million), Philippine National Railways (P81 million), the National Dairy Authority (P80 million), the Lung Center of the Philippines (P70 million), and the Philippine Rice Research Institute (P66 million).

Receiving no subsidies were the National Electrification Administration, the Bases Conversion and Development Authority, the Civil Aviation Authority of the Philippines, the Philippine Crop Insurance Corp., the Philippine Fisheries Development Authority, the Philippine Health Insurance Corp. (PhilHealth), the Philippine Postal Corp., the Power Sector Assets and Liabilities Management Corp., the Small Business Corp., the Subic Bay Metropolitan Authority, the Social Housing Finance Corp., and the Sugar Regulatory Administration.

In the 10 months to October, subsidies amounted to P146.316 billion, down 9.8%.

PhilHealth took in P50.614 or 34.6% of total subsidies in the 10-month period. This was followed by the NIA at P35.918 billion and the NHA at P17.777 billion.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that lower subsidies in October were due to the improved financial performance of GOCCs with the reopening of the economy.

“No more large lockdowns since 2022 also improved the financial performance of some GOCCs. Lockdowns have proven to be costly for the government in terms of the various financial assistance (given to the public) and other COVID programs,” he said in a Viber message.

He also cited fiscal reform measures that “increased revenue collection and more disciplined spending that helped narrow the budget deficit in recent months.” — Luisa Maria Jacinta C. Jocson

Digital food voucher pilot obtains UN, OPEC grant

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THE United Nations (UN) World Food Programme (WFP) and the Organization of the Petroleum Exporting Countries Fund for International Development (OPEC Fund) have agreed to extend a grant of $500,000 to support a digital food voucher program in the Philippines.

The grant will support the government’s digital food stamp pilot, known as “Walang Gutom 2027.”

“An innovative solution to combat hunger in the poorest households in the Philippines, program participants are given Electronic Benefit Transfer cards which allow them to have a regular shopping experience, without having to wait long hours in line to receive food vouchers,” WFP Philippines Country Director and Representative Dipayan Bhattacharyya said in a statement.

“WFP is fully committed to supporting the Philippine government’s priority programmes on food security and nutrition,” he added.

Under the program, targeted beneficiaries will be given electronic cards with P3,000 worth of food credits.

“These cards may only be used to buy food from accredited retailers. This modality allows easier access to affordable, healthy and locally available diverse food sources,” it added.

The pilot targets the bottom one million households that do not make more than P8,000 a month. It will also prioritize households with pregnant and breastfeeding women an children under five years old.

The Department of Social Welfare and Development earlier said the pilot will initially cover  3,000 families. — Luisa Maria Jacinta C. Jocson

Public-private partnerships reboot

Infrastructure development continues to be a key focus of the government to sustain economic growth — and rightfully so as it enhances market access, attracts investments, and creates jobs. But with significant capital needed for infrastructure projects, the government by itself may not be able to fund the required expenditures.

Public-Private Partnership (PPP) with companies addresses this key challenge. In addition to private-sector funding, PPP arrangements share the risks involved and reduce cost to the government.

While the Philippines is regarded as the first Asian country to institutionalize the participation of the private sector in its infrastructure development projects, according to a publication by Asian Development Bank (ADB), a number of challenges abound in the implementation of PPP projects. These include a clear legal and regulatory framework, the efficient resolution of land acquisition and right-of-way issues in public transport projects, and time constraints in participating in unsolicited proposals.

This is the sixth 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. This article will discuss the PPP landscape in the Philippines and ongoing government initiatives to improve it.

THE PPP LANDSCAPE
In the 2nd SGV Tax Symposium held on Oct. 25, the PPP Center speaker presented its policy initiatives to support PPPs which are sustainable and climate resilient. PPP Governing Board Resolution No. 2018-12-02 aims to facilitate the review process of the implementing agencies in PPP projects prescribing safeguards under prevailing laws. The Resolution aids the implementing agency in identifying requirements and ensuring safeguards are accounted for in a project’s feasibility study, ensuring the approved terms in the PPP contract consider the safeguards and measures to mitigate identified concerns, and prescribing monitoring, evaluation and feedback for the safeguards embedded in the PPP contract as described in Section 2.2 under the PPP Governing Board Resolution.

The speaker also discussed the Resilience Roadmaps and Investment Portfolios for Risk Resilience (IPRR) developed by the PPP Center together with ADB and the Urban Climate Change Resiliency Trust Fund. The IPRRs include PPP projects in localities which are susceptible to climate change impacts. As the infrastructure is expected to be long term, PPP projects should be resilient because these will essentially provide key basic social services.

ONGOING GOVERNMENT INITIATIVES
In June 2023, President Ferdinand R. Marcos, Jr. issued Executive Order (EO) 30, which changed the composition of the Public-Private Partnership Governing Board (PPPGB) to include a member from the private sector. The PPPGB is the overall policy making body on all PPP related matters, sets the strategic direction of the PPP Program, and creates an enabling policy and institutional environment for PPP. This addition seeks to empower the private sector to actively participate and help provide insights to the policy formulation and implementation by the PPPGB moving forward.

More recently, both the Senate and House ratified the Bicameral Conference Committee Report covering the PPP Code of the Philippines which reconciled House Bill 6527 and Senate Bill 2233. The proposed bill, which is awaiting the signature of the President, consolidates existing legal and regulatory framework governing PPP projects.

Among the highlights of the proposed PPP Code include:

• Allowing unsolicited proposals in the list of PPP projects without requiring new concept or technology, subject to reimbursement of the government’s development costs.

• Updating project approval thresholds for Build-Operate-Transfer (BOT) projects (previously fixed 29 years ago) and giving authority to the NEDA Investment Coordination Committee to review, evaluate, and update these threshold amounts.

• Upholding local autonomy while providing mechanisms to ensure harmonized investment programming between local government units and the National Government.

• Establishing a clear pathway for the issuance of franchise exacting toll fees, fares, rentals and other charges and allowing the private contractor to recover any shortfall consistent with the agreed PPP contract and prevailing laws, rules and regulations.

• Restricting provisional injunctive reliefs issued by lower courts subject to limited exceptions to ensure continuity in project evaluation and implementation. 

• Strengthening the enabling institutions for PPPs particularly the PPP Center, which is granted additional powers and functions towards a more efficient and effective performance of its mandate.

PPPs AS A MEANS TO MANAGE INFRASTRUCTURE PROJECTS
ASEAN countries have shown increasing interest in PPPs as a way to fund and manage infrastructure projects. Studies show a direct correlation between infrastructure and gross domestic product (GDP) growth. According to a study by the World Bank, higher infrastructure growth generally equates to higher GDP growth, especially in developing countries.

The ADB projects that Asia will need to invest $26 trillion from 2016 to 2030 if it is to “maintain its growth momentum, eradicate poverty, and respond to climate change.” Comprehensively, it is important to meet the funding demand for infrastructure projects in the succeeding years to augment or stimulate the country’s production and protract its GDP growth trajectory.

The PPP Center has identified 106 PPP projects in the pipeline with total estimate project cost of P2.5 trillion from solicited and unsolicited proposals covering both local and national projects.  Some of the notable ones include key infrastructure projects such as the NAIA PPP covering the rehabilitation, operation, optimization, and maintenance of NAIA airport, the Metro Manila Subway PPP covering operation and maintenance (O&M), North-South Commuter Railway O&M PPP, the Mindanao Railway project, the MRT 7 Project, and the Laguna Lake Rehabilitation and Development project. It is also promising to see proposed projects involving local government units covering bulk water supply and septage, waste to energy, subway and expressway, as well as reclamation and development.

The importance of PPP projects is emphasized by the fact that existing laws and regulations such as the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law, as implemented by the Strategic Investments Priorities Plan, grant tax incentives to qualified PPP projects. These incentives include income tax holidays with a maximum of seven years, enhanced deductions from gross income, enhanced net operating loss carryover, as well as duty and tax exemption on imports of capital equipment.

IMPROVING ECONOMIC GROWTH THROUGH PPP
While the Philippines is trying to catch up with its neighbors in infrastructure development, ongoing initiatives of the government spearheaded by the PPP Center, legislation from Congress, and the support of both foreign and local institutions are set to help reel in funding from the private sector and drive future PPP projects.

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. 

 

Jonald R. Vergara is a tax principal of SGV & Co., and Donelle Jay A. Quilates is a tax senior director of SGV & Co.

One dead, four hurt after magnitude 7.6 earthquake hits southern Philippines

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By Kyle Aristophere T. Atienza, Reporter

AT LEAST one person died and four others were hurt after a magnitude 7.6 earthquake rocked the southern Philippine island of Mindanao on Saturday night, prompting authorities to issue a tsunami warning that forced coastal residents to flee their homes around midnight.

Nine people were still missing, while more than 500 families were affected, Defense Secretary Gilberto Eduardo Gerardo C. Teodoro, Jr. told a news briefing on Sunday.

The tremor struck at a depth of 32.8 kilometers (km) near the province of Surigao del Sur at 10:37 p.m., according to the US Geological Survey (USGS).

The quake occurred as a result of oblique reverse faulting at a shallow depth of about 75 km west of the Philippine Trench, it said on its website.

“While commonly plotted as points on maps, earthquakes the size of the Dec. 2 event are more appropriately described as slip over a larger fault area. Earthquakes of this size are typically about 100×35 km,” it added.

The Philippines lies in the so-called Pacific Ring of Fire, a belt of volcanoes around the Pacific Ocean where most of the world’s earthquakes strike. It also lies along the typhoon belt in the Pacific and experiences about 20 storms each year.

The Philippines frequently experiences moderate to large earthquakes, the USGS said, noting that 127 additional earthquakes of magnitude 6 or larger have occurred in the past 100 years within 250 km of Saturday’s quake. Fifteen of these were magnitude 7 or larger.

“Earthquakes in the Philippines exhibit diverse styles of faulting that are indicative of the locally complex tectonic motions,” the USGS said. “Moreover, this region experiences earthquakes across a range of depths, from shallow surface rupturing strike-slip earthquakes, to deep earthquakes located within subducting oceanic slabs.”

The Philippine Institute of Volcanology and Seismology (Phivolcs) measured the quake at magnitude 7.4, while the Japanese weather agency estimated it at 7.7.

It was followed by another quake at 3:43 a.m. on Sunday, which had a depth of 64.3 km, the USGS said on its website. It recorded three more aftershocks with magnitudes 6.2, 6.1 and 6.

The Pacific Tsunami Warning Center in Hawaii warned tsunami waves were expected to hit southern Philippines and parts of Indonesia, Palau and Malaysia. 

It later said the tsunami threat had passed. Minor sea level fluctuations might occur in some coastal areas, it added.

Right after the Saturday quake, people along the coast of Surigao Del Sur and Davao Oriental were told to leave their homes and seek higher ground.

In a separate tsunami warning, Phivolcs warned of a destructive tsunami “with life threatening wave heights” — more than a meter above normal tides, which could be higher in enclosed bays and straits.

It asked owners of boats in shallow coastal waters in the two provinces to secure their vessels and immediately move away from the waterfront. Boats already at sea were advised to stay offshore in deep waters.

One of the first videos that circulated on social media after the Saturday quake showed people shouting and rushing to leave a commercial bar in Davao City.

In Hinatuan town, where the 7.6-magnitude quake struck, crowds rushed to evacuation centers. In Butuan City, patients were evacuated from a hospital.

After the earthquake, tsunami waves of as high as 1.3 feet were seen on some outlying islands in Japan.

The Civil Aviation Authority of the Philippines (CAAP) said there was no major damage on Mindanao airports. The airports in Butuan, Surigao, Siargao, Tandag and Bislig had minor damage, it added.

“Except for a few wall tiles that fell off in the international arrival elevator area, Davao International Airport facilities did not incur damage,” it said, citing CAAP Manager Rex A. Obcena. “Passengers and duty personnel are also all safe and sound.”

Flight operations at these airports were normal, the agency said.

It said the quick response team of all other airports in Mindanao were conducting runway and passenger terminal building inspections to ensure any damage is repaired.

19 more Pinoys come home from Lebanon

A view shows illumination flares in the sky by Israel's border with Lebanon, in northern Israel, as seen from its Israeli side October 21, 2023. — REUTERS

NINETEEN overseas Filipino workers (OFW) based in Lebanon arrived in the Philippines on Sunday morning, according to the Department of Migrant Workers (DMW), amid hostilities between Israeli forces and Hezbollah, an Islamist militant group allied with Hamas.

In a statement, the agency said this brought the total number of repatriated OFWs from Lebanon to 61.

“DMW office-in charge Hans Leo J. Cacdac personally assisted the OFWs and assured them of all the necessary assistance and other forms of support from the government,” it said.

The Philippines earlier placed Lebanon under Alert Level 3 amid the hostilities, calling on Filipinos to come home.

There are about 17,500 Filipinos in Lebanon, most of whom are domestic workers.

In the past month, Hezbollah and Israeli military forces have been exchanging fire at the Lebanon-Israel border, in the worst escalation of violence in the area since a 2006 war between Israel and the Islamist group.

The Israeli Defense Forces on Saturday said it had carried out aerial and artillery attacks against a Hezbollah site, after the Islamist group claimed responsibility for several attacks on northern Israel that same day.

Israel launched a barrage of airstrikes in Gaza after Hamas militants backed by waves of rockets stormed from the blockaded Gaza Strip into nearby Israeli towns on Oct. 7, killing about 1,200 Israelis.

Israel has deployed tens of thousands of its troops for a ground assault on the Palestinian enclave and has enforced a blockade.

The Hamas-run Gaza government has said more than 14,000 people have died since the start of the war. At least four Filipinos died.

The Yemen-backed Houthis group has also launched waves of missile and drone strikes against Israel.

A group of 17 Filipino crew members of an Israeli-linked cargo ship in the Red Sea were taken hostage by Houthi rebels on Nov. 19. The Houthis said the hijacking was done in response to “heinous acts” being committed by Israel in Gaza.

Foreign Affairs Spokesperson Ma. Teresita C. Daza said last week the hostages were in good condition and would eventually be released.

As a truce was agreed upon by Hamas and Israel on Nov. 24, Hamas released 24 hostages including a Filipino caregiver. Israel also agreed to release 150 hostages.

The truce was extended for two days on Nov. 28 and for another day on Nov. 30.

Last week, Hamas freed another Filipina caregiver who was held captive for 53 days.

At least 111 Filipinos have been evacuated from Gaza, with 109 of them already back in the Philippines, Ms. Daza told reporters in a WhatsApp message last week.

The Philippines earlier placed Gaza under Alert Level 4 or forced repatriation. — John Victor D. Ordoñez

PHL rejoining ICC to boost investments, analysts say

PHILIPPINE STAR/ MIGUEL DE GUZMAN

By John Victor D. Ordoñez, Reporter

REJOINING the International Criminal Court (ICC) could improve investor confidence in the Philippines because it shows that the government of President Ferdinand R. Marcos, Jr. is serious about upholding human rights, analysts said at the weekend.

“Investors are assured that accountability and transparency are part and parcel of our legal system and that the system can withstand scrutiny,” Leonardo A. Lanzona, who teaches economics at the Ateneo de Manila University, said in a Facebook Messenger chat. “As a whole, rejoining the ICC will be boon to foreign investments.”

Mr. Marcos earlier said his government is considering rejoining the ICC, which is investigating his predecessor, Rodrigo R. Duterte, for alleged “crimes against humanity.”

He had ruled out cooperation with the international court, saying its probe violates Philippine sovereignty given the country’s fully functional justice system.

Solicitor General Menardo I. Guevarra earlier said the Philippines is not legally bound to cooperate with the tribunal’s probe of the drug war since it is no longer a member.

Mr. Duterte canceled Philippine membership in the ICC in 2018.

The Hague-based tribunal reopened its probe of the drug war in January because it was not satisfied with Philippine efforts to probe extralegal killings and other alleged human rights abuses during the campaign.

Terry L. Ridon, a public investment analyst and conveyor of think tank InfraWatch PH, said rejoining the tribunal would show that the Philippines has clear human rights commitments, which would raise the confidence of international bodies such as the European Union (EU).

“This allows more economic opportunities for the country, which would have been previously unavailable if we did not have an enhanced human rights commitment,” he said in a Facebook Messenger chat.

European Parliament lawmakers who visited the Philippines in February had urged the Philippines to rejoin the ICC to show its commitment to human rights.

Philippine privileges under the EU’s Generalized Scheme of Preferences Plus (GSP+) will be extended by four years, EU Ambassador to the Philippines Luc Veron told reporters last week.

The arrangement, which grants zero duties on 6,274 locally made products, was set to expire by year-end.

In exchange, the Philippines must uphold commitments to 27 international conventions on human rights, labor, good governance and climate action.

Philippine civil society groups have raised concerns about the extension, saying the state has yet to improve human rights conditions.

The House of Representatives committee on justice and human rights on Nov. 29 adopted three resolutions urging the government to cooperate with the ICC probe.

Senator Ana Theresia N. Hontiveros-Baraquel filed a similar resolution last week, citing the need to affirm the country’s commitment to human rights before the international community.

Senator Ronald M. dela Rosa, who was Mr. Duterte’s national police chief, said he does not expect the resolution to gain traction. He earlier said the Philippines should resolve sovereignty and jurisdiction issues before rejoining the ICC.

Vice-President Sara Duterte-Carpio, the former president’s daughter, earlier said allowing ICC investigators to probe crimes during the campaign would undermine the Philippine justice system.

The Philippine government estimates that at least 6,117 drug dealers were killed in police operations. Human rights groups say as many as 30,000 drug suspects died.

“The proposal to rejoin the ICC is a way of showing that we believe in the rule of law and that our institutions are strong enough to enforce such rules,” Mr. Lanzona said.

Marcos blames bombing on foreign extremists

DEFENSE Secretary Gilbert C. Teodoro, Jr. gives a media briefing at Camp Aguinaldo, Quezon City, regarding the bombing at the Mindanao State University gymnasium in Marawi City, where the first Sunday of Advent mass was being held. Four people were killed and at least 50 others hurt. — PHILIPPINE STAR/JESSE BUSTOS

By Kyle Aristophere T. Atienza, Reporter

FOREIGN extremists were responsible for Sunday’s bombing that ripped through a Catholic mass inside a university in the Islamic city of Marawi in southern Philippines, according to President Ferdinand R. Marcos, Jr.

The bombing happened at the Mindanao State University ’s Dimaporo Gymnasium while a Catholic mass was being held, killing four people and wounding 50 others.

“I condemn in the strongest possible terms the senseless and most heinous acts perpetrated by foreign terrorists upon the MSU and Marawi communities early this Sunday morning,” Mr. Marcos said in a statement.

“Extremists who wield violence against the innocent will always be regarded as enemies to our society,” he said.

Mr. Marcos said he had ordered the deployment of additional security personnel to ensure the safety of civilians and the security of affected communities, vowing to “bring the perpetrators of this ruthless act to justice.”

In a news conference in Metro Manila with other members of the security sector, Defense Secretary Gilberto Eduardo C. Teodoro, Jr. said the President’s statement was based on his consultations with the security sector, noting that there’s a strong indication of a foreign element in the Marawi blast.

He refused to discuss who could be involved in the incident because doing so would hamper the investigation.

“We are still looking at all possible angles to see what led to the bombing incident,” Armed Forces of the Philippines chief Romeo Brawner, Jr. said. “We are constantly gathering intel operations so we will be able to run after the perpetrators of this terrorist attack.”

A special task force has been formed to investigate the bombing, Police Major General Emmanuel B. Peralta said.

He said heightened alert has been declared placed over the capital region Metro Manila as a precautionary measure. This means increased police patrols, intelligence monitoring activities, and constant communication with Muslim communities and other groups.

Stricter checkpoints are expected in Marawi City, he added.

The bombing was preceded by Saturday’s clash in Barangay Tuayan, Datu Hofer, Maguindanao del Sur between members of the outlawed Dawlah Islamiya and the soldiers from the Army’s 601st Infantry Brigade that left 11 terrorists dead.

Lanao del Sur Gov. Mamintal A. Adiong, Jr., citing reports by officials of their Provincial Disaster Risk Reduction and Management Office (PDRRMO) said Sunday’s blast sent at least 43 of the wounded to various hospitals.

“I condemn this atrocity in the strongest terms and I will flex my authority, as provincial governor of Lanao del Sur, in helping the police and military identify its perpetrators,” Mr. Adiong said.

Brig. Gen. Allan C. Nobleza, director of the Police Regional Office-Bangsamoro Autonomous Region, said their ordinance disposal experts in Lanao del Sur and counterparts in the Army’s 103rd Infantry Brigade were still determining the type of improvised explosive device (IED) used in the attack.

Police probers found fragments of metal with sharp jagged edges scattered at scene.

The MSU, which was designated as a national peace university in 2015, said additional security personnel had been deployed to safeguard the campus and that it had suspended classes until further notice.

The university expressed solidarity with the Christian community and all those affected by the bombing, saying the “senseless and horrible violence” was an assault on its commitment to creating “a safe and inclusive community for all.”

“Violence has no place in a civilized society, and it is particularly abhorrent in an institution of higher learning like MSU, a bulwark of peace, harmony, solidarity, reverence for life and humanity,” it said.

“We will not be deterred by this act of violence, and we will continue to work towards building a more peaceful and just MSU community.”

Marawi City is still in the recovery stage years after a five-month battle between state forces and IS-linked militants pulverized neighborhoods in 2017.

“It is disheartening to see such violence play out in Marawi once again, years after the siege and well into a period of newfound peace enjoyed by our brothers and sisters under the Bangsamoro Autonomous Region in Muslim Mindanao,” Senate President Juan Miguel F. Zubiri said in a statement.

Lanao del Sur lawmaker Ziaur-Rahman Alonto Adiong urged the National Government “to leave no stone unturned” until the perpetrators are brought to justice.

“It is the bare minimum that we must do to ensure that the right to life of our citizens are protected,” he said in a statement. “Let this be a statement of our government’s enduring commitment to human rights and a lasting peace.”

US Ambassador to the Philippines MaryKay L. Carlson said the American government supports efforts to hold the perpetrators accountable.

PRIORITIES
“Mass bombings are a quick go-to tactic whenever sending political messages of terror,” said Joshua Bernard B. Espeña, who teaches international relations at the Polytechnic University of the Philippines.

The bombing is likely a message of retaliation from previous military operations that may have targeted or eliminated local yet foreign-influenced terror leaders, he said in a Facebook Messenger chat.

“Doing it inside a Christian mass [could be] a politico-religious message from Islamic State elements, whose influence still runs deep within an imperfect order in Mindanao.”

Georgi Engelbrecht, senior analyst at nongovernment organization Crisis Group, said stakeholders must never allow the incident and other similar threats from extremist groups to divide communities or threaten the peace process.

Mr. Marcos, 66, last month issued proclamations offering amnesty to Maoist, communist-inspired, and Islamic rebels.

His administration has ramped up efforts to shift the country’s focus to territorial defense from internal security amid an increasingly expansionist China, which has been aggressive within Manila’s exclusive economic zone in the South China Sea.

The growing focus on territorial defense should continue to be a priority while efforts continue to ensure security in the Bangsamoro region, Mr. Engelbrecht said.

Raymond M. Powell, a fellow at the Gordian Knot Center for National Security Innovation, said like so many other countries, the Philippines needs to strike a balance between a looming external adversary and a persistent internal threat.

“Though China’s maritime encroachment is the most difficult challenge right now, terrorism can never be ignored,” he said in an X message. “This should bolster calls on the legislature to increase the armed forces and coast guard capacity, the Philippines is to meet this increasingly complex threat environment.”

That the bombing happened inside Marawi City, which has gained national attention after the 2017 crisis, reeks of the Philippine government’s “inability to provide security for the full-blown rehabilitation of the city,” Mr. Espeña, the academic, said.

“This is a lesson learned for the Philippines that internal security is still a thing to consider by defense planners as much as it needs to prioritize China’s maritime assertiveness,” he added.

He said the Philippine government should stand its ground with an undeterred resolve to respond to the threat in the short term to avoid weakening its integrity in providing political leadership for the Bangsamoro region. — with a report from John Felix M. Unson

Caregivers’ welfare law lauded

PHILIPPINE STAR/KRIZ JOHN ROSALES

A GROUP of caregivers in the country said the Caregivers Welfare Act now under implementation will reduce the likelihood of them seeking employment abroad as their wages and benefits will be secured.

Caregivers of the Philippines Association, Inc. (CPAI) said the compensation granted by the law would encourage caregivers not to go overseas for work, citing that most domestic caregivers currently receive salaries below the minimum wage and were denied employment benefits.

President Ferdinand R. Marcos, Jr. signed Republic Act 11965 on Nov. 23, guaranteeing caregivers overtime and night shift pay in line with regional minimum wages. The law also mandates their coverage under the Social Security System, Philippine Health Insurance Corp., and Home Development Mutual Fund.

Caregivers said the law empowers them to negotiate salaries higher than the minimum wage based on the difficulty of caring for assigned clients.

“According to the law, our salary won’t fall below the minimum wage, allowing adjustments based on negotiations between the employer and caregiver,” CPAI President Milaflor Valdez said in Filipino in an interview.

In a statement in support of the measure, the Commission on Human Rights (CHR) said caregivers consider working abroad as they earn inadequate wages in the country, on top of having no full labor rights. The CHR cited a study showing that domestic caregivers only receive P19,507 per month on average which is significantly lower than the average monthly rate of P140,000 and P190,000 in the United States and Great Britain, respectively.

The Philippine Association of Health Care Professionals (PAHCP) said the law would have a significant impact on the healthcare sector. “By formalizing what was once an informal arrangement, we not only secure social protection for our caregivers but also recognize their indispensable role in healthcare,” said PAHCP President Lorena Escaño.

Pro-labor coalition Federation of Free Workers said the new law redefines domestic caregivers’ employment status, transitioning from “independent contractors” to employees with full coverage under labor standards law.

“This act not only provides much-needed legal protection to our caregivers but also uplifts their dignity and acknowledges their invaluable contribution to our society,” said FFW President Jose “Sonny” G. Matula in a statement.

The law also grants caregivers the right to terminate their contract at any time before its expiration in case of physical, verbal, or emotional abuse.”

“As we recognize the important role of our caregivers in national development, we must ensure they are protected against abuse, harassment and economic exploitation,” Senator Emmanuel Joel J. Villanueva, one of the co-authors of the law, said in a statement.

Under the law, employers must pay caregivers every two weeks or twice a month, with intervals not exceeding 16 days. Employers are also obligated to provide caregivers with basic necessities, including three meals a day for live-in arrangements, considering religious beliefs and cultural practices, along with humane sleeping conditions respecting the caregiver’s privacy.

All caregivers are entitled to overtime pay for exceeding eight hours a day, night shift differentials, and 13th month pay after at least one month of service. Those employed for a year are entitled to at least five days of annual service incentive leave with pay, in addition to other leave benefits provided by existing laws.

The law covers caregivers in private homes, nursing or care facilities, and other residential settings, including those hired through Public Employment Services Offices or Private Employment Agencies. — Jomel R. Paguian

135 Chinese vessels swarm reef

PHILEMBASSY.NO

THE NUMBER of Chinese Maritime Militia (CMM) vessels swarming the area of Julian Felipe Reef, about 175 nautical miles west of Palawan, has reached 135 over the weekend, according to the Philippine Coast Guard.

In a statement on Sunday, Admiral Ronnie Gil Gavan said the number was based on the monitoring conducted by PCG vessels BRP Sindangan and BRP Cabra.

“No response was made to the radio challenges issued by the PCG to the CMM vessels which is now estimated to have grown to more than 135 vessels dispersed and scattered within Julian Felipe Reef,” read part of the statement.

Julian Felipe Reef is considered a low tide elevation within the territorial sea of relevant high tide features in the Kalayaan Island Group, including Chigua Reef, over which the Philippines asserts sovereignty.

Since Nov. 13 when over a hundred Chinese vessels were reported swarming the vicinity of the reef, National Security Adviser and National Task Force on the West Philippine Sea Chairman Eduardo Año has ordered the regular deployment of PCG vessels in the area to safeguard maritime security, the marine environment and the country’s sovereign rights over the territory. — Nate C. Barretto

France relevant to PHL security

A GEOPOLITICAL expert on Sunday said the Philippines’ growing security partnership with France boosts Manila’s Indo-Pacific push.

Defense Secretary Gilberto Eduardo C. Teodoro, Jr. and visiting French Minister for the Armed Forces Sebastien Lecornu on Saturday signed a letter of intent to boost bilateral defense cooperation.

In the document, the two countries expressed their intent to pursue negotiations for a visiting forces agreement.

“France is the most practical and natural partner the Philippines can have in Europe. France is not only European, but also Indo-Pacific, by virtue of geography,” Don Mclain Gill, a foreign relations lecturer at De La Salle University, said in a Facebook Messenger chat.

France was one of the first countries in Europe to craft a forward looking Indo-Pacific strategy that banked on engaging with like-minded regional partners in Southeast Asia through shared interests and concerns, and without compromising sovereignty and political autonomy,” he added.

In a joint press conference, Mr. Teodoro said he and his French counterpart “intend to take concrete steps to level up and make more comprehensive our defense cooperation,” vowing to push for a negotiation for a status of visiting forces agreement.

The Philippines has that kind of agreement with the United States and Australia. It is currently in talks with Japan for a similar pact.

The Philippines is the first stop of the French official in his grand trip across the Indo-Pacific. He’s set to visit the French overseas territory of New Caledonia as well as Malaysia.

Mr. Lecornu said the French government is “working on an agenda of strengthening our presence in the Indo-Pacific.”

France, which has more than 7,000 troops in its overseas territories in the Pacific and Indian Oceans, considers itself an Indo-Pacific power.

The region has been beset by China’s aggression in the South China Sea and in the Taiwan Strait as well as nuclear threats from North Korea.

The Philippines under the Marcos leadership has pushed for more foreign security partnerships amid China’s incursions into the Philippines’ 200-nautical mile exclusive economic zone in the South China Sea. The country has been backed by the international community in the sea dispute, due in large part to its arbitral victory in 2016 that invalidated China’s expansive claims.

“France’s formidable material capabilities in defence and technology should be leveraged by Manila,” Mr. Gill said. “Both Paris and Manila share similar visions in keeping the region safe, inclusive, secure, and rules-based.” — Kyle Aristophere T. Atienza