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PPP measure expected to clear third reading in Senate this week

PPP.GOV.PH

THE Public-Private Partnership (PPP) Center said it expects the proposed PPP Act to win third-reading approval this week.

“Right now, we are still in the period of amendments, and we hope to reach third reading within the week. We are closely coordinating with the Senate team,” PPP Center of the Philippines Executive Director Cynthia C. Hernandez said.

The proposed PPP Act is currently awaiting second reading in the Senate. Its counterpart bill at the House of Representatives was approved on third reading in December.

In May, President Ferdinand R. Marcos, Jr. certified the PPP legislation as urgent, facilitating the expedited approval of the measure by doing away with the waiting period between readings.

“We are integrating amendments as requested by the Senate. We are hoping that before the end of the current session, the PPP Act will finally happen,” Ms. Hernandez said.

Ms. Hernandez said that the bill addresses ambiguities in the existing law.

“The PPP Act intends to fold in joint ventures (JVs) under a unified PPP legal framework. It’s easier and it helps in the perception of market risk or country risk to have one legal framework to cover business ventures. It would be somewhat of a headache explaining to investors why JVs are under a separate law or certain entities have a different law governing their PPP projects. That’s one of the things we want to improve,” she said.

“Another would be to provide a predictable tariff regulation regime that protects the public interest,” she added.

The measure also aims to address bottlenecks and challenges in the PPP process.

Ms. Hernandez said that the bill updates the approval threshold for national PPP projects, delegates approval of local PPP projects to local government unit councils or boards of universities and colleges and shores up the institutional authority of the PPP Center.

The proposed PPP Act also seeks to improve the framework for unsolicited proposals, among others.

“To this end, the state shall provide an enabling environment for the private sector to mobilize its resources for the purpose of financing, designing, construction, operations, and maintenance of infrastructure and development projects. As provided by law, the government shall foster robust private sector participation by providing financial incentives and by reducing costs of doing business,” according to the Senate bill.

As of Aug. 11, 180 PPP projects have been awarded worth P2.638 trillion, including 122 national and 58 local projects.

In the pipeline are 106 PPP projects worth P2.491 trillion, not including projects undergoing study and yet to achieve financial closing.

Of the government’s 194 Infrastructure Flagship Projects, 47 will be implemented via PPP. They consist of 43 transportation, three health, and one water supply projects. — Luisa Maria Jacinta C. Jocson

NEDA may monitor crops via satellite for early warning on inflation trends

EUROPEAN SPACE AGENCY

THE National Economic and Development Authority (NEDA) said it is considering monitoring crops using satellites for early indications on the direction of inflation.

“Currently, we utilize Philippine Statistics Authority (PSA) data to inform our inflation policy, but in order to enhance our inflation analysis, we need to augment our data sources. This is particularly important in the case of rice, our staple, and amid volatile weather,” NEDA Officer in Charge Assistant Director Rory Jay S.C. Dacumos said in a statement on Tuesday.

NEDA said the Philippine Rice Information System (PRiSM) could be tapped in aid of this effort.

“It was pointed out that PRiSM can provide validated rice field data… every seventh day of the succeeding month, compared to the quarterly PSA data,” NEDA said.

“We have also learned during the lectures and the field demonstration that PRiSM data is reasonably accurate,” raising the possibility of using the system to “enhance our policy recommendations on inflation,” Mr. Dacumos added.

PRiSM uses satellite Synthetic Aperture Radar (SAR) in collecting data on rice.

“The data collected through SAR has up to 95% overall accuracy, vis-a-vis the ground validated data with the help of PRiSM data collectors in the field,” NEDA said.

“When the SAR images are insufficient, PRiSM can process secondary data, such as data collected using drones,” it added.

The Sentinel-1A satellite provides the SAR images used by PRiSM. The next satellite is due for launch this year.

Mr. Dacumos added that while PRiSM currently monitors only rice, it may also be adapted to other crops. — Luisa Maria Jacinta C. Jocson

Meat imports drop 4.5% in seven months to July

PHILSTAR FILE PHOTO

MEAT imports fell 4.5% year on year in the seven months to July, with the declines broadly based as shipments of beef, pork, and turkey weakening, the Bureau of Animal Industry (BAI) reported.

The BAI said that in volume terms, imports amounted to 702.17 million kilograms during the seven months. The total for July was 111.48 million kilos, down from 112.44 kilos in June and 134.79 million kilos a year earlier.

Beef shipments fell 19.1% year on year to 77.71 million kilos in the seven months. Beef accounted for 10.9% of all meat imports.

Brazil was the top beef supplier at 27.45 million kilos, followed by Australia with 23.07 million and Ireland 8.99 million.

Pork accounted for 49.4% of meat imports with 346.79 million kilos in the seven months to July, down 12.8% from a year earlier.

Spain remained the top pork supplier, providing 90.2 million kilos, followed by Canada with 65.16 million and Brazil 51.13 million.

Turkey and buffalo shipments fell 58.2% to 114.42 million and 1.03% to 27.57 million, respectively, during the seven months.

Chicken, duck, and lamb imports rose during the period.

Chicken imports rose 17.4% year on year to 249.37 million kilos. Chicken accounted for about 35% of all meat imports during the period.

Some 55.2% or 138.21 million kilos of chicken imports came in the form of mechanically deboned meat used mostly in canned products. The category declined 43.2% for the period.

Brazil was the top chicken supplier with 144.4 million kilos, followed by the US with 86.14 million and Canada 9.24 million.

Duck imports surged to 197.76 million kilos from 48.52 million a year earlier, while lamb shipments rose 20.3% to 485.13 million kilos. — Adrian H. Halili

Retailers seeking clarity on which plastics will be taxable under single-use measure

PHILSTAR FILE PHOTO

THE Philippine Retailers Association (PRA) said it is seeking to clarify which plastics will be categorized as single-use and subject to a proposed tax.

“It is a good environmental (measure) but our biggest concern right now is which plastics (are taxable)… There are plastics which are 30% degradable and even 50% degradable,” PRA President Roberto S. Claudio told reporters recently.

“We want more clarity and they need to define (more clearly) what single-use means,” he added, asking whether the tax applies to recyclable plastic.

At his second State of the Nation Address, President Ferdinand R. Marcos, Jr. appealed to Congress to focus on tax measures, including an excise tax on single-use plastics.

Mr. Claudio said the retail industry will be on the frontlines of implementing such a measure.

“We are the ones selling the products; we are the ones responsible for packaging the products that we give to the customers,” he said.

“One of the solutions we see is to encourage the use of reusable bags. If customers have their own reusable bags, they will not be charged, but if they ask for a plastic bag we will charge them,” he said.

“And then, I will use that fee to pay for the tax once the government decides to (impose) tax on single-use plastics. So eventually, who shouldered the burden? The consumer. They are the ones who will pay for it,” he added.

He cited the potential for “confusion” if the rules aren’t cleared up, though the industry “supports the idea of reducing plastic use.”

Last year, the House of Representatives approved on the third reading House Bill (HB) 4102, or the proposed Single-Use Plastic Bags Tax Act, which seeks to impose an excise tax of P100 per kilogram of bags made of single-use plastic.

HB 4102 defines single-use plastic bags as “secondary-level plastics made of synthetic or semisynthetic organic polymer,” which include “ice” and “sando” bags.

The House approved the bill in November. Its counterpart measure remains with the Senate ways and means committee. — Justine Irish D. Tabile

Higher yields reported by recipients of improved rice seed

PHILIPPINE STAR/ MICHAEL VARCAS

FARMERS who were supplied improved rice seed financed by the Rice Competitiveness Enhancement Fund (RCEF) reported higher yields of palay, or unmilled rice, the Philippine Rice Research Institute (PhilRice) said.

In a statement, PhilRice said that the average yield of RCEF seed recipients increased to 4,320 kilogram per hectare from 3,630 during the dry season, while for the wet season yields rose to 4,020 kilos per hectare from 3,690.

“The distribution covers seven seasons of implementation from the 2020 dry season to the recently concluded 2023 dry season,” according to PhilRice.

PhilRice compiled the harvest results from 42 low and medium-yielding provinces.

RCEF is a component of the Rice Tariffication Law (Republic Act 11203), which effectively privatized the rice import process, formerly a government monopoly. It made importers pay a 35% tariff on shipments of Southeast Asian grain. The tariffs generated finance an RCEF allocation of P10 billion a year for six years.

From these funds, RCEF distributes machinery, seed, fertilizer, and rice-growing know-how, among others, to modernize the rice industry.

As of March 15, about 11.95 million bags of certified seed were distributed to rice farmers.

“Majority of the one million farmer-beneficiaries received certified seed multiple times across seasons. We estimate that at least 1.5 million hectares are being planted annually,” Flordeliza H. Bordey, head of the RCEF Program Management Office at PhilRice said.

Ms. Bordey added that the majority of distributed and delivered seeds were to local government unit partners.

“We have distributed most of the seed with some (set aside) as reserve stock for distribution to early planters in the next cropping season,” she said.

PhilRice said that less than 1% of delivered RCEF seed was reported as damaged. — Adrian H. Halili

Chinese company to manufacture bags in Subic

SBDMC.COM

CHINESE ACCESSORIES company DXHIC said it plans to open a bag manufacturing facility in Subic in the Philippines before the third quarter ends.

Sloan Shao, co-owner of DXHIC said in a statement that its Philippine unit, Good Manufacturing PH Leathers, Inc., will seek to take advantage of the Philippines’ role as a gateway to regional markets, as well as its accessibility to Guangdong Province, DXHIC’s home base.

He cited “the locational advantage of the Philippines at the heart of ASEAN (Association of Southeast Asian Nations) and (its) proximity to (Southern China).

He added that the Philippine workforce is viewed as “dependable.”

The new factory is expected to eventually export to global markets, including Europe.

By the end of this year, the new factory is expected to generate around 1,200 jobs, rising to 5,000 over the medium term.

“The Subic facility… will feature some top-of-the line equipment to ensure fine quality demanded by the luxury accessories market,” Mr. Shao said.

Trade Undersecretary Ceferino S. Rodolfo said companies from southern China’s manufacturing heartland can aid the Philippines in its industrial transformation.

He noted that the Philippines is keen to “position itself as ASEAN’s regional hub for smart manufacturing and services, attracting sectors such as renewable energy, telecommunications infrastructure, hyperscale data centers, green metal processing, electric vehicle battery and assembly, smart manufacturing, and agriculture.”

China was the Philippines’ top trading partner with trade valued at $39.14 billion in 2022, up 2.32%. — Justine Irish D. Tabile

Industry regulator queried in Congress over PHL dependence on dairy imports

PHILIPPINE STAR/ ANDY ZAPATA JR.

A LEGISLATOR said on Tuesday that the National Dairy Authority (NDA) has left the Philippines heavily reliant on dairy imports, with no corresponding moves to strengthen domestic production.

“Here you have a program that’s supposed to benefit the dairy industry, but it’s not implemented in the end,” Quezon Rep. David C. Suarez told the House Appropriations committee during deliberations on the proposed P5.768-trillion 2024 national budget.

NDA Administrator Gabriel L. Lagamayo had estimated domestic dairy output to account for only 1% of demand.

When asked how domestic output has changed in 2022, Mr. Lagamayo said: “(It’s) almost the same.”

Mr. Suarez noted that dairy farmers in Sariaya, Quezon were promised animal housing and forage assistance.

“During your site visit, you suddenly mentioned that (the farmers) don’t have enough land (for such aid),” he said.

Mr. Lagamayo said the NDA program requires beneficiaries to contribute some of their own resources to be eligible.

“Animal housing has always been the counterpart (contribution) of the beneficiaries,” Mr. Lagamayo said. “We provide the planting materials including the training. The counterpart contribution of beneficiaries would be the cowshed.”

In next year’s proposed budget for next year, the dairy industry development program has been allocated P218.03 million.

Mr. Lagamayo said that the agency is targeting milk production growth of five times over the next three to five years.

“Investing in cutting-edge technology and modernizing our farming practices can enhance the productivity and resilience of our agricultural systems,” House Appropriations Committee Chairman and Ako Bicol Rep. Elizaldy S. Co told the panel. — Beatriz Marie D. Cruz

ERC extends suspension of FIT-All collection

THE Energy Regulatory Commission (ERC) said on Tuesday that it has extended the suspension on collecting the feed-in tariff allowance (FIT-All) to provide relief to consumers.

In a statement, the ERC said the extended suspension is in force for September and will remain in place until lifted by the commission.

“This decision introduces remedies to ease the financial burden on consumers in the midst of escalating costs of electricity,” it said.

The suspension was originally set to expire at the end of August.

In November, the ERC halted the collection of the P0.364 per kilowatt-hour FIT-All rate between December 2022 and February 2023.

In February, it announced an extension of the suspension to the end of August.

FIT-All is collected from on-grid electricity customers to support the development and promotion of renewable energy.

Payments are remitted to the FIT-All Fund established and administered by the National Transmission Corp., which keeps the funds with a government financial institution.

The fund goes towards paying renewable energy developers who have obtained fixed rates for electricity generated by their projects.

The ERC directed distribution utilities, the National Grid Corp. of the Philippines, and retail electricity suppliers to serve as collection agents for FIT-All, to be remitted to the FIT-All Fund. — Sheldeen Joy Talavera

DoE to select participants eligible to opt in at green energy auctions

THE Department of Energy (DoE) has released the rules for participants eligible for the opt-in mechanism of the Green Energy Auction program (GEA), which is designed to reduce feed-in tariff charges to end-users.

“The DoE through the GEAC (Green Energy Auction Committee) shall determine the opt-in participants for each auction round and subsequently provide the list of opt-in participants to Transco (National Transmission Corp.) and market operator,” the DoE said in a draft circular.

Participants in the Renewable Portfolio Standards (RPS) program exercising opt-in are required to submit to Transco and the market operator the capacity offered for opt-in, alongside a board resolution or secretary’s certificate indicating authority to opt in.

“The corresponding Opt-In energy shall be determined by multiplying the percentage of the Opt-In Capacity by the total energy generated by the winning bidders in a particular GEA round,” according to the circular.

RPS participants are required to file their intent to opt in with the DoE 60 days from the posting of the Notice of Award. This is to be considered in the determination of GEA capacity for the next auction round.

An Opt-In Participation Agreement (OPA) is to take effect after the execution of the Renewable Energy Payment Agreement by the winning bidder.

The start date of the agreement will be determined by the market operator or Transco and the Opt-In participant. — Sheldeen Joy Talavera

PHL’s RE-friendly minerals expected to be heavily mined

BW FILE PHOTO

MINERALS produced by the Philippines will be in heavy demand during the transition to renewable energy (RE), pointing to the need for enhanced government monitoring to ensure that miners comply with environmental rules, an advocacy group said.

Legal Rights and Natural Resources Center Advocacy Coordinator Maya Quirino told BusinessWorld on the sidelines of a forum on Tuesday that the Philippines has substantial reserves of copper, nickel, and cobalt. It has negligible production of two of the other key RE minerals — graphite and lithium, all used in various RE technologies.

She said the shift to renewable energy will have consequences for communities where the raw materials for products like batteries will be mined.

She said that supporters of the renewable energy transition should also consider the environmental impact of extracting raw materials used in RE.

Ms. Quirino said the RE transition needs to be more “just” on the resource extraction side, and lobbied for the passage of the group advocates the passing of the Alternative Mineral Management Bill, which it touts as a necessary supplement to the Republic Act 7942 or the Mining Act of 1995.

However, Ms. Quirino acknowledged that the likelihood of the bill being passed to ensure such resource extraction is properly regulated is “very low.”

“The government (is) looking to mining (to aid in the) economic recovery after the pandemic,” she said. — Adrian H. Halili

Philippine resupply mission reaches outpost despite Chinese ‘blockade’

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

By Kyle Aristophere T. Atienza, Reporter

A PHILIPPINE resupply mission had reached a remote outpost at Second Thomas Shoal in the South China Sea on Tuesday despite attempts by Chinese ships to block the boats carrying fresh supply for Filipino marines, authorities said.

“The routine follow-on rotation and resupply mission to the BRP Sierra Madre was successfully conducted today,” the National Task Force for the West Philippine Sea said in a statement.

The National Security Council (NSC) said Philippine Navy vessels were also on standby during the mission.

A handful of Filipino troops are stationed at BRP Sierra Madre, a rusty World War II-era US ship that the Philippines intentionally grounded at Second Thomas Shoal in 1999 to assert its claim.

The shoal is about 200 kilometers (124 miles) from the Philippine island of Palawan and more than 1,000 kilometers from China’s nearest major landmass, Hainan Island.

President Ferdinand R. Marcos, Jr. has rejected claims by the Chinese government that it had agreed to remove the vessel from the disputed shoal.

China deployed four militia ships “to take up blockade positions” as the Philippines conducted the resupply mission, Raymond Powell, project lead at the Gordian Knot Center for National Security Innovation, said in a series of tweets.

He said China had also deployed 11 AIS-visible Qiong Sansha Yu militia ships starting Monday afternoon.

“Routine missions to Philippine outposts on various features in the West Philippine Sea will continue on a regular basis,” NSC said, adding that resupply missions are part of the Philippine government’s legitimate exercise of its administrative functions over its territories in the South China Sea.

The activities are in line with the United Nations Convention on the Law of the Sea and 2016 arbitral ruling that voided China’s claim to more than 80% of the South China Sea, it added.

Tensions between the Philippines and China worsened after the Chinese Coast Guard, backed by maritime militia ships, fired water cannons at Philippine vessels on a resupply mission to the shoal on Aug. 5.

Only one of the two boats chartered by the Philippine military managed to deliver food, water, fuel and other supplies to troops on BRP Sierra Madre.

“Understanding China’s behavioral pattern since 2008 shows that it is also quite wary of conducting back-to-back provocations in the South China Sea that can lead to major miscalculations,” said Don Mclain Gill, who teaches foreign relations at De La Salle University in Manila.

“While China sought to show that it was present in the area, it did not try to block the resupply mission in Philippine waters due to the critical international backlash it faced a few weeks ago,” he said in a Facebook Messenger chat.

The future remains uncertain, Mr. Gill said, noting that throughout the years, China has occasionally limited its assertive maneuvers in Philippine waters.

“Such timidness falls short of a clear and consistent position in the long term,” he said. “Therefore, it is likely for Beijing to resume its assertiveness if it feels that the international attention toward its belligerent posturing has decreased.”

The Aug. 5 incident prompted statements of concern from various countries, including the United States, Japan and Australia.

“The Philippines and like-minded partners should continue their proactive engagements to not only secure the rules-based order but also strengthen norms that China seeks to weaken,” Mr. Gill said.

“The bravery and indignant posture of our coast guardians and marines against their aggresors in our own maritime domains are commendable as the world sees how sovereign archipelagic nation like the Philippines values maritime and international laws,” said Chester B. Cabalza, founder of Manila-based International Development and Security Cooperation.

But the Philippines should find more ways to stop the Chinese Coast Guard’s aggression at sea, he said in a Facebook Messenger chat.

NFA still won’t be allowed to import rice under new law

A farmer removes rice grain from its stem at a farm in Baggao, Cagayan province, Nov. 20, 2020. — PHILIPPINE STAR/MICHAEL VARCAS

THE NATIONAL Food Authority (NFA) would still be barred from importing rice under proposed changes to the Rice Tariffication Law, the Agriculture department told congressmen on Tuesday.

During a budget hearing at the House of Representatives, Agriculture Undersecretary Mercedita A. Sombilla said Congress should revise allocations under the Rice Competitiveness Enhancement Fund.

“We will be trying to make some revisions to the Rice Tariffication law in terms of the allocations of the different components,” she said, noting that the distribution of seeds and machinery has increased farmers’ income and gave them yield advantage.

Under the law, 30% of the fund is earmarked for seeds, 50% for mechanization, 10% for training and 10% for credit. Out of the Department of Agriculture (DA)’s proposed 2024 budget, P10 billion will be allotted to the rice fund.

The agency asked for a P167.5-billion budget for next year, higher than the P108.5-billion proposal from the Budget department.

The budget includes P9.55 billion for fertilizer assistance, while P9.8 billion will be spent on hybrid seeds under the National Rice program.

Another P2.22 billion will be allotted to the Integrated National Swine Production Initiatives for Recovery and Expansion program.

Ms. Sombilla said P2.49 billion was allocated to enhance production of yellow corn, while P492.7 million will be spent for President Ferdinand R. Marcos’ Kadiwa program. The Agricultural Credit program will be given P2.75 billion.

Under the proposed budget, P374 million will be earmarked for the construction of cold storage facilities for onions, while P149.09 million will be used to expand the country’s durian production.

“This national expenditure program is only around 42% of the department’s total proposal as submitted to the Department of Budget and Management,” she said.

Agriculture Senior Undersecretary Domingo F. Panganiban said Mr. Marcos, who is Agriculture secretary, had not joined the agency’s meetings in the past six months. He meets with the President meet twice a week so the chief executive could relay his concerns.

“The issues and concerns that the President tells me are concerns that I’m telling the undersecretaries, assistant secretaries and directors,” he said. Lawmakers have long called on Mr. Marcos to appoint a full-time Agriculture secretary. — Beatriz Marie D. Cruz

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