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Steady water supply ensured

PHILIPPINE STAR/EDD GUMBAN

THE METROPOLITAN Waterworks and Sewerage System (MWSS) said that the National Water Resources Board (NWRB) retained its water allocation at 50 cubic meters per second (cms) for November.

“Our commitment to preserving water from the Angat Reservoir remains,” Patrick James B. Dizon, head of the MWSS Angat/Ipo operations management division, said in a Viber message. “In the event of increased inflows from the watershed, we will fully utilize the [availability] and, if necessary, request a reduction in our allocation.”

The decision was made at the NWRB’s meeting last Oct. 20, during which it was established that the Angat Dam is on track to reach the year-end target elevation of 210-212 meters.

“Currently, the Angat elevation stands at 208.81 meters, assuring us that our water supply will remain secure next year, even in the face of El Niño,” Mr. Dizon said.

In July, the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) announced the onset of El Niño, which is expected to persist until the first quarter of 2024.

As of Sunday morning, Angat Dam’s water level was 208.63 meters, down from 208.74 meters a day earlier, data from PAGASA’s website showed.

Angat Dam is the main source of water for Metro Manila, accounting for about 90% of the capital’s potable water. The MWSS normally draws 48 cms from Angat Dam. NWRB had approved the proposed 50 cms water allocation for October.

“Considering the approved 50 cms allocation for November, we are still confident that we will maintain our progress toward reaching the target elevation,” Mr. Dizon said.

MWSS said in a joint release with Maynilad Water Services, Inc. and Manila Water Co., Inc. last week that Angat Hydropower Corp. will undertake a major repair and rehabilitation of its existing penstock to modernize the Angat Hydro-Electric Power Plant in Bulacan.

The agency said the move requires a total plant shutdown for 61 days from Nov. 6, 2023 to Jan. 6, 2024.

MWSS, however, assured uninterrupted water supply as raw water releases would be possible through the spillway and low-level outlet, instead of auxiliary turbines where MWSS usually gets its allocation. — Sheldeen Joy Talavera

India to donate 7 helicopters

THE INDIAN government plans to donate seven helicopters to the Philippine Coast Guard (PCG), Malacañang announced on Sunday after a recent courtesy call by Indian Ambassador to the Philippines Shambhu Kumaran to the President.

Amid rising tensions at sea, the PCG plans to use the helicopters as air support for its disaster response efforts and maritime operations, the Presidential Communications Office (PCO) said.

It said Mr. Kumaran told President Ferdinand R. Marcos Jr. about the planned donation, which is being discussed with the PCG and the Department of Transportation. “The discussion is going on very well. The Coast Guard is very interested — they’ve flown the helicopter…I would request your consideration because that would be a very positive [program],” the PCO quoted him as telling the President.

Mr. Kumaran said the helicopters, which were built for India’s Navy and Coast Guard, can be used for “active security operations that can carry more people.” 

“These [seven helicopters] are really an optimal solution, given the changing requirements for the Philippine Coast Guard (PCG) to play a more active role [in the country’s] security,” he said.

The PCG was under the Department of National Defense before it was transferred to the Office of the President on March 30, 1998 through an order issued by the late president Fidel V. Ramos.

Less than a month later, Mr. Ramos eventually transferred the PCG to the Department of Transportation and Communication, which was split into two into separate agencies in 2016 through a 2015 law signed by former president Benigno S.C. Aquino III.

The PCG has since been under the Transportation department. — Kyle Aristophere T. Atienza

Radio commentator shot dead

STOCK PHOTO | Image by kjpargeter from Freepik

COTABATO CITY — A well-known radio commentator in Misamis Occidental was gunned down while broadcasting on Facebook Live from his studio booth at radio station 94.7 Gold FM in Calamba town Sunday morning.

Brig. Gen. Ricardo G. Layug, Jr., director of the Police Regional Office 10, identified the broadcaster as Juan T. Jumalon, who goes by the broadcast name “Johnny Walker” and had quite the following in Oroquieta City.

President Ferdinand R. Marcos, Jr. condemned the killing in his X post, stating: “Attacks on journalists will not be tolerated in our democracy, and those who threaten the freedom of the press will face the full consequences of their actions.”

A livestream video clip that circulated on social media showed the actual shooting and how the unidentified gunman snatched Mr. Jumalon’s gold necklace and ran away. 

Members of his family and barangay emergency responders took Jumalon to the Calamba District Hospital, where he was declared dead on arrival by attending physician Geopeter L. Manisan.

The victim, who died of two bullet wounds in the head, reportedly owned the radio station located at his residential yard in Barangay Don Bernardo A. Neri in Calamba town.

Mr. Marcos said he had instructed the Philippine National Police to “conduct a thorough investigation to swiftly bring the perpetrators to justice.” — John Felix D. Unson and Kyle Aristophere T. Atienza

NMIA land dev’t surpasses 75%

THE DEPARTMENT of Transportation (DoTr) said it is accelerating the land development at the New Manila International Airport (NMIA) in Bulacan, which has reached more than 75% completion to date.

“We also have the New Manila International Airport being built in Bulacan. Land development is more than three-fourths complete. Structures should rise by the third quarter of 2024,” Transportation Secretary Jaime J. Bautista said in a recent forum facilitated by the German-Philippine Chamber of Commerce and Industry (GPCCI).

San Miguel Aerocity, Inc. (SMAI) is spending about P735 billion to build NMIA which will help decongest air traffic at the Ninoy Aquino International Airport while also complementing Clark International Airport’s operations, Mr. Bautista said.

“We have been using Clark and Cebu airports as a benchmark for successful public-private partnership. These two international gateways showcase the smooth transfer of airport operations and maintenance to private concessionaires,” he said.

To recall, the Transportation department held a pre-bid conference for the privatization of NAIA which has so far attracted seven bidders.

The DoTr has set the deadline for bids on Dec. 27. It has said that it expects to announce the winning bidder by the first quarter of 2024.

In August, the government invited bidders for the P170.6-billion public-private partnership to modernize and operate the main gateway airport. The modernization hopes to increase the current annual passenger capacity of the airport to 62 million from 35 million.

Separately on Sunday, the DoTr said that the Japanese government will fund five ships to help boost the country’s maritime security.

“The last pillar of the New (free and open Indo-Pacific) FOIP Plan is extending efforts for security and safe use of the sea to the air. Japan has hitherto provided 12 ships to the Coast Guard to play a part in improving the Philippines’ maritime security capability,” Japanese Prime Minister Fumio Kishida said in a media release on Sunday. — Ashley Erika O. Jose

Timor-Leste leader to visit Manila on Nov. 10

TIMOR-LESTE President José Ramos-Horta will visit the Philippines this week to discuss political and economic ties, including educational partnerships, Malacanang said on Sunday.

Mr. Ramos-Horta, who arrives in Manila on Friday, will to seek to tackle “various areas of cooperation between the Philippines and Timor-Leste in terms of technical, political, educational and economic partnerships,” President Ferdinand R. Marcos, Jr.’s office said in a press release.

Among those meeting Mr. Ramos-Horta are officials of the Departments of Foreign Affairs (DFA), of Trade and Industry (DTI), of Justice (DOJ), of Science and Technology (DOST), and of Social Welfare and Development (DSWD).

Mr. Ramos-Horta and Mr. Marcos met on the sidelines of the 42nd Association of Southeast Asian Nations (ASEAN) Summit in Indonesia in May, with the Philippine leader assuring Timor-Leste of Manila’s continued support for its move towards becoming a full-pledged member of the regional bloc.

“Timor-Leste joined the 42nd ASEAN Summit as an observer where President Marcos expressed elation over its journey towards becoming a democratic state and eventually becoming an ASEAN member state,” Mr. Marcos’ office said.

The Philippines’ gross domestic product amounted to $394.1 billion in 2021, higher than Timor-Leste’s $3.621 billion.

East-Timor Prime Minister Xanana Gusmao signed a comprehensive strategic framework with Chinese President Xi Jinping in September, covering cooperation in agriculture and infrastructure and providing scope for Chinese loans — both public and commercial — for the smaller country.

Tensions between the Philippines and China in the South China Sea have escalated in recent months, with the Chinese coast guard and maritime militia vessels intruding into Manila’s 200-nautical mile exclusive economic zone. Despite these, Beijing is still Manila’s largest trade partner, with their total trade amounting to $3.01 billion in April. – Kyle Aristophere T. Atienza

Total exports growth target set at 5% this year

By Justine Irish D. Tabile, Reporter

THE Department of Trade and Industry (DTI) said it is aiming for 5% growth in 2023 merchandise and services exports, a level which would exceed the Development Budget Coordination Committee’s (DBCC) projections.

“We are confident that it will be a little bit more favorable than the DBCC targets of 1% for goods and 6% for services. So, we are hoping for at least 5% growth in terms of total exports,” Bianca Pearl R. Sykimte, director of DTI’s Export Marketing Bureau, said in an online briefing on Thursday.

Ms. Sykimte said services will drive exports after posting around $98 billion in total exports last year.

However, she said that it will be difficult to reach the targets set under the Philippine Export Development Plan (PEDP) 2023-2028, which projected total exports of $126.8 billion in 2023.

“The PEDP targets were set when there were no geopolitical tensions yet, (and before) high inflation set in. No one had also factored in a less favorable Chinese recovery,” she said.

“The PEDP projections did not take into account the slowdown in the international trading environment,” she added.

The Philippine Statistics Authority reported that merchandise export earnings in the first eight months amounted to $47.81 billion, a 6.6% decline from a year earlier.

“We’re still down by 6.6%. But when we look at our August performance, we are the only country among the Asian economies that we’re tracking that grew in August,” Ms. Sykimte said.

“Year on year, our exports grew 4.2% for the month… Japan, Thailand, Hong Kong, Vietnam, Taiwan, South Korea, China, Singapore, Malaysia and Indonesia all declined,” she added.

She said that in the eight months to August, the Philippines is in the middle ranks. Japan led the region with 2.1% growth in exports. It was followed by China with a 5.1% decline and Thailand, which saw a 5.4% decrease in exports.

Ms. Sykimte said that the Philippines beat Malaysia which recorded a 7.8% decline, Vietnam (-9.6%), and Indonesia (-11.8%). The Philippines were also ahead of South Korea, Singapore, Hong Kong and Taiwan, which all recorded double-digit declines in exports.

For services, she said the Philippines posted 22% export growth in the first half, driven by travel services which surged to $4 billion from $800 million in the same period last year.

“Other exports of services under information technology and business process management, telecommunications, computer information services and other business services were up 49% for January to June,” she added.

Manufacturing services posted a 23% decline during the period, which includes assembly and packaging services.

Asked whether there is a need to review the PEDP, Ms. Sykimte said: “This is something that we’re discussing with Philippine Exporters Confederation, Inc. and with the overall Export Development Council (but) usually we recalibrate based on the trading environment.”

Wind, solar, gas dominate DoE lineup of prospective projects

ZBYNEK BURIVAL—UNSPLASH

WIND, natural gas, and solar power projects make up most of the projects in the medium-term pipeline, the Department of Energy (DoE) reported, citing data on “indicative” projects compiled as of August.

Of the 60,362.16 megawatts (MW) of indicative power projects, about 83% or 50,366.96 MW are renewables dominated by wind power projects with total capacity of 34,080.50 MW.

Natural gas, solar, and hydropower projects accounted for 8,320 MW, 7,987.60 MW, and 7,811.86 MW, respectively.

This was followed by coal-fired power plants with 1,520 MW and geothermal with 413 MW.

Meanwhile, oil-based and biomass projects had capacities of 155.20 MW and 74 MW, respectively.

Indicative projects are those that are currently in the pre-development stage.

Private sector-initiated projects with target commercial operations have a total capacity of 58,002.16 MW.

Meanwhile, committed projects, or those that are in the construction phase or have achieved financial closing, have a total capacity of 12,506.59 MW.

The pipeline of projects includes those without a firm commercial operations date and those where the date is beyond 2027.

Of the total, natural gas projects account for 6,070 MW. Renewable energy (RE) projects had a combined total of 4,044.88 MW. Coal-fired power plants accounted for 2,305 MW.

In July, the Department of Energy issued notices of award for 105 winning bids in the second Green Energy Auction (GEA-2), covering projects generating 3,440 MW, well below the 11,600-MW capacity on offer.

The project timelines are between 2024 and 2026.

The GEA program aims to promote RE as a primary source of energy through competitive selection.

As of the end of 2022, RE accounted for about 22% of the energy mix, with coal-fired power plants accounting for almost 60%.

The government hopes to increase the share of RE to 35% by 2030 and to 50% by 2040. Last year, the DoE raised the Renewable Portfolio Standards requirement to 2.52% per annum starting 2023, from 1% per annum previously. — Sheldeen Joy Talavera

BoI endorses wind power project for ‘green lane’

THE Board of Investments (BoI) said it has endorsed for expedited permits a P10.85-billion wind power project of Singapore’s The Blue Circle (TBC) in Paete and Kalayaan, Laguna.

“TBC, through its subsidiary, is currently developing a wind power project to spearhead its efforts in increasing its presence in the Philippines, with an overall portfolio of more than 2.5 gigawatt worth of renewable energy projects in development in the entire country,” the BoI said.

The project — Kalayaan 2 Wind Power Project — will be carried out by Laguna Wind Energy Corp. (LWEC) and is set to start commercial operations by 2026. 

It is expected to generate 30 direct and 500 indirect jobs, The site is 70 hectares, hosting installed capacity of 100.8 megawatts of clean energy.

“In addition, the wind power project aims to harness renewable wind resources to power industries and promote sustainable and greener economic growth,” the BoI said.

The BoI estimates that projects receiving the “green lane” treatment totaled 16, with a combined project cost of P336.29 billion.

“There are 16 projects that have been designated and identified as strategic investments and (these are) projected to generate 31,000 jobs,” said Lubin R. de Vera, Jr., chief investments specialist with the BoI’s Investments Assistance Service.

In October, the BoI endorsed three solar projects of Spain’s Ignis Energia which cost a combined P14.83 billion. It also approved Real Steel Corp.’s P10.3-billion steel bar plant.

According to Mr. De Vera, of the 16 approved projects, 11 are renewable energy projects — 10 solar and one wind.

Two are telecommunication tower infrastructure projects, two are steel mills or plants and one a data center. — Justine Irish D. Tabile

BoC now sees digitalization timeline delayed to 2026

PHILSTAR FILE PHOTO

THE Bureau of Customs (BoC) is seeking to postpone the full digitalization of its processes to 2026, citing procurement delays.

“We’re asking for 2026, just a little bit of an adjustment, because of some delays that we’ve experienced… we’ve been asked to at least restructure a little bit (and) give a little bit of an extension to the original timeframe,” Customs Assistant Commissioner Vincent Philip C. Maronilla told reporters.

“This is the first time we’re doing this together with the World Bank. Unfortunately, there are intricacies in our procurement processes and the procurement processes of the World Bank that there were adjustments that needed to be made, that caused a little delay,” he added.

Mr. Maronilla said the BoC is still “optimistic” about the progress made under its initial 2025 timetable.

“We still have 2024 and 2025, that’s two years. But if you base it on the original timeline and delays that have happened, that’s what we’re basing the 2026 extension on. Even if we’re able to implement it by 2025, there are other catch-up systems that we need to put up,” he added.

Mr. Maronilla said that the agency’s digitalization rate will be 98% this year.

“Right now, conservatively, we’re predicting we’re at that because some of the systems that we’re trying to finish up are systems we need to integrate with other agencies and other offices and are dependent on the level of preparedness of the systems of those agencies,” he added.

The remaining processes to be digitalized mostly have to do with port operations rather assessment, Mr. Maronilla said.

The Philippines Customs Modernization Project was approved by the World Bank in 2020. It aims to improve the efficiency of the agency and reduce trade costs.

Customs has reported collections in the 10 months to October of P739 billion, exceeding its target by 2.4%.

In October, revenue hit P78.616 billion, up 1.4% against target. — Luisa Maria Jacinta C. Jocson

PHL inflation expected to cool but stay above BSP forecast — Moody’s Analytics

PHILIPPINE STAR/MIGUEL DE GUZMAN

HEADLINE INFLATION is expected to ease over the remainder of the year, but will come in above the central bank’s 5.8% full-year forecast, Moody’s Analytics said.

“We expect inflation to cool through the rest of the year, but the pace will be gradual and not in the large steps seen at the start of 2023,” Moody’s Analytics economist Sarah Tan said in an e-mail.  

She said inflation will likely average 6% this year, higher than the 5.8% full-year forecast of the Bangko Sentral ng Pilipinas (BSP) as well as the 5.8% reading in 2022.

“The El Niño weather pattern is also expected to strengthen from year’s end until early 2024 which will disrupt domestic supply and put upward pressure on food prices,” Ms. Tan said.  

“Given the large contribution of the food category to top-line inflation, we expect headline CPI (consumer price index) to remain above the BSP’s 2% to 4% target until the first half of 2024,” she added.  

The BSP expects inflation to ease to 3.5% in 2024 and 3.4% in 2025. However, monetary officials have said the central bank could revise its inflation forecasts on Nov. 16.

A BusinessWorld poll of 13 analysts conducted last week yielded a median estimate of 5.7% for October inflation, well within the 5.1-5.9% forecast of the BSP.  

If realized, October CPI would slow from the 6.1% posted in September and the 7.7% from a year earlier. The median would represent the lowest reading since the 5.3% in August.

However, October would still mark the 19th straight month that inflation has breached the central bank’s 2-4% target band.

The Philippine Statistics Agency will release inflation data on Nov. 7.

Ms. Tan said she expects headline inflation to ease to 5.7% as well in October.

“Food inflation should ease a touch as we entered the palay harvest season in October. That should see a stabilization in rice supply which supports the case for a softer price growth for rice compared to September,” she said.  

The price of regular-milled rice ranged from P41 to P44 a kilo as of Oct. 31, while well-milled rice sold for P45-P53, the Agriculture department showed.  

The price of rice has steadied after President Ferdinand R. Marcos, Jr. lifted price controls on Oct. 4.

In September, Mr. Marcos ordered prices to be capped at P41 a kilo for regular-milled rice and P45 for well-milled rice. 

“However, the increase in transport fares on jeepneys, and higher electricity bills as Manila Electric Co. (Meralco) passed down the costs from higher generation charges will keep inflation hot,” Ms. Tan added.

In October, traditional and modern jeepneys increased their fares by P1 to P13 and P15, respectively.

Meralco also raised rates for typical households by P0.4201 per kilowatt-hour to P11.8198 in October.

The BSP hiked borrowing costs by 25 basis points (bps) in an off-cycle move, bringing the key rate to a fresh 16-year high of 6.5%. The BSP has raised policy rates by 450 bps since May 2022. 

The BSP’s next policy-setting meeting is scheduled on Nov. 16. – Keisha B. Ta-asan

DTI seeking $400M in funding from ADB for national innovation gateway

THE Department of Trade and Industry (DTI) said it will seek up to $400 million in funding from the Asian Development Bank (ADB) for a national innovation gateway project.

In a briefing on Friday, Trade Undersecretary Rafaelita M. Aldaba told reporters that the department is currently in discussions with the bank for the loan of between $200 million and $400 million.

“Right now, we are still in the process of negotiating the loan and then we will have to do the feasibility study,” Ms. Aldaba said.

The DTI has said that the loan program it is negotiating with the ADB is called the Promoting Research and Innovation to Strengthen Transformation of Industries and Enterprises Project. The program is meant to support the department’s flagship programs.

“It’s not just going to the Center for Artificial Intelligence Research and Development, but it will also include the Industry 4.0 Pilot Factory (as) we would be building a national innovation gateway,” Ms. Aldaba said.

“It’s going to have spaces for startups as well as a sandbox and all the modern facilities,” she added.

Ms. Aldaba said that the department is hoping to start construction on the project in 2025.

“The construction will be fast; it will not take years. In Indonesia, they did it and they were able to complete the entire structure of the project in months,” she said.

Asked whether the DTI will be able to close the deal with ADB in the first half of next year, she said: “I don’t think so, as it will still have to undergo the process, but we have the full support of the National Economic and Development Authority, Department of Finance and of course the ADB.” — Justine Irish D. Tabile

RE transition to require power grids to make major adjustments — report

NGCP.PH

By Sheldeen Joy Talavera, Reporter

POLICY MAKERS need to ensure that the planning, timelines, and assessment of investments in grids are aligned with long-term targets for the renewable energy (RE) buildout, the International Renewable Energy Agency (IRENA) said.

“Investments in the electricity grid have lagged behind those in renewable power and must now significantly ramp up in anticipation of the considerable renewable energy power additions required,” IRENA said in a report.

“Countries need to prepare for the large amount of VRE (variable renewable energy) that will come online in the next few decades, as grid investments must be made 3-5 years before renewable energy investments to mitigate the overall system costs of greater renewable penetration,” it added.

IRENA said that the total global installed renewable power generation capacity would need to expand to 11,174 gigawatts (GW) by 2030 from 3,382 GW in 2022, according to its 1.5°C Scenario.

The scenario identifies “‘a technically and economically feasible pathway” to an energy future that is consistent with Paris Agreement goals, the agency said.

Asked to comment, Jose M. Layug, Jr., president of Developers of Renewable Energy for AdvanceMent, Inc., said in a Viber message that the Philippines needs to ensure that all necessary infrastructure, especially the transmission and distribution lines, is upgraded and can accommodate all the new RE capacity.

“I understand that this administration is working on this and is looking at allowing also the private sector to advance the cost of transmission subject to reimbursement,” Mr. Layug said.

“While there is cost attendant to such upgrades, the long-term effect of having more RE capacity will ultimately yield lower electricity costs for consumers,” he added.

The government wants to boost the RE share in the power mix to 35% by 2030 and to 50% by 2040.

As of June, the Department of Energy (DoE) has awarded 1,087 RE service contracts with a total potential capacity of 113.5 GW.

Terry L. Ridon, a public investment analyst and convenor of think tank Infrawatch PH, said that a “well-regulated” and “compliant” energy grid is essential for the “stability, reliability, and sustainability” of the energy supply.

“Critical issues surrounding the Philippine energy grid — from reliability and affordability to national security — necessitate tighter regulatory policies to enforce compliance with existing policies, particularly with regard to RE integration,” he said in an e-mail.

Mr. Ridon said that in order to properly regulate the industry, the needed measures include strengthening the independence of regulatory agencies and developing clear and specific standards and performance metrics for energy companies to follow, introducing “harsher penalties” for non-compliance, among others.

Privately-owned National Grid Corp. of the Philippines (NGCP) holds the sole and exclusive concession and franchise for the operation of the country’s power transmission network, which links power generators and distribution utilities to deliver electricity nationwide.

NGCP Spokesperson Cynthia P. Alabanza said that the company has identified the required transmission projects to accommodate the RE projects in the Transmission Development Plan and have filed them with the Energy Regulatory Commission (ERC) for approval.

“Government support for right-of-way and government permitting will also be critical for transmission line projects, which traverse necessarily multiple municipalities and provinces and have longer implementation periods compared to power plant construction,” she said in a Viber message.

“Prioritization for RE plant proposals is needed to reflect the realistic implementation timing and schedules, along with the projected load growth,” she said.

In May, the NGCP said it had invested about P300 billion in improving the power transmission system since taking it over in 2009.

Between 2009 and 2022, the company said that it had completed about 56 projects deemed vital to the energy industry.

The ERC issued a show-cause order against the NGCP in July over delays to 37 transmission projects.

Meanwhile, Ms. Alabanza said that the NGCP is coordinating with the DoE on other grid requirements such as flexible generation and energy storage systems.

She also said that the company’s access to the expertise of its technical partner State Grid Corp. of China — which holds a 40% stake in NGCP — makes it a “more than capable entity” in ushering in the shift to cleaner energy.

“This move towards a greener and more sustainable grid requires a holistic approach with emphasis on optimization of resources and alignment of timelines. We hope for the synergy among all the energy players to ensure the fruition of these efforts,” Ms. Alabanza said.

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