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Cebu province seeks challengers for unsolicited 150-MW solar project

CEBU PROVINCIAL GOVERNMENT FACEBOOK PAGE

CEBU province said it is inviting challengers to a consortium’s unsolicited proposal for a 150-megawatt (MW) solar power plant.

In a statement, the province’s Economic Enterprise Council (EEC) said it received a proposal from the consortium, composed of Acciona Energia Global, S.L. and Freya Renewables, Inc., for a joint-venture solar power plant.

The EEC said the project proposal involves the “development, financing, operation, commissioning, owning, managing and maintaining” a 150-MW solar facility, whose output is deliverable to the National Grid Corp. of the Philippines or to any interested purchaser.

The project cost is estimated at P7.52 million, with a construction period of 32 months and a concession of 25 years, it said.

Citing provincial ordinances, the EEC said that a project of this type is required to undergo a Swiss challenge.

A Swiss challenge involves soliciting counterproposals from competing bidders, which the original proponent has the right to match.

Domestic corporations interested in filing a challenge are required to be duly registered with the Securities and Exchange Commission (SEC), while foreign corporations must be holders of an SEC License to Operate.

Challengers must also have “completed, developed, operated and maintained at least a 75-MW solar power plant” and have equity of at least P3.76 billion.

Bid documents may be obtained upon payment of a non-refundable fee of P10,000.

“Deadline set for submission of eligibility documents is 12 noon, Monday, Nov. 6, 2023. The eligibility documents shall be opened not earlier than 1 p.m. on the same date in the presence of the private sector participants’ representatives, if any, who choose to attend the scheduled opening,” the EEC said. — Sheldeen Joy Talavera

Feed millers warn of higher meat, egg, fish prices

REUTERS

FEED MILLERS said the price of meat, eggs, and fish may rise further due to issues regarding the supply and quality of domestically grown corn used in animal feed.

The Philippine Association of Feed Millers, Inc. (PAFMI) said in a statement that domestic corn is inadequate to meet rising industry demand.

“As it plays a role in many industries, ensuring the access to affordable and good-quality corn is an issue that not only affects the livelihood of farmers but also has broader implications for food security and economic stability for the rest of the community,” PAFMI President Edwin C. Mapanao said.

Mr. Mapanao added that the majority of animal feed formulations involve yellow corn, which also has human-food and bioethanol applications.

“Corn is a staple crop in the Philippines as it serves as a vital food, feed, and industrial raw material,” he said.

PAFMI declared its support for the extension of the lowered 5% tariff on corn imports, first imposed by Executive Order (EO) 10.

“With corn-reliant sectors developing and demand increasing, keeping tariffs low is an urgent but temporary measure,” it said.

PAFMI added that further corn imports could address supply issues and “ultimately aid in sustaining local production of quality meat, eggs, and fish while keeping prices affordable.”

EO 10, signed by President Ferdinand R. Marcos, Jr. last year, extended the lower tariffs on rice, corn, and pork until Dec. 31, 2023. The Tariff Commission has since heard arguments for or against their extension, and is due to submit its recommendation to the Palace in about a month.

Corn tariffs are currently set at 5% for imports within the minimum access volume quota and 15% for those exceeding the quota.

PAFMI had called for a standard 5% tariff on corn imports, regardless of volume. — Adrian H. Halili

Seaweed put forward as animal feed alternative

STOCK PHOTO | Image by Laczko Istvan Stefan from Pixabay

THE Department of Agriculture (DA) said it may encourage the use of processed seaweed as an alternative to corn-based animal feed, as a means of lowering the cost of meat and poultry.   

“This will relieve our animal raisers from the high cost of commercial feed,” Undersecretary Deogracias Victor B. Savellano said in a statement.

Mr. Savellano added that the DA will seek assistance from the United Nations Food and Agriculture Organization (FAO) to develop seaweed as an animal feed.

“We are tapping the expertise of (FAO Country Representative) Lionil Henri Valentin Dabbadie to explore the processing of seaweed as commercial feed for farm animals,” he added.

He said seaweed can save on feed costs and is abundant along Philippine coastal areas.

During the second quarter, seaweed was the leading item by volume of all fisheries products, according to the Philippine Statistics Authority.

Output was 365,775 metric tons for the period, accounting for 33.9% of fisheries production.

Other efforts to raise the supply of feed include the proposed conversion of sugarland in Batangas to corn, following the recent closure of the province’s sugar central.

“Sugarcane farmers can take on a new livelihood and help supply the requirement for animal feed for livestock and poultry,” he said.

In 2022, Central Azucarera Don Pedro, Inc. in Nasugbu, Batangas announced its closure due to the challenging operating environment in the province, citing the lack of cane to support a milling operation. — Adrian H. Halili

USAID provides modernization funding for 9 PHL cities outside NCR

NINE CITIES outside Metro Manila will receive a total of P624 million from the US Agency for International Development (USAID) to help modernize their services to the public and their financial management.

The Urban Connect Project, supported by the USAID Cities Development Initiative partnered with the city governments of Batangas, Legazpi, Puerto Princesa, Iloilo, Tacloban, Tagbilaran, Cagayan de Oro, General Santos, and Zamboanga.

“Our approach is comprehensive. From economic development to the development of health and education, from improved public services to increased private sector engagement,” USAID Philippines Mission Director Ryan Washburn said in a speech at the program’s launch event.

The project started in August but was officially launched on Thursday, Urban Connect Activity Chief of Party Alex B. Brillantes, Jr. said.

Mr. Brillantes said Urban Connect will support government and USAID projects in these local government units (LGUs) by providing more funding for modernization.

“We are building on previous projects. We are building on what the government has been doing,” he said.

Mr. Brillantes said in a speech that the project will benefit other localities near the cities by “promoting inter-LGU, inter-city cooperation in digitalization.”

He said the project will also encourage LGUs to improve health, education, and other services.

Mr. Brillantes said the program aligns with the goals of AmBisyon Natin, the 25-year National Economic and Development Authority (NEDA) economic plan.

NEDA Assistant Secretary Sarah Lynne S. Daway-Ducanes said developing the selected cities will help decongest the country’s megacities, which are facing environmental issues and housing shortages.

Director-General Ernesto V. Perez of the Anti-Red Tape Authority said enhanced electronic government systems will help connect the National Government with the private sector in developing local economies. Jomel R. Paguian

Peso sinks as dollar climbs before US Q3 GDP data

PHILIPPINE STAR/WALTER BOLLOZOS

THE PESO sank on Thursday ahead of the release of US gross domestic product (GDP) data for the third quarter and as the dollar rebounded versus other global currencies.

The local currency closed at P56.96 versus the dollar on Thursday, weakening by 11 centavos from its P56.85 finish on Wednesday, data from the Bankers Association of the Philippines’ website showed.

The local unit opened the session weaker at P56.93 against the greenback. Its intraday best was at P56.90, while its weakest showing was at P56.975 versus the dollar.

Dollars traded went up to $1.08 billion on Thursday from $909.7 million on Wednesday.

“The peso weakened ahead of a likely strong third-quarter US GDP growth report overnight,” a trader said in an e-mail.

The US Commerce department was expected to release its estimate for third-quarter GDP overnight.

The peso declined as the dollar was stronger against major global currencies, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The dollar was buoyant on Thursday, hovering at a near three-week high as Treasury yields rose and appetite for riskier currencies dimmed, while the yen briefly surged after breaching 150.50 per dollar, keeping traders jittery about intervention, Reuters reported.

“Nevertheless, the peso exchange rate still somewhat stabilized and supported versus the dollar on possible intervention towards the P56.99 high, as signaled and reiterated by some local monetary authorities since August 2023… in an effort to stabilize the peso exchange rate,” Mr. Ricafort said.

For Friday, the peso may recover after the Bangko Sentral ng Pilipinas’ (BSP) off-cycle hike announced on Thursday, the trader said.

The BSP on Thursday hiked its policy rate by 25 basis points (bps) to 6.5% in an off-cycle move in a bid to anchor inflation expectations.

This was the BSP’s first policy adjustment since March and brought total increases since May 2022 to 350 bps.

For Friday, Mr. Ricafort sees the peso moving between P56.80 and P56.98, while the trader gave a forecast range of P56.70 to P56.90. — L.M.J.C. Jocson with Reuters

Health staff shortage will take ‘years’ to address via education system reforms

REUTERS

THE shortage of health professionals will take some time to resolve by expanding capacity in the education system and improving graduate quality, healthcare educators said.

West Visayas State University President Joselito F. Villaruz said in a media roundtable on Thursday that the Department of Health estimates the physician-to-population ratio in 2022 was only 3.6 for every 10,000 people, well below the ideal of 10 per 10,000.

“It will take us quite a number of years to fill in that gap,” he noted.

He said the Commission on Higher Education (CHED) is currently formulating its roadmap for healthcare education.

“This will include reorienting our curriculum towards primary healthcare and providing strategies to improve the quality of graduates by providing them with experiential learning,” he said.

CHED also recently approved a pilot program cutting short the time spent in medical school.

“They will also enhance the number of graduates, with doctors to be produced in less time,” Mr. Villaruz said.

“We cannot really tell at this time whether a shorter program will be applicable across all schools, but we are piloting this project but eventually, who knows, we might need to implement this across all schools,” he added.

Recruiting healthcare professionals should also start at a younger age to ensure that more students apply to medical programs, former Dean of the De La Salle Medical and Health Sciences Institute and the former President of Asian Hospital and Medical Center Madeleine Grace M. Sosa said.

“If we want to develop more nurses, we have to start with recruitment. The institution should be able to (tap) grades 11 and 12 (for) your future students,” she said.

“You need to have a way to hold on to middle schoolers, high schoolers, and grades 11 and 12. These (needed to be viewed as) feeder schools,” she added.

Reorienting the curriculum to give medical students earlier exposure to patients will also help motivate them to finish their studies, Ms. Sosa said, adding that more state universities in the provinces need to have medical schools.

Eleanor B. Almoro, who chairs the Professional Regulatory Board of Medicine, noted that as of October 2022, the Professional Regulation Commission had 152,055 registered physicians, with 99,561 classified as active.

“Divided by the Philippine population, it gives us a physician density of 9 doctors per 10,000 people,” she said, noting that the issue lies in their distribution across 17 regions.

The regions with the lowest healthcare professional density are the Bangsamoro Autonomous Region in Muslim Mindanao and Palawan, or Region 4B, at about two physicians per 10,000 people.

The National Capital Region still has the highest number of physicians at 29 per 10,000. — Aaron Michael C. Sy

Shares drop before central bank’s off-cycle hike

REUTERS

PHILIPPINE STOCKS declined anew on Thursday, with the main index falling below the 6,000 level intraday, before the Bangko Sentral ng Pilipinas’ (BSP) announcement of an off-cycle rate hike.

The Philippine Stock Exchange index (PSEi) went down by 36.01 points or 0.59% to close at 6,018.49 on Thursday, while the broader all shares index dropped by 22.81 points or 0.69% to end at 3,266.02.

“The PSEi index ended in the red but managed to close above its support level of 6,000. The market briefly breached this level intraday as investors braced for today’s potential off-cycle rate hike that the BSP mentioned last Tuesday,” Unicapital Securities, Inc. Senior Equity Research Analyst Carlos Angelo O. Temporal said in a Viber message on Thursday.

The BSP late on Thursday raised benchmark interest rates by 25 basis points (bps) before a scheduled review as it seeks to anchor control inflation expectations, bringing its policy rate to 6.5%.

The move came ahead of the Monetary Board’s scheduled meeting on Nov. 16. BSP Governor Eli M. Remolona, Jr. said next month’s review will push through and another rate increase could be on the table as they will have new data to consider by then.

Thursday’s move was the first hike since March and brought total increases since May 2022 to 450 bps. The BSP held rates steady in its last four meetings before the hike.

“The index fell in today’s session as sentiment remained sour given the overnight weakness in offshore markets stemming from US yield and earnings woes. Further exacerbating this was investor caution ahead of US third quarter GDP (gross domestic product) data due out today, as well as prospects of an off-cycle rate hike from the BSP,” China Bank Securities Corp. Research Director Rastine Mackie D. Mercado said in an e-mail on Thursday.

All sectoral indices dropped on Thursday. Services fell by 13.36 points or 0.9% to 1,457.50; financials went down by 14.37 points or 0.83% to 1,709.08; mining and oil dropped by 66.74 points or 0.67% to 9,867.19; industrials declined by 57.54 points or 0.66% to 8,596.67; property sank by 15.82 points or 0.61% to 2,545.73; and holding firms decreased by 17.54 points or 0.3% to 5,798.39.

Value turnover went down to P3.06 billion on Thursday with 428.34 million shares changing hands from the P3.63 billion with 977.71 million issues seen on Wednesday.

Decliners outnumbered advancers, 115 versus 47, while 51 shares closed unchanged.

Net foreign selling stood at P319.07 million on Thursday versus the P20.08 million in net buying seen on Wednesday.

“Going forward, the market is likely to move sideways after retesting its key support level as investors await next catalysts… Market activity may remain anemic considering the long weekend and next week’s holidays,” Unicapital Securities’ Mr. Temporal said.

Philippine financial markets will be closed on Oct. 30, Nov. 1, and Nov. 2. — SJT with Reuters

Biden: US to come to Philippines’ aid if attacked

US PRESIDENT JOSEPH R. BIDEN — WHITEHOUSE.GOV

By Kyle Aristophere T. Atienza, Reporter

The United States would not hesitate to intervene if China attacks Philippine vessels in the South China Sea, President Joseph R. Biden said on Thursday, days after ships from the two Asian nations collided near Second Thomas Shoal. 

“I want to be clear – I want to be very clear: The United States’ defense commitment to the Philippines is ironclad,” he said in a joint press briefing with Australian Prime Minister Anthony Albanese in Washington D.C., based on a transcript from the White House. 

The US President said Chinese vessels had “acted dangerously and unlawfully” as the Philippines conducted a resupply mission “within their own exclusive economic zone in the South China Sea.”  

“Any attack on Filipino aircraft, vessels or armed forces will invoke… our Mutual Defense Treaty with the Philippines,” he said, referring to the agreement signed in 1951 that compels both countries to defend each other in case of an armed attack.  

“The US is not a party to the South China Sea issue and has no right to interfere in the issue between China and the Philippines,” Chinese Foreign Ministry spokesperson Mao Ning told a news briefing. 

“The US defense commitment to the Philippines should not undermine China’s sovereignty and maritime rights and interests in South China Sea, nor should it support the illegal claims of the Philippines,” she added. 

Second Thomas Shoal is about 200 kilometers from the Philippines’ Palawan island, and more than 1,000 kilometers from China’s nearest major landmass, Hainan island. 

Chinese ships on Sunday collided with Philippine vessels trying to deliver food and other supplies to BRP Sierra Madre, a World War II-era ship that Manila deliberately grounded in 1999 to assert its sovereignty claim. 

The Philippines has filed a diplomatic protest against China, accusing its coast guard of “dangerous, illegal and reckless maneuvers” that caused the collision. 

The rusting vessel, which the Philippine government plans to restore, has been a source of tension this year between Manila and Beijing, which fired water cannons at Philippine vessels that were on a resupply mission on Aug. 5.  

Political analysts have said BRP Sierra Madre has been crucial in preserving the status quo in the South China Sea, with China fearing an activation of the Philippines-US Mutual Defense Treaty. 

In their joint statement, Mr. Biden and Mr. Albanese, who is in the US for a state visit, reiterated their countries’ opposition to China’s “destablizing actions” in the South China Sea. 

Such actions include “unsafe encounters at sea and in the air, the militarization of disputed features, the dangerous use of coast guard vessels and maritime militia, including interfering with routine Philippine maritime operations around Second Thomas Shoal, and efforts to disrupt other countries’ offshore resource exploitation.”  

Unaizah Mae 2, one of the two boats contracted by the AFP for the Oct. 22 resupply mission, was damaged after it collided with a much larger China Coast Guard vessel. 

 

‘RISK OF MISCALCULATION’ 

While escorting Unaizah Mae 2, the Philippine Coast Guard’s (PCG) BRP Cabra also collided with a Chinese maritime militia ship that had blocked it from accompanying the resupply boat.  

Five Chinese Coast Guard ships “participated in the shadowing, dangerous maneuvers, and blocking” of the mission, while eight Chinese maritime militia vessels helped block the resupply contingent, PCG spokesman Jay Tristan Tarriela said on Monday.  

The two leaders noted their support for the 2016 arbitral award that voided China’s claim to more than 80% of the waterway.  

“We are concerned about China’s excessive maritime claims that are inconsistent with international law, as well as unilateral actions that may raise tensions and increase the risk of miscalculation in the region,” they said, vowing to work with their partners to support regional maritime security and uphold international law. 

American legislators have also condemned the “unlawful actions” of the Chinese Coast Guard. 

In a statement on Wednesday, ranking members of the US House foreign affairs committee and subcommittee on the Indo-Pacific welcomed the Biden government’s plan to increase joint patrols with the Philippines and other partners in the South China Sea. 

They also welcomed the US government’s vow to “uphold its commitment under the US-Philippines Mutual Defense Treaty.” 

President Ferdinand R. Marcos, Jr. has pursued closer ties with the US, giving it access to four more military bases on top of the five existing sites under their 2014 Enhanced Defense Cooperation Agreement. 

During his visit to Washington in May, the two countries through their Defense chiefs agreed on new guidelines for the Mutual Defense Treaty, including a provision that could be invoked if either of the two countries is attacked in the South China Sea.  

The rules also cited modern forms of warfare including “grey zone tactics,” which China has allegedly been using to assert its claims. But the guidelines did not mention Beijing.  

“Recognizing that threats may arise in several domains — including land, sea, air, space and cyber-space — and take the form of asymmetric, hybrid and irregular warfare and grey-zone tactics, the guidelines chart a way forward to build interoperability in both conventional and nonconventional domains,” the Pentagon said in the fact sheet. 

US Navy aircraft carrier to visit Manila amid rising China tensions

PHOTO SHOWS the USS Ronald Reagan sailing through the Straits of Magellan to San Diego, California on June 21, 2004. — COMMONS.WIKIMEDIA.ORG

A UNITED STATES Navy aircraft carrier is on its way to Manila for a port visit, according to the United States Embassy in Manila, amid rising sea tensions between China and the Philippines.

The USS Ronald Reagan is currently en route to Manila for a port visit,” US Embassy Deputy Press Attaché Glenda M. Wallace said in a Viber message. “It (aircraft) is conducting routine flight operations to maintain pilot training hours,” she added, referring to a US plane that was reported to be flying over eastern Luzon

Before heading to Philippine waters, the USS Ronald Reagan conducted flight operations in the South China Sea at the weekend, China criticized.

The nuclear-powered super carrier, which carries dozens of planes including FA-18 fighter jets and helicopters and sophisticated weapon systems, was sending a “wrong signal” to the Philippines and emboldening it to “infringe upon China’s sovereignty,” according to the Chinese state media Global Times.

China also called the US a “troublemaker” in the region.

The Philippines would eye more joint patrols and freedom of navigation missions in the South China Sea after collisions with Chinese ships at Second Tomas Shoal, Jonathan M. Malaya, assistant director general of the National Security Council, said on Tuesday.

The Philippines on Monday filed a diplomatic protest against China and summoned its envoy in Manila after the Oct. 22 collisions.

The Chinese Embassy in Manila on Monday said it had lodged stern representations to the Philippines over the “trespassing” of the Philippine vessels at Second Thomas Shoal.

The United States on Monday reaffirmed its 1951 Mutual Defense Treaty with the Philippines, which compels both sides to defend each other in case of an armed attack.

The US State Department said the Chinese vessels violated international law by “intentionally interfering with the Philippine vessels’ exercise of high seas freedom of navigation.”

China Coast Guard vessel 5203 collided with an Armed Forces of the Philippines-contracted indigenous resupply boat 13.5 nautical miles (25 kilometers) east-northeast of BRP Sierra Madre, the National Task Force for the West Philippine Sea said on Sunday.

A Chinese maritime militia vessel had also bumped a Philippine Coast Guard patrol vessel that was escorting the resupply mission about 6.4 nautical miles northeast of the shoal, it said. — John Victor D. Ordoñez

Philippines likely weighing effects of joint resupply missions

AN AERIAL VIEW of the BRP Sierra Madre at the contested Second Thomas Shoal on March 9, 2023. — REUTERS

IT WILL probably take time for the Philippines to hold resupply missions with its allies in the South China Sea so as to avoid stirring up tensions with China, according to geopolitical analysts.

The government of President Ferdinand R. Marcos, Jr. might also have to consider the sentiments of its Southeast Asian neighbors, they said.

It is likely “weighing the potential escalatory effect of asking US forces to help escort its resupply missions with the pressing need to get more construction materials to BRP Sierra Madre to ensure that it maintains control of Second Thomas Shoal,” Gregory B. Poling, director at Asia Maritime Transparency Initiative, said in an e-mail.

He said China is expected to escalate its rhetoric that it’s the Philippines that is provoking tensions in the waterway.

“But given the disingenuous nature of such accusations and given the radical ways Beijing upended the status quo over the last decade, I don’t think anyone in Manila or elsewhere should care too much.”

On Wednesday, Philippine military chief Romeo S. Brawner, Jr. said they are considering holding joint resupply missions within the country’s exclusive economic zone in the South China Sea.

The Philippines might also use bigger Philippine Navy ships for the resupply missions.

In August, Pentagon Press Secretary Patrick S. Ryder said the United States was ready to help the Philippines during its resupply missions.

“We will continue to work closely with the Philippines to support them as they request,” he said at that time, when a US Navy P-8 Poseidon maritime patrol and reconnaissance aircraft patrolled the area during a Philippine resupply mission to BRP Sierra Madre.

The Philippines on Monday filed a diplomatic protest against China and summoned its envoy in Manila after Chinese ships on Sunday collided with Philippine vessels on a resupply mission to Second Thomas Shoal.

Mr. Marcos met with security agencies to “discuss the latest violation by China in the West Philippine Sea,” the presidential palace said in a statement, referring to areas of the South China Sea within the country’s exclusive economic zone.

The incident was “being taken seriously at the highest level of government,” it said, adding that the Chinese Coast Guard’s “dangerous, illegal and reckless maneuvers” had damaged a Philippine vessel.

Mr. Poling said other Southeast Asian nations, especially those that have competing claims in the South China Sea, might fear a possible escalation of tensions in the region if the Philippines’ joint resupply missions with allies proceed, but “others such as Vietnam will quietly cheer such an effort.”

The Philippines, Vietnam, China, Brunei, Taiwan and Malaysia hold different and overlapping claims over features in the South China Sea.

‘CONCEITED NAVAL ACTIONS’
Vietnam conducted major expansion activities such as dredging and landfill work at most of its South China Sea outposts last year.

Hanoi claims the Paracel Islands, which are also claimed by both China and Taiwan. It also claims the entirety of the Spratly Islands — having occupied 25 features — as do China and Taiwan.

The Philippines, Malaysia and Brunei also claim parts of the Spratlys, whose northern section — called the Kalayaan Island Group — is occupied by the Philippines.

Chester B. Cabalza, founder of Manila-based International Development and Security Cooperation, noted that the US recently offered Vietnam a strategic partnership.

Indonesia, which has a conflict with China over the Natuna Islands in the South China Sea, has started a joint patrol among all ASEAN members. “As the de facto leader of the Association of Southeast Asian Nations (ASEAN), Jakarta sends a clear message to Beijing that it should respect the rules-based order.”

Malaysia and Brunei had criticized China’s new 10-dash line map, which covers some of their maritime claims.

“All of the ASEAN claimant-states are apprehensive of China’s duplicitous and conceited naval actions,” he said. “Washington offers a counterweight to balance China’s dominance.”

“It is likely that Southeast Asian claimants are worried about a possible escalation of conflict, but they quietly understand that the Philippines only does so for self-defense,” Joshua Bernard B. Espeña, who teaches foreign relations at the Polytechnic University of the Philippines, said in a Facebook Messenger chat.

There have been renewed calls for the Philippines to start joint patrols with its allies including the United States, Japan and Australia.

Don Mclain Gill, who teaches foreign relations at De La Salle University in Manila, said in any plans to involve allies in South China Sea missions, the Philippines must ensure that it’s not giving off signals that could “provoke the security architecture of the region at our expense.”

The parties should agree on the goals, implications and consequences of these activities in the long term, he said via Messenger chat. — Kyle Aristophere T. Atienza

Government told to seek deals outside China

By John Victor D. Ordoñez, Reporter

THE PHILIPPINE government should seek out development assistance agreements with other countries for infrastructure and railway projects after the Department of Finance (DoF) retracted its request for an assistance deal with China, a senator said on Thursday.

“It’s time to explore official development assistance (ODA) deals from other countries and seek available funding options from multilateral institutions and international assistance agencies that can deliver the goods,” Senator Mary Grace S. Poe-Llamanzares said in a statement.

She said these deals should also tap private sector players to help boost infrastructure development in the Philippines.

In a letter to China Ambassador to the Philippines Huang Xilian that was made public on Wednesday, Finance Secretary Benjamin E. Diokno said the Philippines is “no longer inclined to pursue” China’s financial assistance for the Mindanao Railway Project Phase 1, which will cost about P83 billion to build.

Transportation Secretary Jaime J. Bautista told reporters the same day that the government would likely merge state resources and private funds to finish building the Mindanao railway.

Ms. Poe-Llamanzares said the Philippines’ pull-out from the deal should not derail the implementation of existing infrastructure projects.

She noted that Chinese banks had also delayed loan applications intended for government projects over the past few years.

“While appearing attractive, the loans are not exactly that benevolent as they come with hefty interest rates and other strings that could be detrimental to the country in the long term,” said the senator.

For his part, Senator Sherwin T. Gatchalian said China ODAs are historically more expensive to pursue and cited the need to study the feasibility of these projects funded through loans.

“In other words, the feasibility of these projects will also be affected, and we’ll be paying for this,” he said in a televised interview Thursday morning.

“We have to remember ODAs are still considered loans even though they are concessionary in nature, but they’re still considered loans and the taxpayers will pay for it,” he said.

Meanwhile, the Embassy of Japan in the Philippines said Japan would commit to more investments and assistance grants to Philippine infrastructure projects.

“As we forge commitments in our priority industries, we want to assure you (Manila) that Japan will continue to invest in big-ticket projects to help shape a thriving future for our fellow Filipinos and for our investors,” Japanese Ambassador to the Philippines Kazuhiko Koshikawa said at the 49th Philippine Business Conference at the Manila Hotel also on Thursday.

Japan is the Philippines’ top infrastructural donor and supporter.

The Philippines got P109 billion in ODAs from Japan from April 2021 to March 2022, the biggest among Southeast Asian beneficiaries, the Japan International Cooperation Agency said in January.

Malacañang orders DAP’s transfer to NEDA 

MALACAÑANG has transferred the Development Academy of the Philippines (DAP) from the Office of the President to the National Economic and Development Authority (NEDA), in line with the Marcos administration’s rightsizing efforts. 

Signed by Executive Secretary Lucas P. Bersamin on Wednesday and made available to media on Thursday, Executive Order (EO) No. 45 provides for a strong organizational link between the two institutions to boost the implementation of DAP’s human resources development programs, research, data collection, and information services. 

“Pursuant to the rightsizing policy of the national government, it is imperative to streamline and rationalize the functional relationships of agencies with complementary mandates to promote coordination, efficiency, and organizational coherence in the bureaucracy,” the EO read. 

DAP, created by a presidential decree in the 1970s, was established to promote and support the country’s development efforts by carrying out human resource programs that consider development perspective. 

NEDA, meanwhile, is the primary agency responsible for formulating and integrating social and economic policies and programs. — Kyle Aristophere T. Atienza