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Housing agency seeks bigger budget 

PHILSTAR FILE PHOTO

THE DEPARTMENT of Human Settlements and Urban Development asked congressmen on Thursday to give them P36 billion more to help solve the country’s housing backlog. 

The agency seeks to partner with local governments building a million houses yearly until 2028, Human Settlements Secretary Rizalino L. Acuzar told a House of Representatives hearing. Local government would also help hire contractors and in deciding who the beneficiaries will be.  

The agency has a proposed budget of P1.52 billion next year, 62.2% more than this year.  

Under the plan, P654.91 million will go to personnel services, P331.36 million to maintenance and other operating expenses and P111.28 million to capital outlays.  

Marikina Rep. Stella Luz A. Quimbo asked why local governments were considered as the implementing agencies.  

“Not all local government units may have the capacity,” she said, adding that there was a risk that the program might get politicized.  

The lawmaker, who is a senior vice chairman of the committee on appropriations, asked the Human Settlements department to submit a proof of concept before the House agrees to the budget increase. — Matthew Carl L. Montecillo

Official’s plea to drop name from watch list denied

BW FILE PHOTO

THE SENATE blue ribbon committee has denied a request to drop a former budget official’s name from an immigration lookout bulletin over his alleged involvement in anomalies in pandemic supply contracts. 

In a 10-5 vote, senators denied the request of Lloyd Christopher A. Lao, former head of the Procurement Service under the Budget department, Senator Francis N. Tolentino, committee chairman, told a hearing on Thursday. 

The Justice department issues an immigration lookout bulletin order so Immigration officials can inform it if a so-called person of interest tries to leave the country. 

In September 2021, the agency issued a lookout order against Mr. Lao after he was probed for his role in the award of a multibillion-peso contract to a local contractor of overpriced face masks and shields. 

He was also being questioned for the agency’s purchase of outdated and overpriced laptops for public teachers worth P2.4 billion. 

In a letter to Mr. Tolentino presented at an Aug. 25 committee hearing on the laptop controversy, Mr. Lao said the lookout an order against him should be lifted since there were no pending cases or arrest warrants against him. 

Meanwhile, at Thursday’s hearing on the laptop contract, Senator Sherwin T. Gatchalian said the service fee paid by the Department of Education (DepEd) was not “worth the sloppy work” by the procurement agency. 

The senator’s comment came after Education Undersecretary Annalyn M. Sevilla said DepEd had paid the Procurement Service a service fee of P69.2 million. 

The senator also asked why the procurement agency had paid P58,300 per laptop when the budget was supposed to be just P35,046.50. 

Procurement Division officer-in-charge Sharon Y. Baile said the agency had taken into account the security services and other customization add-ons bundled with the laptops. 

She added that the procurement agency had kept a master list of suppliers from past purchases. Mr. Gatchalian pointed out that suppliers might have been arbitrarily chosen since it was not clear how one could be in the master list. 

“A lot of discretion was made in this process and it was not formalized in procuring these laptops,” he added. “In my opinion, the P69 million was not worth this sloppy work by PS-DBM. I would have thought with their experience, they would have perfected their work in procurement.” — John Victor D. Ordoñez 

Agri dep’t preference for imports seen as hurdle to RCEP approval

REUTERS

THE Department of Agriculture’s (DA) recent track record of preferring imports as opposed to developing productive farms has been cited as a potential deal-breaker as the Senate struggles to approve the Regional Comprehensive Economic Partnership (RCEP) trade deal.

The DA has “an unparalleled record of reckless importation, which is why stakeholders are very fearful,” Senator Imelda Josefa Remedios R. Marcos said at a hearing of the chamber’s foreign relations committee, which she chairs.

She said that in previous hearings the DA has cited the Philippines’ obligations to the World Trade Organization (WTO), which she identified as the beginning of the agriculture industry’s downfall. 

“They are really blaming the WTO and the entry of several products in the country without regulation,” Ms. Marcos said, “almost as if we surrendered our rights as a country to control, somehow, the entrance of these products.”

“We cannot just import and import even during the harvest season or the fishing open season,” she added. “You have to understand. The products are overflowing without being sold, yet imports continue to increase.”

Agriculture Assistant Secretary-designate for Policy, Research and Development Noel A. Padre said that the DA’s mandate of ensuring food security takes heed of the necessity of improving domestic productivity, and described part of the approach taken as “distributing our domestic production from surplus areas to deficit areas.”

“We encourage imports only when domestic production is not enough to address our demand,” he added. “With respect to the agriculture and fishery sector under RCEP, we assure the committee that we will continue to engage our stakeholders.”

Ms. Marcos added that RCEP proponents must also address questions about the trade deal’s impact on micro, small and medium enterprises (MSMEs).

“Since 1944, we have not done anything to level up our… micro and small enterprises; that is our fault I presume,” Ms. Marcos said.

“Unfortunately, we simply cannot drum up the votes until these issues are addressed,” she added.

The Senate failed to give its concurrence to the RCEP agreement before it adjourned sine die on June 1, despite appeals from economic managers and business groups.

RCEP, which started coming into force in participating countries on Jan. 1, involves Australia, China, Japan, South Korea, New Zealand and the 10 members of the Association of Southeast Asian Nations (ASEAN).

The Philippines is one of two countries yet to ratify RCEP, along with fellow ASEAN member Myanmar. One of the other holdouts, Indonesia, signed on at the end of August.

Asked how RCEP will benefit MSMEs, Trade Assistant Secretary Allan B. Gepty said that the trade deal specifically addresses this concern by seeking to integrate MSMEs into the global value chain.

“When it comes to sourcing raw materials, you can do so in 14 RCEP parties,” he said.

Ms. Marcos countered by saying that international trade appears to be the preserve of medium-sized companies and up.

“The small companies will also have participation, maybe not for purposes of accessing foreign markets, but at least part of the supply chain internally or domestically and eventually, upgrading themselves to integrate in the global value chain,” Mr. Gepty said.

According to the 2020 List of Establishments issued by the Philippine Statistics Authority, the Philippines had 957,620 registered businesses, of which 952,969 or 99.51% were MSMEs and 4,651 or 0.49% large enterprises. Micro enterprises accounted for 88.77% of all MSME establishments, followed by small enterprises at 10.25% or 98,126 and medium enterprises at 0.49% or 4,716.

Mr. Gepty assured that in the extreme cases, the Philippines has the sovereign right to withdraw from the treaty, if need be. As for opting out of certain provisions, he said such action is not prohibited, but could have consequences.

“There is no prohibition, you can do that under the Vienna Convention on the Law of Treaties but it will be subject to the acceptance of the other parties,” he said.

Foreign Affairs Secretary Enrique A. Manalo said the exact mechanism for opt-outs would be the article in RCEP allowing “the general review of the treaty every five years for the purpose of updating it or making it more relevant.”

“So if, for example, we were to go down that road, we could also cite for general review, which we will certainly push for if we are not happy within five years of implementation,” he added.

Mr. Gepty said that safeguards also include available trade remedies that the Philippines has maintained under the WTO, anti-dumping and countervailing provisions.

Ms. Marcos ordered the committee secretary to put together a technical working group to study the implications of ratifying the treaty. — Alyssa Nicole O. Tan

PHL waives Singapore employer bond, guarantee requirements

REUTERS

THE PHILIPPINES has waived the performance bond and bank guarantee requirements for Singapore employers seeking to hire Filipino workers, the Department of Migrant Workers (DMW) said on Wednesday.

In a statement late Wednesday, Migrant Workers Secretary Susan V. Ople said she informed her counterpart, Singapore Manpower Minister Tan See Leng, of the waiver at a meeting on Tuesday.

“The removal of these requirements was in recognition of the deep and abiding friendship between the Republic of the Philippines and the Republic of Singapore, and was a concrete outcome of the historic first state visit of President Ferdinand R. Marcos, Jr.,” the DMW and the Singapore Ministry of Manpower said in a joint statement.

A performance bond is issued by an insurance company to guarantee the fulfillment of a contract between an employer and employee.

The requirement was imposed after Filipino domestic worker Flor R. Contemplacion was executed in Singapore in 1995 after being accused of killing her employer’s three-year-old son.

Ms. Ople noted that the waivers will generate more employment opportunities for Filipinos in Singapore.

She said the Philippine Overseas Employment Administration has approved the proposal to exempt Singapore employers from the two requirements.

The DMW estimates that Filipinos in Singapore consist of 81,272 domestic workers and 99,333 skilled and semi-skilled workers.

Ms. Ople said Philippine Overseas Labor Office in Singapore approved nearly 10,000 job orders with 5,000 jobs available for aircraft technicians.

“Compared to other countries that also deploy migrant workers, our processing time takes months instead of weeks,” she said, adding that digitalization will narrow the gap while Filipino workers remain sought after because of their “remarkable talent and dedication.”

“We expect a surge in demand for workers not only in Singapore but also in other parts of the world,” she said.

The Philippine Statistics Authority estimated overseas Filipino Worker numbers at 1.77 million as of 2020, land-based and sea-based combined.

The 2019 total was 2.18 million, with the reduction attributed to the impact of the coronavirus pandemic. — John Victor D. Ordoñez

Electric tricycle, floating solar projects top Singapore investment deals from Marcos visit

PHILSTAR FILE PHOTO/ MMDA

ELECTRIC TRICYCLE and floating solar energy projects headlined the deals signed in Singapore during the state visit of President Ferdinand R. Marcos, Jr., the Palace said.

The electric tricycle deal was valued at $5 billion, Press Secretary Rose Beatrix L. Cruz-Angeles said in a statement, noting that the proposed upgrades will curtail the air pollution generated by the Philippines’ 3.5 million tricycles. 

“The next top Singapore investment is in renewable energy, specifically the new technology of floating solar (power plants) valued at $1.2 billion,” Ms. Cruz-Angeles said adding that the top two deals align with the government’s climate change goals.

A data center project was also proposed with an estimated investment of $200 million, while various proposals were made to invest in the so-called “blue economy” or water-related ventures, such as marine renewable energy, water production, desalination, electric boats, and aquaculture, she said.

Investment pledges secured by Mr. Marcos during his state visits to Indonesia and Singapore amounted to $14.36 billion. 

Terry L. Ridon, a lawyer and investment analyst, said projects arising from these investments should be “coordinated well” with implementing agencies and local governments “to avoid waste and leakages.”

“Certainly, investment pledges should always be welcomed by any government,” he said in a Messenger chat. “But it is a different matter on whether the government can follow through and deliver on the pledges to the end-user.”

Mr. Ridon called for the establishment of an investment tracker to ensure transparency and to notify stakeholders on the actual status of projects.

“This is not only for monitoring, but also to push involved agencies to work harder and ensure timely delivery of commitments,” he said.

Mr. Ridon noted that the administration should be flexible with investment pledges in areas that have not been identified as priorities by government planners, particularly those that promise technology transfer.

“If these pledges do not involve massive amounts of public funds, and actually serve the public good, these initiatives can be incorporated into our existing programs,” he said.

The Singapore investment pledges are expected to generate 15,000 jobs in the Philippines, according to Ms. Cruz-Angeles.

The Singapore government is expected to hire more Filipino workers for jobs based in the city-state, where 200,000 Filipino migrant workers are currently employed, she added.

The Palace said Migrant Workers Secretary Susan V. Ople has been informed by her Singapore counterpart of close to 10,000 new job orders for Filipino workers. — Kyle Aristophere T. Atienza

Fisheries output up 5.6% by volume in second quarter

PHILSTAR FILE PHOTO

THE Philippine Statistics Authority said fisheries production in the second quarter rose 5.6% year on year to 1.21 million metric tons (MT), driven by the aquaculture, commercial, and marine municipal fisheries segments.

Marine municipal fisheries rose 14.3% to 281,240 MT, accounting for 23.2% of total fisheries output.

Aquaculture, which accounted for 51.1% of the total, rose 5.8% to 619,460 MT.

Commercial fisheries output was 276,000 MT, up 1.4%. The segment’s output comprised 22.7% of fisheries production.

Production by inland municipal fisheries fell 19.7% to 36,610 MT, accounting for 3.0% of the total.

Of the 20 major species, production was recorded for bigeye tuna (46.7%), squid (37.0%), fimbriated sardines or tunsoy (36.1%), yellowfin tuna (23.6%), seaweed (21.2%), and grouper (20.8%).

Declines were posted by tiger prawn (30.8%), blue crab or alimasag (28.5%), frigate tuna or tulingan (21.9%), and mud crab or alimango (20.9%). — Luisa Maria Jacinta C. Jocson

Philippines to rejoin Extractive Industries Transparency Initiative

DAVID HELLMANN-UNSPLASH

THE PHILIPPINES has expressed its intention to rejoin the Extractive Industries Transparency Initiative (EITI) after the previous administration withdrew earlier this year, the Department of Finance (DoF) said.

“We submitted our letter of intent last Monday. We hope that its implementation can complement and can strengthen the regulation of the sector in the Philippines,” Finance Undersecretary Cielo D. Magno said at a webinar organized by Eco-Business Philippines on Thursday.

“Finance Secretary (Benjamin E.) Diokno relayed to the international board of EITI that we are rejoining, and therefore we are a member again… We are going to implement the standards set by the international board, and we are again going to subject the country to the regular validation done by the international board,” she added.

The EITI promotes transparency for the mining, oil and gas industries by publicizing how much revenue they generate for their host governments. The DoF heads the body that oversees the implementation of the EITI program.

“We recognize that we actually have a pretty strong policy with respect to the extractive sector. What is needed is for it to be implemented properly, and with the framework of EITI where various stakeholders, including industry and civil society, are involved in governance aspect, we hope to be able to minimize the social and environmental costs coming from the extractive sector,” Ms. Magno said.

Last month, the DoF said that the mining industry can help drive the economic recovery and growth as metal prices boom.

“A World Bank study (points to a) significant increase in demand for critical minerals needed to transition to greener technology. As a country rich in mineral resources, we want to take advantage of that,” Ms. Magno said.

“We want to make sure that we get value for the minerals that we are extracting,” she added, citing the need to make mineral prices reflect the “environmental and social cost” involved in extracting them.

She said a proposal in Congress will allocate an estimated P20 billion from the proceeds of the new mining fiscal regime to sustainable development initiatives.

The Duterte administration withdrew from the EITI in July after the latter downgraded the Philippines’ score to “moderate” in February, claiming that the standards for the engagement of civil society were not sufficiently met.

“We find that the manner by which the EITI board undertakes its validation is unduly subjective, biased and unfair,” former Finance Secretary Carlos G. Dominguez III said at the time. “The Philippines has no confidence in the ability of the EITI to undertake an impartial, transparent, and evidence-based validation process.”

The DoF also reiterated the Marcos administration’s intent to spend P453.1 billion on climate change programs next year, up from P289.7 billion this year.

“Currently, the government’s commitment is to increase the annual budget for climate change programs by at least 15% yearly,” Ms. Magno said, adding that it is reviewing the feasibility of a carbon tax and supporting a tax on single-use plastics.

“These climate change expenditures are focused on food security, water security, ecosystem and environmental stability, human security, climate smart industries and services, sustainable energy, and building knowledge and capacity,” she added. — Diego Gabriel C. Robles

IFC mobilizes financing for PHL firms’ green projects

REUTERS

THE International Finance Corp. (IFC) said it has organized a facility that will put up 30% of the funding for projects supported by financial institutions, as a means of encouraging private investment.

The IFC targets a 30% increase in climate lending by financial institutions as well as near-zero exposure to coal projects by 2030, and thus calls its loan facility “30 by 30.”

The 30 by 30 program ”aims to help financial institutions, especially banks, better incorporate green finance strategies into their investment plans, reduce climate risk, and ultimately cut greenhouse-gas emissions (GHG),” it said in a statement on Thursday.

The program was developed with the World Bank, and will receive financing from the German government-backed International Climate Initiative.

“Achieving (the Philippines’) climate targets requires massive financing, which cannot be met by the public sector alone. Private financing is therefore crucial,” IFC Country Manager for the Philippines Jean-Marc Arbogast was quoted as saying in the statement.

“The financial sector, especially commercial banks, can play a key role in greening the economy by addressing climate-related risks, promoting sustainable development, and decarbonizing industries through financing,” he added.

Initially launched in the Philippines with microfinance organization CARD SME Bank, the program aims to eventually expand to Egypt, South Africa, and Mexico.

The partnership with CARD SME Bank is projected to benefit over 3,000 farmers by improving their capacity to finance climate-smart agricultural solutions starting in October.

The IFC and Berlin-based Renewables Academy will also offer scholarships starting in November.

The IFC has invested in Philippine climate bonds, starting with $150 million put into the first green bond issued in the Philippines, by BDO Unibank, Inc. in 2017.

“This was followed by several first green bonds of issuers that were also supported by IFC in 2018 and 2019. In April 2022, IFC supported BDO’s first blue bond to help tackle marine pollution and preserve clean water resources,” IFC said, adding that it plans to do the same through the 30 by 30 program.

For 2022, the IFC has committed $32.8 billion to private companies and financial institutions in developing countries.

On Sept. 14, the IFC is due to host a Philippine Climate Forum. — Diego Gabriel C. Robles

South Korea, DA in smart farming exchange program

PHILSTAR FILE PHOTO

THE Department of Agriculture (DA) said it has agreed to a smart farming exchange program with South Korea.

“The proposed program aims to develop young Filipino farmers to become smart farming leaders and empowered agricultural entrepreneurs and innovators through knowledge-exchange with Korean farmers and experts. It involves a season-long internship program in smart greenhouses and smart open farms in South Korea,” the DA said.

“The training will not just be in production but also marketing, sales, and processing. This will help the youth farmers become agripreneurs, and have their own farms and sell their own products. We will help them find their market,” Korea Agency of Education, Promotion, and Information Service in Food, Agriculture, Forestry and Fisheries (EPIS) International Agricultural Cooperation Division Manager Yun Ju Hyun said in a statement.

EPIS and the Korea Rural Community Corp. have completed a pre-feasibility study on the internship program, the DA said.

The study recommended taking in young applicants with no background in agriculture in order to “encourage more youth to go into farming.”

The five-year program will also select 15 youth participants each year. The interns will undergo one month of training in the Philippines and be posted to Korean-funded smart greenhouses or smart open farms here, prior to a six-month internship in South Korea.

“The interns are then expected to apply their knowledge through a year of hands-on practice in local smart greenhouses or open farms after their internship,” the DA said.

“As part of the program, a smart greenhouse will be established in the country that will add to the existing four smart greenhouses funded by the South Korean government. An open farm will also be developed (to apply) the youth interns’… knowledge of smart farming technologies,” it added.

The site for the greenhouse and priority commodities will be identified and recommended by the DA and the Agricultural Training Institute. — Luisa Maria Jacinta C. Jocson

DoE’s Lotilla says gov’t involvement in power will not bring rates down

A contractor fixes a line in Barangay Addition Hills in Mandaluyong City, June 1, 2021. — PHILIPPINE STAR/ MICHAEL VARCAS

ENERGY Secretary Raphael P.M. Lotilla told legislators that electricity rates will not fall if the government re-enters the power business.

“If Congress brings back the state into the power sector… (the government) will have to fund the maintenance of the power sector,” he said at the House committee on energy on Thursday.

At the hearing, Nueva Ecija Rep. Rosanna V. Vergara said Congress is exploring ways to amend the Electric Power Industry Reform Act (EPIRA) of 2001 in a manner that will bring down power rates.

“We want to amend EPIRA and our number one concern is we want power rates to go down. I believe… the only way to do that (is to) allow government to once again invest, build power plants,” Ms. Vergara said.

Ms. Vergara said government involvement will keep market power from being concentrated in private hands.

EPIRA privatized the assets of the heavily indebted National Power Corp., among other reforms.

Mr. Lotilla said the prevailing view at the time EPIRA was passed was that the government’s presence in the power industry inhibited expansion, paving the way for the private sector’s entry.

“Congress had to authorize the absorption of the P200-billion debt of Napocor,” Mr. Lotilla said, adding that a government return to the industry will put it in a position of competing with the private sector.

President Ferdinand R. Marcos, Jr. said in his first State of the Nation Address that one of his administration’s priority measures will be amending EPIRA. — Ashley Erika O. Jose

Eala races to quarterfinals of US Open junior championship

FILIPINA tennis ace Alex Eala — ALEX EALA FACEBOOK PAGE

RAMPAGING Alex Eala barged back into the quarterfinals of the US Open junior championships, fashioning out a 6-2, 7-6(1) victory in the Round of 16 over Australia’s Taylah Preston yesterday at the USTA Billie Jean King Tennis Center in New York City.

The 10th-seeded Filipina ace banked on a spirited comeback in the second set to dispatch Preston, No. 8 seed, and advance to the Last 8 for the second straight edition of the prestigious US major.

Ms. Eala captured the opening salvo with ease by allowing only two games to her Australian counterpart but needed steely resolve in the clincher after trailing 1-4.

She uncorked a scorching 5-2 rally to force a tiebreaker, setting the stage for a strong finishing kick as she made Ms. Preston bleed for just a point from there on.

In an intriguing quarterfinals duel, the 17-year-old Ms. Eala will face Russian Mirra Andreeva, her partner in the ongoing doubles division.

Ms. Andreeva, the No. 14 seed, advanced with a 5-7, 6-4, 6-1 upset of No. 1 seed Sofia Costoulas of Belgium.

Ms. Eala has yet to lose a single set in this edition with similar sweeps of Canada’s Annabelle Xu and Slovakia’s Nina Vargova in a bid to surpass her quarterfinal finish last year.

Mmse. Eala and Andreeva then made it a twin kill in the doubles tourney as their team-up proved to be too much for the American pair of Iva Jovic and Shannon Lam, 6-2, 6-2.

Up next for the Filipina-Russian duo is the German tandem of Carolina Kuhl and Ella Seidel.

Ms. Eala is looking for her first singles and third doubles grand slam after winning in the 2020 Australian Open and 2021 French Open. — John Bryan Ulanday

PSC asks full support for World Cup hosting, Gilas

LEADING the courtesy visit of the SBP team were executive director Sonny Barrios (center). — PSC

NEWLY-appointed Philippine Sports Commission (PSC) Chairman Noli Eala is fully supportive of the country’s hosting of the FIBA World Cup next year and also asked the basketball-crazy nation to rally behind our Gilas Pilipinas team competing in the biggest basketball event.

“I encourage everyone, not just the basketball-loving Filipinos, to support the country’s hosting of the World Cup, which gives so much pride for the Philippines being one of the hosts, and stay behind our very own Gilas Pilipinas team,” said Mr. Eala, who now leads the government’s sports agency, succeeding Butch Ramirez.

A former PBA Commissioner, who also served as Executive Director of the Samahang Basketbol ng Pilipinas (SBP) a few years ago, Mr. Eala was the project director of the original Smart Gilas Pilipinas in 2008. That Smart Gilas team was the precursor of the Gilas program now being handled by Chot Reyes.

As basketball is treated as a religion in the Philippines, Mr. Eala and the PSC are all out in supporting the World Cup that is expected not just to showcase our world-class hosting capabilities but will also provide an economic boost to the country that is still trying to get its feet up on the heels of the COVID-19 pandemic.

A basketball lover himself, Mr. Eala shared the same passion of the hoop-crazy nation to stand behind our Gilas Pilipinas in next year’s World Cup.

On Wednesday, officials from the SBP paid a courtesy call to the new chairman of the government’s sports agency. Joining Mr. Eala in welcoming the delegates from the SBP is PSC Commissioner and Philippine Sports Hall of Famer Bong Coo.

Leading the courtesy visit of the SBP team were executive director Sonny Barrios, who also serves as event director for the FIBA World Cup 2023, Erika Dy, deputy event director, Dickie Bachmann, division chief for operations, local organizing committee, Jude Turcuato, representing Smart Communications, which serves as the event’s global partner, Atty. Aga Francisco, SBP legal consultant and chairman of FIBA legal commission and John Lucas, head of operations, joint management committee, Philippines, FBWC 2023.

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