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PHL, China preliminary joint energy exploration talks to start in May

REUTERS

THE PHILIPPINES and China will hold preparatory talks in May ahead of further expected discussions on joint oil and gas exploration in the South China Sea, the Department of Foreign Affairs (DFA) said Tuesday.

In a statement, the DFA said both sides will discuss “parameters and terms of reference” for the proposed joint exploration.

The South China Sea is subject to overlapping territorial claims involving China, Brunei, Malaysia, the Philippines, Taiwan and Vietnam. It is a key global shipping route that is believed to be rich in fish and gas.

Senator Francis N. Tolentino, vice-chairman of the senate foreign relations committee, has said the DFA should ensure that agreements with China do not result in more Chinese vessels intruding into Philippine waters.

The DFA replied that Mr. Tolentino will be given updates on the preparatory talks.

The Philippines filed a diplomatic protest in February after accusing China of trying to block a resupply ship at the Second Thomas Shoal in the South China Sea.

Foreign Affairs Secretary Enrique A. Manalo told a House of Representatives hearing last year that China was pushing for a 50-50% or 51-49% division instead of a 60-40 sharing agreement in favor of the Philipines.

He said no agreement was reached because China wanted any disputes to be resolved under Chinese law, which was unacceptable to the Philippines.

In January, President Ferdinand R. Marcos, Jr. and Chinese President Xi Jinping agreed to find a compromise and to peacefully resolve issues in the disputed waters.

The Philippines is eyeing security partnerships with other countries, including a tripartite security pact with Japan and the US. The Philippines is also in talks to include Australia and Japan in planned joint South China Sea patrols with the US.

The Supreme Court in January voided a 2005 oil deal with China and Vietnam on joint exploration, saying it was illegal to allow foreigners to explore for natural resources in Philippine territory without full government supervision.

The Joint Maritime Seismic Undertaking had been signed by the state oil firms of China Vietnam, and the Philippines.

Last month, the Department of Energy said it would work with the Office of the Solicitor General on how the tribunal’s ruling affects resource exploration involving foreign partners.

Energy Secretary Raphael P.M. Lotilla has said that the Philippines and China both agreed to resume talks on exploration in Recto Bank, which is covered by Service Contract 72.

Foreign Affairs Undersecretary Theresa P. Lazaro said on March 24 that Manila and Beijing had agreed that their maritime issues “should be addressed through diplomacy and dialogue and never through coercion and intimidation.” — John Victor D. Ordoñez

Notice issued of second green energy auction round

ZBYNEK BURIVAL—UNSPLASH

THE Department of Energy (DoE) said Tuesday that it posted a notice of auction (NoA) for qualified bidders interested in joining the second round of the green energy auction (GEA).

GEA-2 will have 11,600 megawatts (MW) in capacity on offer, with 3,600 MW allocated for 2024; 3,600 MW for 2025; and 4,400 MW for 2026.

The DoE said GEA-2 has been scheduled for June.

The department is set to issue the terms of reference and the auction round procedures 20 days after the issuance of the NoA.

The DoE said that the auction will encourage more investment in power generation and promote the growth of renewable energy (RE).

The auction round will “facilitate transparent and competitive selection of RE facilities to support the major goal of the government of attaining energy security through the entry of new capacity on the grid,” the DoE said. 

Separately, the DoE said it will also review the status of several ongoing run-of-river hydro projects to help determine the capacity to be offered in future GEA rounds.

The NoA is set to offer renewable energy capacity of 7,715 MW in Luzon, 2,695 MW in the Visayas, and 1,190 MW in Mindanao. — Ashley Erika O. Jose

Safeguard measures investigation initiated after surge in LPG steel cylinder imports 

PHILSTAR FILE PHOTO

THE Department of Trade and Industry (DTI) said it has found adequate evidence to consider imposing safeguard duties on imported liquefied petroleum gas (LPG) steel cylinders.

Trade Secretary Alfredo E. Pascual said in a notice posted on the DTI’s website dated March 29 that the department received an application from Ferrotech Steel Corp. to initiate a preliminary safeguard duties investigation, claiming that a surge in imports of LPG steel cylinders is harming domestic industry.  

“The DTI, acting under Section 6 of Republic Act 8800 or the Safeguard Measures Act, has made an evaluation of the application and found the existence of a prima facie case that will justify the initiation of a preliminary safeguard measures investigation on imports of LPG steel cylinders falling under ASEAN Harmonized Tariff Nomenclature Code 73.11 from various countries,” Mr. Pascual said.

According to the DTI, the period covered by the investigation on steel cylinder imports is between 2017 and 2021.  

Ferrotech said in its application that it is proposing ten years of safeguard measures.

“This is in order for us to be competitive with imported LPG cylinders to remain viable and for the continuity of operations,” the company said.

Citing the Bureau of Customs, the DTI said in a separate report that imports of such cylinders rose 24% to 15,942 metric tons (MT) in 2019 and 45% to 23,058 MT in 2020. Import volume dropped 13% to 19,990 MT in 2021.

It added that imported cylinders landed in the Philippines totaled 10,827 MT in the seven months to July 2022, of which 98.26% came from China. The seven-month total is equivalent to 54% of 2021 imports.

Between 2017 and 2021, the DTI said that China accounted for 98.9% of the 85,172 MT imported into the Philippines. The remainder came from Thailand, Vietnam, Japan, Australia, South Korea, and Mexico.

The Philippines imposes a 10% most-favored-nation tariff rate on imported LPG cylinders.

“Increased imports of LPG steel cylinders are the substantial cause of serious injury to the domestic industry in terms of declining market share, production, sales, capacity utilization, employment profitability and even losses, and existence of price depression and price undercutting,” the DTI said. 

“Total Philippine apparent consumption of LPG steel cylinders grew during the period of investigation from approximately 16,000 MT to 25,000 MT,” it added.

The DTI said that correspondingly, the share of domestic LPG steel cylinders declined from 30% in 2018 to 10% in 2021.

It added that domestic sales volume fell 32% in 2019, 36% in 2020, and 8% in 2021.

“The condition of competition showed that the market share of domestic products decreased during the period of investigation. Imports continued to displace the domestic market and continued to cut into the industry’s sales and market share from 30% in 2018 to 10% in 2021,” it added.

Ferrotech, based in Valenzuela City, sells steel cylinders to the domestic and Southeast Asian markets.  — Revin Mikhael D. Ochave

CAAP drafting drone safety rules for agriculture

REUTERS

THE Civil Aviation Authority of the Philippines (CAAP) said Tuesday that it is working with various government agencies to ensure the safe use of drones in agriculture.

“CAAP is committed to enhancing drone regulations for the betterment of the public and the agriculture sector. We are working tirelessly with various government agencies to ensure that regulations on RPAS (remotely piloted aircraft systems) use are up to date and safe for everyone,” CAAP Director General Manuel Antonio L. Tamayo said in a statement.

The CAAP said that it has been working with the Civil Aeronautics Board to update RPAS regulations and policies following discussions with the International Civil Aviation Organization’s Air Transport Regulation Panel.

On March 29, the CAAP also held a consultation meeting with the Department of Agriculture (DA) to harmonize regulations on RPAS used for agriculture.

The regulator said that it is currently in the process of amending Philippine Civil Aviation Regulations governing remotely-piloted vehicles.

“An initial draft, which will substantially affect the current regulations that the CAAP has, has been created and is being improved to meet recent developments in the international aviation community to ensure safety,” it said.

The CAAP aims to release the amended regulations by mid-2023.

Throughout 2023, the CAAP said that it will conduct information campaigns on the use of drones. — Justine Irish D. Tabile

Rice, corn inventory fall in early January

PHILSTAR FILE PHOTO

THE rice inventory at the start of January fell 5.1% year on year to 1.77 million metric tons (MT), according to the Philippine Statistics Authority (PSA).

“Relative to the same period of the previous year’s inventory level of 1.86 million metric tons, a decline of about 5.1% was recorded,” the PSA said in a report.

On a month-on-month basis, the rice inventory in early January fell 30.3%.

As of Jan. 1, rice held by households, accounting for 60.4% of the total inventory, rose 7.6 year on year to 1,066.85 thousand MT. Rice held by commercial warehouses, wholesalers, and retailers declined 11.5% to 583.73 thousand MT, accounting for a 33.1% share of the national inventory.

Rice held by the National Food Authority (NFA) decreased 44.8% to 114.91 thousand MT, for a 6.5% share of the national inventory.

The corn inventory as of Jan. 1 dropped 14% from a year earlier to 463.13 thousand MT.

On a month-on-month basis, corn stocks declined 44.3%.

Corn stocks held by households increased 6.6% year on year to 78.85 thousand MT.

Corn held by commercial warehouses, wholesalers, and retailers fell 59.8% year on year to 357.28 thousand MT. — Sheldeen Joy Talavera

CoA calls for review of Pangasinan water JV after losses

PHILSTAR

THE COMMISSION on Audit (CoA) asked a water district in Pangasinan to review the terms of its joint venture (JV) with a private company after the JV caused it to incur a P1.81 million loss in 2021.

CoA flagged the JV after the district’s bottom line deteriorated from a profit of P4.6 million a year earlier.

In a 2022 audit report dated March 30, the state auditor said that “the management and board of directors of the San Manuel Water District (SMWD) did not take into consideration the total impact on the operation of the district of the terms and conditions of the joint venture agreement, thus, resulting in a net loss of P1.81 million for 2022.”

SMWD distributes water to 10 barangays in San Manuel, Pangasinan. On Sept. 10, 2021, it entered into a joint venture agreement with Panama Water Corp. (PAMANA) to develop the district’s water supply.

CoA recommended that the SMWD renegotiate and increase its share of the JV as well as create a “realizable projection plan to address the impact of the joint venture agreement on its financial condition.”

CoA also noted that the PAMANA has not reimbursed the district for the P2.43 million cost of a drilling project in Barangay Flores, reducing the funds SMWD had available for operations.

CoA also said SMWD’s provisioning levels for impairment on its accounts receivable was inadequate at 5% because of the high percentage of receivables from inactive accounts as well as the “absence of specific guidelines in the computation of estimates.”

CoA said it is unable to to audit the JV’s activities because the SMWD did not submit a report on the water bill collections and expenses incurred by PAMANA. SMWD has 4,161 active service connections, while 395 remain inactive, CoA said. — Beatriz Marie D. Cruz

Potential PHL losses to online video piracy estimated at $1B by 2027

THE Intellectual Property Office of the Philippines (IPOPHL) said the Philippines could sustain $1 billion in revenue leakage by 2027 if online video piracy is unaddressed.

IPOPHL Director General Rowel S. Barba told reporters in Taguig City Monday that the Philippines lost $781 million in revenue in 2022 due to online video piracy, citing a report by Media Partners Asia issued in March.

“As long as the internet is here, (piracy) will not stop. Piracy will be there and the most affected will be our creatives,” Mr. Barba said.

“It really needs collaboration, which should be global. There should be a global effort since piracy is a trans-border crime,” he added.

The Media Partners Asia report estimated that the Philippines generated $419 million in online video industry revenue for 2022, consisting of consumer subscriptions (57%) and net brand advertising (43%).

“Online video piracy is pervasive, growing to 20 million users in 2022 with revenue leakage of $781 million… If online piracy is not brought under control, the illegal industrial activity could claim 31 million users by 2027 with annual leakage of $1 billion,” the report said.

“The growth and monetization of online video lags due to piracy. Easy access to pirated online video content inhibits the development of the premium video sector, including subscription video on demand (SVOD) and premium advertising-based video on demand (AVOD),” it added.

Mr. Barba said online video products being pirated include Filipino movies and television shows.

He added that the revenue lost to online video piracy deprives the government of taxes.

Mr. Barba added that the proposed Internet Transactions Act would also help in addressing piracy by instilling trust among consumers.

The proposed Internet Transactions Act, filed as Senate Bill No. 1846, is awaiting second reading in the Senate. The bill is sponsored by Senator Mark A. Villar.

“Definitely, the law will help because, at least, it will provide trust in the system. We want consumers to have trust in the system. If the trust is not there, the sector will not flourish,” Mr. Barba said. Revin Mikhael D. Ochave

US maintains it is not seeking permanent bases in PHL

PHILIPPINE STAR/KRIZJOHN ROSALES

By Kyle Aristophere T. Atienza, Reporter

THE UNITED States reiterated on Tuesday (Manila time) that it is not seeking permanent military bases in the Philippines, adding that the expansion of its 2014 military pact with Manila is aimed at boosting “regional readiness.”

Washington made the statement a day after Malacañang announced the locations of the four additional military sites under the Enhanced Defense Cooperation Agreement (EDCA), which allows the US to rotate its troops in the Philippines and build and operate facilities on agreed locations for both their military forces.

The expansion of EDCA would make “our training with the Philippines just more resilient,” Deputy Pentagon Press Secretary Sabrina Singh said in a press briefing in Washington streamed live on Facebook, referring to the joint military exercises between the two countries’ armed forces.

The US is “not seeking permanent basing” in the Philippines, Ms. Singh said, “so you’re going to see an increase of rotational forces in the region.”

“But this is more about supporting combined training, being able to respond to natural disaster, humanitarian disasters in the region,” she noted. “But this is really about regional readiness.”

In February, President Ferdinand R. Marcos, Jr. gave US troops access to four more EDCA sites on top of five existing locations.

CHINA’S WARNING
China’s foreign ministry, meanwhile, said on Tuesday that the United States has been strengthening its military deployment in the Philippines and it would only lead to more tension and less peace and stability in the region.

It is driven by zero-sum mentality, spokesperson Mao Ning said at a regular press briefing when asked about the Philippines allowing more US military bases.

On Monday, the Presidential Communications Office (PCO) announced in a statement that three of the four new EDCA locations would be in the northern part of the Philippines. These are: Naval Base Camilo Osias in Sta Ana, Cagayan; Lal-lo Airport, also in Cagayan; and Camp Melchor Dela Cruz in Gamu, Isabela.

Cagayan is just over 1,000 kilometers away from self-ruled Taiwan, which is being claimed by China. Balabac Island in Palawan, which is facing the South China Sea, was also on the list.

Mr. Marcos, 65, had talked to some local officials who were not keen on hosting US forces and equipment and explained the importance of the EDCA sites, the PCO said.

Ms. Singh said the US government would ensure that the activities around EDCA sites will be “responsive to the needs and priorities of local communities.”

“We will continue to consult closely with the Philippines on new opportunities that serve our shared interests,” she said.

Philippine defense spokesman Arsenio R. Andolong earlier bared that the Philippines aims to finish the construction of the five existing EDCA sites by 2024. He said building works at the sites were interrupted due to the COVID-19 pandemic and after former President Rodrigo R. Duterte’s termination of Manila’s 1998 visiting forces agreement with Washington.

The former president restored the agreement a year later following a meeting with US Defense Secretary Lloyd James Austin III.

LOCAL OPPOSITION
Filipino policymakers and activists have criticized the EDCA expansion, saying it could drag the Philippines into any potential war involving Washington, which has pledged to defend Taiwan in the event of a Chinese invasion.

“The four new EDCA sites in Cagayan, Isabela and Palawan announced by the Philippine government will allow the US to preposition weapons and warships directed at China, a move that will heighten tensions in the region and lead to an arms race,” local progressive coalition Bagong Alyansa Makabayan (Bayan) said in a statement.

The group raised alarm about the use of three facilities in northern Philippines, saying it is “obviously aimed at Taiwan and will increase tensions in the area.”

“Let us dispense with all the ‘humanitarian assistance and disaster response’ propaganda,” Bayan said.

Lucio B. Pitlo III, a research fellow at the Asia-Pacific Pathways to Progress Foundation, said the three sites in northern Luzon “bear a lot on possible Philippine involvement in a possible Taiwan crisis.”

“Given the searing US-China animosity and cross-Strait tensions, this decision by Manila will be taken adversely by Beijing, the country’s largest trade partner,” he said in a Facebook Messenger chat.

Mr. Pitlo noted that the three sites in northern Luzon “already have existing infrastructure that may require more modest investment to improve.”

He said two of them — Naval Base Camilio Osias and Camp Melchor Dela Cruz — are military bases, which means there will be “less concern about possible displacement of residents and less possible legal and environmental hurdles.”

PROTECTING WPS
On the other hand, some security experts have welcomed the EDCA expansion, saying it will help the Philippines deter China’s aggression in its waters.

“The four bases in Cagayan, Isabela and Balabac Islands are the government’s wise reaction to the changing regional security architecture in safeguarding the West Philippines Sea (WPS) and the Philippine Rise from further encroachment of foreign aggressors,” Chester B. Cabalza, founding president of Manila-based International Development and Security Cooperation, said in a Messenger chat. 

He said the new EDCA sites are “aimed at fortifying our prepositional defense posture in the eastern, northern and western spheres of the Luzon island which is strategically located in the first island chain.”

Cagayan Governor Manuel Noveno Mamba, Sr. earlier told a Senate hearing that he was never formally informed about having EDCA sites in his province.

He said the planned EDCA sites in his province expose them to potential geopolitical disputes involving US troops.

“Local leaders should be further trained on the framework of national security to understand the bigger and complex picture of the China-Taiwan conflict,” Mr. Cabalza said.

“National security is a national interest. It is not against the personal interest of our local leaders,” he added. “Local leaders should work on pragmatism to help achieve holistic national objectives and security.”

China claims more than 80% of the South China Sea, including areas legally occupied by the Philippines.

The Philippine Coast Guard said publicizing its activities in the West Philippine Sea (WPS) would help Manila counter Beijing’s propaganda.

“Publicizing our activities helps establish a trend, making our legitimate actions appear normal. Without publicity, our WPS missions can be portrayed as irregular, which could be framed by China as ‘new’ and ‘provocative’ in the future,” PCG spokesperson Jay T. Tarriela said in a Twitter post on Tuesday.

The coast guard has intensified its strategy of publicly reporting aggressive actions by China in Philippine areas in the South China Sea — a move that experts believe is far more effective than diplomatic protests.

Mr. Tarriela said it is “essential” to recognize PCG’s missions in Philippine-claimed areas in the South China Sea as “regular, normal, and legitimate” because failing to do so “gives China control over the narrative and the ability to manipulate the situation to their advantage.”

“Therefore, it is crucial to publicize our activities to counteract any false narratives that China may try to create.” — with Reuters

Business leader presses pharma companies on commercial sales of  COVID bivalent vaccines

PHILIPPINE STAR/ MICHAEL VARCAS

A BUSINESS leader on Tuesday pressed pharmaceutical companies to apply for a certificate of product registration for COVID-19 bivalent vaccines to make their products commercially available as the long-term effects of the virus affect the productivity of workers.   

“We must remember that the country is no longer under a state of public health emergency, so we cannot import COVID-19 vaccines through Emergency Use Authorization anymore,” Go Negosyo Founder and Private Sector Advisory Council – Jobs Group Leader Jose Maria A. Concepcion III said in a statement on Tuesday.   

The state of emergency ended on Dec. 31.   

Mr. Concepcion said he is hoping that the coronavirus vaccine will become accessible, similar to other vaccines for pneumonia, flu, and shingles.   

“The way forward for the country to obtain needed bivalent vaccines for booster shots is for pharmaceutical firms to apply for certificate of product registration. They cannot permanently rely on the government for indemnification from adverse reactions,” Mr. Concepcion said.    

According to infectious disease specialist Rontgene M. Solante, long COVID refers to the lingering effects of the disease after a person has been infected by COVID-19.   

He said booster doses can help prevent long COVID and other complications.   

“It’s very difficult to build a population wall of immunity in the community. At least in your workplace, if all of you are vaccinated, if all people are boostered, then you have a lower risk of higher absenteeism and loss of productivity,” Mr. Concepcion said.   

“Imagine in a company where you have an individual who developed mild infection, but long COVID was there. The comorbidities are amplified, uncontrolled hypertension, uncontrolled diabetes. That’s something that really will be a burden of the infection in terms of productivity,” he added.   

The Philippines has secured over a million doses of Pfizer, Inc.’s bivalent vaccines from a United Nations-backed vaccine platform, but delivery has been put on indefinite hold as the contract is still under review, the Department of Health said last week. — Revin Mikhael D. Ochave

Marcos told to skip Charles III coronation amid PHL’s record debt

PHILIPPINE STAR/KRIZ JOHN ROSALES

A PROGRESSIVE group on Tuesday questioned President Ferdinand R. Marcos, Jr.’s attendance at the coronation of King Charles III in London on May 6, saying it does not serve any national interest.

“Amid a worsening economic crisis and historic P13.6 trillion in government debt, Mr. Marcos should forgo his attendance at the coronation of King Charles,” Bagong Alyansang Makabayan said in a statement.

The National Government’s outstanding debt increased by P54.26 billion to a record-high P13.75 trillion as of end-February, the Bureau of the Treasury (BTr) said last week, as domestic borrowings increased.

On Tuesday night, the Presidential Communications Office said Mr. Marcos would be accompanied by First Lady Liza Araneta-Marcos during the coronation of the king and his wife, queen consort Camilla, at Westminster Abbey on May 6.

The president had also accepted an invitation to an advanced reception at Buckingham Palace on May 5, the palace said.

“Taxpayers should not be footing the bill for this royal junket as it does not serve any national interest,” Bayan said

It urged the Marcos administration to disclose the details of his London trip, saying the people should “judge whether this trip is really worth it.” — Kyle Aristophere T. Atienza

Marcos gov’t still determining more ‘redundant’ posts for rightsizing plan 

MALACANANG.GOV.PH

THE MARCOS administration will further evaluate redundant positions and functions that could be merged as the government pursues its rightsizing plan, according to the presidential palace. 

President Ferdinand R. Marcos Jr. has ordered a further assessment of the present set-up in the executive branch to determine redundant positions as well as functions that could be merged,the Presidential Communications Office (PCO) said in a statement following a sectoral meeting on the National Government Rightsizing Program (NGRP). 

The Palace said Mr. Marcos made an assurance during the Tuesday meeting that the government’s rightsizing push is not aimed at terminating employees.  

The program would help upskill and reskill the current government workforce to improve state services and programs, the president said at the meeting.  

Meanwhile, the PCO said the Presidential Legislative Liaison Office and the Department of Budget and Management updated the president during the meeting on the status and salient features of the proposed National Government Rightsizing Bill, which was already approved on final reading at the House of Representatives.  

The bill covers all agencies of the executive branch. 

Excluded from the NGRP are teaching and teaching-related positions in schools, medical and allied-medical items in hospitals and other medical facilities, military and uniformed personnel, and government-owned or -controlled corporations (GOCCs) and government financial institutions covered by the Governance Commission for GOCCs,the PCO said.  

It said the legislative branch, judiciary, Office of the Ombudsman, constitutional commissions, and local government units may also rightsize their respective offices in line with the principles and guidelines contained in the NGRP.  

Three Senate bills on the rightsizing program remain pending at the committee level. Kyle Aristophere T. Atienza

Solon asks gov’t to aid Filipinos on death row in Malaysia

A LAWMAKER called on the administration to act swiftly and provide necessary assistanceto overseas Filipino workers on death row in Malaysia after its parliament voted to abolish the mandatory death penalty rule. 

I urge the Department of Foreign Affairs and the Department of Migrant Workers to immediately provide all the needed legal assistance for overseas Filipinos on death row in Malaysia for a review of their sentences,KABAYAN Party-list Rep. Ron P. Salo said in a statement on Tuesday. 

Reforms that remove mandatory death penalty for 11 serious crimes, including murder and terrorism, hurdled Malaysias parliamentary on Monday.  

Under the new law, those on death row have 90 days to seek a review of their sentences.  

Malaysian Deputy Law Minister Ramkarpal Singh, speaking before parliament on Monday, said that the mandatory death penalty has not brought about the results it was intended to bring. 

Mr. Salo called the ruling a welcome development, especially for our countrymen on death row in Malaysia who may have a justifiably legal cause to receive a much lesser penalty. 

Judges can still decide on whether to impose death penalty as a punishment for specific cases. 

It gives us so much hope that many of their cases will be reconsidered and will be given lighter punishments. This will give our countrymen the chance to reform and lead better lives,Mr. Salo said.  

Foreign Affairs Assistant Secretary Paul Raymund P. Cortes said during a March 2 House committee meeting that 56 Filipinos remain on death row in Malaysia.   

Of these, 30 were charged for murder, 18 for drug smuggling/trafficking, while eight were punished for waging war against the Malaysian king during the 2013 assault on Lahad Datu in Sabah. Beatriz Marie D. Cruz