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PHL new energy capacity estimated at 7,911 MW by 2027

THE Philippine energy system is expected to add capacity of 7,910.96 megawatts (MW) by 2027, with coal-fired plants accounting for 46.68%, natural gas 38.71%, renewable energy (RE) 11.39%, and facilities fueled by oil 6.67%.

Even though the government has banned new coal-fired power plants, coal-fired projects whose approval was in process when the ban was announced will account for 3,685.40 MW, the Department of Energy (DoE) said.

The biggest of these projects is Atimonan One Energy, Inc. and Meralco PowerGen Corp.’s ultra-supercritical AOE coal-fired power plant Unit 1, with 600 MW in installed capacity.

The AOE plant was built in 2018, but was delayed due to issues in securing approval from the Energy Regulatory Commission (ERC) for its power supply agreements. It is now scheduled to begin commercial operation by June 2025.

There are only six natural gas power plant projects committed to the DoE, and they account for a combined 3,062.50 MW of capacity.

All six projects are located in Luzon, the biggest of which is Batangas Clean Energy, Inc.’s 1,100-MW natural gas-fired power plant in Batangas City. This is targeted to begin operations by September 2026.

Meanwhile, the energy mix will add 901.27 MW in RE capacity by 2027, with solar accounting for 488.27 MW, hydropower 232.50 MW, geothermal 115.60 MW, and biomass 64.60 MW.

The biggest upcoming RE facility is Solar Philippines Tarlac Corp.’s 115-MW Concepcion 1 solar power project, which will start operating in November.

Oil-fired plants are also expected to add 528.1 MW to the energy mix, with 150 MW to be generated by Ingrid Power Holdings, Inc.’s Ingrid Pililia Diesel power plant project Phase 2, which is due to come onstream by December 2024.

The DoE data also indicate plans for 2,040 MW worth of battery energy storage system projects, most of which will be installed in Luzon by Universal Power Solutions, Inc.

The Philippines has set a target of sourcing 35% of its energy from RE by 2030 and 50% by 2040.

Energy Undersecretary Felix William B. Fuentebella has expressed confidence in hitting the target.

“I think we will be able to hit that, but there will be a lot of improvements (needed)… we need the (the National Grid Corp. of the Philippines and distribution utilities) to contract (capacity) because the Wholesale Electricity Spot Market (WESM) secondary price gap is too low, so that’s a deterrent (for) the merchant plants coming in,” Mr. Fuentebella said during the Rizal Commercial Banking Corp. virtual Sustainability Forum on Feb. 23.

In 2020, the Philippines’ power mix consisted of 57% coal-fired, 21% RE, 19% natural gas, and 2% oil-based. — Marielle C. Lucenio

World Bank to finance Bangsamoro out-of-school youth relief measures

REUTERS

THE World Bank is preparing $2.75 million in financing to help reduce the number of out-of-school youth in the Bangsamoro region.

The bank, in a document dated Feb. 23, said the No Bangsamoro Child Left Behind project aims to reduce the number of school dropouts by 35% and increase re-enrollments by 30%.

Financing for the Bangsamoro Autonomous Region in Muslim Mindanao project will be sourced from the Japan Social Development Fund, which provides grants to support poverty reduction projects.

Beneficiaries include an estimated 29,100 children aged six to 11 years old over three school years.

Of that total, 22,500 are out of school and 6,600 are at-risk children currently in school.

The project will be rolled out in 100 pilot elementary schools in Lanao Del Sur, including Marawi City.

“With the project interventions, the elementary graduation rate is expected to improve by 3% by the end of the project period. It is also estimated that 350 households per year will improve their livelihood by earning incomes contributing to the school feeding program,” the World Bank said.

The project will mobilize community and school members to assess the causes of the drop outs, find local solutions, and enforce remedial measures.

“The project will also offer seed funds to organize a school feeding program that can benefit both students and households,” the World Bank said.

“By contributing labor and/or ingredients for the program, household members could earn incomes, while students could have access to nutritious food at school.”

The report noted underfunding for education in the region, which means that learning has fallen behind the national average.

The Department of Finance has said that Japan has been extending loans and grants supporting the Mindanao peace process, including road network projects in areas affected by conflict and agriculture livelihood assistance.

Meanwhile, the European Union last week agreed to a €20.2-million (P1.17 billion) grant that will support agriculture businesses in the Bangsamoro region.

The five-year program will help farmers and cooperatives use integrated farming methods that will improve their ability to increase the quantity and quality of their produce. — Jenina P. Ibañez

Blanket ban on US, Canadian poultry seen raising chicken prices

REUTERS

THE MEAT industry said a government ban on poultry imports from the US and Canada will cause chicken prices to surge, adding that a bird flu outbreak in North America is not sufficient reason to issue a blanket ban.

“With virtually all sources in Europe already banned due to avian influenza (AI), the only source countries left with sizeable production capacity are the US, Brazil and Canada. A further ban on the US and Canada is surely going to cause an increase in the cost of the most basic and affordable processed meats,” the Meat Importers and Traders Association (MITA) said in a statement.

“Imposing a country-wide ban on nations that have a huge land mass is unwarranted and not supported by any risk assessment. Furthermore, the whole world is now facing inflationary pressures that also threaten our food security,” it added.

MITA said the meat processing industry is reliant on deboned chicken and is suffering from the delay of sanitary and phytosanitary permits needed to ship in farm produce.

“We are concerned with the long delay in the issuance of sanitary and phytosanitary permits for US and Canadian poultry. Some of our members have been waiting for three weeks when it should not take more than 2 to 3 days to secure a permit,” it said.

“We understand there is concern with the detection of AI in both countries. However, AI is a notifiable disease and both countries have containment and stamping out procedures in place… both countries are totally transparent with their current situation and course of action,” it added.

The group said the three-week delay in the issuance of import permits will cause a supply gap and a spike in chicken prices.

“We strongly urge your office to immediately process and release permits for US and Canadian poultry sourced from areas not affected by bird flu,” MITA said.

Separately, the Department of Agriculture said it is working on containing the Philippines’ own bird flu outbreak.

The Bureau of Animal Industry (BAI), confirmed the Highly Pathogenic Avian Influenza H5N1 strain on Jan. 6 in Baliwag, Bulacan, the first reported case in the country.

BAI Director Reildrin G. Morales said the bureau is monitoring the chicken and turkey flock, after conducting a cull of quail and duck within the radius of potential exposure.

“We enjoin all poultry raisers and farm workers to observe and implement necessary biosecurity measures and cooperate with temporary movement restrictions that may be applied in affected areas to prevent incursion of the disease in their facilities and farms,” Agriculture Secretary William D. Dar said in a statement.

“We assure the general public that the risk of catching H5N1 is very low. Poultry meat and its products are safe to eat,” he added. — Luisa Maria Jacinta C. Jocson

DoE appoints Germany’s MAN Energy to conduct LNG feasibility study

REUTERS

THE Department of Energy (DoE) said it has tapped German’s MAN Energy Solutions SE to conduct a feasibility study on small-to-medium scale liquefied natural gas (LNG) import and regasification projects in the Visayas and Mindanao.

In a statement on Sunday, the Department of Energy said it has entered into a memorandum of understanding with the German company in a virtual signing ceremony on Feb. 22.

“We have always been very vocal about our desire to fully develop the downstream natural gas industry of the Philippines. Studies such as the one that MAN Energy would be conducting contribute to this goal, given that the ability of our natural gas industry to reach maturity depends on the development of the necessary infrastructure such as LNG receiving terminals, gas transmission and distribution pipeline networks, and other ancillary facilities,” Energy Secretary Alfonso G. Cusi said during the signing.

LNG is natural gas cooled to liquid state to facilitate transport. It can generate electricity and can serve as a transition energy before full-scale adoption of renewables.

MAN Energy is also evaluate modes of transport for natural gas, including the facilities that will be needed to boost the LNG market in the regions.

The MAN group produces diesel engines and machinery for marine and stationary applications. It also makes marine propulsion systems.

If the study yields positive results, Mr. Cusi said it will herald a wave of capital investment in the regions.

“If not, the report’s results will still help guide us in recalibrating our strategic direction,” he said.

In July, Atlantic Gulf & Pacific Co. will open its P14.6-billion LNG import terminal project in Ilijan, Batangas, which will become the Philippines’ first LNG terminal.

The facility will have an initial capacity of 3 million tons a year of regasified LNG. It will serve as a storage and transmit LNG to nearby power plants, which are clustered in the area because Batangas is the landing spot for gas piped from the Malampaya field.

The Malampaya natural gas field is expected to be commercially depleted by 2027. — Marielle C. Lucenio

Can ESG data and insights deliver long-term value?

Environmental, social and governance (ESG) driven approaches are rapidly becoming mainstream in the investor and corporate communities, according to the 2021 EY Global Institutional Investor Survey. This is an annual survey that the EY Global Climate Change and Sustainability services team commissioned from a third party with the main objective of examining the views of institutional investors on the use of nonfinancial information in investment decision-making.

The survey notes three important themes that stand out: (1) the COVID-19 pandemic has been a powerful ESG catalyst; (2) there is a growing focus on the transition to a net zero economy, and climate change is increasingly central to investment decision-making; and (3) better quality nonfinancial disclosures and a clearer regulatory landscape, coupled with sophisticated data analytics capabilities, will enable ESG to realize its potential.

THE COVID-19 PANDEMIC ACTING AS A POWERFUL CATALYST
Investor attitudes towards ESG have undergone a rapid evolution under the pandemic. Now it’s seen as a central element to the investor decision-making process.

The survey data shows that, since the pandemic started, 90% of investors are attaching greater importance to corporates’ ESG performance when making investment decisions, and 86% of those surveyed said that a robust ESG program impacts analysts’ recommendations.

In addition, COVID-19 has made investors more likely to divest based on poor ESG performance with 74% saying so, while around 86% said that having a strong ESG performance impacts their decision to hold on to an investment.

The way the pandemic has highlighted past and current issues on social inequality has also magnified the importance of social considerations, with consumers mobilized on social issues and investors placing a greater focus on the “S” element of ESG. The top 5 social concerns taking center stage, based on the survey, are: (1) consumer satisfaction, (2) diversity and inclusion, (3) impact on local communities, such as job creation, (4) workplace and public safety, and (5) labor standards and human rights across the value chain.

Because of this, the investment industry faces a major challenge moving forward on how to access and analyze the data required to link social impact to financial performance. Without this information, it will be difficult to achieve a comprehensive inclusion of these factors into portfolio decision-making processes.

CLIMATE CHANGE AT THE HEART OF DECISION-MAKING
When the pandemic struck, many feared that it might put an end to the growing interest of investors on climate change. This fear did not materialize.

The significant progress that happened within the investment industry stems from the fact that the pandemic provided a stark and tangible example of what can happen when we fail to tackle systemic risks in our society. Investors could see what might happen to the economy if efforts to address climate change fail. This was further compounded by the results of the Intergovernmental Panel on Climate Change’s (IPCC’s) Sixth Assessment Report (AR6), which found that without “immediate, rapid and large-scale reductions” in emissions, curbing global warming to either 1.5˚C or even 2˚C above pre-industrial levels by 2100 would be “beyond reach.”

Investors have become increasingly aware of the risks posed by climate change, and they want their investments to reflect their preferences. Since there is an increased pressure to address the impact of climate change, investors surveyed said that they are placing a significant focus on their portfolios’ exposure to climate risk, with 77% indicating that they are devoting time to evaluate the impact of physical risks, while 79% saying that they will devote time to evaluate the implications of transition risks, into their asset allocation and selection decisions.

As decarbonization is crucial to investment decision-making, and with the goal of making progress towards net zero, it is crucial that companies and investors undertake robust scenario planning. This translates the theories related to climate change impact into practice and helps ground the discussion about incorporating decarbonization factors into an organization’s strategies so that it is not just an afterthought when considering the investment opportunities or the risks involved with operations.

PERFORMANCE TRANSPARENCY AND ANALYSIS CAPABILITY IS THE FUTURE OF ESG INVESTING
While investors are considering ESG performance as central to their decision-making, there are two priorities that could help to realize its full potential.

First is the better-quality ESG data from companies and clearer regulatory landscape. These two factors allow investors to conduct a more structured and methodical evaluation of disclosures.

This is crucial as there has been an increasing concern of investors about the usefulness of key aspects of companies’ ESG disclosures, with 51% of investors saying that current nonfinancial disclosures are not able to provide insight into how companies create long-term value, which was only 41% in 2020. In addition, despite the importance of ESG performance reporting to the industry, the transparency and quality of ESG disclosures, mainly around materiality, have been an ongoing concern, where 50% of investors surveyed said that they are concerned about a lack of focus on material issues — an increase from 37% in 2020.

Moreover, investor and corporate communities are broadly aligned on the importance of uniform standards and they believe that it would be helpful if risk transparency, reporting and assurance of disclosures were mandated by policy. As much as 89% of investors surveyed said they would like to see the reporting of ESG performance measures against a set of globally consistent standards become a mandatory requirement.

What this will lead to will be higher quality disclosures around ESG performance, which in turn can underpin good business management to help build and preserve stakeholder trust. The actions relating to the formation and the formal launch of the International Sustainability Standards Board (ISSB) during COP26 is a step in the right direction to more globally consistent standards.

Second, building data analytics capabilities and improving data management would be key to helping corporates produce trusted ESG performance reporting, with investors to incorporate that insight into their investment decision-making process.

Technology and data innovation can help corporates improve the way they collect, aggregate and own their data and help investors integrate ESG data into the investment analysis.

ACTIONS FOR CORPORATES AND INVESTORS
As ESG factors play an important role in economic health and recovery, there are a number of important actions for both the corporates issuing ESG reporting and the investors that will utilize that information.

Corporates should consider (1) having a better understanding of the climate risk disclosure element of ESG reporting, since there is growing pressure for companies to do more, (2) making strategic use of the sustainability and finance functions to help inject rigor and factor in materiality into ESG reporting, mainly because investors are concerned about the veracity and credibility of companies’ ESG performance data, and (3) deepening engagement with investors and understand how nonfinancial disclosures help differentiate an entity from its competitors.

Investors should consider (1) updating investment policies and frameworks for ESG investments along-side building an ESG-driven culture, (2) updating approaches to climate risk management to understand the potential consequences of climate risks over different time horizons, and (3) putting in place a bold and forward-looking data analytics strategy.

With the increasing expectation that businesses create, protect and measure value across a broad group of its stakeholders, they can fully embrace ESG by ensuring that the risks it brings are managed and by fully taking advantage of the opportunities that come with it. This way, companies can better articulate how they are creating long-term value for all stakeholders.

This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinions expressed above are those of the author and do not necessarily represent the views of SGV & Co.

 

Katrina F. Francisco is a senior director from the Climate Change and Sustainability Services of SGV & Co.

Manila warned of China moves amid Ukraine war

PHILIPPINE COAST GUARD PHOTO

By Alyssa Nicole O. Tan, Reporter

THE PHILIPPINES should mind a potentially bigger militarization of the South China Sea by China as the US and its allies are kept busy by Russia’s invasion of Ukraine, foreign policy experts said at the weekend.

“Watch out for China,” Jaime B. Naval, a political science professor from the University of the Philippines, said in a Facebook Messenger chat. “It advanced its South China Sea presence even during the pandemic, and the moment it calculates that the regional and extra-regional powers are distracted by Ukraine, it can embark on more adventurous acts.”

China claims more than 80% of the disputed waterway that overlaps with the exclusive economic zones of Vietnam, Malaysia, Brunei, Indonesia and the Philippines. Each year, trillions of dollars of trade flow through the sea, which is also rich in fish and gas.

No one can afford to be busy with two wars in different regions at the same time, Mr. Naval said. Countries across the globe, including the US, support a United Nation-backed ruling in 2016 that voided China’s nine-dash line sea claims based on a 1940s map.

Russia has launched a devastating attack by air, land and sea on Ukraine, a European democracy of 44 million people, and its forces are on the outskirts of the capital, Kyiv. President Vladimir Putin denied for months he would invade his neighbor, but then he tore up a peace deal and sent forces across borders in Ukraine’s north, east and south.

“Since they’re busy elsewhere, they won’t have the time, resources, energy and attention to somehow actively engage in what we’re doing here,” he told BusinessWorld in a separate Zoom call.

This move does not necessarily have to be a physical war, Mr. Naval said. “We’re not living in a situation where you have to physically assault or invade a country to enforce your will. That could be done through other means.”

The Chinese Embassy did not immediately reply to an e-mail and chat seeking comments.

China believes it can dominate the Philippines economically, retired US Navy Captain Carl O. Schuster told a virtual forum at the weekend.

“They can gain what they need from the Philippines by slowly taking over coastal islands, on one hand, and establishing economic partnerships with key members of the Philippine elite so they achieve an economic domination that allows them to direct Philippine policy,” he added.

Citing Japan’s invasion of the Philippines in World War II, he noted that it was clear that the Japanese occupation had proven to be very expensive because the Philippine resistance lasted during the entire war.

The Japanese army was also being bled out. China will look back at this and think that doing the same would be too costly.

“China prefers to go after easy meat, so I don’t see a full-scale invasion in the Philippines,” Mr. Schuster said. “What I see is like little rat chews, little bites along the edge until they’ve taken the territory that gives them a stranglehold on you.”

“China’s not really interested in ruling the Philippines,” he said. “China’s interested in driving the Philippines to behave the way China wants the Philippines to behave in its relations to China.”

“China’s game is to win without actually fighting in dealing with the other claimant states,” said Renato C. de Castro, an international studies professor at De La Salle University.

“You try to buy your opponent,” he said via Zoom. “You create an image that you’re so powerful that others will not challenge you.”

The South China Sea issue, he added, can only become more complicated as there remain tensions in the East China Sea, as well as the Taiwan straits.

Mr. Schuster cited the possibility of China halting its “bullying” in the South China Sea as Filipinos choose a new president this year. It might focus first on a possible wealth and joint exploration deal with the incoming government to gain favor, he added.

China would prioritize its own interests either way, said Herman Joseph S. Kraft, who heads the University of the Philippines Department of Political Science.

“The Chinese have their own agenda in the South China Sea that won’t be dictated to by Philippine national elections,” she said in a Viber message.

“But if there is no need for them to act assertively and or aggressively in the West Philippine Sea, then it is more than likely that China will not be initiating anything in the West Philippine Sea that will bring attention to the dispute,” he added.

President Rodrigo R. Duterte’s successor should diversify economic partnerships, Mr. Kraft said.

Before Mr. Duterte came to the picture, the Philippines was not as dependent on China and could weather economic pressure, he said. Now, Chinese economic pressure can be felt more easily, though still not to the extent that vital sectors would be fatally affected.

Mr. Duterte pursued closer trade and investment ties with China since 2016. He did not speak about asserting Philippine rights in the South China Sea until his last year in office.

The Philippines should focus on expanding its economy to cut Chinese leverage, Mr. Schuster said. “Power leverage over the next 15 years is going to be driven by economic developments rather than the military. If the military is a shield, think of economics as your sword.”

“You need to be strong enough to be expensive to mess with,” he said of military strength. “You don’t have to be strong enough to win.”

“If your economy were to grow and reduce your dependence on Chinese markets, you’d be in a much stronger position,” he said. “That’s where allies, I think, should weigh in.”

13 more OFWs flee Ukraine, now in Poland

THIRTEEN more Filipinos were evacuated from Ukraine amid a devastating invasion by Russia, the Department of Foreign Affairs (DFA) said on Sunday.

“We are on high-alert 24/7 to ensure that Filipinos are safe in this conflict,” Foreign Affairs Secretary Teodoro L. Locsin, Jr. said in a statement after welcoming the Filipinos in Warsaw, which has allowed the visa-free entry of Filipinos fleeing Ukraine.

“Our embassies in Poland and Hungary have been working hard these past days to account for each Filipino in Ukraine, and to repatriate them as soon as possible,” he added.

There are about 380 Filipinos in Ukraine, which Russia invaded last week.

Foreign Affairs Undersecretary Sarah Lou Y. Arriola told DZBB radio Mr. Locsin would remain at the border of Poland as long as necessary. Repatriation from Ukraine remains voluntary.

Philippine Ambassador to Poland Leah Basinang-Ruiz earlier said the government would help Filipinos leave Ukraine and go to Poland, where they can board a plane to the Philippines.

The Philippine Embassy “is committed to assisting the remaining Filipinos in Kyiv and in other parts of Ukraine in order to bring them out of harm’s way while there is still time,” she said.

On Saturday, more than 40 Filipinos evacuated Kyiv, the capital of Ukraine, and arrived in Lviv. DFA said more Filipinos were expected to arrive in the coming days.

Filipinos in Ukraine should exercise caution and remain vigilant, and contact the Philippine Embassy team in Lviv or the Consulate General in Kyiv if they need help, the agency said. — Alyssa Nicole O. Tan

Metro under Alert Level 1 on March 1

PHILIPPINE STAR/ MICHAEL VARCAS

THE LOCKDOWN in Manila, the capital and nearby cities will be lowered to the most relaxed level starting March 1, as health authorities reported fewer than 2,000 coronavirus infections for the ninth day on Sunday.

An inter-agency task force also approved a plan to lower the alert to Level 1 in Metro Manila and 38 other areas, presidential spokesman Karlo Alexei B. Nograles said in a statement on Sunday.

Abra, Apayao, Baguio City and Kalinga, Dagupan City, Ilocos Norte, Ilocos Sur, La Union and Pangasinan, Batanes, Cagayan, Santiago City, Isabela and Quirino in northern Philippines will be also be placed under Alert Level 1 from March 1 to 15.

Angeles City, Aurora, Bataan, Bulacan, Olongapo City, Pampanga and Tarlac in Central Luzon and, Cavite and Laguna in Calabarzon, Marinduque, Puerto Princesa City and Romblon in Mimaropa, and Naga City and Catanduanes in the Bicol region will also be placed under the lowest virus alert.

Aklan, Bacolod City, Capiz, Guimaras, Siquijor and Biliran in central Philippine will likewise be under Level 1, Mr. Nograles said.

Also placed under the same alert level were Zamboanga City, Cagayan de Oro City, Camiguin, and Davao City in Mindanao.

Mr. Nograles said 18 areas in Luzon, 17 areas in the Visayas, and more than 30 areas in Mindanao would be placed under Alert Level 2 from March 1 to 15.

The Department of Health (DoH) posted 1,038 infections on Sunday, bringing the total to 3.66 million.

The death toll hit 56,401 after 51 more patients died, while recoveries rose by 1,999 to 3.55 million, it said in a bulletin. It added that 5% of 25,313 samples from Feb. 25 tested positive for coronavirus disease 2019 (COVID-19).

Of 52,961 active cases, 556 did not show symptoms, 47,910 were mild, 2,780 were moderate, 1,417 were severe and 298 were critical.

DoH said 98% of new cases occurred on Feb. 14 to 27. The top regions with cases in the past two weeks were Metro Manila with 227, Western Visayas with 129 and Calabarzon with 104 infections. It added that 18% of new deaths occurred in February and 4% in January.

Nine duplicates were removed from the tally, three of which were recoveries and one was tagged as a death, while 44 recoveries were relisted as deaths. One laboratory failed to submit data on Feb. 25.

It was still unclear whether the coronavirus has become endemic in the Philippines, Philippine College of Physicians President Maricar Limpin told ABS-CBN Teleradyo.

“We do not know because we still have to see,” she said, noting that under an endemic phase, deaths should be falling.

“In other countries, we see that the moment they relax restrictions, the number of cases increase,” she said in Filipino. “We’ve seen that many still die from COVID-19 in other countries.”

Ms. Limpin said the government should carefully ease restrictions. “It’s better for us to be careful to ensure that the economy can reopen continuously.”

Authorities earlier said the government was preparing for a transition to an endemic phase.

Meanwhile, OCTA Research Group fellow Fredegusto P. David separately told TeleRadyo daily infections in the Philippines could fall to fewer than 1,000 this week.

He said daily deaths remained high. “It’s not as low as what we would hope considering that we still report a little over 1,000 new cases per day.”

The Philippines has experienced four waves of COVID-19 since 2020. It reported the highest single-day tally on Jan. 15 at 30,004. — Kyle Aristophere T. Atienza

Transport workers need fixed wages through service contracting amid high oil prices, group says

PHILIPPINE STAR/ MICHAEL VARCAS

TRANSPORT SECTOR workers need fixed wages to cope with increasing oil prices, which is seen to be aggravated by the attack on Ukraine by Russia, a major oil producer, a transport group said on Sunday.

“The multiple threats to our transport sector workers require an ambitious government response,” the National Confederation of Transport Workers Unions – Sentro ng mga Nagkakaisa at Progresibong Manggagawa (NCTU-SENTRO) said in an e-mailed statement. 

The group is calling for the adoption of service contracting as a dedicated government program.

“With service contracting, our transport drivers and operators will receive fixed wages in order to cover regular routes that will be identified at both the national and local government levels,” it said. 

Under the service contracting program, drivers and operators of public utility vehicles are paid by the government to ply their routes on a per kilometer basis. Currently, the program is meant to offset the effects of the capacity restrictions prompted by the coronavirus pandemic. 

“The recent escalation of tensions between Russia and Ukraine has contributed to the continuous rise of oil prices this year. As the cost of oil is not expected to change in the immediate future, ordinary Filipinos have already begun to be affected,” NCTU-SENTRO said. 

“This and the possible increase in the cost of other basic commodities are a constant concern for many households, especially for those in the transport sector,” it added. 

Brent crude surged over $100 for the first time since 2014 on Thursday last week after Russia launched its military assault on Ukraine. 

The Bangko Sentral ng Pilipinas said Dubai crude oil would average $83.3 per barrel this year, but would slow down to $79 by December. 

Under the General Appropriations Act of 2022, the budget for the fuel subsidy program can only be released when the average Dubai crude oil price based on the Mean of Platts Singapore reaches or exceeds $80 per barrel for three consecutive months. 

“We call on the government to provide the necessary support to augment the wages and incomes of working people,” the NCTU-SENTRO said. 

The Presidential Palace on Feb. 18 said the Department of Transportation and the Land Transportation Franchising and Regulatory Board (LTFRB) had both submitted the necessary documents to the Department of Budget and Management (DBM) for the fuel subsidy.

In the request submitted to the DBM, 377,443 beneficiaries will receive P6,500 each for fuel subsidy, the LTFRB said in a statement. 

Beneficiaries include operators of public utility jeepneys, bus, mini bus, taxis, UV Express, transport network vehicle service, tourist transport service, tricycles, and delivery services. — Arjay L. Balinbin

Farmers’ son Ka Leody offers sound agri sector agenda — analysts; VP bet Pangilinan eyes agri-related post

THE AGRICULTURE development platform so far presented by presidential candidate Leodegario “Ka Leody” de Guzman, known as a labor leader and also son of farmers, is his strongest campaign agenda, according to political analysts.

“Ka Leody can craft very realistic and grounded policies on agriculture because he is one with those in the sector,” Froilan C. Calilung, an assistant political science professor at the University of Santo Tomas told BusinessWorld in a phone call on Saturday. “When you know the problems very well, it will be easier to craft solid solutions to these existing predicaments.”

He noted that Mr. de Guzman has been the only one among presidential aspirants who has elaborated on improving the country’s agricultural sector. 

The labor leader has said in televised presidential debates that if elected, he plans to invest in research and development for the agricultural sector as well as put in more funds for post-harvest facilities.

“That (empowering the agricultural sector) would benefit us a lot since based on government figures, our economy is predominantly agricultural,” said Dennis C. Coronacion, who heads the UST Department of Political Science. 

About 43% of the country’s workforce are in agriculture, data from the Philippine Statistics Authority (PSA) showed. The Agriculture, Forestry, and Fishing sector, however, only contributed 10.2% to the economy last year, the lowest among major industries. 

“The foundation of our economy’s improvement rests on our countryside, where our farmers and fisherfolk live,” Mr. de Guzman said at the televised Sonshine Media Network International debate held Feb. 15. 

The Partido Lakas ng Masa standard-bearer also plans to allocate P125 billion to help micro, small and medium enterprises (MSMEs), which he sees as a means for job creation. 

“It actually feels good to know that a presidential candidate thinks seriously about the plight of the small businesses since this is one area that our national government has continuously neglected notwithstanding its significant contribution to our national economy,” said Mr. Coronacion. 

MSMEs account for 99.51% of all businesses in the country, based on 2020 PSA data.  

Mr. Calilung, however, noted that while strengthening MSMEs could benefit the economy, Mr. de Guzman’s aim to cut down dependence on foreign direct investments may be difficult to implement.

“Our country’s markets are dependent on foreign markets and favor a business-friendly climate, which would make this drastic shift in economic policy difficult to execute,” he said. 

Mr. de Guzman also plans to impose a wealth tax on the country’s 500 richest individuals, and use the collection to improve other industries and to pay the country’s debt. 

Finance Secretary Carlos G. Dominguez III said last year that the proposed wealth tax law could initially realize gains in collections, but could discourage long-term growth and investments.

“I think a Ka Leody presidency would disrupt, if not bring to an end, this close relationship between big businesses and national government,” Mr. Coronacion said. “It would mean big private companies would no longer enjoy the privileges they have been given access to for several decades now.” 

VP BETS
Meanwhile, vice presidential candidates who participated at a debate organized by CNN Philippines on Saturday night disclosed which Cabinet post they want to assume should they win in the May election.

Senator Francis “Kiko” N. Pangilinan, who is running in tandem with Vice President Maria Leonor “Leni” G. Robredo, said he would prefer a Cabinet post related to agriculture and fisheries. 

The senator touted that among all vice presidential bets, he is the only one who has a track record in public service relating to addressing hunger, high prices of food, and other challenges faced by the agriculture sector.  

Mr. Pangilinan said that as food security chief under the administration of the late President Benigno S.C. Aquino III, he was responsible for stopping the increase of rice prices by waging a crackdown on rice cartels and smugglers.

He said that under his stint as food security czar, the National Food Authority rejected bids from Thailand and Vietnam four times due to alleged bribery schemes that caused higher rice import prices. He claimed the government was able to save about P7 billion because of his anti-corruption campaign. 

At the same debate, progressive writer and activist Walden F. Bello, the running mate of Mr. De Guzman, said he wants to head the Department of Finance.

“Ka Leody and I will have a tax on the top 750 billionaires in the country and this will be for social programs that will go and benefit the vast majority of our people,” Mr. Bello said.

Meanwhile, candidate Rizalito Y. David of the Democratic Party of the Philippines said the next Philippine president should create a commission for moral renewal and cultural restoration, which he wants to head. 

“We need to restore the morality of our nation for us to progress.” 

Candidate Manny S.D. Lopez of the Labor Party Philippines said he wants to head the Department of Trade and Industry and help the country’s pandemic recovery.

“We will be facing severe challenges in the coming years and economic recovery is a must to help uplift the lives of our people,” he said.

Manila Mayor Francisco “Isko” M. Domagoso’s running mate, cardiologist Willie T. Ong, said it will be up to the next president if he will be tasked to head the Health department or another health sector-related post.

“It depends on whether the next President would appoint me to the Department of Health or would want me to have an overview of our health sector,” he said. “If the president wants me to help in distribution of cash aid, it’s also fine with me.” 

VACCINE PLAN
In another development, BHW Party-list Rep. Angelica Natasha Co called on presidential candidates to present how they plan to secure the country’s future coronavirus vaccine supply. 

“Each candidate should be asked how they will make sure there is enough supply of vaccines (vaccine security) if they are elected as president,” Ms. Co, whose party represents community-level health workers, said in a statement in Filipino. 

Ms. Co said the presidential bets should already be making “preparatory steps on transitioning their COVID operations on June 30 in case they win in their elections.”— John Victor D. Ordoñez, Kyle Aristophere T. Atienza, and Jaspearl Emerald G. Tan

Lawyers urge Comelec to review rules on taking down oversized campaign posters

PHILIPPINE STAR/ MICHAEL VARCAS

LEADERS of the Philippine’s official organization of lawyers on Sunday called on the Commission on Elections (Comelec) to review its regulations on dismantling oversized campaign materials.

The Integrated Bar of the Philippines (IBP), in a statement issued by its Board of Governors, said the poll body should give “primordial respect” and importance to the rights to life, liberty, property, and to freedom of expression protected by the 1987 Constitution. 

“With all due respect, Comelec should take to heart that all government authority emanates from the people,” it said. “Thus, apart from regulating the actions of the candidates and the electorate during this elections period, it is equally Comelec’s duty to ensure that all Filipinos — the source of the winning candidate’s mandate — remain free to express their participation in the elections and be protected from any restriction beyond what is provided by law and the Constitution.” 

Comelec has been criticized for ordering law enforcers to take down oversized campaign posters within private properties.

IBP cited jurisprudence that said taking down tarpaulins posted on private property is an “unconstitutional deprivation of property without due process of law.” 

Videos and photos of authorities taking down campaign materials of some candidates within private spaces, particularly those of Vice President Maria Leonor “Leni” G. Robredo who is running for president, have gone viral on social media. 

Comelec Spokesman James B. Jimenez earlier said law enforcers had sought permission to enter these private areas before taking down the posters. The election body is open to reviewing its policies, he added.

Last week, election lawyer Romulo B. Macalintal asked the election body to temporarily suspend its campaign of taking down oversized posters to form a uniform policy for all candidates. 

“The IBP is committed to assist the Comelec and voluntary organizations in delivering a peaceful, credible and safe electoral process,” IBP said. “However, the IBP firmly believes that there can be no meaningful exercise of the right to suffrage if the people’s basic and essential freedoms are unduly restrained and disregarded in the name of equal opportunity for all candidates.” — John Victor D. Ordonez

Baguio assessing tourist capacity limit as restrictions ease

BAGUIO CITY PIO

BAGUIO’S local government is currently assessing the capacity ceiling that it will impose on visitor arrivals as nationwide coronavirus cases have generally plateaued and mobility restrictions are eased.

“To determine the threshold for tourists, we are now monitoring and looking at how far we can go in terms of the number of tourists to be allowed vis-a-vis the traffic situation, crowd movement and capacity and our ability to still implement physical distancing and other protocols,” Mayor Benjamin B. Magalong said in a statement on Sunday. 

He said setting a limit on the number of daily tourists that will be allowed entry in the popular mountain destination is particularly important in “convergence points like Session Road, night market and the city market.”

“Setting the threshold could help us ensure that tourism would not create any discomfort to the residents and the even to the tourists,” he said.  

The city government said the evaluation could also serve as “springboard for more concrete actions to achieve sustainable tourism where other negative effects of overtourism like destruction of the environment, culture and quality of life of the people are also addressed.” 

Baguio currently issues a maximum of 4,000 tourist entry approvals. It also maintains strict entry protocols through its triage site.

City Tourism Officer Aloysius Mapalo said visitor arrivals in Dec. 2021 reached 147,145, a high since the start of the pandemic. This dropped to 39,507 in January as stricter rules were reimposed due a coronavirus surge attributed to the Omicron variant. 

“We are just starting to see an increase this February with 46,676 arrivals from Feb. 1-20,” he said. — MSJ

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