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ERC unveils draft rules for power reserve procurement

ANDREY METELEV-UNSPLASH

THE Energy Regulatory Commission (ERC) said it drafted rules for the National Grid Corp. of the Philippines (NGCP) to follow in procuring reserve power.

In a draft resolution, the ERC proposed implementing guidelines for the procurement, execution, and evaluation of ancillary services (AS) procurement agreements by the NGCP.

Ancillary services refer to power reserves tapped by the grid to ensure the reliable operation of the transmission system should its regular sources of power fall short.

The ERC said that the Department of Energy’s policy on the competitive selection process (CSP) for AS requires that the regulator review whether the parties comply with the requirements.

The proposed rules require the system operator to undertake “a transparent, competitive and non-discriminatory procurement process for AS.”

To encourage broader participation in AS procurement, the system operator is directed to ensure compliance with the DoE on the mandatory AS capability testing of all generating facilities.

“To ensure SO’s compliance with its obligation to procure cost-effective and least-cost AS, the lowest calculated bid shall be subject to an AS.

Price Cap set by the system operator, which shall not be disclosed by the TPBAC (Third Party Bids and Awards Committee) to the bidders until the opening of bids,” the ERC said.

The ERC said that all AS procurement agreements must obtain its approval prior to implementation, with a maximum term of five years.

Francis Saturnino Juan, ERC chairman and chief executive officer, said in a recent commission meeting that the review of AS procurement agreements should be streamlined akin to the process for power supply agreements.

“I took the initiative to propose these kinds of guidelines so that we have a clear set to follow, which can also serve as a guide for the industry, the SO, and the AS providers who will participate in any CSP that the SO will carry out,” Mr. Juan said.

He said that the review of AS procurement agreements should be streamlined to accelerate the application and for the system to have access to the capacity immediately.

“What we are proposing is to look at the price that came out and, if it has already gone through the CSP, (we need) to accept it as the lowest cost that the system operator can obtain, and for the ERC to just review the other terms of the AS procurement agreement,” Mr. Juan said. — Sheldeen Joy Talavera

P64 food poverty threshold set for revamp

BW FILE PHOTO

THE Department of Economy, Planning, and Development (DEPDev) said it will overhaul the food poverty threshold in 2026, which is currently set at P64 per person per day.

“We will be revising the poverty threshold,” Economy Undersecretary Rosemarie G. Edillon told a Senate Finance Committee briefing on Monday, adding that new data will be incorporated from the 2024 census.

Sen. Loren Regina B. Legarda called the P64 threshold an “out-of-touch economic benchmark.”

According to the 2023 Family Income and Expenditure Survey (FIES), the monthly food poverty threshold for a family of five was P9,581, or about P64 per person a day.

Economy Secretary Arsenio M. Balisacan has admitted that P64 was outdated and committed to revise it. The Philippine Statistics Authority (PSA) has also called it “insufficient” and not reflective of actual food spending.

Ms. Edillon said the revised threshold will consider factors such as age, sex, and size, which affect nutritional requirements.

“The 2025 FIES is currently being conducted. The PSA has finished the first round covering the first semester of 2025. The second round covering July until December will be conducted in January to February of 2026. Results will be available sometime in July next year,” she said.

Updated methodology will be submitted to the PSA Board for approval and will be applied to the 2025 FIES data. Until then, the 2023 threshold remains in use. — Aubrey Rose A. Inosante

Negros Island producers seeking spotlight for organic produce, crafts

FACEBOOK.COM/THENEGROSTRADEFAIR

THE Association of Negros Producers (ANP) said it is seeking to develop niches in organics and crafts to supplement the island’s strengths as a food producer.

“Food has always been one of the favorites of people who visit Negros,” ANP President Christina Gaston told BusinessWorld on the sidelines of the preview of the 39th Negros Trade Fair. “But everything that we make comes from the soil … whether it is the food or fashion.

“The products that we use (in crafts) actually are considered waste materials,” she added.

She said the group was organized to help micro, small and medium enterprises (MSMEs) grow their businesses after the sugar industry collapsed in the 1980s, offering farm workers creative endeavors for their livelihood.

“Sustainability is very important to us. There are those who are working in the organic sector, producing liniments, soaps, and candles,” she said.

“Of course, we have organic agriculture. We have coffee and chocolate growers developing those industries as well,” she added.

She said the first wave of ANP members started in export, as directed by the Department of Trade and Industry (DTI) at the time, developing major markets in Europe and the US.

“Over the last 10 years, the domestic market has developed a lot both in appreciation and size, and logistics have enabled us to really expand our market range,” she added.

Last week, the ANP launched its 39th Negros Trade Fair, known as HIMBON, at the SMX Convention Center in SM Aura.

Expected to be the biggest Negros Trade Fair, it will occupy 2,500 square meters and showcase 139 vendors and partners between Sept. 23 and 28.

“After 39 years, we have seen the sustainable growth of our exhibitors. We’ve witnessed how they’ve scaled up to the B2B (business-to-business) level, even supplying for international markets,” Ms. Gaston said. 

“This is why we continuously strive to bring the trade fair to future markets and pass on the advocacy,” she added.

SM Supermalls President Steven Tan said that ANP’s approach is aligned with SM’s vision of providing a platform for MSMEs to showcase their products.

“Negros has so many rich and beautiful products, whether it is fabrics, home decor, or even food,” he said.

He noted the need to ensure “the continuity of this culture and heritage. We have to preserve it.”

The trade fair will not only showcase Negros food, fashion, and home and design, but also vendors and businesses from the Negros Island Region.

“This is just the start of the partnership. And we really hope that we could be a long-term partner. We want to make sure that the purveyors inside the fair could be successful,” said Mr. Tan.

“That would encourage them to do more and influence other MSMEs to really also showcase their products. Our (common) objective is to help the MSMEs,” he added. — Justine Irish D. Tabile

Hann Reserve converts economic zone to mixed-use

The high-end villas will come with alfresco relaxation areas, plunge pools, sun decks and inviting indoor living spaces.

HANN PHILIPPINES, Inc. (HPI) registered its mixed-use development in Clark as a special economic zone, the Philippine Economic Zone Authority (PEZA) said, converting it from its initial status as a leisure project.

In a statement on Monday, PEZA said it signed a supplemental agreement with the company for the registration of the Hann Reserve.

“To be located in Pampanga, Hann Reserve is set to emerge as a world-class, master-planned destination where industries, agriculture, technology, and tourism converge,” PEZA said in a social media post.

“Once operational, the project is expected to create new investments, generate quality jobs, and unlock opportunities for local communities — anchoring Pampanga as a premier growth hub in Luzon,” it added.

The company earmarked P10.459 billion to develop an additional 324.6 hectares, which will supplement its 131-hectare property in New Clark City.

It is expected to begin construction and land development within the year.

According to PEZA, HPI requested the reclassification of Hann Reserve from a tourism economic zone to a mixed-use special economic zone, to allow for manufacturing, agro-industrial, tourism, and information technology activities.

“This reclassification will enable HPI to attract a wider range of investors to its 455.60-hectare leased property,” it added.

PEZA Director General Tereso O. Panga said the agreement is a significant step in economic zone development.

“This reclassification of Hann Reserve ushers in a new era of ecozone development, one that fuses industry, innovation, agriculture, and tourism into a single, sustainable engine of growth,” he said.

“Beyond harnessing the country’s global investment competitiveness, this initiative strengthens PEZA’s mission of ecozoning the Philippines towards inclusive, balanced, and sustainable growth, with the countryside at the heart of progress,” he added.

PEZA is expecting 20 to 30 economic zone proclamations this year. — Justine Irish D. Tabile

‘Covered persons’ warned to transact only with registered gambling entities

THE Anti-Money Laundering Council (AMLC) said “covered persons” subject to its oversight must only deal with legitimate online gambling platforms and casinos.

“Covered persons (CPs) are hereby reminded that transactions involving online casinos and online gambling platforms must be conducted exclusively with entities duly registered with the Philippine Amusement and Gaming Corp. (PAGCOR),” the AMLC said in a statement.

“CPs are expected to maintain heightened vigilance by monitoring customer transactions involving online gambling activities, updating customer profiles as necessary, and conducting enhanced due diligence when warranted, in accordance with their Money Laundering and Terrorism Financing Prevention Program,” the council added.

According to the AMLC, CPs refer to financial institutions and designated non-financial businesses and professions, including banks, quasi-banks, trust entities, pawnshops, nonstock savings and loan associations, electronic money issuers, insurance companies, securities dealers, brokers, salesmen, investment houses and other similar persons.

AMLC warned CPs of the risks of transacting with unregistered online casinos and gaming apps, instructing them to file suspicious transaction reports as warranted.

Under the Anti-Money Laundering Act, CPs are required to report to the AMLC all suspicious transactions within five working days from its occurrence.

CPs that fail to comply could face administrative sanctions under the AMLC’s rules of procedure, it added.

President Ferdinand R. Marcos, Jr. ordered stricter regulation of online gambling platforms, citing the industry’s social costs and risks to the financial system.

Last month, the Bangko Sentral ng Pilipinas ordered e-wallet providers, banks and other financial institutions to delink their services from gambling apps and websites.

The central bank is also working on additional measures such as bans on credit card use for betting, biometric verification, transaction limits and self-exclusion tools.

PAGCOR projected online gambling to account for about 60% of its revenue this year, equivalent to P62-65 billion. — Katherine K. Chan

Economic sabotage prosecutions making slow progress — Pangilinan

PHILIPPINE STAR/EDD GUMBAN

Sen. Francisco Pancratius N. Pangilinan said prosecutions for economic sabotage are going slowly, blunting the law’s deterrent effect.

Mr. Pangilinan, who chairs the Senate Committee on Agriculture, Food, and Agrarian Reform, said in a statement submitted to a Senate hearing that the Anti-Agricultural Economic Sabotage Council has been slow to act on cases of smuggling involving food products.

“You have all the information to find cases of economic sabotage. Why is nothing happening? The President himself said so six, nine months ago,” Mr. Pangilinan said.

He said in light of the dearth of prosecutions, he is seeking greater powers for the DA to initiate smuggling prosecutions on its own.

The Anti-Agricultural Economic Sabotage Act (Republic Act 12022) defines economic sabotage as a separate crime if the value of smuggled farm goods exceeds P10 million.

Mr. Pangilinan called economic sabotage prosecutions “low-hanging fruit” and described the attention being paid to the National Single Window — a streamlined trade permit processing portal — as misdirected in light of three pending cases involving shipments to Subic, Baco, Oriental Mindoro and Talisay, Cebu, which is the site of one of the province’s container terminals.

“When will these be charged. Because we can discuss everything… — fix this, fix that, but it’s been ten (months),” he said.

He added that the Philippine Coast Guard has adequate powers to initiate smuggling prosecutions but has not exercised them.

“We have three cases, can we just get an update? For the Coast Guard, my understanding is that the Coast Guard is part of the council. You have the power, you can file a case.”

Separately, the DA said in a statement that the DA’s Inspectorate and Enforcement office conducted 182 anti-smuggling operations between January 2024 and July 2025, leading to the confiscation of P3.78 billion worth of agricultural and fishery products.

In 2024, it tallied P2.8 billion worth of seizures of smuggled products. This year so far, 111 operations were conducted yielding P953 million worth of seizures. — Andre Christopher H. Alampay

Gov’t disburses first nine loans for tourism MSMEs

Dayaw through the years

PRESIDENT Ferdinand R. Marcos, Jr., said on Monday that the government will expand financing for small tourism enterprises as the government reorients its strategy to focus on cultural and community-based experiences.

At the Turismo Asenso Loan Awarding Ceremony in Pasay City, Mr. Marcos announced loan packages for nine tourism-related micro, small, and medium enterprises (MSMEs) in Metro Manila and Calabarzon.

The program is backed by the Department of Tourism, the Department of Trade and Industry (DTI), and the Small Business Corp.), which were urged by the President to “make sure that the Turismo Asenso Loan Program and other forms of assistance reach every part of the country.”

“Tourism is one of the pillars of our economy. It sustains livelihoods and fuels growth for thousands of small businesses across the country,” he added in remarks livestreamed by Radio, Television Malacañang.

According to the Philippine Statistics Authority, in 2024, tourism’s direct gross value added grew 11.2% to P2.35 trillion, its strongest performance since 2019, pushing tourism’s share of gross domestic product to 8.9%, level with its pre-pandemic share. 

The loan program is part of a broader push to widen MSME financing channels, alongside DTI-led Negosyo Centers, trade fairs, and the Go Lokal! platform promoting homegrown products.

Mr. Marcos said the financing packages are an investment in “experiential tourism” focusing on immersive cultural experiences rather than resort-based leisure. — Chloe Mari A. Hufana

SB Corp. could finance MSME exporters affected by US tariffs

THE Department of Trade and Industry (DTI) said it is considering mobilizing its financing arm, the Small Business Corp. (SB Corp.), to provide P2-3 billion to small exporters affected by US tariffs.

“Actually, (financing small exporters) is a good idea. We can talk about that, as we do not have that loan program in place yet,” Trade Secretary Ma. Cristina A. Roque told reporters on the sidelines of the Turismo Asenso Loan Awarding Ceremony on Monday.

“It will be easy because I (chair) SBCorp.,” she added, estimating the size of the package at at least P2-3 billion.

“I will check, but it should be a bit big, like at least P2 billion or P3 billion,” she added.

The US imposed a 19% reciprocal tariff on shipments of Philippine goods, likely degrading the competitiveness of the export sector. 

She said SB Corp. received an additional P1.5-billion allocation from the Department of Budget and Management (DBM), bringing its loanable funds to P11.5 billion.

She also said that the department will seek more funding for SB Corp. next year on top of the P1.5 billion provided by the National Expenditure Program (NEP) 2026.

The NEP is a document prepared by the Executive branch outlining its spending plans, which are subject to adjustment when the budget bill is legislated.

On Monday, the DTI and the Department of Tourism (DoT) launched the Turismo Asenso Loan Program aimed at helping tourism MSMEs in expanding their operations.

During the event, President Ferdinand R. Marcos, Jr. presided over the awarding of loans to nine tourism beneficiaries, including wellness spas, resorts, and travel and tour agencies from Rizal, Cavite, Laguna, and Metro Manila.

In a statement on Monday, the DoT said that the approved amounts ranged from P150,000 to P1 million.

“They are Reluxx Body and Wellness Spa, Pressure Point Wellness and Spa, S.E.AL Travel and Tours, Robles Resort, Imassage De Cavite Wellness Spa, Sense Body Massage Spa, Lavmemar Travel and Tours, Landsafe Travel and Tours Agency, and Silverscape Travel and Tours,” it added.

The Turismo Asenso Loan stemmed from a memorandum of agreement signed between the DTI and DoT on April 7.

“By empowering our MSMEs, we are fostering economic stability, generating sustainable employment opportunities, and strengthening the fabric of our communities,” Tourism Secretary Ma. Esperanza Christina G. Frasco said.

“When tourism and trade flourish, so does the livelihood of our fellow Filipinos, creating a ripple effect of prosperity and growth that will be felt across the nation,” she added.

The loan facility will be available for businesses with at least 60% Filipino ownership, assets not exceeding P100 million, with at least a year’s track record, with no past due accounts owed to SBCorp. — Justine Irish D. Tabile

AI deployment urged in detecting corruption, waste in procurement

THE GOVERNMENT needs to tap artificial intelligence (AI) to better detect corruption and waste in public procurement, the Philippine Institute for Development Studies (PIDS) said.

“Tools like AI-powered whistleblower reporting systems and blockchain-enabled reporting systems… can ensure reliability of information, protection of the citizen-whistleblowers, and (help ensure successful) forensics,” PIDS Senior Research Fellow Adoracion M. Navarro said during the 2025 Development Policy Research Month (DPRM) National Kickoff Press Conference on Monday.

Ms. Navarro said on the sidelines of the event that the government can leverage AI in government procurement via the Philippine Government Electronic Procurement System (PhilGEPS) to detect “bid rigging or weakening of competition.”

Ms. Navarro cited the case of Brazil, which uses AI-driven anti-corruption technology in auditing government transactions.

However, government data is currently not centralized, making it difficult to feed data to the AI, PIDS Senior Research Fellow Kris Francisco-Abrigo said.

“Remember that AI is a computer software that analyzes patterns, and at the moment, our data in government is not centralized. Digitalization is not widely adapted,” Ms. Abrigo told the forum. “I think that is something that we can work on if we want to use AI to combat corruption.“

Krystal Lyn T. Uy, former undersecretary for Legal Affairs at Department of Economy, Planning, and Development, said the government cannot take advantage of AI without data.

“Even AI systems are prone to biases, depending on the type of data that you feed into it,” she said. “If the only data that you have is Metro Manila data, then the results of the AI application would be biased towards Metro Manila.”

Emmanuel C. Lallana, professorial fellow at the University of the Philippines Center for Integrative and Development Studies, said the government must adopt a data governance framework to harness AI tools effectively.

“There has to be a shift in the mindset that the government doesn’t own the data.  They’re just taking care of the data, and that we have to adopt an attitude of proactively releasing it,” he told the forum. — Beatriz Marie D. Cruz

DFA rejects China’s warning over ‘worsening security’ in Philippines

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

By Adrian H. Halili and Kenneth Christiane L. Basilio, Reporters

THE Department of Foreign Affairs (DFA) on Monday dismissed China’s latest travel advisory that warned Chinese citizens about the deteriorating security situation in the Philippines.

“The relevant travel advisories issued by China mischaracterize the situation in the Philippines,” the agency said in a statement.

At the weekend, the Chinese Embassy in Manila, citing its Ministry of Education, cautioned its nationals against what it described as worsening security conditions and “malicious crimes” targeting Chinese citizens.

The ministry also cited alleged instances of Chinese citizens and businesses in the Philippines facing frequent inspections and harassment from local law enforcement.

It urged them to remain vigilant, avoid high-risk areas and carefully assess safety risks before traveling to or staying in the Philippines. The advisory also reiterated its warning to Chinese students considering pursuing their studies in the country.

This is the second such advisory issued by Chinese authorities this year. The first was released on July 18, citing similar concerns over safety and treatment of Chinese nationals.

The DFA countered that crimes involving foreign nationals, including those committed by Chinese citizens against their compatriots, are being actively addressed by Philippine law enforcement agencies.

“Instances of crimes reported or known to law enforcement authorities are being vigorously addressed,” it said, adding that the government has been engaging with stakeholders to address these cases.

It also said the Philippines remains committed to maintaining constructive ties with Beijing.

“The Philippines remains committed to constructively addressing matters of mutual concern with China,” the DFA said, noting that both sides held their ninth joint consular consultation in July, when law enforcement cooperation was discussed.

Foreign policy analysts, however, viewed the Chinese advisory as politically motivated.

Francis M. Esteban, faculty member at the Far Eastern University Department of International Studies, said the warning undermines the Philippines’ international credibility.

“This has always been the tactic of China in trying to undermine the Philippines’ legitimacy as a world player, which is of course connected to our territorial dispute with them,” he told BusinessWorld in a Facebook Messenger chat.

Relations between Manila and Beijing have been strained in recent years because of their dispute in the South China Sea, where they have had repeated confrontations.

A United Nations-backed arbitral tribunal in The Hague voided China’s sweeping claims to more than 80% of the South China Sea in 2016, through which more than $3 trillion worth of trade passes each year.

Since taking office in 2022, President Ferdinand R. Marcos, Jr. has taken a more vocal stance against China’s expansive claims in the South China Sea. Tensions have intensified, with the Philippines pushing back against China’s presence in waters it claims as part of its exclusive economic zone.

RESUPPLY MISSIONS
Also on Monday, the Philippines’ National Maritime Council said its “provisional understanding” with China on resupply missions to a grounded warship at a disputed shoal in the South China Sea remains in effect despite heightened Chinese activity in the area.

Authorities would proceed with supply runs to the BRP Sierra Madre at Second Thomas Shoal without any operational changes, National Maritime Council spokesman Alexander S. Lopez told reporters.

“The provisional understanding between our country and China hasn’t changed,” he said in mixed English and Filipino, noting that the DFA and Beijing’s Ministry of Foreign Affairs are “still in talks” over the resupply deal. “We’ll just leave it that way. We cannot just divulge the details.”

The Philippines and China struck the arrangement in July 2024 after a series of tense standoffs. The deal, meant to manage maritime tensions and prevent escalation, allowed Manila to sustain resupply missions to the BRP Sierra Madre, which was deliberately run aground in 1999 to reinforce Philippine claims over Second Thomas Shoal.

China’s Foreign Ministry has described the deal as a “temporary arrangement.” Then-Foreign Affairs Undersecretary Ma. Theresa P. Lazaro, now secretary, said in August last year that the understanding was subject to review. Both governments reiterated in January that they would continue to honor the deal.

Mr. Lopez downplayed the presence of Chinese vessels near the shoal. “The sightings [of Chinese ships] have always been there every time we hold [resupply missions],” he said. “We take it as a usual, natural thing for us to see those Chinese vessels.”

Philippine Rear Admiral Roy Vincent T. Trinidad, Philippine Navy spokesman for the South China Sea, reported last week that Chinese presence had swelled. From an average of seven militia boats and two coast guard ships, the number rose to about 20 in late August.

“We have plans,” Mr. Lopez said, stressing that authorities are prepared to carry out resupply missions despite Chinese buildup. “Whatever it takes.”

He added that Manila expected China to intensify its presence after a Chinese Coast Guard vessel collided with a Chinese Navy warship near Scarborough Shoal last month, calling the incident a “big embarrassment” for Beijing.

The Philippine government is also weighing a new arbitration case against China’s expansive South China Sea claims, Mr. Lopez said.

“While we say that it’s an option, it will [need to] be studied very carefully,” he said. “What and when we will file that, it depends now on the Executive.”

CHED seeks P13-B boost to sustain subsidies for poor college students

SENIOR HIGH School graduates preparing to take the UPCAT at the University of the Philippines in Diliman, Quezon City. — PHILIPPINE STAR/MICHAEL VARCAS

THE Commission on Higher Education (CHED) wants an additional P13 billion for 2026 to ensure that education subsidies for low-income college students continue, its chairperson said on Monday.

About a million college students benefit from the Tertiary Education Subsidy and Tulong Dunong Program (TDP), but almost 300,000 could lose access to these grants if Congress does not approve the budget increase, CHED Chairperson Shirley C. Agrupis told congressmen at a budget hearing.

“We need an additional P13 billion to cover the short, and to cover the 4Ps (Pantawid Pamilyang Pilipino Program) list submitted by the Department of Social Welfare and Development (DSWD),” she said in Filipino, referring to the government’s flagship cash aid program.

The college subsidy program provides grants that cover the full or partial cost of college education for students enrolled in state universities and colleges. Eligible students get P20,000 yearly to help with schooling expenses. More than 700,000 students benefit from it, with recipients identified by the DSWD and the 4Ps program.

However, CHED’s proposed 2026 budget for the program was cut by 22.2% to P15.56 billion from the originally requested P20.01 billion, which could leave about 164,630 students without financial support, Ms. Agrupis said.

The Tulong Dunong Program is a targeted grant for students whose households earn no more than P400,000 annually. Eligible students get P7,500 per semester.

CHED’s requested budget for the program was cut by 28.1% to P5.1 billion, potentially affecting 135,792 beneficiaries, according to her presentation.

She also criticized the TDP framework as unsustainable, citing overlap with the Tertiary Education Subsidy and the role of lawmakers in managing beneficiary lists.

“I would like to forewarn that this TDP allocation coming from congressmen is not sustainable,” she said in Filipino. “It is creating chaos in the proper distribution of funds that are supposed to be allotted to 4Ps and Listahanan beneficiaries,” she added, referring to the Social Welfare department’s database of low-income households. — Kenneth Christiane L. Basilio

Gov’t needs P20 billion to sustain ‘zero-balance billing’ in hospitals, says DBM

PHILIPPINE STAR/MIGUEL DE GUZMAN

THE PHILIPPINE government needs as much as P20 billion to sustain its “zero-balance billing” program in public hospitals, which guarantees patients no out-of-pocket expenses for covered services, the Department of Budget and Management (DBM) said on Monday.

“Based on our meeting with the Secretary (of Health) prior to the crafting of the National Expenditure Program, the number is roughly P20 billion, but this is still an initial estimate,” Budget Secretary Amenah F. Pangandaman told senators at a budget hearing.

She said the amount has been factored into the proposed 2026 budget of the Department of Health (DoH) for regional and specialty hospitals, as well as for the Philippine Health Insurance Corp. (PhilHealth).

The DoH was allocated P320.5 billion under the 2026 National Expenditure Program (NEP), up 29% from P248 billion this year. PhilHealth will get P53.3 billion.

During the hearing, Senator Paolo Benigno “Bam” Aquino IV asked if the allocation would be enough to fully implement the program. “With the current NEP, can we already achieve zero-balance billing?”

“That is the idea,” Ms. Pangandaman replied. “But we will know the exact numbers as we go along. We just started the program this year.”

“Zero-balance billing” applies to patients admitted in ward-type hospital accommodations. Under the program, PhilHealth shoulders the full cost of covered services — including room and board, medicines, laboratory tests and professional fees — ensuring that patients do not pay anything on top of their coverage.

Funding comes from multiple sources: the DoH’s Medical Assistance to Indigent and Financially Incapacitated Patients program, Philippine Charity Sweepstakes Office, Philippine Amusement and Gaming Corp. and budget allocations for DoH hospitals.

On the sidelines of the hearing, Ms. Pangandaman said the DBM is awaiting the final computation from Health Secretary Teodoro J. Herbosa.

“In the 2026 budget proposal, we have provided an amount,” she told reporters, adding that DoH’s medical assistance program could provide support, while PhilHealth still has its P53-billion subsidy and regional state hospitals have expanded operations.

The program covers 87 DoH hospitals nationwide, including five facilities still under development and four run by government-owned and -controlled corporations. — Adrian H. Halili