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Lawmaker asks DoH to fast-track cancer fund rules

A LAWMAKER urged the Department of Health (DoH) to fast-track the guidelines on how cancer patients can avail themselves of a -million government fund.

In a statement Tuesday, Quezon City Rep. Alfredo Paolo “Alfred” D. Vargas III said the rules under Republic Act 11215 or the National Integrated Cancer Control Act (NICCA) would help Filipino cancer patients who have a hard time paying for treatment.

“Your favorable support for the proper implementation of NICCA, particularly the cancer assistance fund, will institutionalize the government’s support and protection for families who are heavily affected by this public health emergency,” he said.

Mr. Vargas said he asked Health authorities about the status of the guidelines last year. The agency is drafting an administrative order on the fund’s implementation, he added.

The cancer assistance fund will be made available to cancer patients in public and private care centers licensed  by the Health department.

Mr. Vargas said both DoH and the Philippine Health Insurance Corp, need to consult stakeholders about how they can avail themselves of the fund. — Gillian M. Cortez

Task force to address unemployment being set up via executive order

CABINET Secretary Karlo Alexei B. Nograles said the task force seeks to “create a policy environment that encourages generation of more employment and entrepreneurship opportunities; improve employability and productivity of workers; and provide support to existing and emerging businesses.” — BW FILE PHOTO

AN EXECUTIVE ORDER (EO) is being drafted to establish an inter-agency task force to address unemployment, a Palace official said.

In a televised briefing Tuesday, Cabinet Secretary Karlo Alexei B. Nograles said President Rodrigo R. Duterte is set to sign an EO creating a National Employment Recovery Strategy task force.

Mr. Duterte formed five task forces in 2020, one of which — the Inter-Agency Task Force on Emerging Infectious Diseases has taken the lead in managing the pandemic.

Kung mapapansin ninyo, ang style of management dito sa administrasyon ni President Duterte (The president’s preferred management style) is to break up silos between and among agencies,” Mr. Nograles said.

He said the government needs to create a “coherent national strategy” to curb the 17.6% peak unemployment rate last year, which was equivalent to about 7.2 million Filipinos.

“While we were able to halve that to 8.7% by October 2020, we recognize that a coherent national strategy can help,” he said.

Mr. Nograles said the task force seeks to “create a policy environment that encourages generation of more employment and entrepreneurship opportunities; improve employability and productivity of workers; and provide support to existing and emerging businesses.”

The task force likewise aims to generate jobs and intensify investment through policy interventions like the recently-passed Corporate Recovery and Tax Incentives for Enterprises Act, the Balik Probinsya, Bagong Pag-asa Program, and the ‘Build, Build, Build’ infrastructure program, among others.

Aside from “supporting enterprises, jobs, and income,” the task force will also engage in “social dialogue to encourage innovative solutions,” Mr. Nograles said.

The task force will be co-chaired by the Department of Labor and Employment, Department of Trade and Industry, and the Technical Education and Skills Development Authority, he said. Its members will include representatives from the Departments of Tourism, Agriculture, Social Welfare and Development, Public Works and Highways, and Transportation, as well as the Commission on Higher Education. — Kyle Aristophere T. Atienza

Nationwide round-up (02/23/21)

Senate approves vaccine law on final reading

THE Senate on Tuesday approved on third and final reading a measure seeking to expedite the procurement of vaccines against the coronavirus disease 2019 (COVID-19) and set an indemnification fund. With 22 votes, the Senate approved Bill No. 2057, which has been certified as urgent by President Rodrigo R. Duterte. “With this measure, we hope to see the start of the inoculation of our population, starting with the priority sectors, at the shortest possible time,” Senator Juan Edgardo M. Angara said in a statement. “We as a people have lost so much because of the pandemic — in terms of jobs, opportunities and human life. However, we believe that with this measure, we have not lost out on the belief that there will in fact be an end to this ordeal,” the bill’s sponsor added. Under the measure, local government units and the private sector will be allowed to purchase vaccines through coordination with the Department of Health and the national task force against COVID-19. Local governments will be allowed to procure up to 75% of their target population for vaccination, but this cap may be adjusted by the inter-agency task force when there is sufficient supply as determined by the national government. Local governments will also be allowed to make an advance payment of up to 50% of the contract price if required by the supplier, manufacturer or distributor. The bill also allocates P500 million in the 2021 budget to augment the funds of the Philippine Health Insurance Corp., which will be the administrator of the indemnity fund. The Senate will transmit a copy of the measure to the House of Representatives, which approved its version of the bill  on Monday. — Vann Marlo M. Villegas

PBED pushes for resumption of face-to-face classes

THE Philippine Business for Education (PBED), a private sector-led advocacy group, warned that longer delays in the resumption of face-to-face classes will be detrimental to students’ learning. In a statement on Tuesday, PBED Executive Director Love B. Basillote said, “If we can safely reopen the economy following health guidelines and protocols, what is preventing us from safely reopening our schools? We have around 3 million students who have dropped out of school this year because they cannot keep up with learning requirements,” she said. “With no alternatives left, we are abandoning a generation of young people. This has a grave impact on national development.” President Rodrigo R. Duterte has thumbed down twice the proposal to reopen schools, especially those in areas with zero or low coronavirus cases. His spokesman said the resumption of in-person learning is likely to restart in August. — Gillian M. Cortez

Child car seats now require gov’t certification for quality

CHILD car seats have been included in the list of products that must be certified by the government for quality before sale in the Philippine market, the Department of Trade and Industry (DTI) said. Manufacturers and importers of child restraint systems must secure a Philippine Standard (PS) license or Import Commodity Clearance before selling their products in the country, the department said in a press release on Tuesday. The order was issued in response to the Child Safety in Motor Vehicles Act requiring children up to 12 years old, with a height of 150 centimeters or below, to use car seats. The full implementation of the law has been deferred. The PS safety certification mark will be available to local and foreign manufacturers deemed compliant with DTI requirements, while importers with non-PS certified products can apply for a clearance per shipment. The department plans  to conduct regular factory and product audits. DTI Bureau of Philippine Standards Director Neil P. Catajay said they aim “to ensure that child restraint system purchased in the market meets the specified safety requirements.” — Jenina P. Ibañez

Petitioners again ask court to issue restraining order vs anti-terror law

PETITIONERS have again asked the Supreme Court to immediately issue a temporary restraining order (TRO) on the implementation of the new anti-terror law while cases filed against it remain pending. Those questioning the law filed on Monday a 24-page Joint Reiterative Motion asking the country’s highest court to “urgently issue” a TRO to prevent authorities from applying the Anti-Terror Act of 2020, including its implementing rules and regulations. Thirty-seven petitions were filed questioning the constitutionality of the law that expands the definition of terror acts and the holding period for terror suspects, and gives the Executive branch judicial authority through the Anti-Terror Council. The petitioners said with the TRO, the law signed by President Rodrigo R. Duterte on July 3 last year “is presumed invalid pending resolution of this case.” Petitioners cited recent government actions that “have amplified the urgent need” for a TRO, such as the erroneous red-tagging of University of the Philippines alumni, and the arrest and detention of two indigenous people members for alleged violation of the law. Chief Justice Diosdado M. Peralta instructed the petitioners during the third session of the oral arguments on the cases last week to file a written request for the TRO. — Bianca Angelica D. Añago

New task force to facilitate ex-rebels’ resettlement

A NEW inter-agency task force will be formed to facilitate the resettlement of former armed rebels as they return to the fold of the law, according to the presidential palace. This comes after President Rodrigo R. Duterte recently signed proclamations granting amnesty to former moro and communist fighters. Cabinet Secretary Karlo Alexei B. Nograles said the task force, led by the Department of Agrarian Reform (DAR), will manage the relocation of returnees to provinces with idle government lands. The task force will also implement a “whole-of-nation approach for the enhancement of livelihood support projects to rebel returnees,” Mr. Nograles said in a televised press briefing on Tuesday. DAR is in charge of land distribution under the agrarian reform program. The palace official said Mr. Duterte has also given his nod to the DAR’s proposal to mandate the state’s armed forces to provide security measures in the government-owned lands. Mr. Duterte in 2018 formed a task force to quell the decades-old domestic communist insurgency, considered as the longest-running armed rebellion in Asia. Since assuming the presidency in 2016, the President has formed more than 15 task forces. Five task forces had been created in 2020 alone. — Kyle Aristophere T. Atienza

NBI ordered to investigate new scheme on illegal entry of Chinese nationals

JUSTICE Secretary Menardo I. Guevarra said on Tuesday that he has directed the National Bureau of Investigation (NBI) to probe the illegal entry of Chinese nationals in the country through another money-making scheme allegedly carried out by certain travel agencies in connivance with immigration officers. Mr. Guevarra, in a Viber message to reporters, said the NBI is tasked to find out the personalities behind the scheme “so that appropriate administrative and criminal charges may be filed against them.” Senator Risa Hontiveros-Baraquel issued a statement Monday calling on the NBI to identify the travel agencies engaged in the scheme, which allegedly involves selling fake passports and arranging the travel documents of Chinese nationals to illegally enter the Philippines in exchange for P550,000 each. Bureau of Immigration Commissioner Jaime H. Morente said in a press statement that the agency has “already implemented several measures internally,” to address the illegal operation. A similar scheme was investigated by the Senate last year and Mr. Morente said “those accused — all 86 of them — have been relieved, suspended, and are now facing charges with the Department of Justice, NBI, and the Ombudsman.” Mr. Morente said the NBI’s recent arrest of a travel agent allegedly involved in “fixing” the documents of three Chinese nationals “was a significant step to stop this system by weeding out its roots.” He added, “While we have done internal cleansing and have put to justice those who were allegedly involved, expanding the probe to catch these illegal private entities will break the chain of corruption and stop this illegal scheme.” — Bianca Angelica D. Añago

Health advocates push for UHC law implementation

HEALTH advocates called on the government to prioritize the implementation of the Universal Health Care (UHC) law, intended to improve the delivery of health services, as the country deals with the coronavirus pandemic. Health advocacy group UHC Watch presented a manifesto in an online forum hosted by the Stratbase Albert del Rosario Institute on Feb. 19 urging the government to speed up the rollout of the law’s provisions. The group composed of CitizenWatch Philippines, Philippine Alliance of Patient Organizations, Health Justice, and Bantay Konsyumer, Kalsada, Kuryente (BK3) said an “urgent improvement of the public health system” is crucial amid the health crisis, especially for the most vulnerable sectors. “Now that the millions of households are in dire straits, just trying to get to their next meal. A family member getting sick is the last thing we need. But should this happen, the quality of assistance that will be made accessible through the UHC programs will be the most important gauge of performance,” Louie C. Montemar, convenor of BK3, said in a statement. Former senator Joseph Victor G. Ejercito, principal author of the law, said, “We must persistently remind (the) government (to) fulfill its mandate to deliver the programs of these laws. The success of our health programs will foster a productive workforce that will help push the country economic momentum and recovery,” he said. Jaime Galvez-Tan, former Health secretary and board member of Health Justice Philippines, said while there have been significant improvements in the health system, it is “still dealing with inequities and new challenges that threaten the health of its population while Filipinos continue to suffer a heavy financial burden from health spending.” President Rodrigo R. Duterte signed the UHC law on Feb. 20, 2019. — Vann Marlo M. Villegas

Regulator investigating Cashalo data breach

THE National Privacy Commission (NPC) is investigating a potential data breach involving 3.3 million users of online lending platform Cashalo, a joint venture between JG Summit Holdings subsidiary Express Holdings, Inc. and Hong Kong-based Oriente.

Cybersecurity consultant Cyble reported that a seller known as “creepxploit” tried to sell data containing names, e-mails, phone numbers, and device identification details from the app on the dark web. The post was no longer on the RaidForums website as of Feb. 23.

“The user may have successfully downloaded files from the database of the application,” the commission said in a statement Tuesday.

NPC said that it has reached out to Cashalo to request for information, and has received a breach report.

Roren Marie Chin, NPC chief of Public Information and Assistance Division, said in a mobile message to reporters that Cashalo users may contact the company’s data protection officer to check whether they are included among the affected accounts.

NPC has not yet determined the degree of Cashalo’s liability for the data breach.

“Until we have completed the investigation and decision regarding the Cashalo, we would like to refrain from providing further details, especially the liabilities, as to not compromise the due process,” Ms. Chin said.

According to reports, Cashalo announced the discovery of the breach by its security team, but added that accounts and passwords are encrypted and have not been compromised. — Jenina P. Ibañez

Regional Updates (02/23/21)

9 Abu Sayyaf-linked females arrested in Sulu, bomb components seized

JOINT government forces have arrested nine females with links to the Abu Sayyaf bandit and terror group in Sulu last week, some of whom were in possession of bomb components, the military reported on Tuesday.  “Simultaneous joint law enforcement operations of the Joint Task Force–Sulu and Philippine National Police (PNP) on Feb. 19 led to the arrest of several potential suicide bombers and personalities linked to members of the Abu Sayyaf Group,” the Philippine Army’s 11 Infantry Division based in Sulu said in a statement. Among those arrested were three daughters of the late ASG leader Hatib Hajan Sawadjaan, who was killed in a gun battle against the military in July last year. The three were identified as Isara Jalmaani Abduhajan, 36; Jedah Abduhajan Amin, 28; and Elena Tasum Sawadjaan-Abun, 40. Components for making improvised explosive devices were seized from Isara and Jedah, who were both arrested in Barangay Bangkal.

WIDOWS
Elena was nabbed in another village along with fellow suspected potential suicide bomber Firdauzia Said. They are both widows of killed Abu Sayyaf leaders. Another ASG widow, Nudsza Ismanu Aslun, was arrested in a separate operation along with Nurshahada A. Isnain, wife ASG member Alias Akram who is known as a trusted follower of ASG sub-leader Mundi Sawadjaan. Three other women identified as Linda Darun Maruji, Risa Jhalil, and Sharifa Rajani, all residing at Kalimayahan village, were also arrested and facing the same charges of illegal possession of firearms and explosives. “This is how desperate the remaining terrorists are, willing to sacrifice their families just to get back at government forces,” said Major Gen. William N. Gonzales, commander of JTF-Sulu. The Abu Sayyaf first became notorious for kidnap-for-ransom activities and later pledged allegiance to the extremist Islamic State. Two female suicide bombers carried out twin blasts in August last year in Jolo, the capital of Sulu, where 15 people died and at least 75 others were injured, including soldiers, police, and civilians. — MSJ

4,000 hogs in Talikud Island culled due to ASF

AROUND 4,000 hogs in Talikud, a small island off the Island Garden City of Samal, have been culled due to African Swine Fever (ASF), according to Samal Mayor Al David T. Uy. “The implementation of the restrictions is ongoing. No hogs or pork-related products can enter or exit Talikud island,” he said in an interview. The production damage is estimated at around P10 million. Mr. Uy said the rehabilitation program has started and financial assistance has been extended to the 400 backyard swine raisers affected by the ASF outbreak. The local government of Samal distributed cash aid in addition to the  P5,000 per pig allocated under the Department of Agriculture’s (DA) Davao regional office. The DA-Davao also set P3 million for goat dispersal as an alternative livelihood to the affected farmers. The ASF outbreak on Talikud was first confirmed in November last year. DA-Davao is currently assessing the timing for the region’s hog repopulation program. “We have fund allocation for hog repopulation but we need to study if repopulation is already viable at this time since the virus is just around the corner and may again infect our hog dispersal,” Regional Technical Director for Operations and Extension Marila L. Corpuz said in a statement earlier this month. She said they are evaluating the affected areas, starting with Davao Occidental, the first province in the region to have confirmed ASF cases in February last year. Outbreaks were also recorded in parts of Davao City, Davao Oriental, and Davao del Norte. — Maya M. Padillo

Agricultural damage caused by Tropical Depression Auring estimated at P21.56M

CROP DAMAGE caused by Tropical Depression Auring (international name: Dujuan) was estimated at P21.56 million by the Department of Agriculture (DA).

In a Tuesday bulletin, the DA said 1,756 hectares of farmland and 240 farmers were affected by Tropical Depression Auring. Affected commodities include rice, corn, high-value crops, livestock and fisheries.

Rice losses amounted to P19.76 million over 1,718 hectares. Damage to livestock was reckoned at P1.12 million, involving the loss of 1,333 animals.

Other subsectors that reported losses include fisheries, P304,200, high-value crops, P275,200, and corn, P94,900.

Before Auring made landfall on Feb. 22, the DA said it was able to bring in 71,840 metric tons (MT) of rice ahead of schedule. The crop was valued at P1.31 billion and came from Central Luzon, Calabarzon, Mimaropa, Eastern Visayas, and Northern Mindanao.

It added that 6,296 MT of corn worth P94.42 million was also brought in ahead of Auring in Calabarzon, Mimaropa, Bicol, Western Visayas, and Davao. — Revin Mikhael D. Ochave

DoE sets virtual hearing on energy-efficiency label rules

THE Department of Energy (DoE) has scheduled another video consultation on draft rules that will govern the labeling of energy-consuming products (ECPs) alerting consumers to their energy use.

Among the ECPs covered by the rules are air conditioners, refrigerators, freezers, televisions, and lighting products.

In an advisory posted on its website Monday, the DoE said the hearing will take place via Microsoft Teams on Feb. 26 at 10 a.m.

The Philippine Energy Labeling Program (PELP) guidelines, drafted by the Energy Utilization Management Bureau (EUMB), aim to encourage the use of energy-efficient products.

“Since its first public consultation, the DoE has been continuously receiving valuable input and recommendations from our stakeholders, including input from World Trade Organization (WTO) member countries. As such, the PELP implementing guidelines were further refined and updated to incorporate the feedback received,” the EUMB said.

In June, the DoE released a department circular detailing the PELP guidelines, directing manufacturers, distributors and dealers to include energy labels on electrical appliances.

“Additional ECPs shall be included within the coverage of the PELP upon recommendation of EUMB. (The) recommendation shall be made after public consultation and coordination with (the) Department of Environment and Natural Resources and Department of Transportation for fuel economy performance labeling requirements for transport,” the circular stated.

The circular added that retailers selling ECPs must have energy labels attached to the products which are visible to buyers.

“As applicable, they shall also exhibit the energy labels in all their publications including the advertisement in newspapers, TVs or leaflets and in all online trading activities. At the minimum, the energy efficiency class of the product, as applicable, needs to be mentioned,” the DoE said. — Angelica Y. Yang

Cavitex Infra hopes to meet original timeline for new segments of C5 Link Expressway

CAVITEX INFRASTRUCTURE Corp. (CIC) said Tuesday that it hopes to meet its original timeline for building new segments of the Manila-Cavite Expressway (Cavitex) C5 Link Expressway, despite disruptions caused by the pandemic.

“We are doubling our efforts on the construction of Segment 2 and Segment 3A-2 at the beginning of 2021,” Roberto V. Bontia, CIC president and general manager, said at an online briefing.

He added: “With the challenges brought about by the pandemic, we will seek to stick to the timeline as close as we can and be able to open the new segments in Cavitex C5 Link next year.”

The company said it is working with its joint venture partner, the Philippine Reclamation Authority, to implement a traffic management plan, as “there will definitely be an effect on the passage of motorists in the construction areas.”

CIC said Segment 2 of C5 Link Expressway is a 2×3-lane expressway from Cavitex (R1) Expressway to a proposed interchange at Sucat while Segment 3A-2, a subsection of Segment 3, is a 1.6-kilometer, 2×3-lane expressway from Merville to RSG (Airport View) Subdivision in Parañaque.

The company plans to finish Segment 2 and Segment 3A-2 in 2022.

The P15-billion project, upon completion, is projected to serve 50,000 cars and reduce travel time to Makati and Taguig from Parañaque, Las Piñas, and Cavite from one hour to about 10 minutes.

The company expects the project to play a major role in Metro Manila’s economic development.

“Moreover, CIC is set to conduct a heavy maintenance on Cavitex. Mobilization will start on Feb. 27, 2021 and will last for 60 days,” CIC also said.

CIC is a unit of Metro Pacific Tollways Corp. The latter’s parent, Metro Pacific Investments Corp., is one of three Philippine units of Hong Kong’s First Pacific Co. Ltd., the others being PLDT, Inc. and Philex Mining Corp. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Arjay L. Balinbin

ERC eases financial eligibility rules for generation companies

THE Energy Regulatory Commission (ERC) said Tuesday that a recent resolution has eased the financial eligibility requirement for generation companies (GenCos), in a bid to encourage investment in the sector.

The resolution, posted on the commission’s website Monday, featured a reduction in the debt service capability ratio (DSCR) of GenCos holding certificates of compliance (CoCs) to 1.25 times from 1.5 times. If the GenCo’s financial or loan agreements require a higher DSCR, which is a measure of a project’s ability to generate cash flow to service debt, the higher value will serve as the minimum requirement.

“The minimum financial capability benchmark of 1.25x DSCR for GenCos is a level that could ensure that the operations will (generate sufficient funds) to pay off its financial obligations… this revision aspires to encourage investment in the generation sector which could lead to further competition,” ERC Commissioner-in-Charge Floresinda G. Baldo-Digal told BusinessWorld in a mobile message Tuesday.

Ms. Digal said the 1.25x ratio was “more in tune” with the requirements of financial institutions.

“The setting of 1.25x DSCR hopes to encourage efficiency in the performance of (a) generation facility and in managing its overall operation. More importantly, it ensures the sustainable operations of the generation facility for the delivery of continuous supply of electricity,” she added.

Ms. Digal said the old 1.5x minimum was a burden to GenCos, discouraging investment in the sector.

“The revision of the rule is timely since there were several changes in economic conditions since the promulgation of the Financial Guidelines as well as significant development in the electricity market,” she added.

In its resolution, the ERC said that it had conducted a study that showed only 32% of GenCos with issued CoCs were able to comply with the 1.5x requirement.

According to the commission, a GenCo which performs below the benchmark will need to submit a program to comply within 60 days of receiving a directive from the ERC. The GenCo will have one year to hit the ERC-prescribed benchmark, subject to fines of up to P50 million for non-compliance, as authorized by the amended Electric Power Industry Reform Act.

The ERC said that the Power Sector Assets & Liabilities Management Corp.; National Power Corp. (NPC); transferees or new owners of NPC generation assets; and entities that own generation facilities for internal consumption are exempt from complying with the updated financial capability standards.

The resolution was signed on Nov. 11, 2020, and posted on the ERC’s website on Monday. — Angelica Y. Yang

Safeguard power sector stability and consumers

Before the COVID-19 (coronavirus disease 2019) pandemic, the country’s grid system operator, National Grid Corporation of the Philippines (NGCP), reported a looming power shortage over the Luzon grid in the summer months of 2020. However, COVID-19 happened.

The lockdowns implemented to slow the spread of the virus sent severe shocks throughout the country’s economic sectors. As a result, the Department of Energy (DoE) later revealed that electricity consumption dropped by 30% in Luzon during the initial quarantine, effectively avoiding last year’s looming summer power shortage.

An unintentional effect of the deep economic slump brought about by the continuing quarantine is that it bought the country’s energy sector additional time to realign with the country’s shifting power demands.

However, while the anticipated shortages did not happen last year, the country’s energy security is even more critical as we must now save the country from economic collapse.

In terms of addressing the public health crisis, having a secure energy supply is essential for the implementation of the country’s vaccine plans. All inoculation venues must have power, and, most important, COVID-19 vaccines must be kept in specialized cold storage.

Moreover, to rebound from this deep economic slump, energy security must be assured. Critical infrastructures, businesses, and services must literally “keep the lights on,” and continue operating to deliver services to the public.

Now that the National Economic Development Authority (NEDA) and Metro Manila mayors have recommended the shift to a more relaxed modified general community quarantine (MGCQ) throughout the entire country, there will be increasing power demand as our economy moves towards full operation. Commercial and industrial areas such as malls, office buildings, and factories, will require uninterrupted power to ramp-up operations.

Compound this by the fact that we are now heavily reliant on digital technologies that need online connectivity. In the event of a major power outage, disruption of telecommunications and internet services, the already dire conditions of the people will further worsen. A stable energy sector is vital not only for e-commerce but also for distance learning, working from home, and the ongoing digitization of financial service institutions.

The country’s energy sector has taken steps to ensure that the National Capital Region, the country’s economic center, has sufficient power supply moving forward. This is crucial in this first quarter of the year, as the documented spike in household power consumption alone is expected to increase by up to 30%.

This calls attention to the recently concluded Competitive Selection Process (CSP) of Meralco wherein two subsidiary firms of conglomerate San Miguel Corp. (SMC) were awarded to supply 1,800 megawatts (MW) for a period of 20-years. The CSP is the mandatory bidding process for determining the lowest priced power supply from eligible power generation companies in compliance with the DoE and Energy Regulatory Commission (ERC) regulations. Given its size, this CSP bidding is critical to Meralco’s electricity consumers in the Luzon Grid.

According to published reports, Excellent Energy Resources, Inc., a natural gas-fired power plant, won 1,200 MW at P4.1462 per kilowatt hour (kWh) while the coal-fired power plant of Masinloc Power Partners Ltd. Co. was awarded 600 MW with its offer of P4.2605 per kWh. The Third-Party Bids and Awards Committee (TPBAC) said that this CSP was in full compliance with the approved Terms of Reference and all rules and regulations issued by the DoE. The next step will be for the winning bids to undergo post-qualification within seven days from the date of award.

Should any of the awarded bids fail in the post-qualification, two other offers submitted by Power Generation Corp., Atimonan One Energy, Inc. at P4.3321 per kWh, and GNPower Dinginin Ltd. Co. at P5.2500 per kWh were qualified as possible next best bids to be considered.

The first successful CSP conducted by Meralco in 2019 significantly lowered the average generation cost of previous years with total savings for consumers reported at P13.86 billion per year at a rate reduction of P0.41 per kWh.

Meralco has also reported that their rates are now at the lowest in three years, with their customers benefiting from a net rate reduction of P1.3870 per kWh, or a bill reduction of more than P277 for a household consuming 200 kWh owing to new power supply contracts following CSP rules.

It is indeed encouraging that the CSP has produced power supply agreements that have lowered the cost of electricity for consumers. This is a good example of how a well implemented regulation results in optimized benefits for all consumers.

We call on the DoE, the ERC, and Meralco to ensure the integrity of the CSP system. In as much as our country needs investments, we should only allow the right investors from the most credible companies who can fully comply with our bidding processes.

The stability of our power supply is essential to our country’s economic continuity and our ability to rebound from this health and economic crisis. We must always be vigilant against any attempt to undermine the country’s power security.

 

Victor Andres “Dindo” C. Manhit is the President of the Stratbase ADR Institute.

How China is remaking the world in its vision

This is an edited extract of an essay in the latest issue of Australian Foreign Affairs, “The March of Autocracy,” published on Feb. 22.

It is the year 2049. China is celebrating having reached its second centenary goal — to become a “prosperous, powerful, democratic, civilized and harmonious socialist modernized country” by the 100th anniversary of the people’s republic.

Its economy is three times the size of the United States’, as the International Monetary Fund predicted back in the 2010s. The US remains wealthy and powerful — it has functioning alliances in Europe — but its pacts with Asian allies have fallen into disrepair.

For decades, Hong Kong has been accepted as just another province of China. Few dare to criticize the ongoing human rights abuses there, or in Xinjiang and elsewhere, because of the extraterritorial application of China’s national security laws. Taiwan, if not annexed, is isolated, with no diplomatic partners.

The legacy of Xi Jinping, who led China for more than 30 years, monopolizes ideological discourse in China. His successors rule under his shadow.

Outside China, many of the third-wave democracies that transitioned in the second half of the 20th century have become far less liberal. Elections are held, but increasingly authoritarian governments have adopted many of Beijing’s technological and legal tools to manage markets and control politics. The internet is heavily censored.

Mistrust permeates every aspect of China’s relations with the West. International cooperation on climate change and the strong carbon-reduction commitments of the early 2020s have long been abandoned. The focus is on individual adaptation.

Australia remains a liberal democracy and a staunch defender of free markets and human rights. But these are no longer the default standards of global governance — they are minority positions associated mostly with Western traditions. No longer a top-20 economic or military power, Australia’s opportunities to make its mark internationally are few and far between.

This vision of a fragmented and decidedly less liberal international order is highly speculative, but also dispiritingly plausible.

It is unsettling to an Australian reader, not just because Australian foreign policy has been centered on a global set of rules and institutions since 1945, but because Australian identity is so enmeshed with the values of liberal democracy.

The 2017 Foreign Policy White Paper states that Canberra is “a determined advocate of liberal institutions, universal values and human rights,” in stark contrast to Beijing.

All nation states, especially rising powers, desire a favorable global environment in which they can acquire power, prosperity and prestige. The postwar system greatly aided China, and it would be incorrect to claim Beijing wants to dismantle it entirely.

Similarly, it would be disingenuous to overlook the many instances where the US and other liberal democracies have behaved inconsistently.

But the Chinese Communist Party (CCP), which leads an authoritarian state, sees the liberal values embedded in the present order as a threat to its rule. Unlike the US, which at times ignores or violates these principles, China needs many of them to be suppressed, even eliminated.

As China seeks to remake the international order, the challenge is to understand where and how Beijing’s efforts will undercut its liberal character, and to identify where it is possible to resist.

Rather than upend the existing international system, Beijing’s approach today is to co-opt, ignore and selectively exploit institutions.

Xi has said:

“… reforming and improving the current international system do not mean completely replacing it, but rather advancing it in a direction that is more just and reasonable.”

In late 2019, for instance, the World Trade Organization’s (WTO) appellate body ceased to function after the US — complaining about the organization’s soft stance on China — blocked the appointment of replacement judges.

In many ways, the WTO’s structure is the epitome of a liberal rules-based system: countries relinquish some sovereignty and are bound by judicial decisions in the interests of resolving trade disputes.

In response, China joined with the European Union, Australia, and other governments to set up a parallel stop-gap legal mechanism.

This was a reflection of the CCP’s nuanced relationship with the liberal international order. China needs a stable trading system and will agree to binding rules to preserve it. The odd trade dispute does not substantially threaten China’s ideological security.

In the future, Beijing should be expected to exert its influence on the current order. The challenge for states such as Australia is to identify when Beijing’s behavior exceeds influence and begins to erode the system’s liberal foundations.

China is already skillfully maneuvering within international institutions to guide their operations, press for reforms and promote the China model.

Chinese nationals run four of the 15 United Nations specialized agencies, including the Food and Agricultural Organization and the International Civil Aviation Organization.

Ironically, the democratic nature of international institutions benefits Beijing. Chinese representatives in a variety of forums, such as the World Health Assembly and committees of the UN General Assembly, muster coalitions of the Global South to ensure favorable votes on issues such as Taiwan’s (non)participation or to counter criticism of its repressive policies in Xinjiang.

China also elevates its government-organized NGOs, presenting an image of independence while drowning out the voices of independent civil society.

The China Society for Human Rights Studies, for example, has official consultative status at the United Nations as an NGO, but is co-located with Chinese government offices and staffed by Chinese government officials. It has vigorously prosecuted China’s human rights agenda.

The use of deft diplomacy and inducements to generate voting blocs is unsurprising. But China also seeks to change the system, diluting the liberal elements that threaten the China model and thus the CCP’s rule.

For instance, China has already succeeded in weakening the liberal character of international human rights. In 2017, it proposed its first-ever resolution to the UN Human Rights Council, headed: “The contribution of development to the enjoyment of all human rights.”

It prioritized economic development above civil and political rights, and put the primacy of the state above the rights of the individual. Despite objections and nay votes from Western members, the resolution passed. The subsequent report by the council’s advisory committee, a body of 18 experts supposed to maintain independence, referred mainly to Chinese party-state documents.

Chinese diplomats also block human rights resolutions at the UN Security Council, such as a February 2020 resolution on the plight of Myanmar’s ethnic Rohingya.

While the US has arguably been similarly obstructive on resolutions about Palestine, it is for the narrow purpose of protecting an ally, rather than the broader project of weakening the rights themselves.

China has even been able to marshal the international system to defend and commend its behavior in Xinjiang and Hong Kong.

In 2020, at the 44th session of the UN Human Rights Council, a joint statement signed by 27 countries, including Australia, expressed concern at arbitrary detention, widespread surveillance, and restrictions in Xinjiang and the national security legislation in Hong Kong.

A competing statement supporting the Hong Kong legislation received support from 53 states, only three of which are considered “free” by the non-governmental organization Freedom House.

By working within the system to rally a voting bloc, Beijing was able to compromise the world’s peak human rights body. Tactics that have been successful in watering down human rights are now being employed in areas where norms are still being established, such as internet governance.

The history of liberal internationalism is replete with contradictions. Some say that in recent decades it is Washington, not Beijing, that has damaged the order most.

So can China really do more damage to an order already on life support? Liberalism is not just facing an external challenge, but one from within.

The answer requires optimism about liberalism’s capacity to self-correct across the arc of history, and skepticism that illiberalism can do likewise. As much as Donald Trump belittled, criticized, and attacked America’s institutions, he also created the conditions for a course correction — Joe Biden’s victory.

The CCP is a well-resourced and well-organized political force. It has the potential to be far more effective than any iconoclastic but capricious populist in permanently weakening the liberal foundations of the global order. Much of China’s influence abroad is unavoidable. A rising power with the economic and military strength that China wields is unlikely to be deterred.

On this logic, optimism has no place. But it would also be mistaken to adopt a fatalistic approach. Instead, Australia and its partners must focus their efforts on those elements of the liberal order most worth preserving and most under threat.

The centenary of the people’s republic is still 28 years away.

 

Natasha Kassam is a Fellow at the ANU National Security College’s Futures Council at the  Australian National University. Darren Lim is a Senior politics lecturer at Australian National University.

The four basic truths of macroeconomics

I WAS RECENTLY INVITED on Clubhouse to lead a discussion of macroeconomics, and numerous listeners were skeptical of the value of my chosen field of study. So allow me a few more words in defense of macroeconomics as a useful and at least modestly scientific endeavor.

The first and most important thing to know about macroeconomics is that a strong negative shock to demand — a sudden decline, in other words — usually leads to a loss of output and employment. Nominal wages are sticky, for a complex mix of sociological reasons, and so employers do not always respond to lower demand with lower wages for workers. Instead they lay some people off, and that can lead to a recession.

That may sound pretty simple. But it is one of the most important discoveries in history. It was true in the Great Depression, in the disinflation of the 1970s and ‘80s, and in the financial crisis following 2008.

The second thing to know is that well-functioning central banks can offset such demand shocks to a considerable degree — or even prevent them from arising in the first place. The bank can engage in complex financial transactions or simply print more currency to stabilize nominal demand and restore some measure of order.

The third thing to know is that if central banks go crazy increasing the money supply, the result will be high price inflation. There is one exception to this, which was evident in 2008 and 2009, when the Fed paid interest on bank reserves: If central banks simultaneously act to decrease the velocity of money — that is, if they take measures to reduce borrowing and lending — then price inflation will be limited accordingly.

A fourth thing to know is that non-monetary shocks, if they are large enough, can also create recessions or depressions. Consider the oil price shock of 1973, the current pandemic, or bad harvests in earlier agrarian societies. Central banks can partially stabilize such shocks, but they cannot erase them.

I believe an overwhelming majority of macroeconomists would largely agree with these propositions, even if they might place the emphasis differently. And these four propositions are enough to elevate macroeconomics into the realm of the essential.

Things do get more controversial, though there is still a reasonable degree of consensus.

Consider the question of how large a federal budget deficit an advanced economy can run without courting a financial crisis. No one really knows. Nonetheless, there is agreement that high-return public investments will strengthen a country’s fiscal situation, even if financed by borrowing. Those returns will boost both output and tax revenue, at least in the medium term, and usually markets are capable of seeing those gains coming.

If economists disagree about the proper extent of fiscal policy, it is on the expected return of public investments. (Those further to the left tend to believe that high returns are fairly likely, those on the right that the government will choose investments poorly.) That is an important and very real disagreement — but it is about economic policy and the quality of government, not about macroeconomics per se. The underlying analysis of macro is consistent.

Once you get past those propositions and this disagreement, I am skeptical about a great deal of macroeconomics. I don’t know if the rate of price inflation should be 1.7% or 2%, and discussions of the matter read like mumbo-jumbo to me. I am fine with 2%, however, or for that matter 2.2%.

I don’t think macroeconomists know how to measure investment very well, especially when the relevant corporate assets are intangibles, as is often the case with tech companies, or if America has been in an “investment drought.” Nor are we good at predicting or even understanding movements in exchange rates or real interest rates or aggregate stock prices, three major areas of macroeconomics. I think you can learn something by listening to all sides of a debate on these matters, but at the end of the day it is better to stay agnostic. I also think measures of price inflation are almost useless over the long run, because a person today consumes a very different bundle of goods than one in, say, 1950.

Finally, allow me to add one more truth, though I recognize it is neither confirmed nor unanimously held: A growing population tends to be good for an economy, ceteris paribus, and a shrinking population bad.

Disparaging macroeconomics is an age-old pastime, and yes there is plenty we do not know or understand. But maybe the only thing worse than living with macroeconomics (or macroeconomists, though ask my wife) would be to try to live without it.

BLOOMBERG OPINION