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Geothermal de-risking loan from ADB sought

EDC

THE Department of Energy (DoE) said it is hoping to finalize a loan from the Asian Development Bank (ADB) this year to launch a project that seeks to de-risk geothermal power investments.

“We’ve said we need geothermal de-risking, meaning to say the government and the private sector will share in the risks of exploration for geothermal,” Energy Undersecretary Rowena Cristina L. Guevara said at a forum on Friday.

“And we’re very happy to tell you that finally maybe we’ll have a loan from the Asian Development Bank just to do that,” she added. 

The DoE has tapped the ADB for technical assistance to develop and implement a geothermal de-risking facility.

“Geothermal cost is very high at the beginning but after the 20-year period when the loan has been paid for the capital, it will become very cheap,” Ms. Guevara said.

Energy Assistant Secretary Mylene C. Capongcol said in September that the Philippines may need to obtain an initial $250 million to de-risk projects for potential geothermal developers.

The Philippines’ installed geothermal energy capacity was 1,952 megawatts (MW) in 2023, making it the third-biggest geothermal producer.

The DoE is monitoring 35 geothermal service contracts as of July 2024. Of the total, 20 are in the pre-development stage and 15 are in the development or commercial stage.

The government is scheduled to conduct the auction proper for the third round of the Green Energy Auction Program (GEAP) on Tuesday, Feb. 11, for which it has identified 12 qualified bidders.

It is set to offer geothermal, impounding hydro, and pumped-storage hydro capacities totalling 4,650 MW.

GEAP aims to promote renewable energy as a primary source of energy through competitive selection. It is designed to help the government increase the share of renewable energy in the power mix to 35% by 2030 and to 50% by 2040. — Sheldeen Joy Talavera

Exports to US seen ‘robust’ even with trade war looming — Philexport

A worker uses a microscope at an electronics manufacturing assembly plant in Biñan, Laguna, April 20, 2016. — REUTERS

EXPORTS to the US are expected to remain robust, unaffected by a possible US-China trade war, the Philippine Exporters Confederation, Inc. (Philexport) said.

“I don’t see the 10% imposed on China having an effect on the Philippines because Chinese prices are low. Even adding the 10% will not stop the US from buying from China,” Philexport President Sergio Ortiz-Luis, Jr. said in a statement over the weekend.

Adding that he expects the “Philippine exports to the US, the country’s biggest export market, to remain robust, largely unaffected by the trade war between the two powerhouse economies.”

The US was the Philippines’ top export destination last year, accounting for $12.12 billion, or 16.6% of total exports. It was followed by Japan, China, Hong Kong, and Singapore.

In December, the Philippines exported $94 million worth of goods to the US, or 16.8% of total exports for the month.

“US President Donald J. Trump imposed broad tariffs on China that took effect on Feb. 4, while his tariff threats hang over other major trading partners, including Canada and Mexico,” Philexport said.

However, Mr. Trump has agreed to hold off levying 25% tariffs on Canada and Mexico for 30 days, while China responded with retaliatory tariffs on American products, including 15% on coal and liquefied natural gas and 10% on crude oil and agricultural machinery.

“It doesn’t look like he’s really serious because they know it would be harder if China engages in a trade war with the US,” said Mr. Ortiz-Luis.

He said Philexport is more concerned with Mr. Trump helping ease geopolitical tensions between the Philippines and China.

“We hope Trump can lower the temperature so we can recover the market we lost with our neighbors and China. Also, tourism and investment were also affected by geopolitics,” he added. — Justine Irish D. Tabile

Davao’s Cacao Culture to broaden sourcing via farm-management deals

CACAOCULTURE.PH

By Adrian H. Halili, Reporter

DAVAO-BASED chocolate brand Cacao Culture said it is taking a “farm adoption” approach to supporting farmers in the region and growing its bean-sourcing network.

“We’re not trying to be the biggest. We want to be (possibly be) the most collaborative,” Kenneth Reyes-Lao, founder and owner of Cacao Culture, told BusinessWorld.

Mr. Reyes-Lao and his family currently own a three-hectare cacao farm in Calinan, Davao City. It also supplements its cacao supply from small-holder farmers and cooperatives in Davao City.

He said that one of Cacao Culture’s long-term plans is to further expand its sourcing from the area.

“We need to grow the supply side which is the farms. So, through the Adopt-a-Farm program, we’re hoping to, under our care, manage around 20,000 to 50,000 trees,” he added.

“On other farms, there are trees that are unproductive or neglected. So, we move in to manage the farm, and then also be the ones to take up the beans. We’ll be buying from the farms that we adopt,” he said.

The company started in 2016 selling cacao seedlings, while the farm was established in 2017.

Mr. Reyes-Lao said that the business has since evolved from agriculture to selling chocolate products both made in-house or by other brands. It sells its products at its physical store in Davao and via e-commerce platforms.

“When we started in 2017, it was just the three hectares we planted, and then lately we realized that we were growing and the company needed supply,” he said. “Then we saw an opportunity to adopt a certain farm where we could apply our practices.”

“So far, this has worked (and) right now we have two farms under the program,” he added.

Among Cacao Culture Farms’ practices is the use of biochar in the growing process. This method enhances soil health and improves plant growth and crop nutrition.

He said that the husks of discarded cacao pods are burned and reused as biocharcoal.

“We were able to work with WasteX, a Singapore-based startup, that… provides equipment that can convert agricultural waste into biocharcoal,” Mr. Reyes-Lao added.

He said that the farm employs a 50-50 ratio of biocharcoal and traditional fertilizer.

Mr. Reyes-Lao added that its other sustainability practice is avoiding the use of plastic sleeves to cover cacao pods.

Cacao pods are typically covered in plastic sleeves to protect them from pests like cocoa pod borers, which lay eggs in the pods.

Additionally, he said that the company is looking to expand its physical store network over the next three to five years, mainly focusing on the Davao area.

“The land area of Davao is large, so we maybe need to create three to five shops just to service Davao City. Then maybe airports in Cagayan de Oro or Cebu,” he added.

Mr. Reyes-Lao said that expansion to Luzon will likely be pursued through e-commerce platforms or a commissary to service Metro Manila.

“We could set up a commissary or warehouses, because e-commerce wise, I think we can expand in Manila,” he added.

The Davao Region is the Philippines’ top producer of cacao, accounting for about 80% of the total production.

DBM backs calls for transparency in bicameral budget negotiations 

BUDGET SECRETARY AMENAH F. PANGANDAMAN — PHILIPPINE STAR/KRIZ JOHN ROSALES

DEPARTMENT of Budget and Management (DBM) Secretary Amenah F. Pangandaman has joined calls for more transparency and public participation in the private bicameral committee meetings to harmonize the two Congressional budget bills.

In a television appearance on Money Talks with Cathy Yang, asked if she would gather support among cabinet secretaries to publicize bicam meetings, Ms. Pangandaman said: “Yes! That’s what transparency is all about.”

Her remarks follow the emergence of legal challenges to the P6.326-trillion national budget for 2025.

The bicam committee meetings seek to harmonize the Senate and House versions of a bill such as the signed national budget for 2025. These are held behind closed doors, with the release of a report afterwards the only official public disclosure on the proceedings.

“Maybe we can (disclose more), during our Legislative-Executive Development Advisory Council (meetings). Also, we can probably make representations to the leadership in both houses if that’s possible. But, you know, it’s a constitutional mandate. It’s part of the budget process. You have to give it to them. It is a powerful force,” Ms. Pangandaman said.

Civil Society Organizations (CSO), the Makabayan bloc, former senator Panfilo M. Lacson, and Ako Bicol Rep. Elizaldy S. Co have proposed making bicam meetings on the national budget accessible to the public.

“While we want to push for the President’s budget to be the exact one, once it’s presented to the President, we also have to respect (the Congressional) mandate,” Ms. Pangandaman said.

President Ferdinand R. Marcos, Jr. called the 2025 national budget “suboptimal” in the form passed by Congress, citing the reduction in appropriations for vulnerable sectors.

On Feb. 8, criminal complaints were filed against Speaker Martin G. Romualdez and other legislators over the alleged P241 billion worth of insertions in the budget.

Ms. Pangandaman noted the ways in which the government has sought to make the budget transparent and accessible to the public. 

“Our website is very much comprehensive. Once we release our National Expenditure Program, the President’s budget, and even the General Appropriations Act, the next day it’s already there. We have a people’s budget,” she said.

She also said that the GAA report is written in layman’s terms despite its technical nature and is readily available on the DBM website.

“We’re top in the open budget survey for transparency. Because the DBM has always been open in terms of providing information. It was always out there. We even have a CSO desk in DBM. Any CSO or any organization can just go to us and ask for information,” she said.

Ms. Pangandaman was referring to the 2023 Open Budget Survey (OBS), in which the Philippines ranked 15th out of 125th countries with an open budget index score of 75. This was higher than the global average of 45 and put the Philippines first in Asia.

In the same report, the Philippines placed 13th worldwide for public participation, with a score of 33 out of 100, which is significantly higher than the global average score of 15. 

In addition, the government said the implementing rules and regulations of the New Government Procurement Act, which it described as the country’s “biggest anti-corruption measure,” is set to be released on Feb. 10.

“In the new government procurement plan, there is a provision there for civil society, POs (people’s organizations,) and NGOs (non-governmental organizations), to be observers in the procurement process at all stages.” — Aubrey Rose A. Inosante

Money Talks with Cathy Yang premieres on Feb. 10 at 9:30 a.m. from Monday to Friday on ONE News.

Tune in to Cignal TV Ch. 250 HD and Ch. 8 SD. Also available on Cignal Play.

Agus-Pulangi hydro rehab could feature new Agus III power plant 

PHILSTAR FILE PHOTO

By Sheldeen Joy Talavera, Reporter

THE GOVERNMENT is exploring the possibility of building the Agus III hydroelectric power plant to go with the rehabilitation for the Agus-Pulangi Hydropower Complex (AHPC).

“We will move forward in the rehabilitation of the Agus-Pulangi and the possibility is now open for building the still unbuilt Agus III plant, which has a potential of 225 megawatts (MW),” Energy Secretary Raphael P.M. Lotilla told reporters on the sidelines of an event in Quezon City last week.

The complex, owned by the Power Sector Assets and Liabilities Management Corp. (PSALM) and operated by the National Power Corp. (NPC), consists of seven run-of-river hydroelectric power plants in southern and central Mindanao with a combined installed capacity of about 1,000 MW.

However, only 600-700 MW is currently operational due to aging equipment and infrastructure problems, according to a 2024 World Bank report.

“Additionally, the APHC is grappling with issues such as cooling system failures, turbine-generator shaft vibration, and outdated auxiliary equipment and control systems,” according to the report.

At a Senate hearing in October, PSALM President and Chief Executive Officer Dennis Edward A. dela Serna said that the company is planning to pursue a concession arrangement to go with the rehabilitation, but is still soliciting comment on the modality of the prospective deal.

As per previous estimates by the World Bank, the rehabilitation of AHPC will cost about $350 million.

“If we finish the rehabilitation of the Agus-Pulangi plant, this will restore an additional 400 MW of hydropower in Mindanao, which is very significant,” Mr. Lotilla said.

With the APHC set for rehabilitation, the government is considering revisiting the plan for the early retirement or repurposing of the 200-MW Mindanao coal-fired power plant (CFPP) in Misamis Oriental.

The Mindanao CFPP is the only remaining government-owned coal-fired power plant in the Philippines. It is operated by SPI Power, Inc., formerly known as STEAG State Power, Inc., under a build-operate-transfer arrangement.

The Philippines plans to accelerate the voluntary retirement of up to 900 MW of CFPP generation capacity by 2027 under its Accelerating Coal Transition Investment Plan.

Mr. Lotilla said that since available capacity would be reduced with AHPC rehabilitation, the government will have to revisit “whether or not the STEAG plant in Mindanao should be running or should be folded up.”

“If the rehabilitation of Agus and Pulangi takes place in the next few years, then we will need backup from the STEAG plants to assure our people of sufficient power capacity,” he said.

PSALM was created under Republic Act No. 9136, or the Electric Power Industry Reform Act of 2001, to oversee the privatization of NPC generation assets, liabilities, independent power producer contracts, real estate assets, and other disposable assets. Its corporate life is set to expire in June 2026, or 25 years after the effectivity of the Electric Power Industry Reform Act. Should PSALM be dissolved, all of its assets and liabilities will revert to the National Government.

PHL inflation seen likely within target, but faces risks to upside — World Bank

PHOTO BY BERNARD HERMANT

THE World Bank said Philippine headline inflation will continue to settle within the Bangko Sentral ng Pilipinas’ (BSP) target range until 2026, raising the possibility of further easing, though it warned that the forecast faces risks to the upside.

It added that monetary policy divergence with the US could exacerbate exchange rate pressures and capital outflows.

“While the BSP expects inflation to stay within target for 2025-2026, the balance of risks leans to the upside. The likelihood of higher transport charges, electricity rate hikes, and elevated food prices continue to pose risks to the inflation outlook,” the World Bank said in its monthly economic developments report.

The Philippine Statistics Authority reported that inflation rose 2.9% year on year in January, level with the December reading. In 2024, inflation was 3.2%, in line with the BSP’s forecast.

This was the first time for full-year inflation to fall within the central bank’s 2-4% target range since 2021, when inflation averaged 3.9%.

The bank said with the return of inflation to the target range, “keeping it in check is critical for further monetary easing and supporting domestic demand.”

“Non-monetary policy measures to increase domestic production, address distributional imbalances, and enhance resilience to supply shocks remain important to managing inflation,” it said.

The World Bank also noted BSP Governor Eli M. Remolona, Jr.’s remarks that monetary authorities may cut rates by only 50 basis points this year.

The Monetary Board, which meets on Feb. 13, has cut benchmark borrowing costs by 75 basis points since it began its easing cycle in August 2024, bringing the key rate to 5.75%.

“The prospect of narrowing US interest rate differentials may lead to further depreciation pressures and capital outflows,” the World Bank said.

The peso closed at P58.03 to the dollar on Friday, strengthening by 15 centavos from its P58.18 finish on Thursday, according to the Bankers Association of the Philippines.

This was the peso’s strongest close in more than a month, or since its P57.91 per dollar finish on Jan. 2.

It said that the possibility of higher-for-longer US interest rates in the US caused a reversal of capital flows and a stronger dollar.

Reuters reported on Friday that the Federal Reserve officials view the US job market as solid and noted the lack of clarity over how President Donald Trump’s policies will affect economic growth and still-elevated inflation, underscoring their no-rush approach to interest rate cuts. — Aubrey Rose A. Inosante

Chamber seeks relaxation of visa rules for Chinese visitors 

BW FILE PHOTO

THE Federation of Filipino-Chinese Chambers of Commerce and Industry, Inc. (FFCCCII) called for relaxed visa requirements for Chinese visitors and reforms to modernize agriculture and improve the ease of doing business.

“In light of the recent government decision to end all POGO (Philippine Offshore Gaming Operators) operations, (the FFCCCII) expressed hope for relaxed visa approvals for Chinese tourists,” FFCCCII President Cecilio K. Pedro said.

He said within ASEAN, Thailand, Singapore, and Malaysia already offer visa-free entry, while others offer visa-upon-arrival arrangements for Chinese tourists.

“(These give) them a competitive edge in attracting visitors and investors,” Mr. Pedro said.

Earlier this year, the Department of Tourism said visa policies dampened tourist arrivals from China last year.

To modernize agriculture, Mr. Pedro called for mechanized farming, lower power rates, and streamlined bureaucratic processes to improve business efficiency.

Mr. Pedro expressed support for the consultative approach to raising wages through the tripartite wage council involving government, labor, and management, rather then the proposed P200 minimum wage hike.

Tourist arrivals from China totaled 312,222 in 2024, well below the pre-pandemic level of  1.74 million in 2019.

Cebu Mandaue Filipino-Chinese Chamber of Commerce President Justin Uy cited the need to enhance global competitiveness not only in tourism, but also in services, exports, and various industries.

“ASEAN neighbors like Thailand, Malaysia, Indonesia, Vietnam, and Cambodia are rapidly advancing,” Mr. Uy said, highlighting the need “to focus on national unity and dynamic socio-economic reforms to keep pace.”

He also noted the excessive number of holidays in the Philippines, which have led to supply disruptions and 4,000 job losses in Cebu’s garment industry when some factories closed operations. — Justine Irish D. Tabile

Customer experience is not optional — it is essential

IN BRIEF:

• Cost-cutting measures must not compromise customer experience (CX) as it is essential for driving growth.

• CX is not merely a component of business strategy; it is a critical determinant of success.

• Prioritizing CX significantly enhances sales and reduce costs, contrary to its traditional undervaluation in business priorities.

In the aftermath of the pandemic, numerous organizations have prioritized cost-cutting measures, often at the expense of customer experience (CX). It is imperative to recognize that such an approach can be counterproductive and potentially harmful. Some companies have turned to digitalization as a means to reduce costs, without fully considering their customers’ readiness for such changes. This oversight has led to increased expenses associated with managing customer complaints, including higher contact center and acquisition costs.

The financial impact of losing customers far exceeds the cost of acquiring new ones. Loyal customers are invaluable; they are more likely to forgive business shortcomings and continue to provide their support. On the other hand, dissatisfied customers can severely damage a business’s reputation, especially in the age of social media, where negative experiences can spread rapidly and widely.

As markets become increasingly competitive and consumer expectations rise, companies are realizing that delivering exceptional CX is not just an option but a crucial driver of organizational growth and sustainability. CX is not a piece of the puzzle — it is the frame within which organizations paint the picture of their story. This evolving perspective is prompting businesses to reassess their strategies, prioritizing customer satisfaction and engagement at the core of their operations.

The transformative power of CX goes beyond mere transactional interactions; it encompasses every touchpoint a customer has with a brand. Organizations that excel in CX recognize that it is a comprehensive philosophy requiring a holistic approach. This involves integrating cross-functional efforts to ensure a consistent and memorable experience across all customer interactions. They achieve this by elevating CX to a board-level priority, applying a human-centric approach to everything the business does, and measuring CX success and immediately acting on it.

ELEVATING CX TO A BOARD-LEVEL PRIORITY
To ensure that CX receives the strategic focus it deserves, it must be elevated to a board-level priority, ideally overseen by a chief customer experience officer (CXO). This approach ensures that CX is seamlessly integrated into the company’s operations and aligns with the envisioned customer journey.

Appointing a dedicated CXO or an equivalent leadership role that reports directly to the CEO demonstrates the company’s commitment to CX. This leadership position provides a clear vision and strategy for CX implementation, ensuring that initiatives receive the necessary resources and are embedded across all business functions. From product development to after-sales service, this integration fosters a cohesive and customer-centric organization.

Prioritizing CX at the highest levels of governance is essential for driving sustainable growth, enhancing customer loyalty, and maintaining a competitive edge in today’s dynamic market landscape.

APPLYING A HUMAN-CENTRIC APPROACH
Placing humans at the center of initiatives is paramount. For instance, a telecommunications company in the Philippines developed a people-first customer support initiative that became the blueprint for all transformations across the organization. This started with purpose discovery and activation. This initiative led to a significant increase in customer satisfaction, substantial growth in remote sales, and improved employee engagement, while also earning multiple industry awards.

By fostering an environment that values open feedback and supports change, organizations can create a CX that not only meets but exceeds customer expectations. This human-centric approach also empowers employees, providing them with the tools and autonomy to make decisions that enhance the customer experience, thereby driving organizational success.

• Discover and live out the organization’s purpose or aspirational reason for being

• Clearly define the organization’s CX aspiration

• Invest in knowing the customers, listening to them, and anticipating their needs

• Put humans at the center of transformation initiatives. Remember that technology is an enabler in delivering exceptional experiences

• Deliver what is promised to the customers and to management

• Do not forget the backend teams — they are as much as part of the experience as the front

• Take care of employees — they will go the extra mile to take care of customers and shareholders

MEASURING CX SUCCESS AND IMMEDIATELY ACTING
Metrics such as Net Promoter Score (NPS), Customer Satisfaction (CSAT), and Customer Effort Score are essential tools for measuring the impact of CX on both sales and costs. These metrics provide valuable insights into customer loyalty and satisfaction, allowing businesses to tailor their CX strategies for maximum effectiveness.

Beyond these metrics, companies are increasingly leveraging advanced analytics to proactively measure the impact of CX initiatives. By correlating these initiatives with key performance indicators such as sales growth and cost reduction, businesses can adopt a data-driven approach that continuously refines their CX programs. This approach not only demonstrates the tangible value of investing in customer experience but also ensures that CX strategies are aligned with broader business objectives.

To truly drive impactful change, it is crucial to delve deeply into customer feedback rather than merely concentrating on quantitative scores. The prevalent issue in many organizations today is the tendency to conduct numerous surveys, only to let the results sit idle. This often leads to neglecting the concerns of dissatisfied customers. Immediate and proactive action on these insights is essential for fostering customer loyalty and improving overall business performance.

This growing recognition of CX’s importance is sparking a renaissance in how businesses approach customer experience. There is a renewed focus on experience, personalization, and leveraging technology to meet and exceed customer expectations.

REAPING THE BENEFITS OF INVESTING IN CX
While traditional business components such as finance and sales have historically taken precedence, the reality is that CX is a powerful driver of both revenue and earnings before interest, taxes, depreciation and amortization. Organizations that previously relegated CX to the bottom of their priority list are now recognizing that the intangible benefits of customer satisfaction are, in fact, quantifiable. Increased patronage and reduced complaint handling costs are just a few of the measurable outcomes.

By aligning the organization’s ways of working with the desired customer journey, businesses can create a more intuitive and satisfying experience that not only meets but anticipates customer needs. This alignment fosters a virtuous cycle of engagement and profitability.

The challenge lies in balancing the need for fiscal prudence with the imperative to deliver exceptional CX. Companies that succeed in this balancing act are likely to be more competitive, with the advantage of a more loyal customer base and a more resilient business model.

CX is not merely a component of business strategy; it is a critical determinant of success. As businesses continue to navigate a rapidly changing landscape, those that place CX at the heart of their strategy will differentiate themselves from competitors and set new standards for customer engagement and satisfaction.

Customer experience is the key to differentiation and growth. Companies who invest in customer experience today will watch their business thrive tomorrow.

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

 

Marnelli Eileen Javier Fullon is a business consulting partner of SGV & Co.

Senate urged to hold impeachment trial of VP Sara during Congress break

VICE-PRESIDENT SARA DUTERTE-CARPIO FACEBOOK PAGE PHOTO

By Kenneth Christiane L. Basilio, Reporter

THE PHILIPPINE Senate should start preparing for the impeachment trial of Vice-President (VP) Sara Duterte-Carpio while on a congressional break, as mandated by the 1987 Constitution, political analysts said at the weekend.

“Senate President Francis G. Escudero should direct the Senate to start doing the necessary logistical and administrative preparations to convene as an impeachment court,” Michael Henry Ll. Yusingco, a constitutionalist and senior research fellow at the Ateneo Policy Center, said in a Facebook Messenger chat.

“The Senate shouldn’t be bound by their calendar. Once the preparatory works are done, they should start the trial proceedings, even if this happens before June,” he added.

Mr. Escudero last week said they are barred by law to convene as an impeachment court to try Ms. Duterte for alleged corruption and other charges while Congress is on recess. He said they could not start the trial until June, when lawmakers come back from a four-month break for midterm elections.

Filipinos will pick a new set of congressmen and 12 of the 24-member Senate along with other local officials on May 12.

The Senate’s failure to fast-track Ms. Duterte’s impeachment trial violates its mandate, said Ephraim B. Cortez, president at the National Union of Peoples’ lawyers.

“Their mandate is to ‘proceed forthwith’ once the articles of impeachment are transmitted to them,” he said in a Facebook Messenger chat. “They should immediately convene as an impeachment court and start the process of impeachment. They should not wait until after the election.”

More than 200 congressmen last week filed and signed an impeachment complaint against Ms. Duterte, more than the one-third required by the Constitution for her to be impeached, paving the way for her trial by the Senate.

The House of Representatives sent the bill of the impeachment complaint to the Senate on the last day of the congressional session.

Twenty-five more congressmen later endorsed the complaint against, according to House Secretary-General Reginald S. Velasco.

The ouster charges consisted of seven articles of impeachment, including allegations of plotting the assassination of the President, misusing secret funds, amassing unexplained wealth and committing acts of destabilization

Ms. Duterte on Friday denied having threatened to have the President assassinated. In a news briefing, she said her lawyers are busy preparing for her defense.

Ms. Duterte is one of the few Philippine officials who were impeached, among them ex-President Joseph E. Estrada in 2000, Ombudsman Merceditas Gutierrez in March 2011, Chief Justice Renato Corona in December 2011 and election chief Juan Andres D. Bautista in October 2017.

Mr. Corona was convicted by the Senate, while Ms. Gutierrez resigned before she could be tried. Mr. Estrada’s trial was aborted after some House prosecutors walked out after senators voted against opening a document containing evidence. He was later ousted by a street uprising.

“The Senate impeachment court has to be set up immediately as it would be very difficult for it to finish the trial if it starts hearings after June 2,” Neri J. Colmenares, a former congressman and a party-list nominee in the midterm elections, said in a statement.

Lawmakers will reconvene for a two-week session from June 2 to June 13, according to the congressional calendar.

“We demand President Ferdinand R. Marcos, Jr. to faithfully implement the Constitution… by calling for a special session before the end of February so the impeachment court can start by March,” he added.

Mr. Cortez said the President could not compel the Senate to meet as an impeachment court as “it will violate the principle of separation of powers.” Senators could still hold Ms. Duterte’s trial even if the 19th Congress ends, he added.

“They will not convene as a legislative body, but a tribunal tasked with implementing the constitutional provisions on accountability of public officers as regards impeachable officials.”

The House decision to impeach Ms. Duterte on the last day of congressional session before the election campaign season is a “bold move” designed to corner her and her allies, Anthony Lawrence A. Borja, an associate political science professor at De La Salle University in Manila, said via Messenger chat.

“This is meant to push Ms. Duterte to a tight corner during the duration of the 2025 elections by dangling the threat of impeachment in the Senate on her head,” he said.

The Duterte camp would likely use Ms. Duterte’s impeachment as a rallying campaign call for their supporters, said Arjan P. Aguirre, who teaches political science at the Ateneo de Manila University. “The messaging could be ‘elect us to save VP Sara,’” he said via Messenger.

Ms. Duterte’s impeachment would demarcate the “tribal lines” between hard-line Duterte supporters and those still on the fence about her, Mr. Borja said.

PHL to resist intrusions by foreigners in sea zone

PHILIPPINE COAST GUARD PHOTO

THE PHILIPPINES remains committed to fighting foreign intrusions and defending its sovereignty in the South China Sea, the National Maritime Council said at the weekend.

“We stand resolute against any foreign intrusion into our maritime zones and will never cease upholding our rights and honoring our duties under international law, particularly the United Nations Convention on the Law of the Sea and the 2016 arbitral award,” it said in a statement on Saturday.

“The Philippines, while committed to the peaceful settlement of disputes and proper diplomatic approaches, will never waver in protecting its national territory and maritime domain,” it added.

President Ferdinand R. Marcos, Jr. last week said the Philippines would not renege on its stance on the South China Sea despite its inability to expel China’s largest coast guard ship from its exclusive economic zone (EEZ).

He noted that if the country had an aircraft carrier with destroyers, frigates and submarines, it could push the Chinese vessels away. Still, the Philippines would defend its sovereignty and territorial rights, Mr. Marcos said.

The Philippines has accused China of intimidating Filipino fishermen near Scarborough Shoal and normalizing its “illegal presence” after Beijing sent the monster ship, the world’s biggest coast guard vessel, into its EEZ on Jan. 4.

The Philippine Coast Guard (PCG) on Feb. 7 said China Coast Guard (CCG) 5901 or the “monster ship” had returned near Scarborough Shoal in the South China Sea.

It said China Coast Guard 3304 was trying to replace the monster ship, keeping its presence off the coast of Zambales at a distance of 194 kilometers.

The Chinese Foreign Ministry earlier defended the presence of Chinese vessels within the Philippine EEZ, saying the “CCG conducts patrols and law enforcement activities in relevant waters in accordance with the law, which is fully justified.”

A United Nations-backed court in the Hague voided China’s expansive claim in the South China Sea in 2016, as it ruled the shoal is a traditional fishing ground for Filipino, Chinese and Vietnamese fishermen.

Tensions between the two nations continue to worsen, with Manila accusing Beijing last month of using a long-range acoustic device against its vessel near the Zambales coast.

During their 10th consultation, Manila and Beijing agreed to continue rotation and resupply missions to Second Thomas Shoal and sustain the de-escalation of tensions in the area, the Department of Foreign Affairs said last month.

The Philippines grounded BRP Sierra Madre, a Word War II-era vessel, at Second Thomas Shoal in 1999 to assert its sovereignty. — Kyle Aristophere T. Atienza

Probe of nonoptimal mining permit process sought

REUTERS

SENATE President Francis G. Escudero has filed a resolution that seeks to review Philippine mining laws and the nonoptimal permit approval process, noting that 130 of 378 mineral production agreements are inactive.

“Inactive, nonoperational, invalid or unused exploration permits and mineral production sharing agreements prevent the government from issuing permits to or entering into agreements with other contractors,” he said in Senate Resolution No. 1310 filed on Feb. 5.

The Senate last week approved on third and final reading a bill that sets a five-tier margin-based royalty and windfall profit system for the mining industry, which is expected to raise the government’s share in mining profits.

It also seeks to ban the export on raw ores to boost local mineral production through the construction of domestic processing plants.

The Chamber of Mines of the Philippines earlier bucked the provision, saying it would lead to hundreds of thousands of job losses. Companies are unlikely to finish building their plants within the five years mandated by the bill, it added.

Senator Joseph Victor G. Ejercito, who sponsored Senate Bill No. 2826, earlier said lawmakers would decide on keeping or tweaking the raw export ban at a bicameral conference committee.

Only 248 of the 378 mining production sharing agreements are active and operating, Mr. Escudero said, citing data from the Mines and Geosciences Bureau (MGB).

“The suboptimal management and utilization of the country’s mining areas hamper the impact of mining operations on economic growth and employment,” the Senate chief said in the resolution. He added that mining and quarrying accounted for only 0.71% of country’s gross domestic product last year.

MGB data from 2023 also showed that national and local taxes, fees and royalties generated by the mining industry amounted to P41.72 billion that year, or only about 1.2% of the total tax revenues.

Mining companies now pay corporate income tax, excise tax, royalty, local business tax, real property tax and fees to indigenous communities.

The House of Representatives approved its version of the bill in September. Under House Bill No. 8937, large-scale miners inside mineral reservations must pay the government only 4% of their gross output, while the Senate version requires them to pay 5%.

The House version proposes an eight-tier margin-based royalty regime ranging from 1.5% to 5% and a 10-tier windfall profit tax system ranging from 1% to 10%. 

The Finance department expects to generate about P6.26 billion in additional revenue under the new mining tax regime.

“The staggering number of inactive, nonoperational, invalid, or unused exploration permits and mineral production sharing agreements significantly and adversely affect the management and utilization of mineral resources,” Mr. Escudero said in the resolution. — John Victor D. Ordoñez

Clear agenda sought to protect PHL interest amid talks on EU trade deal

REUTERS

THE Philippine government should have a clear negotiating agenda to protect the country’s interest as it goes into the second round of talks with the European Union (EU) for a comprehensive trade deal, trade justice advocates said on Sunday.

“Experience has shown that the EU backs down when faced with a negotiating partner that stands firm in defending its people’s interests. But does our government have the spine to stand up for its own people?” Sentro ng mga Nagkakaisa at Progresibong Manggagawa Secretary-General Joshua T. Mata was quoted as saying in a statement issued by Trade Justice Pilipinas.

The group particularly raised issues on human rights, which already sidelined negotiations back in 2017.

Human rights “continues to be a thorny issue,” Trade Justice Pilipinas said, noting that the target free trade agreement (FTA) threatens vulnerable sectors in the Philippine economy since the Southeast Asian nation does not have “a clear industrial policy to protect and develop our own economy.”

“The key question is whether the Philippine government has a clear negotiating agenda in order to promote and protect our own interests or will it simply accede to what the EU wants?” Mr. Mata said.

The second round of negotiations for a comprehensive FTA between EU and the Philippines began in Manila on Sunday, amid an unfolding trade war among the world’s major trade powers triggered by the tariff regime of US President Donald J. Trump.

A 2019 trade and sustainability impact assessment report commissioned by the EU said a future FTA would likely have impacts on Filipinos “occupied in and around the sectors that see rapid expansion and especially the sectors where concerns already exist on human rights issues.”

The report cited the expansion of the textile and wearing apparel sectors as well as of the electronics sector.

It also flagged the possibility of heightened “risks of an increased use of child labor” and the impacts on women’s rights.

The report said the expansion of the manufacturing sector could see increased land conversion for industrial manufacturing zones “potentially leading to indigenous peoples’ or minorities’ decreased access to customary lands as well as an increase in land disputes.”

The Philippines and the EU resumed their FTA talks in March 2024, with the Philippine trade agency targeting a conclusion by 2027.

The two bodies in 2023 launched a “stocktaking exercise” to assess their readiness for FTA negotiations, as EU pursues individual bilateral FTAs with member-states of the Association of Southeast Asian Nations (ASEAN) after failing to come up with a broader pact with the 10-member block as early as 2007.

Philippine-EU FTA talks began as early as 2015 under the late Philippine President Benigno S.C. Aquino III but there were major setbacks two years later under his successor former President Rodrigo R. Duterte, whose deadly war on drugs and attacks on critics had raised international alarm.

Talks resumed in early 2024 as the Marcos administration launched efforts to normalize economic relations with the EU.

“A lot has changed since the suspension of the talks almost seven years ago. Geopolitics have become an even bigger motivating factor in these talks” said Joseph Purugganan, co-director of the policy research group Focus on the Global South.

Citing the EU’s efforts to boost its energy and manufacturing sectors, he said the agenda “would most likely push the Philippines to pursue further extractions of critical minerals, to the detriment of our environment and the rights of indigenous communities.”

The Philippine Economic Zone Authority (PEZA) in March 2024 said it expects more investors from EU countries to “explore trade and investment opportunities in the Philippines this year and onwards” due to the target FTA.

There were 202 PEZA-registered projects with equity from EU countries generating about P300 billion of cumulative investments, US$12 billion of exports, and creating more than 50,000 direct jobs, according to PEZA.

“The FTA would strengthen both the Philippines and the EU’s bilateral trade and economic relations, making an ecosystem fit for our agile investors given that the EU is the Philippines’ fifth largest trade partner,” PEZA said in March last year. — Kyle Aristophere T. Atienza

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