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P3-B design contract signed for Bataan-Cavite bridge project

THE Department of Public Works and Highways (DPWH) said late Tuesday that it signed a contract for the detailed engineering design of the 32-kilometer Bataan-Cavite Interlink Bridge project.

The P3.03-billion detailed engineering design activities will be carried out “in the next 15 months,” the DPWH said in a statement.

“Parties to the contract agreement that gives the green light to conduct the detailed engineering design from November 2020 to January 2022 are T.Y. Lin International Senior Vice-President Sajid Abbas, Pyunghwa Engineering Executive Vice-President Soo Young Park, Renardet S.A. Director Michele Coangelo, DCCD Engineering Corp. President Michael Roberto P. Reyes, and Project Director Sharif Madsmo H. Hasim of the DPWH,” the department added.

It said further that the detailed engineering design to be conducted will be funded under a loan agreement between the Asian Development Bank and the Finance department.

The project is expected to cut travel time between Cavite and Bataan to 20 to 30 minutes from the current five hours, the department said.

It added that the four-lane bridge will start from Barangay Alas-asin in Mariveles, Bataan, crossing the mouth of Manila Bay and terminating in Barangay Timalan, Naic, Cavite.

“Other than reduced travel time and lower vehicle operating costs, the Bataan-Cavite Interlink Bridge Project will provide opportunities for expansion outside Metro Manila for economic growth as well as support development of seaports of Cavite and Bataan as premier international shipping gateway to the country,” Public Works Secretary Mark A. Villar said. — Arjay L. Balinbin

PSA downgrades estimate for palay output; remains on track for 16.1% gain year on year

THE GOVERNMENT statistics office downgraded its third-quarter estimate for production of palay, or unmilled rice, to 3.542 million metric tons (MT), 0.1% less than the previous forecast issued on July 1.

If realized, the estimate would represent a 16.1% gain year on year due to an increase in the harvestable land area as well as yields per hectare.

The Philippine Statistics Authority (PSA) said that palay harvest area is projected to increase 15.7% year on year to 859,533 hectares.

Yield per hectare for palay is now seen at 4.12 MT. The PSA did not provide a previous estimate.

“About 310.54 thousand hectares or 36.1% of the updated standing crop has been harvested,” the PSA said.

Meanwhile, the corn production estimate for the third quarter has been upgraded to 2.825 million MT, 0.3% higher than the previous estimate on July 1.

If realized, corn output will see a 3.7% year-on-year increase.

Harvestable land area is now projected to increase to 919.51 thousand hectares, against 874.40 thousand hectares a year earlier.

Yield per hectare for corn is estimated to decline to 3.07 MT.

“About 523.21 thousand hectares of 56.9% of the updated standing crop has been harvested,” the PSA said.

In a mobile phone interview, former Agriculture Undersecretary and current Bangko Sentral ng Pilipinas Monetary Board member V. Bruce J. Tolentino said the upgraded rice projections can be attributed to the Rice Competitiveness Enhancement Fund (RCEF), as authorized by Republic Act No. 11203 or the Rice Tariffication Law.

He cited “the seed component of RCEF and efforts in distributing new good-quality seed to the farmers. It will really have an effect on production,” Mr. Tolentino said.

Under the law, P10 billion is allocated yearly to support rice farmers and increase their productivity. The P10 billion is funded from tariffs collected from deregulated rice imports.

In a separate report, the PSA said the average farmgate price of palay declined for a sixth consecutive week, falling 3.4% week on week to P16.26 per kilogram in the fourth week of September. The average price is up 2.8% year on year.

According to PSA data, the last increase in the farmgate price was in the third week of August, when it rose 0.2% week on week to P18.39.

In its weekly update on palay, rice, and corn prices, the PSA said the average wholesale price of well-milled rice fell 0.4% to P38.18 while the retail price fell 0.3% to P42.

The average wholesale price of regular-milled rice fell 0.8% to P34.43 while the retail price fell 0.1% to P37.68.

The farmgate price of yellow corn grain fell 0.4% week on week to P11.83.

The average wholesale price of yellow corn grain fell 0.3% to P20.83 while the retail price fell 0.2% to P24.88.

The farmgate price of white corn grain fell 0.1% week on week to P13.23.

The average wholesale price of white corn grain rose 2.4% to P16.13 while the retail price remained flat for a fourth consecutive week at P27.80.

Mr. Tolentino said the drop in palay farmgate prices has been typical of price behavior during harvest time.

“This time, every year, farmgate prices really decline. We should not be surprised by the drop in prices. Even farmers should not be surprised,” Mr. Tolentino said.

Mr. Tolentino said that around the end of November, farmgate prices of palay will start to increase once again, in anticipation of the Christmas season. — Revin Mikhael D. Ochave

BSP cites surge in online payment accounts for easy access to gov’t aid

MILLIONS OF new accounts have been opened with financial institutions to facilitate the receipt of government aid, mainly the Social Amelioration Program (SAP), but also to enable users to make digital payments and access credit during the pandemic, the central bank said.

“The COVID-19 pandemic actually induced a change in behavior in our consumer. Four million new accounts were opened digitally (from March 17 to April 30) and based on our data, 7.5 million accounts were opened to facilitate the distribution of the social amelioration program benefits,” Rochelle D. Tomas, deputy director for Consumer Empowerment Group of the Bangko Sentral ng Pilipinas (BSP) said at a Home Credit Philippines (HCPH) virtual media forum Wednesday.

Consumers gravitated to digital transactions in recent months due to quarantine restrictions, Ms. Tomas said.

The central bank targets a 50% share for digital payments out of all transactions by 2023.

Online payments accounted for 10% of transaction volume in 2018, against 1% in 2013, according to a United Nations Better than Cash Alliance report. By value, e-payments comprised 20% of the total in 2018, from 8% in 2013.

The BSP said in 2019, only 29% or 51.2 million adults held accounts with financial institutions. By 2023, the BSP aims to raise that share to 70%.

Sheila Paul, chief marketing officer of HCPH, said the company has observed a shift in buying behavior among its clientele.

“What’s interesting is we observed the increase in purchases of laptops and appliances. Before, mobile (devices were) our biggest (category) but now we see an increase in purchases of laptops, appliances, and bikes,” Ms. Paul said.

Due to the pandemic, HCPH made some of its services accessible through an online app, including loan applications, balance inquiries, and contactless payment options through a QR-enabled credit card.

HCPH also maintains an online marketplace with goods that can be claimed at partner stores.

The Prague-based financing company has 7 million customers in the Philippines and 2.2 million users of its app. — Luz Wendy T. Noble

PNOC defers strategic oil reserve feasibility study to next year

PHILIPPINE National Oil Co. (PNOC) said it moved back the start of its feasibility study on establishing a strategic petroleum reserve next year due to delays caused by the coronavirus pandemic.

Last year, the Department of Energy (DoE) tasked the government-owned company to conduct a study on a proposed oil stockpiling program, which will safeguard the fuel supply during episodes of volatility and disruption in the oil market.

It received a P50-million budget for the study this year which was unutilized after it failed to contract a transaction advisor, PNOC told senators during Tuesday’s Senate finance committee hearing on the proposed budgets of the DoE.

It asked for an increase of P65 million for the study’s budget in 2021, citing the comprehensive and nationwide nature of the project.

“For this year, we’re hoping that we can update the terms of reference, and if that budget is approved, we will have our transaction advisor early next year so we can proceed with the study for this,” PNOC Senior Vice-President for Energy Investments Lila Czarina A. Aquitania said.

In April, the DoE-Oil Industry Management Bureau said the Philippines could have benefited from the slump in oil prices if it had the capacity to store fuel.

International oil price benchmarks have still not returned to pre-pandemic levels, remaining at around $40 per barrel. This is due to the impact of the global health crisis, which also dragged down energy demand.

The DoE recorded a 22.8% decline in Philippine fuel demand in the six months to June, while imports also declined 35.4% to 5.954 billion liters.

A recovery is underway with the holiday season approaching, Eastern Petroleum Group Chairman Fernando L. Martinez has said.

PNOC said it has drawn up a concept paper for an interim oil stockpiling program. It initially asked the Budget department for a P2.5-billion budget to implement the project next year but was denied an allocation. 

The program is intended “to build a sufficient stockpile of low-priced oil” to reduce the impact of petroleum supply disruptions and any unexpected rises in demand. The fuel reserves can be tapped by government-owned power plants and the public transport sector, among others.

A targeted fuel relief mechanism was also proposed that will provide poor fuel consumers access to “significantly discounted” fuel prices through tax exemptions or vouchers.

Senator Sherwin T. Gatchalian, who heads the committee, asked the company to provide results of the studies on the petroleum reserve program and its short-term implementation as soon as possible. — Adam J. Ang

Senators question reduced budget for Housing dep’t

housing NHA
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THE ranking opposition Senator expressed support Wednesday for increasing the Housing department’s P3.9-billion budget for 2021, which is about half its P7.83-billion budget this year.

Senate Minority Leader Franklin M. Drilon, at a budget hearing for the Department of Human Settlements and Urban Development’s (DHSUD) 2021 funding allocation, asked the department, however, for details of its program to provide housing for so-called Informal Settler Families (ISFs), and questioned the department’s lack of response to the Taal eruption in January.

The panel heard that the department had asked for a P6.9 million for the resettlement for ISFs displaced by the Manila Bay rehabilitation, but was given only P2.7 million.

“I am inclined to fill up the variance of P4.2 million, but convince at least the committee how you intend to use this. What is your program?” Mr. Drilon told DHSUD Secretary Eduardo D. del Rosario. The secretary, however, was unable to present details.

Department officials also said that the agency was not adequately funded to render aid to those displaced by the Taal eruption. “We have not received any allocation for Taal… no direct funds yet coming from DBM (the Department of Budget and Management) that went to NHA (National Housing Authority) for 2020 and 2021,” NHA General Manager Marcelino P. Escalada told the committee. Despite, he said the NHA provided 10,000 units within Batangas, Cavite and Laguna for the evacuees.

Mr. Escalda was responding to a query from Senator Maria Lourdes Nancy S. Binay, who urged the DBM to release funds.

“Baka we can request DBM to release kahit hindi full amount. Kasi isipin niyo dumaan ‘yung Taal, ngayon may bagyo, parang halos wala tayong nabigay na tulong sa nawalan o nasiraan ng bahay (Maybe we can request the DBM to release even a partial amount for Taal and typhoon victims, for which nearly nothing was provided to those who lost their homes or whose homes were damaged).”

Mr. Drilon said the funding being contemplated for the department is less than the Executive branch’s intelligence and confidential fund of “at least P9.5 billion,” and noted that some 1.6 million households currently require direct assistance. — Charmaine A. Tadalan

Insurers urge motorcycle owners to disclose use of vehicles in delivery

THE Philippine Insurers and Reinsurers Association (PIRA) encouraged motorcycle owners to disclose their use of the vehicle for delivery, and warned of delayed claims processing times for accident damage if the information is not provided.

PIRA Executive Director Michael F. Rellosa said in a phone interview Wednesday that insurers taken longer to evaluate damage claims when owners do not disclose their planned use for the vehicle.

“Since delivery workers are more often out on the road, they have a higher risk of accidents that may require higher premiums,” Mr. Rellosa said.

He said these could exceed the typical insurance premium of P300 for coverage of P100,000. Such policies are required for motorcycle-related damage beyond the Compulsory Third Party Liability cover, which only covers death or injury to the passenger.

Mr. Rellosa said complete declarations for motorcycles intended for delivery use becomes more critical as more riders gravitate to the logistics industry.

“By doing so, insurers will not need a lengthy review of the policy and adjust its terms to truly reflect the risks on the insurer and the necessary support to the motorcycle owners. The responsibility for adequate protection and ease of service lie with both parties,” he said.

PIRA expects the sales of motorcycles to be stable as the economy reopens.

“Restrictions are still being imposed to prevent the spread of the coronavirus disease 2019 and because consumers prioritize immediate needs such as food,” Mr. Rellosa said.

The Association of Southeast Asian Nations Automotive Federation reported that production of motorcycles and scooters in the Philippines dropped 60% year on year to 233,948 units in the first half. The government had imposed restrictions on motorcycle riders carrying passengers to help curb the coronavirus. — Kathryn Kristina T. Jose

PHL rice inventory falls 1% in September

THE national rice inventory dropped 1% year on year to 1.82 million metric tons (MT) in September, according to the Philippine Statistics Authority (PSA).

In its rice and corn inventory report, the PSA said rice stocks held by households rose 26% year on year to 848.36 thousand MT, while inventory held by commercial warehouses rose 3% year on year to 782.49 thousand MT.

Rice deposited with the National Food Authority (NFA) fell 53% year on year to 192.47 thousand MT.

On a month-on-month basis, rice inventory in September rose 2.1% compared with August.

Household rice inventory fell 0.5% against their August totals, while commercial warehouses stocks rose 7.2%.

Current NFA holdings also fell 5.6% month-on-month.

“Total rice stocks consisted of 46.5% from households, 42.9% from commercial warehouses, and 10.6% from NFA depositories,” the PSA said.

The national corn inventory rose 3.7% year on year to 797.37 thousand MT.

Stocks held by households rose 43% year on year to 305.22 thousand MT while commercial warehouse holdings fell 11.4% to 492.15 thousand MT.

The NFA held no corn stocks during the period.

On a month-on-month basis, corn inventory in September rose 8.9% from August.

Household corn stocks rose 216.2% while inventory held by commercial warehouses fell 22.6%.

“Of the total corn stocks, 38.3% came from households and 61.7% were from commercial warehouses,” the PSA said. — Revin Mikhael D. Ochave

ADB says bridging digital divide key to recovery

THE Asian Development Bank (ADB) said closing the digital divide and infrastructure gap in developing Southeast Asia will help ensure their recovery from the pandemic.

ADB President Masatsugu Asakawa said Wednesday that developing countries need to keep up with digital innovation and devote more resources to expanding access to the internet to enable more people to work from home.

“These steps can also enhance access to basic social services such as health and education, and access to financial services. These investments will better equip countries to address the worsening income inequality and disparities in opportunities brought about by the pandemic,” Mr. Asakawa said during ADB’s first Southeast Asia Development Symposium.

In an Oct. 6 report, the bank said the Philippine digital divide is still significant with 60% of households having no access to the internet. Internet services also remained among the most expensive and slowest in Southeast Asia.

Mr. Asakawa said concerns over cyber security should also be addressed by governments, firms and the citizens as threats emerge along with the accelerated digitalization.

ADB Vice-President Ahmed Saeed said at the same forum that digital innovation could help alleviate poverty by building robust systems for social protection programs.

Mr. Saeed said countries, especially those that do not have a national ID system, face problems in rolling out their social protection programs. He said these issues can be prevented in the future if the necessary systems are established.

“What we also want to do is to make sure that we have a system that is more robust so that in the next time we have a problem, we’re not in the bad circumstances we are in today… There was a clear difference between countries that have the ability to uniquely identify individuals through national IDs or similar systems than those that didn’t,” he said.

“We can see how digital innovation can drive more robustness which can alleviate human suffering,” he added. — Beatrice M. Laforga

Tearing down PCAB’s concrete wall of foreign equity restriction

Under Republic Act No. 4566, otherwise known as the Contractors’ License Law, a license shall first be issued by the Philippine Contractors Accreditation Board (PCAB) before an individual, firm, partnership, corporation, association or other organization can engage in the construction business as a contractor.

For 31 years, PCAB has been imposing a nationality restriction on the issuance of a Regular License to contractors. At first, the minimum Filipino ownership in construction companies was set at 70% in the Implementing Rules and Regulations (IRR) of RA No. 4566, formulated by PCAB. Later, the minimum Filipino ownership was reduced to 60%.

In implementing this requirement, PCAB requires that: (1) Filipino participation must be at least 60% of the total shares subscribed; (2) Filipino paid-up capital must be at least 60% of the total paid-up capital; (3) Filipino peso value contribution must be at least 60% of the total capital contributions (i.e., including additional paid-in capital) of both voting and non-voting shares; and (4) no Filipino shares may be assigned or encumbered to foreigners. The IRR even states that the introduction of foreign equity in excess of 40% into a construction company that holds a Regular License shall ipso facto invalidate the license.

Should a contractor not qualify for a Regular License, it may apply for a Special License, but this is only valid for a specific project. As can be seen, PCAB has imposed a unique and strict rule on the determination of the nationality of a construction company. It even veers away from the usual manner of determining whether a corporation is Filipino-owned, which involves two tests. First, at least 60% of the total number of voting shares must be held by Filipinos; and second, 60% of the total outstanding shares must be Filipino-owned.

In a recent decision of the Supreme Court (G.R. No. 217590 dated March 10), Section 3.1, Rule 3 and Section 12.7, Rule 12 of the IRR, which imposes the nationality requirement and the ipso facto revocation of the license of those who violate the nationality requirement, were struck down. The High Court ruled that PCAB went beyond the confines of the delegating statute when it created the nationality-based license types in its IRR.

Based on the text of the Contractor’s License Law, there is nothing that shows that Congress intended to discriminate against foreign contractors. The Supreme Court reiterated that “the clear letter of the law is controlling and cannot be amended by a mere administrative rule issued for its implementation.” Thus, it ultimately ruled that the construction industry is not an area reserved exclusively for Filipinos under the Constitution, and neither do laws show any indication that foreigners are prohibited from entering the field of construction.

Furthermore, the Supreme Court rejected PCAB’s contention that it can adopt necessary rules and regulations to change the classification of contractors. While Section 17 of RA 4566 grants PCAB the power to classify contractors in a manner consistent with established usage and procedure in the construction industry, it cannot override a law. The only statutorily mandated classifications in the construction industry are provided under Section 16 of RA 4566: general engineering contracting, general building contracting, and specialty contracting.

The Supreme Court also struck down PCAB’s argument that construction is a profession limited to Filipino citizens under the Constitution. The term profession refers to “the practice of natural persons of a certain field in which they are trained, certified, and licensed.” Being a licensed contractor does not necessarily bring a construction company within the ambit of the Constitutional provision restricting the practice of professions to Filipino citizens.

Based on this decision, a Regular License can be issued to domestic corporations regardless of foreign equity ownership. In other words, even a 100% foreign-owned construction company can secure a Regular License from PCAB. That said, construction companies currently holding a Regular License can also restructure its ownership to increase foreign equity participation without its license being ipso facto invalidated.

While a Regular License may be issued to a foreign-owned domestic construction company, it does not give blanket authority to undertake any projects in the Philippines, as some projects require that the construction company maintain a certain degree of Filipino ownership. One example would be the foreign equity limitation imposed on entities engaged in the construction of defense-related structures. Under Commonwealth Act No. 541, the construction required for the national defense of the Philippines (i.e., land, air, and sea-coast defenses, arsenals, barracks, depots, hangars, landing fields, quarters, hospitals, all other buildings, and structures alike) can be undertaken only by a 75% Filipino-owned corporation. Another example is the foreign equity limitation imposed on bidders of infrastructure projects under RA 9184, otherwise known as the Government Procurement Reform Act (GPRA). Under its IRR, the bidder for an infrastructure project should be at least 75% owned by Filipinos.

Also, construction companies, incorporated and organized under foreign laws, are still required to secure a Special License from PCAB before they can undertake construction activities in the Philippines. Likewise, joint ventures and consortiums organized for a specific construction undertaking are still required to secure a Special License from PCAB.

All in all, the voiding of the 40% foreign equity limit is a welcome development that would allow the entry of foreign investment and generate employment in the construction industry. It is a game-changer in the realm of corporate structuring, tearing down the 31-year-old foreign equity restriction on the issuance of a Regular License to contractors. Now, it’s time for PCAB to formulate new rules or guidelines to implement the Supreme Court ruling, hopefully, this time on well-grounded foundation. 

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for specific advice.

 

Sidharta Felice Mae O. Garcia  is a Senior Associate at the Tax Services Department of Isla Lipana & Co., the Philippine member firm of the PwC network.

+63 (2) 8845-2728

sidharta.garcia@pwc.com

Palace: China should be allowed to hire citizens in bridge projects

CHINESE nationals should be allowed to work on local infrastructure projects funded by China, according to the presidential palace, after reports that Chinese building workers had been hired in two government bridge projects.

China can bring in its own workers in the building projects since these are not funded by Filipino taxpayers, presidential spokesman Harry L. Roque told CNN Philippines on Wednesday.

“Because it’s a 100% grant, the Chinese have to be given more flexibility in the decision on whom to hire,” he said, adding that the Philippines would not pay back China for these donations.

“The general rule is foreigners should be hired only when there are not enough Filipinos able and with the capacity to perform the work,” Mr. Roque said. “But again, of course,  please realize that this is a 100% donation to us by the Chinese government.”

“These bridges are a hundred percent donations from the Chinese government, he said. “That should give us the proper perspective.”

Senators earlier asked the Public Works department to prioritize Filipinos over foreigners in hiring.

Senator Francis N. Pangilinan asked Public Works Secretary Mark A. Villar whether the government’s loan agreements with China under its national infrastructure program has a clause that gives preference to Filipino workers.

The lawmaker noted that the construction industry had registered the largest drop in unemployment in the second quarter —  an almost 30% fall — so the government must create jobs and protect existing ones.

A number of Chinese nationals had reportedly been hired in building the Estrella-Pantaleon bridge and Binondo-Intramuros bridge.

The two bridges will augment the 30 existing across the Pasig river, Marikina river and the Manggahan Floodway, easing traffic along Epifanio Delos Santos Avenue (EDSA) and other major roads in Metro Manila.

The first bridge, also known as the Rockwell bridge, is a two-lane box truss bridge crossing the Pasig River. It connects Estrella Street in Makati on the south bank of the Pasig River, near the Rockwell Center mixed-use development, to Pantaleon Street in Mandaluyong on the north bank.

The second bridge will connect San Fernando Street in Binondo to Solana Street and Riverside Drive in Intramuros. The bridge will have four lanes and a steel bowstring arch design with inclined arches, according to plans. It will be 737 meters long.

Public Works Undersecretary Emil K. Sadain earlier said some Chinese workers had been hired because the projects required technical jobs. He said Filipinos would be prioritized in future agreements.

He said Filipino workers account for 55% of the workforce, while Chinese workers make up the rest in the Binondo-Intramuros bridge project.

Filipinos account for 69% of workers in the Estrella-Pantaleon bridge project, and the rest  are Chinese nationals, he added. — NPA

Virus cases top 362,000; Red Cross debt to be paid

THE DEPARTMENT of Health (DoH) reported 1,509 coronavirus infections on Wednesday, bringing the total to 362,243.

The death toll rose to 6,747 after 60 more patients died, while recoveries increased by 911 to 311, 506, it said in a bulletin.

There were 43,990 active cases, 83% of which were mild, 11.6% did not show symptoms, 2% were severe and 3.4% were critical.

Rizal province reported the highest number of cases with 83, Cavite with 82, Manila with 66, Baguio City with 65 and Iloilo City with 57, the agency said.

Metro Manila had the highest number of new deaths with 23, followed by the Calabarzon region with nine, Western Visayas with eight, and Ilocos, Central Luzon, Bicol and Central Visayas with three each.

Zamboanga Peninsula and the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) reported two deaths each, while Eastern Visayas, Northern Mindanao, Soccsksargen and the Cordillera Administrative Region reported one death each.

More than 4.1 million people have been tested for the coronavirus, DoH said.

Meanwhile, the presidential palace called on the Philippine Red Cross to resume its reverse transcription polymerase chain reaction (RT-PCR) testing services chargeable to the Philippine Health Insurance Corp. (PhilHealth), promising to pay half of the state insurer’s debt by next week.

The Red Cross halted its coronavirus testing services after PhilHealth failed to pay P900 million of its outstanding debt. It said it did not have the funds anymore to continue the tests.

Presidential spokesman Harry L. Roque told CNN Philippines the government would prioritize paying PhilHeath’s debt to the Red Cross.

“The President has already committed to PhilHealth that it will be paid, and so I think it will be paid if not this week, then next week at the soonest,” he said.

On Monday, President Rodrigo R. Duterte pledged to pay the PhilHealth debt. Mr. Roque said Red Cross Chairman and Senator Richard J. Gordon should trust the President’s word.

“I think that assurance should be enough for Red Cross to resume its testing,” he said.

Mr. Roque said the Red Cross plays a crucial part in the Philippines’ expanded COVID-19 testing, accounting for a quarter of total tests.

Mr. Duterte earlier said he would look for the money to settle the debt to the Red Cross, which conducted a million coronavirus tests, or about a fourth of the Philippines’ 3.8 million tests.

Mr. Gordon earlier said PhilHealth should be investigated for its failure to pay its debt. The Senate earlier investigated corruption at the agency and endorsed graft charges against top officials. — Vann Marlo M. Villegas and Gillian M. Cortez

JICA vows support for local disaster programs

The Japan International Cooperation Agency (JICA) on Wednesday said it would continue to support the Philippine government’s disaster management programs.

“The pandemic showed us how structures and systems can be affected severely,” JICA Philippines Senior Representative Ayumu Ohshima said in a statement.

“We aim to continue working with the Philippines towards strengthening disaster risk reduction and management. This way, people become better prepared in addressing the gaps and impact of future natural disasters in their lives,” he added.

The government got a ¥50-billion (P23 billion) standby loan from JICA last month, which will be released if a natural disaster, including pandemics, occurs. The lender has given the country $918 million (P45 billion) for the state’s pandemic response.

Japan, through its financing arm JICA, is the country’s top source of foreign funding with $10.082 billion of outstanding official development assistance (ODA) today. Among projects that JICA is supporting, nine are for disaster management.

These include several flood risk management initiatives for the Cagayan river, Tagoloan river and Imus river and Cagayan de Oro river; a flood control project in Cavite City; and channel improvement of the Pasig-Marikina river.

It will also fund a feasibility study on a flood control and drainage project in Davao City, creation of a system that will monitor and share information about the weather; and a project that will improve flood forecasting and warning systems for the Cagayan de Oro river basin.

There are also projects on disaster risk reduction and enhanced weather observation, forecast, warning and information distribution.

JICA has extended more than ¥345 billion (P159.2 billion) for the country’s disaster risk reduction efforts since 1979.

Extreme weather events have increased dramatically in the past 20 years, taking a heavy human and economic toll worldwide, and are likely to wreak further havoc, the United Nations (UN) said last week.

China (577) and the United States (467) posted the highest number of disaster events from 2000 to 2019, followed by India (321), the Philippines (304) and Indonesia (278), the UN said in a report. Eight of the top 10 countries were in Asia.

About 7,348 major disaster events were recorded globally, claiming 1.23 million lives, affecting 4.2 billion people and causing $2.97 trillion in economic losses during the two-decade period.

Drought, floods, earthquakes, tsunamis, wildfires, and extreme temperature events caused major damage.

Heatwaves and droughts will pose the greatest threat in the next decade, as temperatures continue to rise due to heat-trapping gases, experts said.

The Philippines is among the most disaster-prone countries in the world based on the World Risk Index. — Beatrice M. Laforga

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