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House power squabble risks delay in 2021 budget approval

By Charmaine A. Tadalan, Reporter
and Kyle Aristophere T. Atienza

A BREWING coup at the House of Representatives after some congressmen complained of an inequitable share in the P4.5-trillion national budget for next year threatens to delay the passage of the bill, some lawmakers said. “A power struggle in the House will affect our timeline, and I hope not because we’re still in the middle of the pandemic,” Senate Minority Leader Franklin M. Drilon told the ABS-CBN News Channel on Monday. “We have 10% unemployment and we’re expected to have a contraction in our economy, so a delay in the budget would be very critical,” he added.

Presidential Son and House Deputy Speaker Paolo Z. Duterte at the weekend threatened to stage a coup against Speaker Alan Peter Cayetano after some lawmakers complained of inequitable shares for their districts in the 2021 national budget.

Mr. Duterte on Sunday said he had sent a message to a group of lawmakers on Viber that he would ask the Mindanao bloc of congressmen on Monday to declare the positions of speaker and deputy speakers vacant. That threat had not yet materialized.

A similar conflict among congressmen over alleged budget insertions deferred House plenary debates on the 2019 spending plan, delaying its approval by four months.

Senate President Vicente C. Sotto III said in a mobile phone message it was possible for the budget to get delayed, because the budget itself was the source of concern.

Senator and Finance committee chairman Juan Edgardo M. Angara said the conflict should not get in the way of the budget, while Senator Panfilo M. Lacson blamed pork barrel insertions for the in-fighting.

“These are internal matters for them to collectively discuss and dispose of,” Mr. Angara said in a mobile phone message. “We just hope that the ability of Congress to pass a budget in a timely manner will not be affected.”

Mr. Lacson earlier flagged 5,913 re-appropriated budget items worth P135 billion, and about P396 billion in lump sum appropriations under the Public Works department that must be clarified.

“This early, we are already seeing the ugly effects of pork,” he said in a statement Monday. “More than the possible delay in the passage of the 2021 national budget, any ugly squabble in plenary over the distribution of earmarks a.k.a. pork is exactly that  ugly.”

Party-list Rep. Eric G. Yap, who heads the House committee on appropriations, ruled out delays, saying they were on track with the budget.

The House would submit the budget bill to the Senate on Oct. 16, he said by telephone. “We target to finish the deliberation and the House version on or earlier than Oct. 14,” he said in mixed English and Filipino.

He also said the coup threat against Mr. Cayetano had nothing to do with pork.

Party-list Rep. Arlene D. Brosas said the House squabble exposed the persistence of pork barrel among some lawmakers, which jurisprudence has voided.

She said it stemmed from the almost  P400-billion lump sum budget of the Public Works department that was sliced unevenly among districts and regions.

The lump sum would later be inserted in the still unprinted General Appropriations bill, she said in a statement on Monday.

Mr. Yap said he saw nothing wrong with these budgets for lawmakers’ districts “if it will be for the benefit of the people.”

COVID-19 infections top 290,000; death toll at almost 5,000

THE DEPARTMENT of Health (DoH) reported 3,475 coronavirus infections on Monday, bringing the total to 290,190.

The death toll rose by 15 to 4,999, while recoveries increased by 400 to 230,233, it said in a bulletin.

There were 54,958 active cases, 86.6% of which were mild, 8.9% did not show symptoms, 1.4% were severe and 3.1% were critical.

Metro Manila reported the highest number of new cases with 1,543, followed by Batangas with 194, Rizal with 192, Cavite with 166 and Cebu with 165.

Of the new deaths, nine came from Metro Manila, three from Western Visayas, two from the Calabarzon region and one from Eastern Visayas.

More than 3.1 million people have been tested for the disease, DoH said.

The coronavirus disease 2019 (COVID-19) death rate was at 1.72%, lower than 3.07% globally, while the infection rate was at 10.47%, higher than the World Health Organization’s (WHO)  less than 5% benchmark.

The reproduction rate of the disease was at 0.848, meaning a positive person can infect another. It takes 11.02 days for cases to double and 15.79 days for deaths to double, DoH said.

Meanwhile, DoH asked President Rodrigo R. Duterte to issue an order regulating the prices of testing kits for the coronavirus.

The law regulates certain medicines but diagnostic and professional fees are exempted, Health Undersecretary Maria Rosario S. Vergeire told reporters in a Viber group message.

Also on Monday, the Bureau of Immigration opened a quarantine facility for detained foreigners infected with the coronavirus.

In a statement, Immigration Warden Facility chief Remiecar Caguiron said the center would cater to foreigners with mild to moderate symptoms.

The facility, which has a capacity of 60, is inside the national penitentiary compound in Muntinlupa City.

The bureau will install CCTV cameras for remote monitoring of patients to lessen physical contact. Medical and detention personnel will also be assigned there, it said.

The bureau has been trying to decongest its detention facility since April to prevent the spread of the virus. More than a hundred foreigners have been deported, while those at risk of getting the virus were released on bail. 

“Overcrowding in the facility is a health risk, and we want to ensure that we mitigate this risk and stop the spread of this disease through the help of this isolation facility,” Ms. Caguiron said.

In a related development, Trade Secretary Ramon M. Lopez asked the government to further relax the lockdown in Metro Manila so more sectors could reopen.

The capital region should shift to a modified general community quarantine

In a Laging Handa briefing on Monday, he said that Metro Manila, which is currently under general community quarantine (GCQ), should shift to the modified general community quarantine (MGCQ) applied to most areas in the country.

“I think after six months nung itong virus, ng pandemic, ng lockdown, ako po ay naniniwala na natututo rin tayo paano gumalaw, kumilos sa pag-manage ng virus. Sa akin pong paniwala – ito po ay sa akin lang – maari po nating i-push ang mas magaan na community quarantine,” he said.

Metro Manila, Bulacan, Batangas, Tacloban City, and Bacolod City are under GCQ until the end of September. The Inter-Agency Task Force (IATF) for the Management of Emerging Infectious Diseases has yet to make an announcement on the areas’ lockdown status for October.

The government has shifted to one month-long periods before announcing a new quarantine status, replacing the previous two-week cycles.

Mr. Lopez said that the shift to more eased lockdown measures should be paired with a commitment to health measures, including face mask-wearing, disinfection measures, and aggressive contact tracing, testing, and treatment.

“Sa ganun po ay mabuksan na natin ‘yung remaining part of the economy,” he said.

Under MGCQ, dine-in restaurants could operate at 75% capacity, while gyms, entertainment, and tourism businesses can operate at 50% capacity.

Metro Manila has the highest number of coronavirus disease 2019 (COVID-19) cases, recording over 1400 new cases on Sunday as the Philippine tally exceeded 286,000. — Vann Marlo M. Villegas and Jenina P. Ibañez

VP rejects attempts to revise nation’s martial law history

VICE President Maria Leonor G. Robredo on Monday urged Filipinos to reject attempts to revise history as the country commemorated the 48th year since the late dictator Ferdinand E. Marcos declared martial law.

In a statement, Ms. Robredo stated murder of dissenters and activists and rampant corruption did happen during the period.

“These truths know no political color, but come starkly in the black and white of our lived experience as a nation,” said the vice president, who joined the resistance against the Marcos dictatorship in the 1970s.

Ms. Robredo, who defeated the dictator’s son Ferdinand R. Marcos, Jr. in the 2016 vice-presidential race by a hair, urged Filipinos to resist political moves aimed at revising history and burying accounts of abuses under the strongman’s rule.

“Our task is to push back against these lies at every instant. To tell the stories of Martial Law and dictatorship over and over so that this generation, and the ones that come after, may be bound tighter through remembering,” she said.

“Hold firm to the truth of this painful chapter of our history, and through this, forge the determination to never again let our people fall into such despair,” Ms. Robredo said. “We must do this because, ultimately, our national aspirations can only be as strong as our national memory.”

Some quarters have been pushing for a revision of Philippine textbooks in favor of the dictatorial rule’s side of history.

Earlier this month Congress passed a measure declaring every Sept. 11th as “President Ferdinand Edralin Marcos Day” in Ilocos Norte, the home province of the Marcos clan.

Opposition leaders and martial law victims said this was an insult to history. — Kyle Aristophere T. Atienza

Philippines rejects China stance to exclude west from disputed sea

The Philippines would not follow China’s stance of keeping Western powers — including the US — out of the disputed South China Sea, its top diplomat said on Monday.

The South China Sea code of conduct that Southeast Asian nations are crafting with Beijing won’t lead to western countries’ exclusion from the waters, Philippine Foreign Affairs Secretary Teodoro L. Locsin, Jr. said.

“I can swear to you, western powers will be in the South China Sea,” he told lawmakers at a hearing in Manila. “We believe in the balance of power, that the freedom of the Filipino people depends on the balance of power in the South China Sea.”

Mr. Locsin said he had made that assurance to western nations, without elaborating on who he had spoken with.

Tensions between the US and China over the South China Sea have been on the rise, with Secretary of State Michael Pompeo earlier this month urging Southeast Asian nations to review ties with Chinese state-owned companies involved in building artificial islands in the area.

Chinese Foreign Minister Wang Yi earlier criticized the US for allegedly intervening in territorial disputes and strengthening its military deployment in the waters. — Bloomberg

Regional Updates (09/21/20)

P1B needed for medicine program in 3 state universities

THE COMMISSION on Higher Education (CHEd) said at least P1 billion is needed to fund three state universities, one in the Visayas and two in Mindanao, that will potentially offer a medicine program, its chairman said on Monday. CHEd reported there are 10 state universities and colleges (SUCs) across the country that have potential to offer medicine, of which three have pending applications. “We need a minimum of P1 billion to start the program of the three SUCs that have pending applications with the Commission,” Chairperson J. Prospero E. De Vera III told senators on Monday. The three SUCs with their respective budget requirement are: Cebu Normal University, P368 million; Western Mindanao State University, P145 million; and the University of Southeastern Philippines, P531 million. Mr. De Vera added there may also be a need to increase bed capacity of state hospitals or partner with private hospitals to cater to the SUCs’ medicine students. “Our challenge is the base hospitals because current government hospitals available are already shared by other private universities,” he said.  Further, CHEd also projected that some P4.6 billion is needed for the proposed “Doktor para sa Bayan” law, which is pending approval of the bicameral conference committee. — Charmaine A. Tadalan

Solon partners with private firm for free e-learning hubs

A PARTY-LIST lawmaker has partnered with a direct selling company to set up free e-learning centers in several areas, for the use of teachers, students, and parents who have inadequate resources to cope with the demands of the new blended learning system. Frontrow E-skwela, a project of Ang Probinsyano Party-list Rep. Roonie L. Ong, provides free use of computers, internet service, printer for educational modules, and other academic resources. “The hub will provide free use of computers, internet access and printing of modules, and other paper works needed by students to meet the blended learning system that will be implemented for the coming school year,” Mr. Ong said in a statement on Monday. The project was piloted in Baguio City and later implemented in Cebu, Camotes Islands, and Metro Manila. The E-skwela Hub is part of the corporate social responsibility program of direct seller Frontrow, in cooperation with local governments. — Kyle Aristophere T. Atienza

Closure of EDSA U-turns permanent — MMDA

THE CLOSURE of 13 U-turn slots along EDSA, undertaken to make way for bus stops, will be permanent, the Manila Development Authority (MMDA) announced on Monday. MMDA General Manager Jose Arturo S. Garcia Jr., in a briefing, said this policy was already discussed by the Department of Transportation, Land Transportation Franchising and Regulatory Board, and the Department of Public Works and Highways. Mr. Garcia said putting these dedicated bus lanes have shown improvement in terms of travel time for commuters and allows bus operators to maximize passenger capacity. — Gillian M. Cortez 

DoH also raises alarm over Manila Bay crowd

THE DEPARTMENT of Health (DoH) raised concerns about the gathering of people in Manila Bay when the beach was opened to the public over the weekend. “Ito po ay isang nakakabahalang sitwasyon (This is a worrying situation),” Health Undersecretary Maria Rosario S. Vergeire said in an online briefing Monday, adding that minimum health standards should always be enforced given the continued threat of the coronavirus disease (DOVID-19). The government opened to the public on Sunday part of the bay that is undergoing rehabilitation, which includes the controversial placement of dolomite “white sand.” The area’s local police chief was relieved from his post on Sunday afternoon for failing to enforce health protocols. Ms. Vergeire said the inter-agency task force on coronavirus response might discuss the incident during Tuesday’s meeting. — Vann Marlo M. Villegas

Nationwide round-up

Duterte to talk about human rights before UN General Assembly

PRESIDENT RODRIGO R. Duterte will be attending and addressing, both for the first time, the United Nation’s (UN) General Assembly that starts Tuesday, with human rights among the topics of his speech.

Presidential Assistant on Foreign Affairs Robert Eric A. Borje said the President is scheduled to talk on the first day of the event.

“President Duterte will articulate principled positions of the Philippines on a wide range of issues and I do not want to preempt the President. But these are the ones of key importance to the country and I will identify them. That will be global response to the coronavirus pandemic; peace and security including terrorism and geopolitical developments in the Asia-Pacific; sustainable development and climate change; the rule of law, justice and human rights, including the situation of migrant workers and refugees as well as peace keeping and United Nations reports,” Mr. Borje said in a briefing on Monday.

“This will be the President’s first time to address the UN General Assembly, the main deliberative board of the UN where all the 193 member states are represented. This year’s UN GA is of historic significance  as it marks the 75th anniversary of the establishment of the United Nations,” he said.

The high-level general debate of the UN will begin September 22 and run until the 26th.

Mr. Duterte has previously launched tirades against the UN, among other international organizations and foreign institutions, over criticisms of alleged human rights abuses under his administration’s war on drugs. — Gillian M. Cortez 

Adjusted date for overseas-bound health workers approved

THE EXTENSION of those exempted from the ban on healthcare worker deployment has been approved, now allowing those with contracts signed on or before August 31 to leave for jobs abroad.

Palace Spokesperson Harry L. Roque said in a briefing on Monday that President Rodrigo R. Duterte granted the expanded exemption period as recommended by the Department of Labor and Employment last week.

“Yung mga meron na papeles at kumpleto ang documentation as of August 31, 2020, pinayagan na po ng Presidente na makaalis sa trabaho nila abroad (Those whose papers and documents are completed as of August 31, the President is allowing departure for work abroad),” he said.

Prior to the announcement, only those with signed contracts as of March 8 were exempted from the ban.

The Labor department said around 1,500 healthcare workers will benefit from the extension. — Gillian M. Cortez 

State of calamity stays until COVID-19 vaccine becomes available

PRESIDENT RODRIGO R. Duterte will only lift the national state of calamity when a vaccine for the coronavirus disease 2019 (COVID-19) becomes available, his spokesperson said on Monday.

The state of calamity, first declared March 16 and was supposed to lapse September 15, has been extended to September 2021.

“Habang wala pang bakuna, habang may sakit, nandiyan pa rin ang banta ng COVID-19 (While there are no vaccines, while there is still sickness, the threat of COVID-19 is still there),” Spokesperson Harry L. Roque said in a briefing.

Several companies and countries worldwide are in various stages of developing a COVID-19 vaccine. Mr. Duterte has said he will prioritize buying from Russia and China. — Gillian M. Cortez 

BuCor chief Bantag positive for COVID-19

BUREAU OF Corrections chief Gerald Q. Bantag has tested positive for coronavirus disease 2019 (COVID-19).

“Confirmed,” he said in a telephone interview, adding that his result came out Sunday.

Mr. Bantag said he was tested last week as his driver, a close-in security, tested positive.

The prison chief said he experienced “chilling” for two nights, with high body temperature, mild coughing, and headache.

He took paracetamol and Vitamin C, he said, and the symptoms were gone on the third day, he said.

Mr. Bantag is staying at the director’s quarters of the national penitentiary.

BuCor’s spokesperson, Gabriel Chaclag, also tested positive for COVID-19. — Vann Marlo M. Villegas

Lawyer Peloto nominated new Comelec commissioner

THE COMMISSION on Elections (Comelec) announced on Monday the nomination of lawyer Michael B. Peloto as new commissioner who will hold the post until February 21, 2027.

Mr. Peloto, appointed by President Rodrigo R. Duterte as a member of the board of directors of the Philippine Reclamation Authority in 2018, will take the post vacated by former Commissioner Luie Tito F. Guia.

His nomination letter was signed by Mr. Duterte on September 17.

The Comelec calls Mr. Peloton’s nomination a “timely addition” to the poll body given his background in law and information technology.

Comelec Spokesperson James B. Jimenez said since Mr. Peloto’s appointment was made during the regular session of Congress, he cannot assume his Comelec post immediately.

“He must first be confirmed by the Commission on Appointments,” he told reporters via Viber. — Gillian M. Cortez 

Small-business closure rate dwindles to 6% in Aug., Sept.

THE percentage of small businesses that remain closed during the lockdown dropped to 6% in August and September, according to the Department of Trade and Industry, citing the results of a limited survey.

The study had about 3,000 respondents representing micro-, small-, and medium-sized enterprises (MSMEs) nationwide.

The percentage of shuttered companies dropped from the 38% recorded during the height of the lockdown in April and May.

“Thirty-eight percent of companies were closed and about 50% partially operating during the height of the ECQ (enhanced community quarantine) in April and May,” Trade Secretary Ramon M. Lopez said in an online conference Monday.

The corresponding closure rate was 11% in June and July, he said.

Mr. Lopez did not reconcile the survey findings with the 26% closure rate the Trade department reported for June.

“We are hopeful that the reported recovery momentum will lead our country towards full recovery by early next year,” he said.

MSMEs make up 99.5% of the total business establishments operating in the country, based on 2018 government statistics. The businesses account for 63% of the country’s total employment.

The Philippine Statistics Authority estimated a 17.7% unemployment rate in April, equivalent to 7.25 million jobless, against 2.27 million a year earlier.

Mr. Lopez said that he expects a return to higher GDP (gross domestic product) growth and low unemployment due to the large domestic market.

“We still have our huge 109 million consumer market and large workforce,” he said.

“We still have strong economic fundamentals brought about by many reforms in trade and investments, financial reforms, rice tariffication, and the aggressive Build, Build, Build, which pump-primes the economy and lays out better economic infrastructure for the business sector and the Filipinos in general.” — Jenina P. Ibañez

PHL oil companies face tricky recovery as global demand sinks to 2013 levels

By Adam J. Ang

A SLOW recovery will hold back the domestic oil industry’s financial performance over the remainder of the year, after the International Energy Agency (IEA) estimated that the pandemic knocked back global demand to levels not seen since 2013.

The IEA warned last week of a “treacherous” path ahead for the industry with oil demand growth taking further hits from a renewed rise in coronavirus cases in many countries, the persistence of quarantine schemes albeit in localized form, and work-from-home practices.

Global demand is currently estimated at 91.7 million barrels per day (bpd) — a return to 2013 levels. Demand for petroleum products may drop by 8.4 million bpd this year over 2019, representing a “slightly deeper” fall compared with estimates issued a month earlier.

In the Philippines, travel restrictions, hard lockdowns, and fragile confidence have battered the domestic economy, posing a challenge to fuel demand, analysts said.

“Given these, oil demand is expected to remain challenged here in our country moving forward which in turn would weigh on the sales volume of our oil industry,” Philstocks Financial Senior Analyst Japhet Louis Tantiangco said.

Oil demand bottomed out in April at 1.25 million liters, down 42% against the record January level of 2.15 million liters, according to the Department of Energy (DoE).

Demand recovered in May and June to 1.72 million liters and 1.70 million liters, respectively, as quarantine measures eased, according to Rino E. Abad, director of the DoE’s Oil Industry Management Bureau. However, it still has not approached pre-pandemic levels, he added.

“It means that the energy sector rebound is really dependent on the speed of the country’s recovery and the ability to cope with the crisis,” Jose Jerome R. Pascual III, chief financial officer of Pilipinas Shell Petroleum Corp., speaking at a Standard Chartered’s webinar Friday.

“The earlier we are able to bring that confidence for people to spend, that will help push us forward,” he added.

The IEA projects demand to grow by 5.5 million bpd in 2021.

Like all other struggling businesses, oil firms have resorted to conserving their cash and cutting costs to afloat.

If they cannot improve margins, profits will be elusive over the next few quarters, according to Mr. Tantiangco.

“Unless margins are improved through cost management measures, our listed oil firms may extend their net losses for this year which in turn could put downward pressure on their share prices moving forward,” he said.

Oil prices, which are expected to remain below pre-pandemic levels, may still weigh on oil companies’ revenue, he said. At the onset of September, the Brent crude benchmark fell below $40 per barrel once again.

Year to date, international prices have dropped by an average of 40%.

An oil market rebound by the year-end holidays could still happen should the country further open up, Eastern Petroleum Chairman and Chief Executive Officer Fernando L. Martinez said in a message.

The industry is hoping to return to about 80% of normal sales by December after they fell to about 40% at the height of the community quarantine, he said.

Phoenix Petroleum Philippines, Inc., which reduced its net loss in the second quarter to P5 million from P386 million previously, said it was likely to have turned in a profit in the July-August period.

“We are confident and hopeful that the worst is behind us,” Phoenix President Henry Albert R. Fadullon said in a statement in August.

With a projected price recovery, Petron Corp. expects a P3.5-billion gain from its inventories in the remaining half of the year, Ramon S. Ang, its chairman, said in a statement last month. Petron posted a P14.2-billion net loss in the six months to June.

Despite losing P6.7 billion in the first half, Pilipinas Shell said it is close to hitting its 2020 savings target of P1.3 billion, taken from both capital and operating expenditures.

“We needed to make sure that we keep the financial resilience of our company intact so we can deliver on our strategic priorities, deliver the returns and future value that our shareholders and stakeholders expect, and also thrive through the energy transition,” Pilipinas Shell Vice-President for Finance Jose Jerome R. Pascual III said.

DoF releases additional list of rejected tax credits

THE Department of Finance (DoF) said the Commission on Audit (CoA) issued notices of disallowance to four textile firms seeking tax credits, bringing the total rejections to P606 million.

In a statement Monday, the DoF said CoA’s most recent rejections totaled P228.71 million worth of disallowed tax credit certificates (TCCs), which the state auditor found to have been granted illegally to the four companies between 2008 and 2012 by the One-Stop Shop Inter-Agency Tax Credit and Duty Drawback Center (OSS).

Some P377.27 million worth of disallowed tax incentives were also attributed to the four firms earlier, bringing the total rejected tax credits applied for to P606 million, Finance Secretary Carlos G. Dominguez III said.

The DoF said the firms were: Capital-Roll Knit Corp. (CRC), Uni-Glory’s Knitting Corp. (UKC), Primeknit Manufacturing Corp. (PMC) and Tai-Cheng International Resource, Inc. (TICIRI).

It said the outstanding notices of disallowance to CRC totaled P410.02 million, while UKC tallied P78.02 million.

Tax credits granted to PMC worth P40.13 million were rejected by CoA, taking its total to P55.89 million. Meanwhile, notices of disallowance to TICIRI now amount to P62.03 million.

In July, the DoF first reported the initial round of rejected tax credits, after the four firms were found not to have complied with the requirements. The deficiencies included lack of proof of payment of import taxes and duties by the suppliers; validation of actual exportation by the OSS; and questions about the companies’ physical existence.

The OSS is an inter-agency body run by the DoF, Bureau of Customs, BoI and Bureau of Internal Revenue, to process applications for TCCs and duty drawbacks.

Tax credits are given to exporters and manufacturers of products for export, which are registered with the Board of Investments (BoI). Proof of duties and taxes on raw materials and supplies are a prerequisite for a TCC, since approved applications will trigger a refund of these taxes.

The DoF issued Department Order No. 039-2018 forming a task force to investigate and go after officials and firms involved in illegal transactions, after uncovering a tax credit scam in 2018.

In July 2018, the DoF also flagged P11.18 billion worth of TCCs that the OSS granted to 33 textile companies between 2008 and 2014 which were either not eligible for the benefit or allegedly non-existent, based on CoA findings. — Beatrice M. Laforga

Upgraded WESM system trial attracts few takers

THE operator of the wholesale power market’s trading floor said it is attracting low levels of participation from small producers for the trial run of its upgraded system.

The segment, which includes renewable generators, is not keen to join the trial operations of the enhanced Wholesale Electricity Spot Market (WESM) due to the absence of sanctions for failing to do so, according to the Independent Electricity Market Operator of the Philippines (IEMOP).

“There is a challenge when it comes to the participation of renewable energy generators,”  Edward I. Olmedo, manager of market information modeling at IEMOP, said at a recent virtual briefing.

IEMOP Chief Operating Officer Robinson P. Descanzo said: “Di naman natin nilalahat sila pero (We’re not referring to all the companies but) in general  (that is our) observation because wala pang imposition ng mga penalties (there is still no penalty for not joining). They are just challenging the rules and process,” he added.

In the latest trial system run, conventional or large generators in Luzon were “actively” participating with about 94% of them submitting supply offers, while 65% of the sector in the Visayas have put up offers.

Meanwhile, 43% and 24% of small generators in the Luzon and the Visayas markets, respectively, have nominated their capacities.

Offer submissions and nominations of supply constitute participation in the trials. IEMOP is targeting at least 90% participation.

By the end of September, IEMOP expects the enhanced WESM design to be ready. It will continue conducting trial operations until the system is launched on Dec. 26, a target date set by the government.

A WESM in Mindanao is also being tested. — Adam J. Ang

PEZA to develop ecozones in Lanao del Sur amid countryside push

THE Philippine Economic Zone Authority (PEZA) said it entered into a partnership with the Southern Philippines Development Authority (SPDA) to develop special economic zones in Lanao del Sur.

PEZA in statement Monday said the memorandum of understanding signed last week approves the creation of economic zones in the province, as well as an agro-industrial development on a 24,000-hectare site in the municipalities of Wao and Bumbaran.

Under this agreement, the two parties are fast-tracking the development of economic zones in priority areas, whether in properties controlled by the SPDA or those co-developed with other government agencies or the private sector.

PEZA also tied up with Sagay City, Negros Occidental on a 160-hectare expansion of the Northern Negros Agro-Industrial Export Processing Zone (NNAIEPZ).

In February, the city government of Sagay authorized PEZA to develop land in the city.

“This will then be registered with PEZA as an expansion of the existing NNAIEPZ, subject to the proclamation by the President,” PEZA said.

PEZA Director-General Charito B. Plaza said the creation of ecozones will help local governments industrialize their jurisdictions, transfer technology, develop land, and create jobs.

“We must replicate this in the whole of the Philippines to attain the total development of the country. We must use this time as an opportunity to grow and develop an export and production-driven economy rather than being import and consumption-dependent, which we are now, and a self-reliant, self-sustaining and revenue-generating country,” she said. — Jenina P. Ibañez

Cabinet cluster seeks P152.4B for climate resiliency program

THE Cabinet Cluster on Climate Change Adaptation, Mitigation, and Disaster Risk Reduction (CCAM-DRR) is seeking a budget of P152.4 billion for 2021 climate and risk resiliency program projects.

CCAM-DRR, led by the Department of Environment and Natural Resources (DENR), said the requested budget is 30% higher than the P117 billion allocated to the program this year.

According to DENR Undersecretary Analiza Rebuelta-Teh, the proposed funding will help build sustainable and resilient communities to help them rebound from the coronavirus disease 2019 (COVID-19) pandemic.

“We are still in the midst of a health crisis brought about by the COVID-19 pandemic. The country needs programs that will strengthen the resilience and adaptive capacities of its communities, especially in climate-vulnerable provinces and major urban centers,” Ms. Rebuelta-Teh said.

The DENR said the risk resiliency program aims to assist vulnerable communities, ensure ample supply of resources such as water, and improve the resiliency of critical infrastructure, among others.

For 2021, the program will prioritize 14 climate-vulnerable provinces that are affected by rising sea levels, extreme rainfall and heat, higher ocean temperature, and disrupted supply of natural resources.

The  provinces are Masbate, Sorsogon, Negros Oriental, Western Samar, Eastern Samar, Sarangani, Surigao del Norte, Surigao del Sur, Dinagat Islands, Southern Leyte, Zamboanga del Norte, Bukidnon, North Cotabato, and Sultan Kudarat.

The program will also cover major urban areas such as Metro Manila, Metro Cebu, Metro Iloilo, and Metro Davao.

In July, Environment Secretary Roy A. Cimatu reiterated that climate change is still a priority for the national government as it deals with the COVID-19 pandemic.

Mr. Cimatu said climate change is just as much of a threat as COVID-19, except that it unfolds in slow motion and imperils future generations.

“The government will prioritize action and investment that will reduce the long-term health impacts and increase our resilience and adaptive capacity to both the coronavirus pandemic and climate change,” Mr. Cimatu said. — Revin Mikhael D. Ochave

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