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Peso may move based on inflation numbers

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THE Philippine peso would likely be range-bound against the dollar this week, analysts said, as the market awaits inflation data releases both at home and in the US.

It closed at P56.077 a dollar on Friday, weakening by 11.2 centavos from its close on Thursday, according to Bankers Association of the Philippines data posted on its website. Week on week, the peso likewise sank by 38.7 centavos from its P55.69 finish on Sept. 20.

The peso traded sideways against the dollar on Friday after the US economic growth report came out steady from the previous period, Robert Dan J. Roces, chief economist at Security Bank Corp., said in a Viber message.

“Also, risk-supportive sentiment from China stimulus measures may be met by month- or quarter-end dip buying interests,” he added.

The third-quarter report dampened expectations of a rate cut by the US Federal Reserve and led to a weaker dollar, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a Viber message.

Mr. Roces noted that this week, the peso would likely move depending on the US consumer price index (CPI) report for August.

Mr. Ricafort said the foreign exchange market would also look at Philippine inflation data due for release on Friday.

Inflation likely eased to 2.5% in September, according to the median estimate of 15 analysts in a BusinessWorld poll, from 3.3% in August and 6.1% a year ago. This could be the slowest in nearly four years.

Mr. Ricafort expects the peso to trade from P 55.75 to P56.25 a dollar this week. — Aaron Michael C. Sy

PSEi may advance on more upbeat Q4 outlook

REUTERS

By Revin Mikhael D. Ochave, Reporter

PHILIPPINE STOCKS could sustain their climb on dovish policy forecasts and a more positive outlook by businesses and consumers for the fourth quarter (Q4), analysts said.

“Bulls lined up at the local equity market, fueled by the Federal Reserve’s 50-basis-point (bp) rate cut last week and the Bangko Sentral ng Pilipinas (BSP) chief’s comments of potentially two more rate cuts this year,” online brokerage 2TradeAsia.com said in a market note.

On Friday, the main Philippine Stock Exchange Index (PSEi) dropped by 0.4% or 30.44 points to 7,428.30, while the broader all-share index shed 0.19% or 7.67 points to 3,970.43.

Week on week, the PSEi gained 2.43% or 175.98 points from the 7,252.32 close on Sept. 20 for a four-week rally.

Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message the market could improve on expected rate cuts.

“While we may see episodes of profit taking this week as the market is technically overbought based on its relative strength index, the general direction of the bourse is still projected to be upwards,” he said.

“Optimism towards the dovish monetary policy stance both here and abroad is expected to help in sustaining the market’s movement,” he added.

Investors may also digest the BSP’s latest confidence surveys, which showed that both consumers and businesses are optimistic for the next quarter and next twelve months, Mr. Tantiangco said.

On Friday, a BSP survey showed that the overall confidence index of consumers improved to 0.7% for the fourth quarter from -0.4%, signaling a more positive outlook due to expectations of higher wages and more sources of income.

A separate BSP poll also showed that the confidence index of companies rose to 56.8% for the last quarter of 2024 from 43.4%, led by the expected stronger demand during the holidays and slower inflation.

On Wednesday, BSP Governor Eli M. Remolona, Jr. hinted that the central bank could reduce interest rates by 50 bps more this year.

The central bank began its easing cycle In August after lowering the target reverse repurchase rate by 25 bps to 6.25%, the first time in nearly four years.

Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., in an e-mail said the market’s immediate support is 7,060 to 7,220, while the resistance is 7,552.2 to 7,800.

“The underlying momentum for 1.5 months already remains intact for as long as it remains above the immediate support at 6,810-6,935 levels,” he added.

2TradeAsia.com pegged the market’s immediate support at 7,100 and resistance at 7,500.

“The additional liquidity from the reserve requirement ratios plus policy rate cuts should help the PSEi’s ambition to get past 7,500,” it said. “There is historical selling pressure around the benchmark’s current trading range, but the yield curve steepening and disinverting should support more consistent inflows as the appeal for bills and short-term income securities evaporate relative to riskier assets.”

Mr. Tantiangco estimated the market’s support at 7,400 and resistance at 7,700.

“Investors are also expected to look towards the upcoming S&P Global Philippines Manufacturing Purchasing Managers’ Index and the September inflation data for further clues on the local economy,” he added.

Manila pushes for rules-based order, peaceful resolution of disputes at UN

UN PHOTO

MANILA’s top envoy in his speech before the United Nations General Assembly (UNGA) pushed for the peaceful and diplomatic resolution of territorial disputes, particularly in the South China Sea, citing the importance of upholding a rules-based international order.

“Despite irresponsible and dangerous actions against our legitimate activities within our own waters and Exclusive Economic Zone, the Philippines remains committed to diplomacy and other peaceful means to settle disputes,” Philippine Foreign Affairs Secretary Enrique A. Manalo told the Assembly, according to a  copy of his speech, dated Sept. 29, which was sent to reporters via WhatsApp on Sunday.

“We will abide by the UN Charter and the Manila Declaration on the Peaceful Resolution of Disputes in asserting our sovereignty, sovereign rights and jurisdiction in the South China Sea.”

The Chinese Embassy in Manila did not immediately reply to a Viber message seeking comment.

The Philippines and China have resumed diplomatic talks on how to ease tensions in the waterway, even as both sides insisted on upholding their sovereign rights over features in the South China Sea.

Manila and Beijing have traded accusations of intentional ramming of each other’s vessels in a series of clashes last month, just after reaching a pact on resupply missions to a beached Filipino naval ship at Second Thomas Shoal.

Mr. Manalo earlier said Manila does not want to gang up against China with the international community in raising the territorial dispute to the UN’s main policy-making body.

The Chinese Foreign Ministry has said Manila and its allies ganging up on Beijing would only worsen tensions and destabilize the region.

“We do not accept narratives depicting the South China Sea as a theater of major power rivalry because they all ignore what is an essential truth: all states in this region have a right to determine their own destiny and secure their own future,” Manila’s Foreign Affairs secretary said in his speech.

Tensions between the Philippines and China have worsened in the past year as Beijing continues to block resupply missions to Second Thomas Shoal, where Manila has a handful of troops stationed at a beached vessel.

China and Russia have also criticized the United States’ move to keep its Typhon missile system in the Philippines as it risks fueling an arms race in the region.

Reuters reported Chinese Foreign Minister Wang Yi said the US deployment of intermediate-range missiles in the Philippines “undermines regional peace and stability.”

Mr. Wang said the deployment “is not in the interests of regional countries.”

The US Army flew the Typhon, which can launch missiles including SM-6 missiles and Tomahawks with a range exceeding 1,600 kilometers (994 miles), to the Philippines in April in what it called a “historic first” and a “significant step in our partnership with the Philippines.”

Philippine Defense Secretary Gilberto Gerardo C. Teodoro, Jr. has said Manila has the right to beef up its deterrent posture amid China’s aggressiveness in the South China Sea. The Philippines is also open to acquiring the Typhon midrange missile system, Agusan del Norte Rep. Jose “Joboy” S. Aquino II said last week, as he sponsored the 2025 budget of the Defense department.

The Philippines, southern neighbor to Taiwan, which Beijing claims as its own territory, is an important part of US strategy in Asia and would be an indispensable staging point for the military to aid Taipei in the event of a Chinese attack.

Mr. Wang said exchanges and cooperation between China and South Korea have become more active this year, Reuters reported.

Manila and Beijing on July 2 reached a “provisional arrangement” for Philippine resupply missions to Second Thomas Shoal, which the Philippines calls Ayungin.

The UN-backed Hague Permanent Court of Arbitration in 2016 voided China’s claim over the waterway for being illegal. Beijing has ignored the ruling.

About $3 trillion worth of trade passes through the South China Sea annually, and it is believed to be rich in oil and natural gas deposits, apart from fish stocks.

Philippine President Ferdinand R. Marcos, Jr. said in his third address before Congress that his government would continue to find ways to de-escalate tensions in contested areas in the waterway “without compromising our position and our principles.”

Mr. Manalo earlier said the Philippines is gearing up for its chairmanship of the Association of Southeast Asian Nations, where it seeks raise its maritime dispute with China.

“The future of the Asia-Pacific is being shaped not by one or two powers, but by all states therein,” the country’s top diplomat told the UN General Assembly.  “ASEAN exemplifies the agency of states working together in fashioning multilateral approaches and solutions to present-day challenges.” — John Victor D. Ordoñez with Reuters

House risks lawsuit in ‘unconstitutional’ 2025 budget amendments

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By Kenneth Christiane L. Basilio, Reporter

THE HOUSE of Representatives may have violated a Philippine Constitution provision disallowing amendments on bills passed on final reading, analysts said, which could open the chamber to potential lawsuits that could derail the government’s spending plan next year.

The chamber approved House Bill (HB) No. 10800, the General Appropriations Bill, on final reading last week. It contains the proposed P6.352-trillion national budget for next year.

The House adopted committee amendments to the spending plan during plenary deliberations while deferring proposed individual reallocations to a later date to meet its self-imposed September deadline.

“The House can’t. There is no precedent to allow this unconstitutional and illegal act,” Michael Henry Ll. Yusingco, a constitutionalist and senior research fellow at the Ateneo Policy Center, said in a Facebook Messenger chat, referring to the House’s creation of a “small committee” tasked to approve and resolve individual amendments to the chamber-approved national budget.

“The House transgression can be challenged in the [Supreme Court],” he added, noting the Senate could still correct the chamber’s “foul play” on the proposed budget, making it valid.

The 1987 Philippine Constitution states that “no amendment… shall be allowed” after a measure’s last reading, according to Sec. 26 of the charter.

“It can be challenged before the Supreme Court for being constitutionally infirmed, since this is an indication that Congress exceeded the exercise of its constitutional mandate,” Ephraim B. Cortez, president of National Union of Peoples’ Lawyers, said in a Viber message.

The chamber created a small committee to resolve individual amendments to the General Appropriations Bill on second reading, a move meant to expedite the budget bill’s confirmation. The committee received proposed changes to the measure from congressmen until last week Friday, two days after its third reading approval.

“It should receive and resolve individual amendments approved during the plenary debate on second reading. If it inserts amendments not approved during the second and third readings, that is illegal and unconstitutional,” Mr. Cortez said.

“The small committee cannot exercise an authority that the plenary cannot exercise as well. It was already passed on third reading, it can no longer be amended,” he added.

The office of Party-list Rep. Elizaldy S. Co, who heads the House appropriations committee, did not immediately respond to a Viber message seeking comment.

Lawmakers during the budget bill’s plenary debates signaled their intention to increase funding to certain government agencies without specifying how much should be augmented.

The move by congressmen to tackle proposed reallocations in a committee instead of the plenary “undermines the transparency of the budget process,” Mr. Yusingco said, noting it to be a violation of public trust.

The House also fast-tracked the budget’s approval with blessing from President Ferdinand R. Marcos, Jr. after he certified as urgent the proposed spending plan, allowing the chamber to do away with the constitutionally prescribed three-day interval for second and third reading approval of bills.

The government certifies as urgent the budget bill yearly “as a matter of practice,” said Mr. Cortez.

“There is a sense of urgency, of course, but this is not the kind contemplated by the Constitution to warrant the skipping of the three-day reading requirement,” Mr. Yusingco said.

The President has the ability to certify as urgent the approval of certain measures “to meet a public calamity or emergency,” Sec. 26 of the Constitution read.

LNG a viable transition fuel to RE, economists say

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By John Victor D. Ordoñez, Reporter

LIQUEFIED natural gas (LNG) is a viable transition fuel to clean energy but may lead to the Philippines’ dependence on imports and environmental damage as the country seeks local gas reserves to boost its power generation capacity, economists said.

“The downside of LNG is that Malampaya gas field is running out of gas and we have to be dependent on imports,” Calixto V. Chikiamco, president of Foundation for Economic Freedom, said in a Viber message. “Also, it’s still carbon and emits pollution into the atmosphere.”

He said the government must craft energy policies that balance out the flaws and strengths of renewables, coal, and natural gas.

The Philippines is hard-pressed to find other sources of indigenous energy as the Malampaya gas field, which supplies a fifth of the country’s power requirements, nears depletion.

The gas field is expected to run out of easily recoverable gas using current techniques by 2027.

At the Senate plenary, lawmakers are deliberating on a bill seeking to promote the production of indigenous natural gas and LNG, which the government sees as a transition fuel towards adopting more renewable energy (RE) sources.

The Philippines plans to raise the share of RE in the country’s energy mix to 35% by 2030 and to 50% by 2040 from the current 22%.

Energy Undersecretary Sharon S. Garin earlier told senators that Manila is trying to encourage more battery systems companies to do business in the country to meet its RE goals.

LNG EXIT
“The government should determine exit periods for LNG plants similar to its mandate on coal-fired power plants,” Terry L. Ridon, a public investment analyst and convenor of the think tank InfraWatch PH, said in a Facebook Messenger chat.

“It should nonetheless be pointed out that LNG plants, in the context of the climate crisis, produce significant emissions which threaten the future of the planet.”

In April, Philippine President Ferdinand R. Marcos, Jr. said his government is looking into exploring gas reserves in nonconflict areas within the country’s exclusive economic zone in the South China Sea in a bid to expand its energy and boost the country power generation capabilities.

PXP Energy Corp.’s exploration work at Reed Bank, another potential source of gas in disputed waters, remained suspended due to tensions with China.

China claims more than 80% of the South China Sea, seen as a substantial source of oil and gas deposits and where over $3-trillion worth of trade pass through each year.

Energy Undersecretary Rowena Cristina L. Guevara has said the DoE plans to hold two green energy auctions before the end of the year, offering geothermal, pump-storage hydro and impounding hydro projects.

“The country should strive for a mix, and not dependent on any one fuel source,” Mr. Chikiamco said.

“Each of these energy sources have their advantages and disadvantages and therefore to achieve energy security and environmental conservation.”

Liberal Party open to working with Makabayan, other opposition blocs

PEXELS-ELEMENT DIGITAL

By Kyle Aristophere T. Atienza, Reporter

THE Philippine liberal opposition is open to working with left-leaning opposition forces such as the Koalisyong Makabayan (Makabayan) for the midterm elections next year, as it sees similarities between their constituencies.

Analysts said opposition forces need a well-coordinated campaign to give themselves a fighting chance against the Marcos administration’s candidates, drawing lessons from a united and broad resistance that enabled oppositionists to gain majority control of the Senate under the Arroyo government.

“The Liberal Party (LP) is open to forging an alliance with like-minded, kindred opposition groups,” former senator and Party spokesperson Leila M. de Lima said in a Viber message at the weekend.

When asked to clarify whether LP, one of the oldest political parties in the Philippines, was referring to groups like Makabayan and Laban ng Masa, Ms. De Lima said: “Yes, on our common and shared issues and advocacies.”

The groups are “free to debate on those where we differ,” she said, noting some of their advocacies and the sectors they represent are “similar.”

“We should be able to harness our efforts,” she added, “to convince our people to elect more progressive candidates.”

Ms. De Lima, who was jailed during the term of former president Rodrigo R. Duterte after launching a series of probes into his deadly war on drugs, is the first nominee of Mamamayang Liberal, the Liberal Party’s party-list group representing marginalized sectors.   

For the 2025 senatorial race, the Party is only fielding former Senator Francis Pancratius “Kiko” N. Pangilinan, who gave a video message of solidarity during the Saturday convention of Makabayan, which has launched 11 senatorial bets representing various sectors.

“We will be open to forging unity with individuals who share our program or some aspects of it,” Liza Largoza-Maza, co-chair of Makabayan, said in a Facebook Messenger chat. Makabayan is not open to working with the opposition-posturing movement led by Mr. Duterte and his allies. “They are not real opposition.”

Ms. Maza said Makabayan is still looking into the agenda of other opposition groups including their stances on basic issues such as “unemployment, high prices of goods and services, presence of US military bases, missiles and troops in our soil, and foreign interference.”

Rafaela David, President of Akbayan Party, had yet to reply to a Facebook Messenger chat seeking comment. Akbayan is an ally of LP and is the political party of Senator Risa Hontiveros-Baraquel, who is the highest elected official among opposition forces.

LESSONS FROM ARROYO OPPOSITION
WR Numero Research President and Chief Executive Officer Cleve V. Arguelles said opposition groups have something to learn from the opposition during the administration of former president Gloria M. Arroyo, who in 2008 was tagged as the most unpopular president in the country since the restoration of formal democracy in 1986: “Only a well-coordinated, unified opposition campaign can stand up to Malacañang and rival the two Ms that it enjoys: money and machines.”

He said the Philippines under President Ferdinand R. Marcos, Jr., whose father was toppled in an anti-dictatorship uprising in the 1970s, currently has a fragmented opposition and it does not help that it has a weaker constituency.

“We see a fragmented one now, and also weakly coordinated. Some are running again in the Senate while some are trying their luck in the House and even in local government,” he said.

“It’s a concern that they have retreated to just running their own campaigns, dividing the attention and efforts of the already smaller opposition constituency.”

Political camps in the Philippines have been realigning ahead of a referendum election that is likely to be dominated by dynastic politicians based on opinion polls, and several mainstream political parties have managed to set aside differences to support the Marcos administration.

Mr. Marcos’ Partido Federal ng Pilipinas, the Nacionalista Party, the Nationalist People’s Coalition, and the National Unity Party have coalesced under an alliance called “Alyansa Para Sa Bagong Pilipinas.”

Opposition to the administration of Ms. Arroyo, a vice-president turned president after the ouster of former president Joseph E. Estrada on corruption issues in 2001, grew significantly through the years, with business groups and mainstream parties openly calling for her resignation and some leftist forces including the Laban ng Masa calling for a transitional government.

Renecio “Luke” S. Espiritu, Jr. of Laban ng Masa had yet to reply to a Viber message seeking the group’s side for this report. The group is fielding Mr. Espiritu and labor leader Leodegario “Ka Leody” de Guzman for the senatorial race.   

In the 2007 general election, the Genuine Opposition, which is composed of major political parties opposed to her leadership, secured seven seats while the administration-endorsed Team Unity got only three seats.

NOT QUITE THE SAME
“We really couldn’t compare the current administration with Arroyo’s because the former enjoys a higher level of electoral legitimacy,” said Anthony Lawrence A. Borja, a political science professor at De La Salle University, noting that Ms. Arroyo committed electoral fraud.

“Because of this, Arroyo is a clear and more convincing target for the opposition to coalesce against,” he said in a Facebook Messenger chat.

The situation could not be true for Mr. Marcos because former president Rodrigo R. Duterte, whose six-year term was marked by activist killings and deaths under his bloody anti-drugs campaign, is “another target for opposition forces,” Mr. Bojra explained.

“Simply put, the administration versus opposition dichotomy is over for the time being and what we have is, at least, a three-way conflict.”

Arjan P. Aguirre, who teaches political science at the Ateneo de Manila University, said progressive forces have not been able to cope with the changing political landscape through the years, and it did not help that the Duterte administration capitalized on social media to tarnish their reputation.

“During the Arroyo years, it was different. You have a very unpopular president, and that the media was still effective in giving a solid framing for every issue that was thrown against her government,” he said via Messenger chat.   

“To be in opposition at that time was something seen as positive.”

“Since Duterte’s time, opposing the government was seen either as a mere reactionary move from the then liberal forces or an extreme attempt to go against the government from the radical left forces,” he said.

Opposition forces were effectively reduced as mere power-grabbers and enemies of the state under Mr. Duterte, he added.

Hansley A. Juliano, who teaches politics at the Ateneo de Manila, said more voters now have been tired of casting protest votes, conflating support for administration candidates with their hope for a “stable government.”

He noted possible growing discontent in progressive politics, especially among “information and data-bombarded” young voters.   

“The section of the electorate that is educated/integrated into civic engagement is also underpinned by an uncritical appreciation of the private sector’s role in society, regardless of how much abuses it commits in the name of profit-seeking,” Mr. Juliano noted via Messenger chat.

“Young voters may not necessarily be tired of engaging in progressive politics, but the model and tactics of progressive politics have grown stale,” he added. “This hurts the chances of the opposition.”

Mr. Borja said from the perspective of ordinary voters, a protest vote would certainly come from the liberal and leftist sectors. “However, for the partisans of Marcos and Duterte, it becomes a matter of defending their respective chiefs.”

“Is a stable government part of the equation? Probably for Marcos supporters, or for those who are taking politics more seriously than a mere betting game,” he added.

He said the situation is heavily favorable to the Marcoses and Dutertes. “Overall, only a severe crisis or an epic scandal can change the battle lines.”

Mr. Aguirre urged opposition groups to focus on offering alternatives and avoid falling prey to the Marcos-Duterte bickering.

“The way to go is to focus on economic recovery and a clear rejection of the petty dynastic quarrels between the Marcoses and Dutertes,” he said.

“It’s a one-two punch that I’m sure could lead to a knockout — opposition candidates winning one or two seats.”

“We are running as opposition. We can expect natural alignments among all those who will be running as opposition,” Ms. De Lima said, the former senator said.

“Discussions with other groups will be had as issues arise and as positions on these issues solidify,” she added. “Our goal throughout all this will remain the same: To win without compromising our values.”

CoA flags Lanao del Sur local gov’t

PHILIPPINE STAR/ MICHAEL VARCAS

THE Commission on Audit (CoA) has flagged the municipal government of Balabagan, Lanao del Sur for failing to submit its records of properties and assets amounting to P300 million, rendering its financial account unreliable.

State auditors said they found the Balabagan town’s financial statement doubtful due to its failure to submit necessary audit documentation for P297.59 million worth of its assets, limiting CoA’s ability to evaluate the accuracy of its books.

“We rendered a qualified opinion on the fairness of presentation of the financial statements due to the Property, Plant, and Equipment amounting to ₱297,590,771 which cannot be ascertained due to non-submission of the Report on the Physical Count of Property, Plant, and Equipment, thus render the account as unreliable,” a part of the CoA report stated.

“Inability of the agency to conduct physical inventory, submission of the [records]… hindered the reconciliation of the accounting and property records,” it added.

The Municipal Government of Balabagan did not immediately respond to an e-mail seeking comment. The local government noted, however, that it will comply with CoA after their annual inventory completion, according to the CoA report. — Kenneth Christiane L. Basilio

Festival highlights coffee, cacao

VECSTOCK-FREEPIK

DAVAO CITY — Coffee and cacao will take the center stage as the Davao Food and Wine Festival returns next month.

Monica Floirendo Ugarte, Chair of Coffee and Cacao Experience, on Friday said one of the featured events is the Coffee and Cacao Experience, which aims to celebrate the growers, business owners, baristas, and chefs who use these two crops in their food and their businesses.

“There is a lot of creativity that goes into these two crops especially when it comes to chefs making their interpretation… Davao has a very strong coffee culture and we also have very good chocolate small business culture,” Ms. Ugarte said during Business Matters media briefing at Hukad, Ayala Malls Abreeza.

According to Ms. Ugarte, the activity, which will run from Oct. 5 to 6 at the activity center of Ayala Malls Abreeza, will showcase 28 booths and will be participated by coffee and cacao business owners in Davao City as well as chefs from Manila who are using Davao cacao in their recipes.

“We will have competitions, talks, and videos, celebrating these two crops. We will have representations from different sectors of the coffee and cacao industries and a lot of popular Davao establishments and small businesses will be joining,” she added.

The festival will be highlighted with cacao to chocolate tasting by Treena Tecson and the Davao Tableya Mixology Competition.

Ms. Ugarte said with the said activity, they are eyeing to position Davao City as the ideal place for a coffee and cacao experience.

“Because we are an important region for these two crops and aside from that we want to promote this small business,” she said.

The 2nd Davao Food and Wine Festival, which will kick off on Oct. 4 and will end on the 27th, is in partnership with the Department of Tourism that seeks to promote culinary tourism in Davao City.  Maya M. Padillo

Soldiers, cops join blood drive

UNSPLASH 

COTABATO CITY — Police personnel, members of the Philippine Marines, and their counterparts in the Army donated blood during a bloodletting session in Cotabato City on Sunday, a cross-section humanitarian effort for marginalized beneficiaries.

The bloodletting activity was jointly organized by the Cotabato Host Lions Club International District 301-E and the Philippine Navy’s 5th Marine Battalion based in Cotabato City, supported by the Cotabato Regional Medical Center, the Cotabato City Health Office, and the health ministry of the Bangsamoro regional government.

More than 40 combined Marine servicemen, personnel of the Cotabato City Police Office, members of an Army mechanized unit in Maguindanao del Norte, and civilians lined up and donated blood during the bloodletting event at the headquarters of the 5th Marine Battalion.

The blood collected during the bloodletting activity will be kept in a blood bank, earmarked for impoverished needy patients in government hospitals and dispensaries around. — John Felix M. Unson

Abra official’s suspension final

BAGUIO CITY — Malacañang’s Deputy Executive Secretary for Legal Affairs (DESLA), Anna Liza G. Logan, declared the suspension of Abra Vice-Governor Joy Valera-Bernos as final and executory.

Ms. Logan in an order released Sept. 23, said there was no Motion for Reconsideration filed before them as of Sept. 13, in connection with the suspension slapped against Valera-Bernos.

The decision by the Office of the Executive Secretary Lucas P. Bersamin was promulgated by the DESLA on Aug. 12, 2024.

Ms. Valera-Bernos was suspended for 18 months after she was found guilty of oppression and abuse of authority, conduct unbecoming of a public official, and disobedience to national government policies after she locked down the Dr. Petronillo Seares, Sr. Memorial Hospital in Bangued due to a June 2020 Covid case. 

Ms. Valera-Bernos obtained a Temporary Restraining Order on Sept. 13, which lapsed on Sept. 23.

Ms. Logan said in the order that no appeal was filed with the Court of Appeals, contradicting Ms. Valera-Bernos’ suspension as of Sept. 17, declaring the order, dated Aug. 12, “Final and Executory.” — Artemio A. Dumlao

Feasibility study to take 2 years for ports servicing wind industry

NICHOLAS DOHERTY-UNSPLASH

THE Department of Transportation (DoTr) said it is hoping to complete in two years the feasibility study, including the detailed engineering design, for two ports to be repurposed to service offshore wind farms.

“Feasibility study and detailed engineering design take 18 to 24 months to complete but our target is (to finish it) as soon as possible,” Transportation Undersecretary for Maritime Elmer U. Sarmiento said via Viber.

Last week, the Department of Energy (DoE) and the Philippine Ports Authority (PPA) said they will start the process of repurposing three ports to service the offshore wind industry.

Ports will be a key link in developing offshore wind farms, serving as the base from which operators can transport materials needed offshore.

According to the DoE, the Port of Currimao in Ilocos Norte, the Port of Batangas in Sta. Clara, Batangas City, and the Port of Jose Panganiban in Camarines Norte have been shortlisted for repurposing, though the study covers only Currimao and Batangas. 

The DoE has said that it will initiate the detailed engineering design process to ensure that the ports can handle the installation, commissioning, and operational requirements of offshore wind projects.

In July, PPA General Manager Jay Daniel R. Santiago said the Philippines will likely miss its target of launching offshore wind farm operations by 2028 due to lack of progress in developing specialized ports servicing wind farms.

The DoE has said that at least 10 concessions with a combined capacity of 6.72 gigawatts (GW) are projected to be operational by 2028.

The Port of Currimao is near 13 offshore wind energy service contracts (OWESCs) with a potential combined capacity of 9,489 megawatts (MW). Of the total, three service contracts are in the “advanced pre-development stage.”

The Batangas Port is close to 29 OWESCs with a combined capacity of 24,300 MW. Six of these contracts are in the permitting, licensing, and data gathering stages.

The PPA has said that at least nine ports are candidates for repurposing for servicing offshore wind projects.

“We cannot do all nine ports at the same time. Offshore wind projects are really capital intensive. We will prioritize what we consider as doable,” Mr. Sarmiento said.

Currently, the DoE has awarded a total of 92 OWESCs with a combined capacity of 66.10 gigawatts (GW) to 38 renewable energy companies.

The Philippines has an estimated 178 GW of potential offshore wind energy capacity, according to the World Bank. — Ashley Erika O. Jose

13 power projects endorsed to ERC for operating permits

THE Department of Energy (DoE) endorsed 13 projects involving new and operational power plant projects to the Energy Regulatory Commission (ERC) in August, bringing them closer to obtaining operating permits.

The power projects have a combined potential capacity of more than 1,000 megawatts (MW). 

“In August 2024, the DoE issued 13 CoEs (certificates of endorsement) to ERC, which are composed of eight amendments and five new applications,” the DoE said in a document posted on its website.

A CoE is a prerequisite for generation facilities to be issued a certificate of compliance (CoC).

Of the total endorsements last month, four are conventional projects powered by diesel. The DoE also issued endorsements to eight renewable energy projects and one battery energy storage system (BESS).

Among the biggest projects is the Caliraya-Botocan-Kalayaan (CBK) hydroelectric power plant complex in Laguna with a combined total capacity of more than 700 MW.

The CBK hydro facilities are currently under a 25-year build-rehabilitate-operate-transfer and power purchase agreement between independent power producer CBK Power Co. Ltd. and National Power Corp., which will expire in 2026.

CBK is a major privatization project of state-run Power Sector Assets and Liabilities Management which is up for bidding this year.

Endorsements were also issued to Energy Development Corp.’s 226.135-MW Mahanagdong Geothermal Power Project in Leyte; Greenergy for Global, Inc.’s 63.96-megawatt peak (MWp) Cordon Solar Power Project in Isabela; Masinloc Power Co. Ltd.’s 35.258-MW Masinloc BESS in Bohol; and Dagohoy Green Energy Corp.’s 27.120-MWp Dagohoy Solar Power Project in Bohol.

The list also includes DMCI Power Corp.’s 8.826-MW Aborlan Bunker-Fired Power Plant in Palawan; Occidental Mindoro Consolidated Power Corp.’s 7.4-MW SMRA Solar Power Plant and 0.672 megawatt-hour BESS in Occidental Mindoro; and Dupinga Mini Hydro Corp.’s 4.68-MW Dupinga Hydroelectric Power Project in Nueva Ecija.

The National Power Corp.’s 0.420-MW Chico Diesel Power Plant in Masbate, 0.08-MW Butawanan Diesel Power Plant in Camarines Sur, and 0.158-MW Tara Diesel Power Plant in Palawan, were also issued endorsements.

In October, the ERC issued a resolution requiring CoCs for the operation of new generation facilities without the need for renewal but with an obligation to maintain the validity of the underlying permits. — Sheldeen Joy Talavera