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Maynilad ready for dry spell amid mild El Niño

By Victor V. Saulon
Sub-Editor
MAYNILAD Water Services, Inc. has downplayed the impact of El Niño on the water it supplies to Metro Manila’s west zone, saying the previous dry spell early in this decade left the company prepared for a similar incident.
“Since 2010 — the big El Niño, remember — we built a couple of reservoirs all across our network to prevent any service-affecting interruption to our customers in the event of a strong El Niño,” said Maynilad President and Chief Executive Officer Ramoncito S. Fernandez in a chance interview.
Aside from the reservoirs, the company has also invested in technology to monitor the water situation in its service area.
“We’ve invested in a central control room. You can see the entire network remotely in our head office and also in Arroceros (in Manila). Those are the major investments — automation, additional reservoirs,” he said.
Maynilad, the country’s largest water concessionaire in terms of customers, is an agent and contractor of the Metropolitan Waterworks and Sewerage System (MWSS).
Asked whether the supply in the additional reservoirs could last until June, when the weather bureau expects the “weak” El Niño to persist, Mr. Fernandez said: “I believe, as long as MWSS gets the 46 cmps (cubic-meter-per-second) from Angat it looks like we won’t be too worried).”
“There are still things to worry about but I don’t think it will be worse than 2010. That’s what we’re seeing,” he said.
MWSS Administrator Reynaldo V. Velasco earlier called on consumers to save water and help cushion a water shortage as the weather phenomenon could result in the delayed onset of the rainy season.
The agency had said that as a rule, discharge for potable water supply becomes the priority during droughts, reducing water releases for irrigation and power generation.
Water for Metro Manila is primarily sourced from the Angat-Ipo-La Mesa water system. Water from Angat passes through Ipo Dam where it is then released to La Mesa Dam.
According to Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA), La Mesa Dam has a 47-cubic-meter-per-second allocation of water from Angat Dam, higher than the 44 cms the government sets aside for La Mesa Dam during the dry season.
Maynilad serves certain portions of Manila, Quezon City and Makati. It also covers Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas and Malabon in Metro Manila.
Outside the Philippine capital, it serves the cities of Cavite, Bacoor and Imus, and the towns of Kawit, Noveleta and Rosario, all in Cavite province.
Metro Pacific Investments Corp., which has majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls.

Palace advice on water crisis: ‘Wait for rain’

MALACAÑANG said Monday that relief from the Metro Manila water crisis may have to wait for the onset of the rains, though cloud-seeding was also an option, with the Department of Agriculture saying it ordered seeding in areas of Central Luzon that could help fill the capital’s reservoirs.
Ang problema yata eh ang tubig eh manggagaling sa langit; walang ulan, ‘pag walang ulan papa’no, baka mag-aantay tayo,” (The problem is that the water has to come from the sky, and if there is no rain we may have no choice but to wait) the President’s spokesman Salvador S. Panelo said in a briefing.
Separately, Agriculture Secretary Emmanuel F. Piñol said on Monday that he instructed the department’s regional offices to conduct cloud seeding in Bulacan, Pampanga and Rizal in response to El Niño.
“Operations Undersecretary Ariel Cayanan of the Department of Agriculture (DA) [has been instructed] to order the DA Regional Offices to implement cloud seeding operations,” Mr. Piñol said in a social media post while visiting Isabela and Nueva Vizcaya.
“Usec. Cayanan was also directed to coordinate with the Philippine Air Force for the cloud-seeding operations over Bulacan, Pampanga, and Rizal (to increase the sources of water for) La Mesa Dam,” Mr. Piñol said.
“As early as last year, funds were transferred to the Regional Offices and the Philippine Air Force for cloud-seeding operations in preparation for El Niño,” Mr. Piñol added.
The DA estimates crop damage from El Niño at P464.27 million, affecting 13,679 hectares.
“We are always concerned with respect to any problem affecting the welfare of the people,” Mr. Panelo said in the briefing on Monday when asked to comment on the water crisis in Metro Manila.
He said cloud seeding is a “possibility, but added he is not aware if the President has officially ordered it.
Kung meron man, hindi ko alam. But, I am sure meron nang ginawa (If any instructions were issued, I am not aware of them. But I am sure something has been done)“ he said. “I have to ask the President exactly what were the instructions.”
In a social media post on March 8, the Manila Water Company Inc. said: “We sincerely apologize for the inconvenience brought by unexpected water service interruption experienced by our customers across the East Zone.”
The company said it is implementing operational adjustments that may result in low pressure to no water in certain areas “to address the continued decline in the water level at La Mesa Dam due to minimal inflows.”
“We urge our customers to use water more responsibly and wisely in light of the weak El Niño we are currently experiencing and the rapid decline of water levels at La Mesa Dam while Manila Water continues to employ augmentation plans to mitigate the impact of these realities,” it said further.
According to the Manila Water Service Update on Monday, March 11, at least 13 barangays in Mandaluyong City were affected (“no water”) from 11:00 a.m., with this status expected to last until 9:00 a.m. on Tuesday.
Affected barangays in Mandaluyong City were Addition Hills, Barangka Drive, Barangka Ibaba, Barangka Ilaya, Barangka Itaas, Buayang Bato, Highway Hills, Hulo, Malamig, Mauway, Plainview, Pleasant Hills, and Wack-Wack.
In Marikina City, barangays experienced “low pressure to no water” service interruptions on Monday were Concepcion Dos, Concepcion Uno, Fortune, Industrial Valley, Jesus dela Peña, Malanday, Marikina Heights, Nangka, Parang, San Roque, Santa Elena, Santo Niño, Tañong, and Tumana.
In Quezon City, at least 83 barangays experienced “low pressure to no water” service interruptions on Monday.
Several barangays in Antipolo, Rizal, according to Manila Water, were also affected, such as Mayamot, Cupang, Dalig, San Isidro, San Jose, San Luis, San Roque, and parts of Sta. Cruz, among others.
Other affected areas were Pasig, Taguig, the Rizal towns of Angono, Taytay and Binangonan, as well as Makati, Parañaque, and Pateros. — Arjay L. Balinbin, Reicelene Joy N. Ignacio

CoA flags verification process for ‘poor’ beneficiaries of DepEd program

THE COMMISSION on Audit (CoA) reported that the Government Assistance to Students and Teachers in Private Education (GASTPE) program cannot adequately verify the economic status of its beneficiaries.
In a 2018 performance audit report, CoA said the Department of Education (DepEd) “does not check whether or not the students are actually underprivileged.”
The GASTPE program provides financial assistance to students and teachers to improve access to quality education and decongest public schools.
CoA also noted that DepEd has not provided detailed guidelines in the selection of Educational Service Contracting (ESC) grantees. The ESC is an arrangement between the DepEd and private institutions that takes care of tuition, among other expenses, charged to students.
“Approximately, an average of P4.76 billion (for Grade 7) and P10.22 billion (for Grades 11 and 12) were paid to the ESC and SHS VP (Senior high School Voucher Program) participating schools, respectively, in aid of these students, without assurance whether these grantees/beneficiaries are underprivileged,” the report stated, based on records from 2012 to 2017.
DepEd said the law requires a grant of assistance to come with “preferences,” but is not exclusive to students from low-income households.
DepEd committed to address the CoA findings in drafting the comprehensive ESC guidelines for issuance next school year.
CoA also recommended mechanisms for the proper monitoring and management of the program after finding that the GASTPE Composite Team, tasked to exercise such functions, remained inoperative. — Charmaine A. Tadalan

ASEAN-Japan deal to expand services access, movement of persons, business visa issuance

THE Association of Southeast Asian Nations (ASEAN) and Japan signed an agreement to amend the ASEAN-Japan Comprehensive Economic Partnership (AJCEP) Agreement, which will expand visa access to Japan for Filipinos visiting for business or investment, the Department of Trade and Industry (DTI) said.
“The Protocol incorporates provisions on Trade in Services, Movement of Natural Persons, and Investment into the AJCEP Agreement,” the DTI said.
“Filipinos can now be granted visas allowing for short-term to long-term business and investment-related visits to Japan,” it added.
Filipino professionals in the sciences, including engineering, economics, law, business management and accounting, taxation, or specialists in humanities can also be granted stays of up to five years.
Temporary stays will also be granted to accompanying spouses and children as “dependents” of any visa holder.
“The signing of the Protocol is expected to further bolster promotion of PH services exports, FDIs [foreign direct investments], as well as open opportunities for Filipino professionals in Japan,” the DTI said in a statement on Monday.
The agreement was signed on March 2 on the sidelines of the 7th RCEP Intersessional Ministerial Meeting in Siem Reap, Cambodia, according to the DTI.
AJCEP is a free trade agreement between Japan and the 10 member-states of ASEAN which came into force in December 2008.
It contains commitments that eliminate and gradually reduce tariffs on products between ASEAN and Japan to encourage the growth of two-way exports and production-sharing arrangements.
AJCEP also includes an economic cooperation program to help parties maximize ASEAN-Japan partnership through technical assistance and capacity-building.
Trade Secretary Ramon M. Lopez said: “This new development will ensure that Japan continues to be a strong anchor in regional trade. With other initiatives that ASEAN and Japan are engaged in — such as the renewed ASEAN-Japan 10-year Strategic Economic Cooperation Roadmap-Japan remains an important partner of ASEAN in its economic integration agenda,” Mr. Lopez was quoted as saying.
Japan is ASEAN’s fourth-largest trading partner with merchandise trade totalling $218 billion in 2017.
It is also ASEAN’s second-largest source of external FDI, which amounted to $13.2 billion during the same period. — Janina C. Lim

ECoP: Labor has no part in voluntary regularization plan

EMPLOYERS Confederation of the Philippines (ECoP) President Sergio R. Ortiz-Luis Jr. said he does not see the need to come to an agreement with the labor sector regarding its voluntary regularization program.
In an interview with BusinessWorld on Monday, Mr. Ortiz-Luis said that while he is not against the idea of expanding its Memorandum of Understanding (MoU) with the Department of Labor and Employment (DoLE) to include the labor sector, he does not see the latter playing a part.
“We are not against it but the plan doesn’t require the labor sector to do anything. DoLE has a responsibility, the ECoP will do something but labor? What will they do?,” he said.
Last week, Labor Secretary Silvestre H. Bello III said he is considering of making ECoP’s National Voluntary Regularization Program a tripartite deal. He added that DoLE and ECoP will also reach out to labor unions to get them to sign off on the plan.
The three-year regularization program was due to begin last month but labor groups threatened legal action against Mr. Bello if he signs the MoU with ECoP. Granting ECoP a waiver from labor inspections as an incentive for regularizing at least 220,000 contractual workers over the period could be interpreted as dereliction of duty on the part of Mr. Bello, they said.
Mr. Ortiz-Luis Jr. said that the labor sector’s issues with Mr. Bello need to be discussed if ever the tripartite deal goes ahead. — Gillian M. Cortez

Consumer group calls for price transparency during power alerts

A CONSUMER group has called on the electricity spot market to ensure transparency of prices in order to avoid collusion among power generation companies during times when the grid system operator declares “yellow” or “red” alerts.
In a statement, Laban Konsyumer, Inc. (LKI) President Victorio Mario A. Dimagiba has “demanded” disclosure and transparency from the market operator by publishing the settlement prices when reserved power thins after an unscheduled power plant outage.
“It is the duty of the market operator at all times to ensure competitive market behavior among spot market participants especially in periods of tight supply and to police the spot market participants against taking advantage of the tight supply on collusion in the spot market prices,” he said.
Mr. Dimagiba said consumers need to be “informed and empowered and that is why there must be transparency.”
The Wholesale Electricity Spot Market (WESM) is operated by the Independent Electricity Market Operator of the Philippines, Inc. (IEMOP) after it took over the function from the Philippine Electricity Market Corp. in September.
IEMOP is a nonstock, nonprofit corporation governed by a professional board of directors composed of individuals not affiliated with any of the electric companies that trade in the WESM.
Mr. Dimagiba pointed to the yellow alert warnings issued last week when power plants went on unplanned outages. Grid system operator National Grid Corp. of the Philippines (NGCP) issues the warnings.
He said in the past, the spot market had been the subject of an investigation on anti-competitive practices and spot price manipulation.
Separately, Rogelio L. Singson, Meralco Powergen Corp. (MGen) president and chief executive officer, said electricity consumers suffer during these incidents.
“The consumer is on the losing end. Of course, Meralco will be obliged to buy at the spot market because supply is deficient,” he said.
“I think in fairness to DoE (Department of Energy), they’re assessing,” he said. Mr. Singson said the supply deficiency warnings highlight the need to proceed with the construction of new power plants.
He was referring to MGen’s delayed power plant project in Atimonan, Quezon province after its power supply agreement (PSA) was questioned by some sectors. The case is pending at the Supreme Court. — Victor V. Saulon

Fiber authority urges halt to crossbreeding of abaca

THE Philippine Fiber Industry Development Authority (PhilFIDA) said it wants to put stop to the “failed” crossbreeding of abaca with pacol, a wild banana that researchers have claimed improves hybridized abaca’s resistance to disease.
PhilFIDA said the organization conducting crossbreeding operations are University of the Philippines Los Baños Institute of Plant Breeding (UPLB-IPB) and the Department of Science and Technology — Philippine Council for Agriculture, Aquatic, and Natural Resources Research and Development (DoST-PCAARRD).
PhilFIDA said these organizations should focus on developing true-to-type abaca varieties.
“The research project on crossbreeding pacol with abaca was a dismal failure from the very beginning but they keep deceiving the public by posting various pronouncements on the Internet that it is high-yielding and disease-resistant though their research is still at an early stage,” PhilFIDA Executive Director Kennedy T. Costales said in a social media post on Sunday.
In 2013, DoST said that PCAARRD, along with UPLB-IPB and the Department of Agriculture (DA) developed a disease-free abaca-pacol hybrid.
“We told them last year at the DoST-PCAARRD office in UPLB-IPB to stop their activities but instead focus on crossbreeding a true-to-type abaca variety with another true-to-type variety, he said, adding that such activities have millions of pesos in funding.
“In my opinion, when you crossbreed pacol and abaca, it’s no longer a ‘hybrid.’ Crossbreeding one species with another (musa balbisiana and musa textilis) (is just like) crossbreeding a dog and a cat and expect a horse to come out of it. Crossbreeding should be between the same species and should not create a new plant specie.”
Antonio G. Lalusin, a project leader from UPLB-IBP, said in 2013 that conventional breeding of abaca takes about 10 years, whereas the groups were able to develop a disease-resistant abaca variety in about five years using modern genetic technology.
The groups aim to mass produce the fiber in the next few years, particularly in Bicol, where pacol is endemic. — Reicelene Joy N. Ignacio

Unverified third-party data in BIR assessments

A month after President Duterte line-vetoed the general tax amnesty provision of the Tax Amnesty Act of 2019, taxpayers who have long anticipated a clean slate with the Bureau of Internal Revenue (BIR) are once again confronted with the question of whether to expect rigorous tax audits by the BIR.
With the BIR’s collection goal of P2.33 trillion this year, tax audits can be expected.
I cannot blame taxpayers who had hoped for a general tax amnesty as a saving grace from burdensome tax audits and unreasonable assessments. Most tax assessments in the past were based on mere presumptions. As a result, the initially assessed amounts were often exorbitant and incredible, while the taxpayers suspected that many BIR examiners were exploiting the presumption of regularity in performing their functions.
In the recent case of Ayala Property Management Corp. vs. Commissioner of Internal Revenue, Court of Tax Appeals (CTA) Case No. 9298 dated Jan. 21, this year, the CTA again invalidated the income tax assessment over the failure of the BIR to verify the third-party information it used with externally-sourced data. The alleged unaccounted income, based on the differences that resulted from the BIR’s matching of the taxpayer’s Summary List of Sales (SLS) and the third parties’ Summary List of Purchases (SLP), were not actually verified by the BIR with the each of the third parties. Considering that the team that conducted the tax audit did not verify, validate, or confirm the third-party information, the CTA cancelled the related tax assessment alleged by the BIR.
The decision on this recent CTA case could be linked to previous Supreme Court (SC) rulings relevant to the issue. The SC had ruled that “the presumption of correctness of assessment being a mere presumption cannot be made to rest on another presumption; hence, assessment should not be based on mere presumptions no matter how reasonable or logical said presumptions may be” (Collector of Internal Revenue vs. Benipayo, G.R. No. L-1365 ending Jan. 31, 1962). In another case, the SC again emphasized that “prima facie correctness of a tax assessment does not apply upon proof that an assessment is utterly without factual basis, meaning it is arbitrary and capricious. Where the BIR has come out with a ‘naked assessment’ i.e., without any foundation character, the determination of the tax due is without a rational basis” (Commissioner of Internal Revenue vs. Hantex Trading Co., Inc., G.R. No. 136975 dated March 3, 2005).
Despite the pronouncements of the Courts, many taxpayers still find revenue examiners issuing assessments that are based on third-party information-matching without the BIR’s supporting proof of further verification. On the part of taxpayers, when faced with alleged differences presented to them by the BIR that arose from the unverified third-party information matching, they exert herculean efforts and use extensive time and resources to reconcile such “unverified” alleged differences to avoid dispute with and hostility from BIR examiners. Taxpayers believe the BIR’s approach of using unverified third-party information is unfair and biased, as the BIR appears to presume that such third-party information is correct, as against the data of taxpayers being audited by the BIR. Consequently, an unwarranted burden is being passed on to taxpayers.
The BIR could have taken a different approach to avoid unnecessary disruption on the part of taxpayers. In particular, the BIR examiners could be reminded that it is still incumbent on them to review and verify further the third-party information they use in BIR assessments before they can allege that any deviation from such data is wrong and should be treated as a tax deficiency. In doing so, the unnecessary and unfair burden on the taxpayers will be avoided.
Certainly, on the part of the BIR, there are laudable objectives and benefits to the third-party information matching. With the innate limitations of the process, however, taxpayers hope that the BIR is the first to recognize that greater diligence and utmost prudence are required whenever it assesses using third-party information matching as a basis.
The presumption of correctness of a tax assessment is a long-standing principle of taxation. Indeed, there are merits to upholding the presumption of correctness of the tax assessment of the BIR. However, when the taxpayer’s paramount right to property is at risk, significant reliance on such a presumption must take a back seat. After all, we could take the word of the Supreme Court on the matter: “The power of taxation should be exercised with caution to minimize injury to the proprietary rights of a taxpayer. It must be exercised fairly, equally and uniformly, lest the tax collector kill the hen that lays the golden egg.”
Let’s Talk Tax is a weekly newspaper column of P&A Grant Thornton that aims to keep the public informed of various developments in taxation. This article is not intended to be a substitute for competent professional advice. Even though careful effort has been exercised to ensure the accuracy of the contents of this article, it should not be used as the basis for formulating business decisions. Government pronouncements and laws, especially on taxation, as well official interpretations, are all subject to change. Matters relating to taxation, law, and business regulations require professional counsel. The view and opinions expressed herein are those of the author and do not necessarily represent the views of and opinions of P&A Grant Thornton or Grant Thornton International.
 
Farrah Andres-Neagoe is a senior manager from the Tax Advisory & Compliance division of P&A Grant Thornton, the Philippine member firm of Grant Thornton International Ltd. For comments and inquiries, please email
pagrantthornton@ph.gt.com.

A tale of two agricultures: The Philippines and Vietnam

If there is an agriculture miracle in the ASEAN in the past two decades, it is Vietnam. It is not hard to compare Vietnam with the Philippines. They have similarities in terms of land area, population, agricultural area, and, I guess, farm sizes.
But there are also divergences: fertilizer use, mechanization, terrain and irrigated land. First, fertilizer use is much higher in Vietnam. Second, farm operations are more mechanized. Third, irrigated land is almost four times bigger in Vietnam. The latter can be explained by the large areas of low elevation that makes irrigation feasible, especially in the Mekong River delta. This is a major resource advantage of Vietnam and explains why it is a major rice exporter and a high yielder. This is a fact that many Filipinos do not appreciate. This debunks the myth that because our Southeast Asian neighbors studied in UP Los Baños and IRRI, they have applied what they learned and now, they export rice to us.
This article will compare the production performance, diversification and agri-food exports of the two countries in the past 20 years for production and 16 years for agri export.
AREA
The Philippines has slightly more harvested areas than Vietnam. Among the top 10 crops by harvested area from paddy rice to coffee, the Philippines posted increases in seven: paddy rice +28%, coconut +14%, banana +19%, and sugarcane +18%. The largest increases are in: rubber +144%, and mango +50%.
In the case of Vietnam, paddy rice (the largest crop) grew by only 8.5% but other crops posted much higher increases: corn +77%, rubber +256%, coffee +226%, cashew +127% and tea +88%. The largest area increases are dominated by non-traditional exports.
YIELD
Overall average yield rose by 17% for the Philippines. By contrast, it jumped 45% for Vietnam.
The Philippines posted yield increases in six of the top 10 crops: paddy rice, corn, banana, sugarcane, cassava, and sweet potato. Sadly, yield declines were experienced in coconut, rubber, mango, and coffee.
Meanwhile, Vietnam recorded increases in all crops: paddy rice, corn, rubber, coffee, cassava, cashew, groundnuts, dry beans, and coconut.
VALUE
In dollar terms, the Philippines’ crop values posted increases: rice 2.7x, and other crops 2.1x. But Vietnam did much better: rice 3.6x and other crops 5.6x. The large disparity is in other crops.
EXPORTS
Philippine agri-food exports rose by 1.6x to $4.96 billion in 2016 from $1.88 billion in 2001. The contrast with Vietnam is telling: up by 5.6x to $24.55 billion in 2016 from $4.42 billion in 2001.
Comparison: Philippines and Vietnam
Top Exports, Philippines and Vietnam, 2001 and 2016
The Philippines has only two products with export of $1 billion a year: coconut oil and fruits (especially banana). Fruit preparation earned some $629 million.
A big contrast is Vietnam. It has five products with exports of over $1 billion a year: fish and seafood, coffee and pepper, nuts, rice, and fish preparation. Moreover, it has six more products earning over $500 million a year.
Where did the Philippines falter?
There are many factors: focus on rice self-sufficiency, land reform that led to lack of scale, lack of continuity of programs, absence of meritorious civil service, etc.
For its part, Vietnam has strengths and weaknesses. It is not perfect. But its record in agriculture and poverty reduction record are the envy of the world. The readers may want to read the World Bank report on Vietnam.
The report notes that Vietnam’s agricultural sector has made enormous progress. The country has emerged as one of the world’s leading exporters of agro-food commodities and is among the top five for aquatic products, rice, coffee, tea, cashews, black pepper, rubber, and cassava.
It added that there are bright opportunities in the local and export markets but competing in these will depend on the ability of its farmers to address reliability, quality, safety and sustainability issues.
Overall, “Vietnam’s growth has relied heavily on human, natural and chemical factors of production,” and much at the expense of the environment. But that is a different topic altogether.
(This article reflects the personal opinion of the author and does not reflect the official stand of the Management Association of the Philippines or the MAP.)
 
Rolando T. Dy is the Co-Vice Chair of the MAP AgriBusiness Committee, and the Executive Director of the Center for Food and AgriBusiness of the University of Asia & the Pacific.
map@map.org.ph
rdyster@gmail.com
http://map.org.ph

Energy favoritism by legislation

Going through the Economy section of BusinessWorld last week, I checked these four energy-related reports:

1. “NGCP declares ‘yellow alert’ for Luzon power grid” (March 06);

2. “Bill tapping Malampaya fund to pay down Napocor debt hurdles bicameral session” (March 08);

3. “First Gen’s Batangas LNG terminal project cleared by DoE” (March 08); and

4. “Power-line obstruction bill could still pass before Congress closes” (March 11).

Report #1 refers to low reserves on March 5 of only 624 MW, available capacity was only 10,115 MW due to unscheduled shutdowns by some (aging?) power plants while peak demand hit 9,491 MW.
Report #2 refers to the “Murang Kuryente” proposal, under House Bill (HB) 8869 and Senate Bill (SB) 1590, to allocate P208 billion of the net national government share in the Malampaya fund to pay off Napocor’s stranded contract cost (SCC) and stranded debt (SD).
Report #3 is about DoE Secretary Cusi signing a notice to proceed (NTP) for First Gen Corp. to build a liquefied natural gas (LNG) import terminal. Two other entities with similar proposal were issued NTP by the DoE: Phoenix Petroleum and China Oil (CNOOC), and Australian firm Energy World Corp. Ltd. (EWC) in Quezon province.
Report #4 is about HB 6276 and SB 2098 penalizing the construction of structures that interfere with power transmission.
On report #1, it is ironic that government targets fast GDP growth of 7-8% and yet we still experience occasional near-deficiency in power during the hot months of March to May. It is not possible to have sustained fast growth if there is insufficient and limited supply of stable electricity.
From 2000 to 2017 or in just 17 years, the expansion in electricity generation in terawatt hours (TWH) and GDP size are as follows: China, 4.8x and 9.9x; Indonesia, 2.8x and 5.7x; Vietnam, 7.2x and 7.1x; Philippines, 2.1x and 3.9x. Philippines’ power generation is small (see table), there is no valid reason why certain groups would oppose fast expansion of the country’s power generation capacity if the power source is against their ideological beliefs.
Energy
On report #2, under SB 1590, SCC refers to the excess of the contracted IPP costs and the actual selling price, SD is any unpaid financial obligation of Napocor. The good news is that the bill will reduce power prices for the consumers as the universal charge in our monthly electricity bill will significantly decline if not be erased. The bad news is that the SCC and SD of Napocor/PSALM will keep rising because PSALM will keep subsidizing the cost of its contracted energy by selling low and buying high and still look “financially healthy.”
The Implementing Rules and Regulations (IRR) should put a cap on the amount of SCC and SD to avoid endless, bottomless complacency by NPC/PSALM. Over the long-term, these government corporations should (a) learn to sell power rates at true costs, and (b) fade away as there are many government agencies that regulate private generating companies (DOE, ERC, SEC, BIR, LGUs…).
On report #3, there is a draft substitute HB on “Downstream Natural Gas Industry Development Act” with some lousy, anti-consumer provisions. For instance in Chapter IX (Incentives), Section 34 (Natural Gas Portfolio Standards), it mandates that “all distribution utilities shall be required to allocate ten percent (10%) of its electricity capacity from natural gas.”
Proponents and lobbyists of this bill or section intend to rob Philippine electricity customers. Even if they price their natgas to high levels, DUs and customers have no choice since they are coerced to buy minimum amount of natgas power. If the claim by one big natgas company that “natgas is cheap and competitive compared to coal” is true, then there is no need for this bill. That claim therefore is a lie, hence a need for legislation to arm-twist DUs and customers nationwide.
Related to report #4 is the Energy Virtual One Stop Shop (EVOSS) under SB 1439 and HB 8417. The bicameral meeting was finished and the bill may have been signed by President Duterte already. It is among the very few laws to reduce red tape by bureaucrats. For instance, Section 13 states: “Failure of the mother agency and its attached bureaus, offices and agencies both on the national and local level, including GOCCs, to release its action on applications duly filed with complete supporting documents within the prescribed time frame shall be deemed approved for such application…”
The IRR will soon be issued, the reform should cover all power gencos with no exception and favoritism.
The Arangkada Philippines Project (TAPP) document on Power made Recommendation #15, “new generators to enter the market with plants that are profitable at a much lower cost per kWh, creating an abundant supply of baseload.” Amen.
 
Bienvenido S. Oplas, Jr. is the president of Minimal Government Thinkers.
minimalgovernment@gmail.com

An interventionist Senate in Philippine foreign policy

Foreign policy is often an eclipsed subject in electoral campaigns. By its nature, it is reserved to the remit of the agents of the Foreign Affairs department, particularly the Chief Executive, who acts as its main architect. Despite this, there has been an increasing demand for transparency on foreign policies, particularly by members of the Senate, a body that is not directly involved in negotiations.
Defined in terms of external relations of states and their articulation of national interest vis-a-vis other states, foreign policy is mainly concerned about diplomacy, security, conflict management, trade and representation — issues that do not directly translate to the day to day preferences of the electorate. However, there is no doubt to the recent intensification of the demand for an interventionist Senate in foreign policy making in the Philippine government. This is particularly evident with the culmination of the West Philippine Sea case with an arbitral award to the Philippines and President Rodrigo Duterte’s decision to shelve the UN decision in favor of a policy of appeasement on China.
This demand is echoed by this year’s senatoriables. In his campaign pitch, Ex SolGen Florin Hilbay has pushed for an active exercise of the oversight function of the Senate in order “to understand the operations of the government,” specifically President Duterte’s dealings with China. Senators Bam Aquino and Koko Pimentel have made a similar push for transparency, while Magdalo Representative Gary Alejano, a proponent of a clear ‘maritime security framework,’ has argued that “Philippine foreign policy has been severely compromised due to combined economic, diplomatic, and military coercion of China towards the Philippines.”
So as not to belabor the explicit Philippine constitutional provisions on the joint role of the Senate and the Executive in foreign policy, reflected in the Senate’s oversight power of inquiry in aid of legislation and its role in treaty ratification (treated by Jemy Gatdula in a BW Online column on October 26, 2016), let me turn to the other bases for transparent and accountable foreign policy making.
The first basis is found in the blurring of the division between domestic and external policies driven by transnational forces of citizen mobility, globalized media, and increasing societal interdependence. Transnationalism is not a recent phenomenon, but it has intensified to the extent that the governance of domestic policies, more particularly matters on health, natural resources and environment, human rights, migration, security, and the like, have become more sensitive to outside regional developments. Policies with transnational dimension also produce consequences beyond the nation-state. The West Philippine and South China Sea issues are such cases in which the sovereignty and maritime claims of Southeast Asian claimants overlap with the local people’s struggle for livelihoods security.
The influence of transnational advocacy networks (TANs) on economic, cultural and political integration of states also reinforce this blurring in policymaking, often paving the way for the internationalization of specific norms. An example includes TANs’ push for the illegalization of certain domestic norms and state practice that inflict harm on young women and girls, such as the norm on female genital mutilation or cultural norms that lead to unsustainable resource extraction such as whaling or those that promote the inhumane treatment of domesticated animals such as dogs in the dog meat trade, which continue to form part of the domestic practices of specific states.
A second basis is related to the first and is found in the internal/external security threat-nexus, formed out of the policy interdependence of defense, diplomacy and development. Transnationalism and globalization blur the boundaries of these policy areas, as do the actors (border control agents, military and civilian law enforcers) that define and implement these policies. Current events have demonstrated how politics can transform a low political issue to a security concern that requires emergency action. For instance, the anti-immigration sentiment among select EU member-states was, by and large, a product of the policy coupling of migration with terrorism and transnational crimes. This is a move that has relocated migration from a discourse on low politics (job security and welfare) to a high politics discourse on homeland and regional security.
Our case, in which the Philippine National Security Strategy integrates the sources and challenges of internal security (Abu Sayyaf, maritime piracy, smuggling and drug trafficking) and external security (China and North Korea), captures the imperatives of transnationalism. When translated on the ground, anti-piracy and border control measures of municipal law enforcement are reinforced by maritime delineation agreements, joint coast guard exercises, and mini-lateral/ coordinated maritime patrols that involve third states. Such is the case between the Philippine, Indonesian and Malaysian navies that implemented coordinated patrols against piracy and smuggling in their shared Sulu-Sulawesi waters.
Emerging trends on transnationalism that weave domestic with foreign policies have made inevitable the intervention of the people’s representatives in Congress, not only in the implementation of, but in the framing of foreign policy. On June 12, 2018, Senator Risa Hontiveros stated, “President Duterte and his foreign affairs officials have the responsibility to inform the people about their foreign affairs strategy to respond to China’s aggressive actions in the region.” In the light of this, she called for a foreign policy audit to “’determine if the Duterte administration’s foreign policy framework is in compliance with our international obligations, particularly the arbitral tribunal ruling on the West Philippine Sea.’”
As the real impact of foreign policy materializes through concrete issues that affect human lives at the societal level, it becomes high time for the actors of the Executive and legislative bodies to align their efforts in crafting and implementing a foreign policy that relates to the uncertainties of this fast-changing world.
 
Alma Maria O. Salvador is an assistant professor of political science in Ateneo de Manila.
asalvador@ateneo.edu

Your health matters: SuperWoman deserves SuperHealth

health
By Ma. Susana P. Padilla Campos
MARCH IS Women’s Month. This is a month set out to acknowledge the multiplicity of roles women have assumed in today’s society, to recognize them for the flair with which they deliver effectively and efficiently on these roles, and to ponder on the needs of women that will ensure that they can continue to function with pizzazz.
Globally, there has been a meteoric rise in the number of women all over the world who occupy key leadership positions in all facets of society. These same women remain responsible for birthing and minding the children. A woman’s nature is to create a supportive and nurturing environment for her family…after a full workday’s schedule. They provide answers to everyone’s needs in the family and oftentimes neglect their own needs, be they emotional, mental or physical needs.
It is high time more focus is given to Women’s Health realizing the pivotal role they play in family and in society. The three major areas I would want to address are: Cancer, Cardiovascular Health, and Mental Health.
CANCER
According to the 2015 Philippine Cancer Facts and Estimates of the Philippine Cancer Society, 13 out of 100 males and 14 out of 100 females in the Philippines would have had some form of cancer if they would have lived up to age 75. At least one-third of all cancers are preventable, and at least one-third of all cancers can be cured if detected early. In 2015, the top leading new cancer cases among women (Globocan 2012) which comprise 79% of all cases are: breast (33%), cervix uteri (12%), colon/rectum (7%), lung (6%), ovary (4%), liver (4%), thyroid (4%), uterus (4%), leukemia (3%), oral cavity (2%).
Breast cancer ranks 1st among women and the incidence starts rising by age 30. The incidence has been steadily rising with an annual percentage increase of 1.2%. Prolonged and sustained exposure of breast tissue to estrogen increases the risk of breast cancer. Something as natural and most beneficial to a newborn as breastfeeding interrupts continuous production of estrogen, and therefore lowers the risk for breast cancer. Major factors that increase risk for breast cancer are personal history of ovarian, peritoneal or breast cancer, family history of breast, ovarian or peritoneal cancer, and radiotherapy to the chest between age 10 and 30.
Breast cancer is relatively easier to detect; a breast mass is in fact often palpated by the woman herself. In developing countries, monthly self-breast examination and examination by health care provider during clinic visits are the mainstays of early detection. Mammography is the best studied breast imaging technique that has been shown to decrease mortality. Although most experts recommend that routine screening mammography by age 50, the American Cancer Society recommends that this start at age 45, continue annually until age 55, then decrease to every 2 years thereafter. Remember: early breast cancer is curable!
Cancer of the cervix is the 2nd leading site of cancer in women. Two out of 100 women will develop cervical cancer before age 75. Cervical cancer is preventable. Human papilloma virus (HPV) has been identified as a causative agent. The virus is transmitted through sexual intercourse. The more numerous the sexual partners, and the status of the male partner increases the risk of being exposed to the virus. Safe protected sex decreases the number of HIV/AIDS cases, sexually transmitted illnesses and cervical cancer. HPV vaccines are available for peri-adolescent vaccination. A Papanicolau smear (Pap smear) should be done every 5 years after an initial negative test starting at age 30. In less affluent areas direct visualization with acetic acid wash is a reasonable alternative. Surgery and radiotherapy are curative for early cervical cancer.
The incidence of colorectal cancer rises by age 50 and equally among males and females. Risk factors include: family history, polyps in colon or rectum, diet (high fat, low fiber), inactivity and alcohol consumption. Changes in bowel habits (diarrhea and constipation), abdominal discomfort, change in stool caliber, blood in the stool, weight loss, anemia are among the common warning signs. Again, early identification of colo-rectal cancer is curable by surgery and chemotherapy. Those at high risk are encouraged to have colonoscopy done by age 40 years.
CARDIOVASCULAR DISEASE (CVD)
CVD, although lower in incidence than in men, is the leading cause of death in women. CVD includes coronary heart disease (heart attack), cerebrovascular disease (stroke), atherosclerosis and peripheral artery disease. The risk factors for CVD include: personal or family history of CVD, age 55, hypertension, high LDL cholesterol and low HDL cholesterol, diabetes mellitus, overweight and obesity, smoking, post-menopausal state, psychological stress and sedentary lifestyle. Smoking even just 1-2 cigarettes per day has been associated with half of all coronary events in women. The risk of a heart attack is 3 times higher in women smokers, than non-smokers. A BMI > 32 kg/m2 was associated with a 4-fold increase of death from CVD compared to women with a BMI below 19 kg/m2. A target BMI of 25 kg/m2 and a waistline less than 35 inches is suggested by the American Heart Association. Alcohol intake above 2 drinks per day increases the incidence of hypertension. Women aged 20 and above should have periodic cardiovascular risk assessment every 3 years to be able to identify CVD risk factors and be guided on the management of these risk factors.
MENTAL HEALTH
With all the stresses women are subjected to in the workplace, striving to compete and prove their worth in our (still) male-biased society, over and above their expected responsibilities as wife, mother, homemaker, daughter to aging parents and in-laws, it is no surprise that women are twice more likely to develop mental health conditions: Depression, Anxiety Disorder, Eating Disorder, Manic-Depressive Illness, Obsessive Compulsive Disorder, Post-traumatic Stress Syndrome, Alcohol and Substance Abuse. Onset of mental illness has been associated with the timing of hormonal changes. We observe perinatal depression, premenstrual dysphoric disorder, perimenopausal depression, but hormones do not explain everything. Societal stress, lack of emotional support, loss of spirituality and its replacement by commercialism and materialism, social media, are all contributors. The symptoms to watch out for are: persistent sadness and hopelessness, change in sleeping or eating patterns, weight loss or weight gain, decreased energy level or fatigue, excessive fear or worry, body aches with no identifiable cause, irritability, social withdrawal, suicidal thoughts, visual or auditory hallucinations, alcohol or substance abuse. When you notice any of these, give that woman your special attention and seek professional help. Although mental illness is still taboo in our country, there are prominent personalities that have come forward to speak on the importance of recognition and acceptance of mental health illness as a condition that is as common as CVD and cancer, and therefore needs medical attention. Most mental health professionals are careful about maintaining confidentiality between patient and physician, while our society is still evolving in their acceptance of mental illness. Lives will be saved, and quality of life will improve with this awareness of mental conditions.
Think about what life would be like without a mother, a sister, a daughter, a wife, a grandmother, a BFF — it would be dreary and empty. No one smiles at you, hugs you, holds your hand like a woman does. Encourage the women you love to attend to their health and to pursue preventive measures that will keep them healthy, happy and positively influential in this world we live in. Preventive measures as espoused by WHO and the DoH are focused on: 1) avoidance of cigarette smoking and exposure to second hand smoke 2) a healthy diet and avoidance of overweight ad obesity, 3) increased physical activity, 4) avoidance of excessive alcohol consumption, 5) immunization against cancer-associated viruses: Hepatitis B, Human Papilloma Virus, 6) stress management, 7) regular consultations with health care providers . Let’s JUST DO IT!
Cheers to Women!
 
Ma. Susana P. Padilla Campos is a Pediatric Endocrinologist, graduate of the UP College of Medicine who completed her residency and fellowship at the Children’s Hospital of Buffalo. She was the Editor in chief of the Philippine Journal of Pediatrics from 2008-2017. She has assumed several positions in hospital management and is currently the Medical Director of ManilaMed (Medical Center Manila). She is married to Dr. Enrique E. Campos, an Interventional Cardiologist, mother to 4 sons, and sibling to 5 sisters, and 1 brother.