27 minute read
KOREAN EXIMBANK OFFERS TO FUND DPWH PROJECTS
Korea Eximbank offers to fund new projects in DPWH pipeline
The Korea Eximbank (KEXIM) Manila Representative Office is keen on levelling up funding support to infrastructure development priorities of the Department of Public Works and Highways (DPWH).
KEXIM is the implementing agency of the Korean Government’s Economic Development Cooperation Fund (EDCF) Official Development Assistance (ODA) program in the Philippines.
In a meeting with DPWH Secretary Manuel M. Bonoan and Senior Undersecretary Emil K. Sadain, KEXIM-EDCF Country Director and Chief Representative Jaejeong Moon expressed interest to support DPWH pipeline new projects to ‘Build Better More’.
The leaders of the two agencies discussed ways of further strengthening the cooperation between Philippines and South Korea.
The Korean Government intends to further increase the EDCF concessional loan assistance to the Philippines to fund development projects under the President Ferdinand Marcos Jr. administration.
The EDCF assists DPWH-implemented flood control, roads and bridges and flood control projects managed by the Unified Project Management Office (UPMO).
According to Sadain, who is in-charge of ODA-funded projects, three EDCF projects are ongoing, namely the Samar Pacific Coastal Road Project in Northern Samar, Panguil Bay Bridge Project in Northern Mindanao, and Integrated Disaster Risk Reduction and Climate Change Adaptation Measures in the Low-Lying Areas of Pampanga in Central Luzon.
Earlier this year, the Philippine government also secured a loan from South Korea to cover funds for the engineering services of the Panay-Guimaras-Negros Island Bridges Project.
It is an interisland bridges project that will entails the construction of two sea-crossing, four-lane bridges totaling 32.47 kilometers — including connecting roads and interchanges — to connect the islands of Panay, Guimaras and Negros in Western Visayas, added Sadain.
The EDCF also provided a grant for the recently completed feasibility study of the Samar Pacific Coastal Road Project Phase II that aims to construct two bridges – the Laoang 2 Bridge (360-meter) and Calomotan Bridge (630-meter).
This includes the upgrading of 12.5 kilometers of existing road from Laoang-Palapag Road Junction to Catarman-Laoang Road Junction that will connect the island of Laoang to mainland Northern Samar.
DPWH is looking forward to the approval of submitted final feasibility study report to National Economic and Development Authority (NEDA) Board and the subsequent endorsement of the project to KEXIM for funding of the detailed engineering design and civil works for its construction.
Other Korea-funded ODA feasibility studies discussed during the meeting include the Philippines-Korea Project Preparation Facility for Lubao-Guagua-Sasmuan-MinalinSanto Tomas Bypass Road (30 km), Mount Kitanglad Range Belt Road (108 km);
The Capas-Botolan Road (38.4km), and Lubao-Guagua-Sasmuan-Minalin-Santo Tomas Bypass Rd., Section 4: Minalin (Bulac)-Sasmuan Viaduct (7 km); Maasin City Coastal Bypass Road;
The Iconic Bohol-Leyte Bridge Project; and Integrated Flood Management Master Plan of Lower Pampanga River Basin covering Pampanga Delta Development Project Phase II and Central LuzonPampanga River Floodway Flood Control Project.
The meeting held August 12 at the DPWH Central Office was also participated by UPMO Project Directors Ramon A. Arriola III, Sharif Madsmo H. Hasim, and Benjamin A. Bautista; UPMO Project Manager Teresita V. Bauzon; KEXIM Deputy Director Yunhak Lee; and Program Officer Ana Labella.
The proposed National Expenditure Program (NEP) for 2023 will include PHP453 billion for climate change adaptation and mitigation programs and projects.
In a press statement, the Department of Budget and Management (DBM) said the climaterelated expenditure for next year is 56.4 percent higher than the PHP289.73 billion this year.
Budget Secretary Amenah Pangandaman said her office documented an average of 21.3 percent increase in climate-related expenditures from 2015 to 2023.
“With the continuous help of implementing agencies and of every Filipino, we can work towards climate resiliency to safeguard a sustainable future for our country,” Pangandaman stated.
The DBM, along with the Climate Change Commission, institutionalized the Climate Change Expenditure Tagging (CCET) process through Joint Memorandum Circular 2015-01.
Citing CCET results, the DBM said P264.89 billion will be earmarked for Water Sufficiency projects which will be given priority by the current administration; PHP131.51 billion for Sustainable Energy; and PHP40.78 billion for Food Security.
The Department of Public Works and Highways will also receive a budget allocation of PHP168.9 billion for its Flood Management Program.
The National Greening Program of the Department of Environment and Natural Resources will get PHP2.49 billion for the planting of 6.18 million seedlings in 11,631 hectares of land resources, Protected Areas Development and Management Program, and Management of Coastal and Marine Areas.
DBM: 2023 national budget ‘springboard’ for full-speed recovery
The proposed PHP5.268 trillion national budget for 2023 will serve as a “springboard for the economy’s full-speed recovery,” the Department of Budget and Management (DBM) said in August.
Budget Secretary Amenah Pangandaman said the 2023 budget spending plan was crafted based on and in support of the Marcos administration’s eight-point socioeconomic agenda.
“The administration’s first fullyear budget shall serve as a springboard for the economy’s fullspeed recovery and meaningful structural reform,” Pangandaman said, as the House of Representatives began its deliberations on the proposed 2023 budget.
The proposed budget is anchored on the theme, “Agenda for Prosperity: Economic Transformation Towards Inclusivity and Sustainability.”
The 2023 budget plan, Pangandaman said, would address the immediate and pressing concerns of Filipinos in the near- and mediumterm.
The House of Representatives is targeting to finish committee and plenary deliberations on the budget proposal before Oct. 1, when Congress is scheduled to go on its first recess that will last until Nov. 6.
Filipinos’ purchasing power
The proposed budget’s first pillar intends to strengthen the Filipinos’ purchasing power by covering the first three items in the eight-point socioeconomic agenda, which include food security, improved transportation, and affordable and clean energy, the DBM said.
The DBM noted that the Department of Agriculture (DA)’s banner programs, including the PHP30.55billion National Rice Program, would receive a larger share in 2023 to ensure food security in the country.
Around PHP1.20 trillion will also be earmarked for the “Build Better More Program” to sustain the administration’s continued push for infrastructure development, the DBM added, noting that it is equivalent to 5 percent of the gross domestic product (GDP) for road, rail, transport, and flood control infrastructures.
The DBM said bulk of the infrastructure budget would go to the Department of Public Works and Highways (DPWH) and the Department of Transportation (DOTr).
Around PHP272.87 billion will be used to finance the DPWH’s “efficient” transport and logistics system for goods and services, while some PHP167.12 billion will be allocated for the DOTr’s establishment of an “efficient and reliable” mass public transportation system.
The DBM also noted that the Department of Energy would receive PHP476 million to realize the government’s bid for “affordable and clean” energy.
Of the PHP476 million, around PHP145.21 million will be earmarked for the DOE’s Renewable Energy Development Program, PHP252.35 million for the Energy Efficiency and Conservation Program, and PHP78.86 million for the Alternative Fuels and Technologies Program.
The budget for the DOE’s programs will complement the continuation of the National Electrification Administration’s (NEA) PHP1.63billion Sitio Electrification Project, the DBM added.
“Finally, amid the expected continuing elevated cost of fuel, the budget for the DA’s Fuel Assistance for Farmers and Fisherfolk will be doubled at PHP1 billion. Of this amount, PHP510.45 million will be for corn farmers, while the remaining PHP489.55 million will be for the fisherfolk,” the agency said.
Around PHP2.5 billion will also be allocated for the DOTr’s Fuel Subsidy Program for the transport sector affected by the rising fuel prices.
Budget Secretary Amenah Pangadaman (inset, left) submits to House Speaker Martin G. Romualdez the proposed P5.268trillion national budget for 2023. Romualdez then presides over a meeting of the members of the Development Budget Coordination Committee (DBCC) on the state of the economy and the macro-economic parameters the Executive branch used in putting together next year’s spending program.
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Salceda: PBBM’s 2023 NEP gives PH railways biggest ever budget at P114 billion
House Ways and Means chairman Albay Rep. Joey Salceda said President Ferdinand Marcos Jr.’s proposed P5.268 trillion budget for next year packs the “largest ever railway budget of any Philippine president” — P113.99 billion or almost five times that of the 2022 outlay of P23.12 billion.
The proposed National Expenditures Program (NEP) for next year was submitted to the Lower House in August.
“President Marcos has virtually declared that the era of big rail is back and that he has fired the opening shot to roll out Build, Better, More,” Salceda said.
As principal author of a House resolution that formally institutionalized Marcos’ infrastructure spending targets and gave it the name Build Better More or BBM, Salceda said the President “is moving toward national backbone projects.” in reference to PRRD’s main infrastructure
He said while the strategy of former President Rodrigo Duterte was to bring the resources of the national government down to the countryside, PBBM is going to maximize the benefits of that strategy by bringing these thousands of smaller infrastructure projects together through big connecting projects, foremost of them the railways.
“President Marcos is increasingly looking like the Big-Ticket Project President, especially Big Rail. PBBM multiplied the Railway Program project almost five times that of the 2022 amount, or from 23.12 billion to 113.99 billion. Rail got the biggest increment percentagewise, among major line items in the 2023 NEP,” he pointed out.
Salceda added the bulk of the P380 billion unprogrammed appropriations for foreign-assisted projects will come from loan proceeds for railway projects, and some P108 billion in peso counterpart for rail projects have already been anticipated in the budget.
He said the government seems bullish about receiving loan proceeds from the Bicol Railway project, most especially, which is now being renegotiated with China.
“President Marcos proposes a large window of unprogrammed appropriations from loan proceeds so that, once the Bicol Railway loans actually materialize, we can immediately get the ball rolling with construction,” he added.
“This would be the largest ever railway budget of any Philippine president, making PBBM decisively the ‘Railways President…If all of these developments keep going well, PBBM will be the President of the Golden Age of Trains in the country,” he said.
Rail is decisively better at lowering logistics costs than any other land transport option. It is the cheapest per-kilogram option for freight.
“Railway is also necessarily of longer distance than road infrastructure. So, PBBM is clearly trying to build a national backbone through rail. Inter-regional trade is bound to expand dramatically once this program is completed,” he said, adding he has also thanked Transport Secretary Jaime Bautista for “keeping Bicol Rail in the agenda” and appealed to Finance Secretary Benjamin Diokno to “move forward with the Bicol Rail loans.”
“I have asked Secretary Diokno to give the green light to the loans for Bicol Railway and the rest of the PNR South Long Haul project. If anything, the massive unprogrammed appropriations for loan proceeds is a sign that the national government is optimistic we will have negotiations completed by this year, and loan proceeds received by next year,” he said.
Salceda added he is working with the DOTr for the establishment of the Legazpi-Daraga Tramway, which will make use of the defunct PNR lines passing through the Municipality of Daraga and the City of Legazpi to create a metrowide tramway system.
By Marcelle P. Villegas
Around the world, most industries are dependent on the consumption of fossil fuels. Can everyone cope with the demand for the energy transition?
Last, 29 July 2021, PH-EITI National Conference’s theme was “Resiliency in Transparency”. This year’s conference was a roundtable discussion (RTD) with the topic of “Preparing the Extractives for Energy Transition”. It was a hybrid event last 4 May 2022 in F1 Hotel Manila and via online access via Zoom.
Philippine Extractive Industries Transparency Initiative or PH-EITI is a government-led, multi-stakeholder initiative implementing EITI, the global standard that promotes the open, accountable management, and good governance of oil, gas, and mineral resources. The initiative was founded on 26 November 2013 through Executive Order No. 147 series of 2013. This was first announced as a government commitment through Executive Order No. 79, series of 2012.
This year, they had a total of 508 participants in the roundtable discussion through different platforms, where 91 people were present at the venue, while 305 were online via Zoom and 203 via Facebook Live. Many of the Zoom attendees were from the government, while the rest were from the industry sector, civil society, academe, and media.
In the RTD, the different presenters and speakers discussed how the various sectors of our country plan to address the issue of climate change in order to prevent future environmental problems.
“The Earth’s rising surface temperature is now a critical global concern, considering its impacts on biodiversity, climate, food security, and human health, among others. To mitigate impacts, governments around the world are identifying strategies to tackle the main contributors to temperature rise, foremost of which is the burning of fossil fuels like coal, oil, and gas.”
On a global scale, what makes climate change difficult to control is because it is connected to everyone’s dependence on fossil fuels. Therefore, the concept of energy transition is seen as a possible solution. However, the transition is not easy. In some countries and industries, it might not even be 100% possible.
According to the International Renewable Energy Agency (IRENA), energy transition is “a pathway toward the transformation of the global energy sector from fossil-based to zero-carbon by the second half of this century.”
From the overview of the PHEITI report, “Countries moving towards this direction are expected to gradually, if not rapidly, modify their energy mix, and address any economic and social implications of the transition.”
The Philippines is one of the signatories of the Paris Agreement and the United Nations Framework Convention on Climate Change. This is an international treaty that requires governments to incorporate climate change mitigation and adaptation commitments across all sectors of society.
In relation to signing the treaty, the Philippines formulated the Philippine Energy Plan 2020-2040 to bring in more clean energy fuels and technologies that will dominate the country’s portfolio of plans and programs for the energy sector in the next two decades. The plan includes the government’s vision for transition, which is aimed toward the sustainability of all available energy sources, as well as the diversification of the country’s energy mix.
Which industries are forecasted to struggle in this transition?
“The mining, oil, gas, and coal industries are among industries directly affected by the global shift to net-zero emissions. As the energy transition progresses, fossil fuel-producing or dependent communities and countries will face challenges sustaining revenues and the national economy in general. Communities that rely on revenues and jobs generated by fossil fuel production are among the most vulnerable to the transition.”
Therefore, to cope with the difficulties that the transition will bring,
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producing communities and countries will have to find alternative revenue sources to replace the lost income.
“On the other hand, increased deployment of modern renewable energy and energy-efficient technologies also means an increased demand for rare earth elements and other mined inputs. This will require a substantial ramp-up of existing production capacity. This means a transition to a sustainable low carbon economy will definitely reshape the extractive industries.”
To tackle the issues behind energy transition, PH-EITI and the Department of Energy- Energy Policy and Planning Bureau (DOE-EPPB) organized this RTD to provide energy stakeholders with information on existing policies and future government programs that will lead to the shift to a sustainable and low carbon economy. “Using the PHEITI platform, the RTD intended to elicit stakeholder perspectives on energy transition and thresh out issues on the implications and effects of the transition on various sectors.”
Moreover, the goal of the RTD this year is to inform the participants and involved industries about the Philippines’ progress in implementing transition plans, policies, and commitments, as well as the rollout of government programs to sectors that will be affected by the shift.
The roundtable discussion on energy transition was moderated by Ms. Mary Jane Baldago, the managing specialist for stakeholder engagement of PH-EITI.
Atty. Felix William B. Fuentebella gave the Welcome Remarks. He is the Senior Undersecretary of DOE. He stated the questions that may arise in the energy shift such as the consequences of the energy transition, issues and concerns that should be addressed, the boundaries to be pushed, and what are the negotiables.
Dir. Michael O. Sinocruz, OICDirector, Energy Policy and Planning Bureau, DOE, said that the Philippine Energy Plan 2020-2040 is connected with the goals of Ambisyon Natin 2040 which represents the collective long-term vision and aspirations of the Philippines in the coming years. In support of these aspirations, he shared that the DOE formulated the 9-point energy agenda, among which are providing access to electricity for all Filipinos, promoting energy efficiency, and establishing a pro-consumer framework.
Engr. Romualdo Aguilos, Engineer IV, Mines and Geosciences Bureau, identified the risks of the energy transition for the mines group, as well as the opportunities for the environment, the economy, and the people.
Dir. Dona Minimo, Director, International Finance Group, Department of Finance, reported that the Philippines’ greenhouse gas emissions are currently a minor contributor to global warming at approximately 0.33% of the world’s share of greenhouse gas (GHD) emissions. “However, due to its economic development and rapidly growing population, the Philippines is projected to have sharp increases in CO2 emissions over the incoming decades. GDP growth is expected to strengthen seven to 8% in the medium term.”
The mining sector’s perspective on energy transition was discussed by Atty. Christer James Ray A. Gaudiano, Director of CEMEX Holdings Philippines-Enterprise Risk Management, Corporate Communications, and Public Affairs. He reported the following: a. Informed everyone that the cement companies have been transitioning to green cement including: (i) launch of green cement which uses a lower clinker factor in production, (ii) decarbonization of operations in using by-products of raw materials of other industries as part of the manufacturing process, and (iii) use of plastic waste or inorganic waste as alternative fuels for clinker production. b. Shared investments in waste heat recovery (WHR) facilities to be able to produce electricity in the plant. SOLID Cement in Antipolo has a WHR that produces 12% of the energy needs of the plant and APO Cement in Cebu has a WHR
Approaches to Make Strategic Mine Planning Successful
By Engr. Mae Ann R. Cabasag
Strategic Mine Planning (SMP) encompasses technical feasibility, economic viability, social and environmental aspects. It is essential in ensuring optimal resource extraction and sets the mining project’s technical and economic direction. Yet a plethora of mines do not fully engage in this kind of mine planning. The reason for this? Perhaps they have yet to figure out the approaches to make use of its technology in maximizing the value of their increasingly scarce resources.
In this article, we will focus on the four approaches in producing a strategic mine plan that is robust enough to provide mine planners or decision-makers the confidence in their plans amid market uncertainties. This kind of confidence is made possible through the existing technology from Dassault Systèmes.
But first, we need the basics of distinguishing the following from the other: mine plan and mine schedule, and strategic mine planning and tactical mine planning. These are often used interchangeably in the mining industry despite pertaining to different things.
According to Mark Bowater, author of Crimes Against Mine Planning, “A mine plan is the set of things to be done to allow something to be achieved and includes mine designs, plus a schedule, plus the communication of it all.” Mine schedule, on the other hand, is “the sequence of activities carried out at the mine site to achieve target outcomes. [It] includes a database of the quantities of the task to be scheduled, along with equipment productivities, a calendar and then some form of sequence path for equipment to carry out those tasks.”
Meanwhile, SMP and tactical mine planning are defined by Dassault Systèmes GEOVIA Mining Industry Process Consultant Joaquin Romero as “SMP concentrates on long-range production planning aimed at maximizing the value derived from exploiting an ore deposit. Tactical mine planning focuses on short-range plans to maintain operational viability.”
Hence, the long-term strategic mine plan is susceptible to various forces, both internal and external (e.g. geological knowledge, economic and market volatilities, technological advancements, and legislative changes).
Defining Reserves and Assessing Strategies
Traditionally, in a surface mine, planners use the Lerchs-Grossmann (L&G) algorithm in defining reserves. This generates pit shells that maximizes total undiscounted cash flows. When planners identify the final pit, they create sequences called, “nested pit shells” as pushbacks to reach the final pit. However, most of these nested pit shells are not feasible in the mine operations.
What should be the solution in this traditional approach’s geometry-related issue? A flexible approach that modifies L&G algorithm. How? “By incorporating a starting point and direction for the extraction, and
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that produces 8% of the energy needs of the plant. c. Recommended passing the Extended Producers Responsibility bill which requires plastic users and manufacturers to recycle or divert plastic waste d. Encouraged and maximized the use of cement kilns in cement plants as waste eaters instead of landfills. Cement Plants will be able to use waste as an alternative fuel to coal. e. Encouraged the use of green cement (cement with low clinker factor) in the use of public construction projects.
Finally, Mr. Mark Burnett enumerated the role of EITI in the energy transition. He is the Europe and Policy Manager for EITI International. He stated that the EITI board has set the direction for engagement on the energy transition, namely: 1. EITI should advance economic implications of energy transition and use of the EITI data, 2. EITI should build capacity for stakeholder groups to engage and inform debate risks and opportunities associated with the energy transition, 3. EITI should consider mainstreaming transparency on the energy transition through the EITI standards and guidance, and 4. EITI should engage industry and institutional investors in discussions about industry trends and how energy transition may affect extractives transparency.
Editor’s Note: The Philippines formally withdrew from the EITI in June 2022, after the Department of Finance, which chairs the Philippine EITI, took issue with how the country was assessed by the organization in coming up with its February 2022 implementation score.
“We find that the manner by which the EITI Board undertakes its Validation is unduly subjective, biased, and unfair. The Philippines has no confidence in the ability of the EITI to undertake an impartial, transparent, and evidence-based Validation process,” said Finance Secretary Carlos Dominguez III in a letter to EITI chair Helen Clark last June 20.
Reference:
PHEITI Website at https://pheiti.dof.gov.ph/resources/
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trial-anchored Estates complemented by Commercial, Residential and Institutional components.”
LIMA Estate is in Lipa, Malvar, Batangas is 794 hectares. This is a PEZA-registered economic zone. The LIMA Central Business District is Batangas’s first fully integrated CBD (Central Business District) development. LIMA Tower One is the first of 6 towers to be built in the LIMA Office Park Campus in 2022.
On the sustainability at LIMA Estate, “Aboitiz InfraCapital is gearing up for the transformation of the LIMA Estate into a smart, next-generation economic center in the thriving investment hub of Batangas.” More on its infrastructure features, “fully complemented by a reliable infrastructure system, LIMA is supported by affiliates of the Aboitiz Group to ensure ease of doing business for our locators.”
Another feature is having a “PEZA and BOC (Bureau of Customs) One-stop Shop.” There is the convenience of PEZA and BOC offices located inside the park that provides 24/7 service to LIMA Technology Center locators. This feature will enhance ecozone linkages with the local government, communities, businesses, and other stakeholders.
Aside from LIMA Estate, AIC’s other Economic Estates include the West Cebu Estate in Balamban, Cebu, and the MEZ2 Estate in Lapu-Lapu City, Cebu. West Cebu Estate covers 540 hectares, while MEZ2 Estate has a span of 63 hectares.
In summary, Aboitiz InfraCapital Economic Estates today has 1,100 hectares of industrial business parks currently being operated; 60,000 sqm GLA (gross leasable area) for office buildings in Cebu, Makati, and Ortigas; with a total of 90,000 jobs generated across Central Visayas and Southern Luzon; 200,000 sqm PEZA-accredited office spaces under planning; and 100,000 sqm GLA of commercial retail spaces in Cebu and Batangas.
“We continue to deliver innovative concepts translated to thriving fully-integrated industrial estates and commercial communities for 30 years, known for its deliberately planned, and purposely designed developments.”
On the second part of the PICC Luncheon, Mr. Antonio Peñalver, Executive Director of Aboitiz Construction, Inc. gave a presentation about “ACI’s Best Practices in the Construction Industry.”
Aside from Aboitiz InfraCapital’s best practices in the construction industry, he discussed “how ACI is proactively transforming towards becoming a well-known and most trusted contractor in the country.”
“We strongly affirm that as we drive towards expanding our operations and setting a national footprint, we have started to implement innovative programs that will continue this momentum throughout the rest of 2022.”
It is noteworthy to mention that last May 2022, Aboitiz Construction successfully finished the construction of another 69kV overhead transmission line project that consists of 37 electric poles of Lima Enerzone (LEZ) in Lipa City, Batangas.
This project is part of a bigger move to strengthen the power delivery in Lima Estate. This is possible through a partnership between Aboitiz Construction and Lima Enerzone. Another objective of the project is to improve power reliability in the area.
Another milestone for Aboitiz Construction took place in March 2021. The company completed the design and construction of Berth for one of the most modern container ports in the country, the Davao International Container Terminal (DICT) in Panabo City, Davao del Norte.
“The construction of Berth has increased the turnaround time of loading of vessels. This means more vessels can now dock at the terminal to bring more produce and agricultural products in and out of the region, potentially creating demand. A total of 121 employees were hired for the said project and out of this number, around 72% were hired locally.”
(Left) Atty Patricia A.O. Bunye is Senior Partner and the Deputy Managing Partner for Administration of Cruz Marcelo & Tenefrancia. She was the emcee of the event. (Right) Mr. Jolan Formalejo, Vice President for Inventory Generation Group of Aboitiz InfraCapital [Photos by PICC]
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then building a sequence schedule that may align better with the mine project’s strategic requirements,” Romero elaborated.
With the combination of the DS GEOVIA Whittle and SIMULIA process-automation tools, Dassault Systèmes tested this flexible approach by generating 1,600 to 2,400 scenarios and produced a value map where one can easily determine the “best starting region and corresponding directions.”
In Part 2 of this article, we discuss mine production-scale plan, uncertainties and risks associated in your SMP, how to optimize your production schedule, and how GEOVIA’s SMP solutions will pave your Strategic Mine Plan’s approaches to success.
REFERENCE: Dassault Systemes. (2022). Strategic Mine Planning Articles 1-4.
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