Businessmirror december 24, 2016

Page 1

media partner of the year

United nations

2015 environmental Media Award leadership award 2008

BusinessMirror

www.businessmirror.com.ph

A broader look at today’s business

n

Saturday, December 24, 2016 Vol. 12 No. 73

2016 ejap journalism awards

business news source of the year

P25.00 nationwide | 8 pages | 7 days a week

PHL-China firearms deal leaves soldiers ‘perplexed’ and ponder...

Are we still the AFP or PLA?

President Duterte inspects troops during the 81st anniversary of the Armed Forces of the Philippines at Camp Aguinaldo military headquarters in Quezon City on Wednesday. AP/Aaron Favila

T

By Rene Acosta

he Armed Forces of the Philippines (AFP) celebrated its 81st anniversary on Wednesday. And while top defense and military officials were in their jovial celebratory mood atop the stage of the sprawling Camp Aguinaldo parade grounds, soldiers outside the façade were, however, busy doing mental calisthenics trying to understand the reasons behind China’s offer of assistance to the military and the decision of their leaders to accept it.

Liking it to a mission, they rattled up probing questions, which include: Is it part of China’s policy of appeasement? Is it a thank-you gesture for Beijing for being easily allowed to occupy a portion of the Philippine territory, and exploit it against the use of Filipinos? For their senior officers and defense leaders, is it an indirect payment for losing a piece of the country’s sovereignty? For the foot soldiers, they could not still fathom the wisdom behind the decision of their officials to let them soon use Chinese-made firearms and equipment—not against their pride and, definitely, not from a country that they have considered an “enemy” not too long ago.

and development of reefs in the Spratlys into huge military bases. “There must be something out of that decision,” one soldier with the rank of a sergeant said. “They should tell it to the Marines that there is none.” “It is degrading really that after China has occupied our territory, it offers and let us use its firearms. It is like that we have been totally conquered in a war,” he added. Officials, however, maintained that such negative thoughts from ordinary soldiers were misplaced, explaining that China’s offer of firearms and equipment was a mere dole-out and was being handed out without any precondition.

‘Degrading’

Dole-out or grant?

The AFP under former President Benigno S. Aquino III has indoctrinated the soldiers that Beijing is a threat, considering its occupation

“This is a dole-out, it is a dole-out worth 100 million yuan, which is equivalent to P720 million. They have a list that we are looking into,

Former President Fidel V. Ramos (right) talks with Chinese Ambassador to the Philippines Zhao Jianhua at Camp Aguinaldo on Wednesday. AP Photo/Aaron Favila

looking at the equipment that are there,” Defense Secretary Delfin N. Lorenzana said on Tuesday. “Maybe, we can get small arms, fast boats or night-vision goggles,”

he said, adding the grant was just for a small amount. The defense chief said China has made its offer during his Continued on A2

Coal-price volatility may force DOE to revise energy-mix policy next year By Lenie Lectura

T

he Department of Energy (DOE) is contemplating on the possibility of amending a year-old circular to accommodate a new energy-mix policy. Energy Undersecretary Felix William B. Fuentebella, in an interview, said the Competitive Selection Process (CSP) circular would be used as a “tool” to implement the newly proposed energy-mix policy announced by the agency’s secretary, Alfonso G. Cusi. “The CSP circular will undergo public consultation for amend-

ment,” he said, adding that the draft amended CSP circular could be out within the first quarter of next year. The circular mandates all distribution utilities (DUs) to undergo CSP in securing their power-supply agreements (PSAs). This means that DUs and electric cooperatives (ECs) will have to bid out their power requirements from a pool of interested power firms, thereby eliminating bilateral negotiation.

Not fuel specific

Cusi said last week that his office is strongly pushing for an energy mix that is not fuel specific, but

PESO exchange rates n US 49.9220

rather a flexible one that does not put a cap on which technology to be developed by power-generation firms. In particular, Cusi wants an energy-mix policy that comprises the following: 70-percent baseload (power plants that run 24/7); 20-percent midmerit (running on long hours, but not 24/7); and 10-percent peaking (with easy start-up and can be used during peak hours). This proposed energy mix is not even close to the proposed 30 (coal)-30-(gas)-30 (renewable energy)-10 (other technologies) that

the previous administration was pushing for. Based on latest DOE data, the country’s installed power-generation capacity is 34-percent renewable energy; 33 percent from coal plants; 18 percent from oil-based plants; and 14 percent from natural-gas plants. Cusi said his “comprehensive and responsive energy-mix policy” would support and sustain the growing economy, while also guiding energy developers on the business environment. “In this regard, power developers can compete with one another

accordingly, and can picture the situation in each of the main grid for the kinds of investment needed,” he said, while stressing that this would serve as a guide for the entry of investors and proponents in the energy industry.

Just a guide

However, according to Fuentebella, no new circular will be issued. He echoed the statement of Cusi, who said that this 70-20-10 energy-mix policy would merely serve as a guide. “…That’s a guide for consumers and investors. This is meant to

70-20-10 The baseload, midmerit and peaking energy mix being proposed by Energy Secretary Alfonso G. Cusi

achieve optimization of supply and least cost so that DUs can be guided that the purchases they make can be easily approved,” he commented, when asked how the agency plans to enforce the proposed energy mix. Continued on A2

n japan 0.4226 n UK 62.0481 n HK 6.4333 n CHINA 7.1853 n singapore 34.5888 n australia 36.7126 n EU 51.9988 n SAUDI arabia 13.3139

Source: BSP (16 December 2016 )


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.