BMReports
PHL confronts challenge of China on sovereign soil By Recto Mercene @rectomercene & Manuel T. Cayon | Mindanao Bureau Chief @awimailbox
Part One
C
ITIES of Manila and Davao—Forget all the cheap talk about the Chinese sending a survey ship to peer beneath the seabed of Benham Rise, looking for minerals and hydrocarbon deposits like oil and gas. They are surveying Benham Rise’s surrounding oceans the way they surveyed, occupied and reclaimed the bottom of the South China Sea and the Scarborough Shoal as part of their long-range aim “to project military power” over the western Pacific Ocean. So say defense experts. “They [China] want it [Benham Rise] now protected, because if and when they feel the need to, once and for all, settle the Taiwan ‘question’, they want that no nation, specifically the United States, to intervene,” Party-list Rep. Francisco Ashley L. Acedillo of Magdalo said in an exclusive interview with the BusinessMirror. Continued on A2
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Monday, March 20, 2017 Vol. 12 No. 159
Abolish VAT to plug tax leakage–Alvarez T n
By Jovee Marie N. dela Cruz
@joveemarie
he leader of the House of Representatives is keen on replacing the valueadded tax (VAT) with the goods and services tax (GST) being implemented in a number of Asian countries to improve revenue collection.
Alvarez : “My proposal is to remove the VAT, and change it with the GST that is currently being implemented in Singapore and Hong Kong.”
Speaker Pantaleon D. Alvarez said the GST will increase the Bureau of Internal Revenue’s (BIR) VAT collection, which currently stands at 4.3 percent of GDP. See “VAT,” A2
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PPProlific Manila PPP Lead Alberto C. Agra
W
hich local government unit (LGU) has the most number of awarded public-private partnership (PPP) projects? Is this the same LGU that has the most number of reclamation projects? For this LGU, what PPP modality did it use to develop its infrastructure projects? The most PPProlific LGU is the City of Manila, led by its PPPeople-driven mayor, former President Joseph E. Estrada. In the past three years, Manila has already awarded 10 PPP contracts. Aside from these, it is currently vetting three more. What set in motion the proliferation of this development strategy in the capital of the Philippines is its PPP framework. In 2014 the City Council enacted Ordinance 8346, which provides for PPPs through joint ventures (JVs). Continued on A15
GOVT TO CREATE TRADE Coal plants to boost PHL power supply REPRESENTATIVE OFFICE 13,000 MW By Lenie Lectura
By Cai U. Ordinario
T
@cuo_bm
he Duterte administration is reviving plans to establish an agency similar to the United States Trade Representative (USTR) Office in its bid to boost the country’s export revenues. According to the Philippine Development Plan (PDP) 2017-2022,
the trade representative office will focus on the country’s efforts in meeting its regional and global trade commitments. This effort will also be accompanied by measures that seek to build the capacity of Philippine trade negotiators in assessing and crafting the country’s trade positions.
PESO exchange rates n US 50.1910
See “Govt,” A2
T
@llectura
he Philippines is assured of 5,000 megawatts (MW) of new power-generation capacity between this year and 2020, with coal power plants still dominating the power mix. In the 2017-2020 list of committed power projects released by the Department of Energy (DOE), the bulk of the capacity will come from Luzon. The DOE data is as
The current power demand of the country, according to the DOE of January 2017. Of the 3,537.915 MW of capacity that will come on-stream this year in Luzon, 2,720 MW will be sourced from coal-fired power plants,
65 0 MW from natural gas, 62.5 MW from hydro, 43 MW from geothermal, 29.515 MW from solar, 22.9 MW from biomass and 10 MW from battery storage. The Luzon data indicates that over 1,400 MW of the capacity is targeted either for commercial operation or commissioning this year. These include the coal power projects of SMC Consolidated Power Corp. in Limay, Bataan, (300 MW) and Pagbilao Energy Corp. in
Quezon (420 MW). Energy World Corp. is targeting the commissioning of its 650-MW gas project in Pagbilao, Quezon, in June for Unit 1, September for Unit 2 and December for Unit 3. For sol a r, t he committed power projects with target commercial operation for the year are the 18 MW of Next Generation Power Technology Corp. in Mariveles, Bataan; 1.675 MW of CW See “Coal plants,” A16
n japan 0.4430 n UK 62.0461 n HK 6.4649 n CHINA 7.2737 n singapore 35.8328 n australia 38.5316 n EU 54.0457 n SAUDI arabia 13.3882
Source: BSP (17 March 2017 )