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BusinessDaily (June 19, 2013)

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BusinessDaily CREDIBLE

Volume III, No. 238

Market Indicators

As of 6:08 pm june 18, 2013 (Tuesday)

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PHISIX

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26 cents

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179.36 points

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Briefly Tesda graduates THE city government, in cooperation with the Technical Education and Skills Development Authority (Tesda) continue to empower the local citizenry through the holding of skills training programs. This month, 500 more residents graduated from short term courses such as baking and prastry production, commercial cooking, beauty care services, food processing, massage therapy and dressmaking, according to the City Information Office. Mayor Vicente Y. Emano expresses hopes that this will help improve their lives. “Hinaut nga ang inyong natun-an sulod sa unom ka bulan magamit unta aron mo -alibyo ang kahimtang sa inyong tagsa-tagsa ka kinabuhi,” the mayor said in a press statement.

Road to airport M ISA M IS O r i e n t a l - - A n unfinished road maintenance project of the Department of Public Works and Highways (DPWH) has enraged airpor t- bound commuters in Laguindingan, Misamis Oriental. The DPWH ’s regional of fice repor ted that as of last June 15, only 25 percent of the 1.5 -kilometer road from the town of Alubijid to Laguindingan has been completed. DPWH chief of staff of the regional director Engr. Boni Lora said the province’s district engineer was implementing the project. “I really don’t know the rea s o n s why t he proje c t accomplished only 25 percent when its schedule of completion was on June 24, 2013,” Lora said.

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PH still among ‘least peaceful’ countries in AsiaPacific By BONG FABE, Associate Editor

THE Philippines continue to improve its ranking in the world’s peace stage, placing 129th with an overall score of 2.37 among 162 countries in the latest Global Peace Index (GPI).

The Philippines’ ranking this year is an improvement of 4 notches over its 2012 placement of 133rd and 6 notches over its 135rd ranking in 2011. “Last year saw improved

prospects for peace between the Philippines government a nd t he Moro Is l a m ic Liberation Front (the main rebel group on the southern island of Mindanao), when a fra mework dea l for a

potential peace agreement was signed. There are many obstacles to lasting peace, but negotiations appear to be on-track in 2013,” said that Global Peace Index 2013 released last Tuesday by the

Institute for Economics and Peace (IEP), an independent, non-partisan, non-profit resea rch orga nisat ion dedicated to shifting the world’s focus to peace as LEAST/PAGE 11

Power from spot market to cost higher than DUs’ By NELSON V. CONSTANTINO, Editor-in-Chief and BUTCH ENERIO, Correspondent with Wire Report

W

HILE Mindanao consumers are eagerly awaiting for the start of the government-initiated Interim Mindanao Electricity Market (IMEM) in October this year, the Philippine Electricity Market Corporation (PEMC) yesterday admitted the rates derived from it will be “significantly higher” compared to those provided by current distribution utilities (DUs).

D u r i n g y e s t e r d a y ’s meeting with power and energ y reporters, PEMC Operat ions & Ma rket De velopment A s si st a nt Manager Clares Loren C.

Jalocon explained that this scenario is certain because the generators where the power would be sourced uses diesel. COST/PAGE 11

POWER OUTLOOK

Power crisis fears unnerve industry in booming Philippines MANILA - An electricity outage that blacked out large swathes of the Philippines’ main island of Luzon for up to eight hours last month has highlighted worries about a potential power crisis that could undermine Asia’s fastest-growing economy. Predictions that electricity demand will

outst r ip gover n ment forecasts have raised fears OUTLOOK/PAGE 11

ELECTRICITY SPOT MARKET. Power and energy reporters from Mindanao get a chance to observe yesterday’s trading at the Wholesale Electricity Spot Market (WESM). The government is set to install an interim spot market for Mindanao in October this year in a bid to normalize the island’s increasing power gap. photo by butch enerio

Ayala Land diversifies hotel portfolio with more brands ENCOU R AGED by t he results of its newly-opened properties, Ayala Land Hotels and Resorts is planning to grow its hotel portfolio in the Philippines. The company is planning

six more hotels under its four-star Seda brand hotels and will diversify its portfolio with the addition of Seda Suites for all-suite hotels, Seda Resorts for resorts, and larger properties of 400-500

rooms. Seda hotels offer between 150 and 200 keys. Hotels already confirmed include the Seda Nuvali in Laguna, scheduled to open in 1Q2014; SedaCircuit Makati AYALA/PAGE 11

J.P. RIZAL - CRUZ TAAL STS., (NEAR SHANGHAI BAKERY) DIVISORIA, CAGAYAN DE ORO CITY

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SBMA, Korean firm sign P20-billion tourism project By CARLO LORENZO J. DATU

Farmers in Mindanao happy to see ampalayas grown through organic fertilizers. photo courtesy of mindanaojourney. blogspot . com

P21.7M alloted to expand organic farming in Reg 12 From a budget allotment of P16.5 million in 2012, SOCCSKSARGEN Region has more than P21 million to continually propagate and expand organic farming activities in the region. The said mandate is in accordance with Republic Act (RA) 10068 otherwise k now n a s t he Orga n ic Agriculture Act of 2010, which institutionalized the adoption and propagation of organic

agriculture in the country. The national government, through the Department of Agriculture (DA) aspires to convert five percent of the total agricultural land to organic.

With the said budget allocation, DA 12 Regional Tech n ic a l Di rec tor for Research and Regulations Enriqueto G. Natividad, who at the same time is the Organic Agriculture Program Focal Person, said the regional office had efficiently utilized the money to adhere to the mandates of the RA 10068. He said DA 12 OAP farming/PAGE 11

SUBIC BAY FREEPORTSubic Bay Metropolitan Aut hor it y (SBM A) a nd Korean-owned Resom Resort Phils. (Resom) have entered into a lease development agreement that would pave the way for the construction of a world-class tourism resort complex worth P20 billion. The f irst phase of the project involves the development of a prime waterfront proper t y previously known as the mini-golf course with a gross area of two hectares and a buildable area of 6,000 sqm. Resom is committed to invest P1.2 billion for the construction in this area of a luxury hotel with around 300 rooms, convention facilities, pool, spa, restaurants and other support facilities. This project is being targeted to be ready to serve the A si a-Pac i f ic E c onom ic C o op er at ion (A PEC) conference in November 2015. The second phase of the project will cover the development of the Resom C it y t ou r i s m c ompl e x involving several properties in the Naval Magazine area

amounting to around 300 hectares. This will include the construction of a world-class resort complex that will have hotels, condominiums, a theme park, luxury pool villas, casino and gaming operations, a waterpark and spa, health and wellness center, duty free shopping, and a championship golf course. This phase involves an investment commitment of around P19 billion and is expected to take around 4 years to complete. Resom Chairman Sang So Shin , the Subic Resom City project will be their centerpiece development project. Resom presently owns and operates four worldclass resorts namely, Ocean Castle, Resom Waterpark and Spa, and the Forest Villa resort all in Korea, and a championship golf course and resort in Weihai, China. Resom operates a time-share membership chain and certain of their facilities are open to the public as well. Du r i ng t he cont rac t signing, Shin said that he

loves nature and that Resom always develops their resorts by keeping and preserving the environment as a main priority. He said the natural beauty of the forests and waters in Subic are the main features that convinced him that Subic is the ideal choice for their centerpiece resort. SBMA Chairman and Administrator Roberto V. Garcia said the world-class resort project would attract more local and international visitors to the Subic Bay Freeport and establish it firmly as one of the country’s major tourism destinations. “ T his hopef u l ly w i l l contribute substantia lly to the country’s tourism campaign,” Garcia added.

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DENR to hold 1st nat’l confab on environmental impact assessment The Department of Environment and Natural Resources (DENR), through its Environmental Management Bureau (EMB), is holding the first ever national convention on the Philippine Environmental Impact Statement System (PEISS) on June 19-21 at the Manila Hotel. Expected to participate in the three-day gathering are representatives from the private sector, national a nd lo c a l gover n ment , academe, non-government, and people’s organizations participating in the threeday gathering. Environmental Impact Assessment or EIA is the process of predicting the likely environmental effects of implementing a project and designing appropriate preventive mitigating and en ha ncement mea su res as an input to decisionmaking. The purpose of the assessment is to ensure that decision makers consider the ensuing environmental i mpac ts when decid i ng

whether or not to proceed with a project. The EIA convention is part of the 35th anniversary of the PEISS, which was established in 1978 through Presidentia l Decree No. 1586. The law prov ides for a comprehensive and encompassing planning tool t hat ensures a ba lanced and healthy ecology and socia l dimension in t he midst of intensive economic development. Organized by the DENR’s Environmental Management Bureau and the Pollution Control Association of the Phi lippi nes-Reg ion 4 -A Chapter, the convention aims to promote a common understanding

a nd appreciation of t he PEISS among its various stakeholders from the private sector, national and local gover n ment s , ac ademe, and non-government and people’s organizations. Topic s t h at w i l l b e d i s c u s s e d i n c lu d e t h e achievements, significant developments, and i mprovements i n t he system. Among the invited international speakers are Dr. Peter King of the Asian Environmental Compliance and Enforcement Network and Mr. Richard Morgan, for mer president a nd member of the board of directors of the International Associat ion for I mpac t Assessment. T he convent ion w i l l also highlight experiences and insights on good EIA p r a c t i c e s b y d i f f e r e nt sectors as well as the gaps a n d c h a l l e n ge s i n t h e implementation of the PEISS.

“What we are doing to the forests of the world is but a mirror reflection of what we are doing to ourselves and to one another.”

~Mahatma Gandhi

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A young child swims in an unfinished culvert after heavy rains triggered by an Intertropical Convergence Zone (ITCZ) caused most of the streets in Butuan City. MindaNews photo

MGB calls on local officials, residents to heed caution and advisory on flooding, landslide By MARLON A. LOTERTE, Contributor

LEGAZPI CITY- The Mines and Geosciences Bureau in Bicol (MGB) regional office here has reiterated constant warnings to officials and residents in Bicol region highly susceptible to landslide and flooding in the advent of the rainy season. T he w a r n i n g s we re addressed to at least five cities and 55 municipalities in the six provinces of the region.

Engr. Theodore Rommel E. Pestaňo, regional director of the MGB-5, said the bureau has just renewed its call to be vigilant and prepare on the on-set of the rainy season starting this month that may bring flooding and landslides, particularly to identified disaster prone areas in Albay, Catanduanes, Camarines Norte, Camarines Sur, Masbate and Sorsogon.

Pestaňo cautioned officials and residents of this city, Ligao City, Tabaco City, Daraga, Bacacay, Libon, Malilipot, Malinao, Manito, Rapu-Rapu, Sto. Domingo, Tiwi, Polangui, Pio Duran, Ca ma lig, Guinobata n, and Oas in Albay; Basud, Capalonga, Labo, Mercedez, Paracale, San Lorenzo Ruiz, San Vicente and Sta. Elena caution/PAGE 10


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Rodriguez: Carnappers deserve life in prison By BONG D. FABE

R E PR E SE N TAT I V E Ru f u s Ro d r ig ue z yesterday said that carnappers should be meted commensurate punishment for their crimes. “The growing incidence or prevalence of carnapping which, in many cases, result in death or serious injuries to victims and innocent persons calls for a commensurate penalty. In these cases, life imprisonment,” he said. Rodriguez said that HB 6909, of which he is one of the main authors, calls for an increase penalty to life imprisonment of carnappers. HB 6909, a consolidation of 13 separate but similar bills filed jointly or individually by some 53 members of the House, has been approved on third reading on the eve of the June 6 sine die adjournment of the 15th Congress, he disclosed. However, the Senate failed to pass a similar measure.

Irrespective of the value of the carnapped vehicle, carnappers must face the full consequences of their crime. And lawmakers vowed push for the bill’s passage in the 16th Congress. Ar ticle 27 of t he Revised Penal Code (RA 3815) qualifies that under reclusion perpetua, “any person sentenced to any of the perpetual penalties sha ll be pardoned af ter undergoing the penalty for 30 years, unless such person by reason of his conduct or some other serious cause shall be considered by the Chief Executive as unworthy of pardon.” Aside from Rodriguez, the other authors of the measure include, among

others, Rep. Jorge Banal, Rep. Salvio Fortuno, Rep. Emmeline Aglipay, Rep. Ro d ol fo Fa r i ñ a s , R e p. Ka rlo A lexei Nog ra les, Re p. Wi n s ton C a stelo, Re p. Romero Q u i mb o, Rep. Ben Evardone, Rep. Marlyn Primicias-Agabas, chairperson of the sponsorCommittee on Revision of

Laws, and senator-elect Juan Edgardo Angara. One key provision of the proposed statute provides for the maximum penalty without the benefit of parole to any person found guilty of carnapping by means of v iolenc e a ga i n s t or intimidation of any person, or force upon things and the

owner, driver or occupant of the carnapped motor vehicles killed or raped in the course of the commission of the crime of carnapping. Likewise, any person who violates any provision of the proposed act shall be punished with imprisonment of not less than prision deserve/PAGE 10

Subsidy for PWDs’ SSS TUCP: Mergers should not affect workers’ conditions contributions pushed TWO lawmakers are pushing for the grant of subsidy to persons with disabilities (PWDs) to encourage them to become members of the Social Security System (SSS). Under House Bill 1685 authored by Reps. Rufus Rodriguez and Maximo R o d r i g u e z Jr. (A b a nt e Mindanao), PWDs sha ll b e g r a nt e d 70 p erc ent government subsidy for t heir mont h ly premium contributions. The Minda nao solon said having social security c ove r a ge wou ld b e t t e r prepare PWDs to handle the exigencies of sickness and old age. However, the subsidy shall only be applicable for the first three months, he said. The bill provides that the 70 percent subsidy privilege is available only to persons with disabilities who are Filipino citizens and only

upon submission of proof of his/her entitlement to the said privilege. This includes a certification that he/she is a self-employed person with disability from the city or municipal social welfare and

development office where the person with the disability resides. Rodriguez said PWDs who are self-employed must be commended for their sheer determination to rise Subsidy/PAGE 10

THE country’s largest organization of labor federations and unions will continue to fight for the protection of workers and the preservation of their jobs during mergers, consolidations or transfer of businesses. Rep. Raymond Democrito Mendoza of the Trade Union Congress Party (TUCP) Party-List said, any merger, consolidation or transfer of business should not diminish the wages, benefits and other employment terms and conditions of the affected employees. Mendoza filed House Bill 1557, which seeks to oblige the acquiring or transferee employers to continue the employment of the transferor employer’s employees. “An employment that has been zealously earned, industriously worked for, valued and treasured should be secured. Protection should extend to remunerations and benefits, with all the enhancements merited due to years of arduous service,” Mendoza said. Mendoza said the TUCP has consistently advocated, not only for job generation, but more importantly, for job protection and preservation. “Competition among businesses has become tremendously intense that the dictum bigger is better has obtained zealous advocates the world over, including our country’s multinational companies,” Mendoza said. “This is most especially true in this interesting time and age of globalization. Because of the need to become bigger and more competitive, the incidence of mergers, consolidations and acquisitions, including the sale or transfer of all or substantial assets, business enterprise has become very rampant,” Mendoza said. The problem is, Mendoza lamented, “some employers conditions/PAGE 10

Solons to push for passage of National Land Use Act R EELECTED lawmakers today vowed to push for the passage of the proposed Nat iona l La nd Use a nd Management Act of t he Philippines. “We should take advantage of the growing international confidence in the country as an investment haven in Asia. We also have to end the current degradation of the country’s land resource,” said Rep. Jeffrey Ferrer (4th District, Negros Occidental), one of the authors of the measure. The co-authors of House Bill 6545, which was certified as urgent by President Aquino are Reps. Rufus Rodriguez (2nd District, Cagayan de Oro City); Diosdado M. Arroyo (2nd District, Camarines Sur); Gloria Arroyo (2nd District, Pampanga); and W i n s t on C a s t e lo (2 nd District, Quezon City); The House passed the bill on third reading on September 20, 2012. Ferrer said the proposed la nd use stat ute wou ld complement the proposed amendment to the BuildOperate-Transfer Law to encourage more private s e c t o r i n v e s t m e nt s i n infrastructure. T he prop o s e d L a nd Use and Management Act implements reforms in land administration, eliminating wastages in resources and manpower, the authors said. The bill seeks to integrate a l l la nd ad minist rat ion f unctions, current ly dispersed among multiple agencies, into a single agency -- the Land Administration Authority. Under t he bi l l, a Congressional Oversight Committee on the Land Use Act will be created to be composed of seven members from the Senate and seven from the House of Representatives to oversee the implementation of the proposed Act. The bill also creates the National Land Use Policy Council (NLUPC) as the highest policy-making body on all matters pertaining to land use and management to be headed by the Secretary of passage/PAGE 10

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COC-PHINMA Basic Education Department opens new building

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By Christine H. Cabiasa

Committed to provide accessible and quality education to her constituents, the Cagayan de Oro College Basic Education Department has opened its new five-storey building on June 18 at the main campus site, Lirio St., Carmen, this city. R a mon del Ros a r io, PHINMA Chairman and COC Director said that the new five-storey building is their living legacy that COCPHINM A is cont inuing its mission to give quality education to the students in Mindanao, specifically Northern Mindanao. T he new f ive-store y building has 30 classrooms, 17 of which are fully airconditioned, also equipped with laboratories complete w it h faci lities a imed at ac c om mo d at i ng big ger population. Wit h COC-PHINM A good board exam results and

consistent top performance at National Achievement Test (NAT) since 2009, del Rosario added that they will give only what is due to their pupils and students, aside from giving quality education at an affordable cost, of course good and well-ventilated classrooms also. Meanwhile, according to Mayor-elect Oscar S. Moreno, COC-PHINMA’s entry to Cagayan de Oro City is one of the best things that happened to the city and for that he is very thankful to. “As COC-PHINM A cont i nues to bel ieve i n

giving quality education to our students, they will reach far,” Moreno added. W hen asked about t heir prepa rat ions in i mplement i ng t he K to 12 to the basic education depar t ment, Magda leno Albarracin, COC-PHINMA Corporate Treasurer said that they take the program as a challenge that would i mprove t he sk i l ls a nd competencies of the students. Also, Dr. Chito Salazar, COC President said that the K to 12 program has not affected the number of their enrolees this school year, instead it gained an estimate of ten percent increase. “We will continue to serve our students with quality education and will always be ready of assistance,” del Rosario said.

(Center) Mayor-elect Oscar S. Moreno leads the ribbon cutting as COC-PHINMA Basic Education Department opens their new five-storey building on June 18 at COC main campus, Lirio St., Carmen, this city. With him, (from left) Dr. Chito Salazar, COC President, Ramon del Rosario, COC Chairman, Magdaleno Albarracin, COCPHINMA Vice Chairman, and Engr. Raymundo Reyes, COC COO. photo by arjay felicilda

COHARA to stage Kumbira 2013 on August 14-16 By Apipa P. Bagumbaran, Contributor

C AG AYA N DE ORO CITY -- The Cagayan de Oro Hotel and Restaurant Association (COHARA) will once again mount its annual culinary festival on August 14 to 16 at the Atrium of Limketkai Center, this city. Dubbed 'Ku mbira,' this Mindanao’s premiere annua l culinar y show and competition aims to showc a se t he best culinar y creations of t he reg ion whi le incor porat ing latest culinary trends. It also aims to promote healthy competition and ca maraderie a mong d i f fe re nt hot e l s a nd restaurants, hotel and restau ra nt schools, as wel l as elevate t he standards of the culinary industry in the region. N o w o n i t s 17 t h yea r, Ku mbi ra is t he longest-running regional cu l i na r y a r ts show

a nd compet it ion t hat recognizes the culinary s k i l l s a nd t a lent s of both professionals and students and promote t he development of creativity and excellence in food a nd beverage artistry through various exhibitions to further upgrade the food and beverage industry. D u r i n g t h e s how, Ku mbi r a ent hu si a s t s w i l l w it ness cu lina r y l ive compet it ions for professionals and s t udent s ; i nter a c t ive booth allowing visitors to listen to short demo and do hands-on activities; seminars on food, beverage, and hospitality; food selling area showcasing specialties of d i f ferent memberestablishments; photo compet it ion dubbed Kumbira Moments; and three-day culinary trade exhibit.

The event will also feature renowned Chefs and industry practitioners as judges who will help hone the various skills, artistry and creativeness of the food and beverage practitioners and students in the competition. For this year, Kumbira will focus on the theme “Negosyo Kulinarya – Building Home-Grown Brands.” COHARA President Nelia B. Lee said they came-up with such theme to promote local products and enriched the homeproduced of Cagayan de Oro City. " We h o p e t h a t Kumbira will add another attraction to Cagayan de Oro, not just as tourist adventure destination, but also as a culinary highway promoting the city to food enthusiasts all over the world," she said.

Mayor-elect Oscar S. Moreno gives his message to the COC-PHINMA Board of Directors and Members as they opened their new five-storey Basic Education Department building on June 18 at COC-PHINMA main campus, Lirio St., Carmen, this city. photo by arjay felicilda

City-Tesda skills program yield 500 more graduates T H E c it y gover n ment , in cooperation with the Te c h n i c a l E d u c a t i o n and Skills Development A u t h o r i t y ( Te s d a ) continue to empower the loca l citizenr y t hrough t he holding of sk i l ls t r a i n i ng prog r a m s . This month, 500 more residents graduated from short term courses such as baking and prastr y production, commercia l cook ing,

beaut y ca re ser v ices, food processing, massage t herapy a nd dressmaking, according to the Cit y Information O f f ic e . M a y o r V i c e n t e Y. Emano expresses hopes that this will help i mprove t hei r l i ve s . “Hinaut nga ang i nyong nat u n-a n su lod sa unom ka bulan magamit unta aron moa l ibyo a ng k a h i mt a ng

s a i ny on g t a g s a-t a g s a k a k i n a bu h i ,” t he m ayor s a id i n a pre s s s t atement . Councilor Nadya Emano, chair of t he City Council committee on s o c i a l s er v ic e s , h a s been faci litating t he hold i ng of t he t ra i ni ng prog ra m to help cit y residents ha r ness t hei r s k i l l s or d e ve lop ne w sk i l ls t hey cou ld use to au g ment t hei r i ncome.


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Wearing masks THINK

hin k a minute…Have you ever pretended to be A Minute something you’re not? By Jhan Tiafau Hurst Maybe you did it to impress or please somebody. But the longer we act like someone we’re not, the better we get at it. We can even get so good at it that we actually fool ourselves and forget who we really are! It’s sad that the more we hide our real self the more lonely and unsure of ourselves we become. What mask do you sometimes wear? What kind of person do you pretend to be? Do you act strong and tough, so people won’t know that inside you sometimes feel weak, even afraid? Or do you wear the mask that says you’re a good religious person, even though in your heart you know you’re dishonest and sometimes lie or cheat other people of their money. Maybe you wear the funny joker and life-of-the-party mask. You feel like you always need to make a joke of everything so others will laugh and not know how lonely and unhappy you really are inside. There are many people who get drunk or take drugs because they’re tired of wearing their mask. And it’s only after some drugs or drinks that they feel free to take their mask off and stop acting like something they’re not. Some of them are actually desperate and lonely. They’re looking for real love and acceptance, in spite of the bad things they’ve done and who they really are inside. But it doesn’t matter what you’ve done, you can never shock Jesus Christ. hurst/PAGE 10

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when in truth the education ris iaz department is f inancially stable? There must be problems somewhere else. Or, is this because that corruption still abounds in public schools and universities in the country? We are not accusing the education department of its incompetence in handling public funds. Notwithstanding, we are wondering how the education department is spending P 238 billion budget. We also heard of public school teachers asking local government units for various infrastructure projects in their schools. For instance, public school teachers begged for the construction of new school buildings at the expense of local government units. Where does the DepEd allocate the budget for this purpose? We want the education department to be transparent in the spending of public fund. Otherwise, it would be just fair to reduce the education department’s budget to subsistence level. Diaz/PAGE 10

The BSP and other central banks in the world

ith the economy performing very well, the upcoming anniversary of the Bangko Sentral ng Pilipinas (BSP) on July 3 will definitely be sweeter. It is a great feat for one of the youngest monetary authorities in the world. Established in 1993, the BSP (www.bsp.gov.ph) replaced the old “Central Bank of the Philippines,” which was founded in 1949. It was created by virtue of the 1987 Philippine Constitution and the New Central Bank Act, which gave the bank fiscal and administrative autonomy from the Philippine government. The BSP is just one of the 186 central banks around the world. The banks differ in name – some are called “reserve bank,” “monetary authority,” or “national bank.” They, however, share common tasks such as setting monetary policy, issuing of national currency, acting as the bank of bankers, supervising and regulating banks, and lending to ailing banks. All of them also serve as the bank of their respective governments. The central banks also manage their nation’s foreign exchange reserves. These are deposits in foreign currencies that can be used to deal, trade, or make payments internationally. For example, Asian countries have deposits which are in US dollars or Euro. According to the International Monetary Fund, the combined foreign exchange reserves of the world’s central banks is now worth $11 trillion. Central banks have existed for a very long time. In fact, the BSP is 325 years younger than the oldest operating central bank in the world - the Bank of Sweden (www.riksbank.

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Misplaced priorities deny the citizenry of basic services

N spite of the much-ballyhooed 7.8 percent growth in the country’s Gross Domestic Production, the country is still reeling in abject poverty. The truth is that the people did not, or will never; notice any economic development in this country in the next 10 years. Well, that is a conservative albeit an ambiguous statement. What might be obvious is the fact that this country could never bail out of the quagmire of poverty in the future. How could this country move forward as everybody wishes? One could not even understand how the economic managers were able to justify the approved budget for the fiscal year 2013. Perchance, we are ordinary mortals who do not understand the nitty-gritty of budgetary priorities. This simply leads us to an unstructured understanding of state sponsored budget spending. Nevertheless, we are looking at the budgetary priorities of the government in its simplest and concrete forms. For instance, the government allocated a P 238 billion for the Department of Education this year. Despite the huge amount, DepEd still suffers shortage of teachers, lack of classrooms, books, and amenities in public schools. This problem leaves our jaws stuck in wonder on how DepEd is spending the taxpayers’ hard-earned money. Why do public schools complain of the lack of everything

W

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com), which started in 1668. The Bank of Amsterdam in O ut the Netherlands, founded in By Ignacio Bunye 1609, actually preceded the “Riksbank,” but it closed for good in 1819. United Kingdom’s Bank of England (BOE), however, is the one widely-considered as the pioneer of the modern central banking system. Journalist Jason Rodrigues gave a brief history of the BOE (www. bankofengland.co.uk) in his 2009 article for the British newspaper The Guardian. He said the Bank emerged in 1694 to serve as the government’s banker and debt-manager. Eventually, it became a “lender of last resort” to smaller banks and the issuer of the country’s national currency. Both are now common functions of central banks today, including BSP. The BSP is just one of the 186 central banks around the world. The banks differ in name – some are called “reserve bank,” “monetary authority,” or “national bank.” They, however, share common tasks such as setting monetary policy to ensure price stability, issuing of national currency, acting as the bank of bankers, supervising and regulating banks, and lending to ailing banks. All of them bunye/PAGE 11

SPEAKING

Graduation in November

B

ECAUSE of the changes brought about by the mandated K+12 program, our Grade 7 students now find themselves part of high school without graduating from grade school. And so, we have to have a graduation in November. The parents would not allow their children to be high schoolers without formally shedding off their grade schooler status. And they find March of next year, the usual graduation month, too far. So I find myself presiding over a Baccalaureate Mass in somber November. Graduation, of course, is a happy occasion. It marks a transition, the end of one phase and the beginning of another. It means some achievement, some attainment, and a looking forward to new challenges as the process of education and formation goes on. I like to think that the students are slowly but steadily building up their foundation for the future. They are into a process at once tedious and exciting, as they learn new things and new lessons, while revisiting and re-appreciating old past lessons as they receive the tradition of the previous generations. Students have to study. Teachers have to prepare their classes well and also act as parent surrogates as they provide whatever help and support students who are also children need in school. Parents, of course, do everything, even trying to grab heaven here on earth, to assure the proper

development of their children. I just hope that this triad of parents, teachers and stuand Traces dents, and that of the home, By Fr. Roy Cimagala the school and the individual manage to work in synergy, guided and propelled by God’s grace to which everyone has to correspond as best as he could. Education and formation actually never ends for us. Even in our old age, we need it, and in fact, more so. That’s because we tend to resist new knowledge the more knowledge we accumulate. And we are actually poised, due to our spiritual faculties and supernatural destination, to know an infinity of things. Education and formation goes in stages and in cycles, reflecting the rhythm of life itself. It cannot help but set itself fully in the task of pursuing the ultimate purpose of our life. It cannot and it should not be arrested in some levels, saying enough to what may already be gained so cimagala/PAGE 10

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Tenor S al Malaki returns to CDO Af ter a successful concer t at Rodelsa Hall last year, Los Angeles-based tenor Sal Malaki returns to Cagayan de Oro for another special engagement this coming August 8, 2013, 8PM at Rodelsa Hall. The Malaki concert is part of “ E n r i ch e d: T h e Ro d e l s a Performance Season 2013-2014”, a series of benefit performances at Rodelsa Hall in partnership with Safer River, Life Saver Foundation, Inc. to help raise funds for the environmental projects of the Foundation. Donations of any amount are gladly accepted upon entrance to the venue. Malaki is a member of the famous Los Angel es O pe ra Company, the United States’ 4th largest opera house under the general direction of worldrenowned tenor and conductor, Maestro Placido Domingo. He is a regular recitalist with performances across the nation’s very prestigious venues like the Carnegie Hall, Weil Recital Hall,

the Alice Tully Hall, and the Merkin Concer t Hall in New Yo r k, the Do rothy Chandler Pavilion, the Cerritos Center for the Performing Arts, La Mirada Performing Arts Center, Thousand Oak s Civic Center, and the UCLA’s Royce Hall in the Los Angeles area, the Macomb Center for the Arts in Detroit, St. John’s University in Minnesota, t h e M o r r i s tow n M u s e u m i n New Jersey, and among other performances across the United States of America. H e can be hea rd i n the recording of Spoliarium, the operatic composition of the famous Ryan Cayabyab and to the libretto of equally known Fides Cuyugan-Asensio carried by Sony BMG Philippines. He sings the lead role of Juan Luna and tells the story of his love and life, and above all his world-class painting entitled Spoliarium, that honored him the gold medal award in Paris in 1884. Sal Malaki is a graduate of

the University of the Philippines College of Music in Diliman, Q.C. He obtained his music degrees both in Flute (Teacher’s Diploma), under Prof. Enrique Barcelo and Voice (Bachelor of Music) under Professor and National Artist in Music Andrea O. Veneracion and Prof. Emeritus Fides CuyuganAsensio. Right after graduation, he was invited to join the faculty of the UP College of Music. He was al so a voice i nst r ucto r and head of the Voice Depar tment of the St. Scholastica’s College in Manila. Sal was a member and tenor soloist of the UP Madrigal Singers before joining the Los Angeles Opera Company and the Los Angeles Master Chorale in 1995. To know mo re about the concer t please feel free to call the Liceo de Cagayan Universit y Office of Cultural Affairs at 8584093 to 95 local 109 or 09176366528 or email rodelsahall@liceo.edu.ph. See you at Rodelsa Hall!

Sun Postpaid goes grand with newest Sundroid Rush release Sun Cellular adds another good choice to its roster of Sundroid Rush offerings with the launch of the Samsung Galaxy Grand smartphone and Samsung Galaxy Note 8.0 tablet bundle. With this new offering, you can now enjoy the power of Android even further and experience everyday life with more fun, efficiency and productivity. The Samsung Galaxy Grand runs on Android 4.1 Jelly Bean operating system with 1.2 GHz Dual-Core processor. It is also packed with 5” touchscreen, 8MP camera and dual SIM capacity. The Samsung Galaxy Note 8.0; on the other hand, runs on Android 4.1 Jelly Bean operating system through 1.6 GHz Quad-core processor and is packed with 8” touchscreen, 5MP camera, and armed with an S Pen for greater productivity. The Samsung Galaxy Note 8.0 is also WiFi capable, so you can turn your Samsung Galaxy Grand into a WiFi hotspot to pair with your tablet when you go online. “This is, by far, the ultimate offering from the Sundroid Rush series,” says Joan C. Dueňas, Sun Cellular Vice President for Postpaid Marketing. “Both Android handsets are armed with the top-of-the-line features and Sun Cellular’s staple unlimited services to ensure higher productivity and enjoyment to its users.” The latest Sundroid offering is available in two cost-effective plan rates — Sun Plan 1799 and Sun Plan 1999. Under Sun Plan 1799, you can enjoy unlimited mobile Internet, unlimited texts to all networks and 100 minutes of Sun calls. While Sun Plan 1999 avails you of unlimited mobile Internet, unlimited Sun calls and texts, unlimited landline calls, 60 minutes IDD calls and 250 texts to other networks. For more information on these and other Sun Postpaid offers, visit www.suncellular. com.ph or Facebook page www.facebook.com/ suncellularph. Follow @suncelldeals on Twitter

VJANDEP Pastels' Col. Virgilio Jose explains to the crowd how the concept of the "pastel Philippine map" came into reality. The Vjandep Pastel map was unveiled during the recent mall celebration of SM City Cagayan de Oro, June 12. Photo by SHAUN ALEJANDRAE YAP UY

Artist Nic Aca presents

“Freedom” On the 115th celebration of the Philippine Independence Day - artist, Nic Aca is fully dressed in white, except for a belt in flag colors, laid on the ground, chained to the pole of a Masonic marker which says: “Libertad, Igualdad, Fraternidad” (Freedon, Equality, Brotherhood), a pensive look on his face, asking random onlookers, “Naa kay yabe ‘nang?” (Do you have a key, Ma’am?”). Photo by Zola Gonzalez-Macarambon

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Deserve... from page 4

mayorin its maximum period of 6 years and one day to 12 years and a fine equal in amount to the acquisition cost of the motor vehicle, motor vehicle engine or any other part involved in the violation. The measure states “it shall be unlawful for any person, office or entity to buy or sell any second hand spare parts taken from a carnapped vehicle. It shall also be unlawful to transfer or use a vehicle plate from one to another without securing the proper authority from the Land Transportation Office (LTO).” Li kew ise, it sha l l be unlawful for any person, office or entity, to cause and/ or allow the sale, registration, and transfer into another name, the chassis number, engine number and plate number of a motor vehicle declared as total wreck or beyond economic repair by concerned car insurance c o m p a n y, a n d /o r l a w enforcement agencies, due to its involvement in a vehicular accident or for some other causes. Furthermore, the measure mandates that all inter-island and international shipping vessels shall not carry on boa rd veh icles w it hout clearance from the Philippine National Police. It also provides that any person who shall undertake to assemble or rebuild or cause the assembly rebuilding of a motor vehicle shall first secure a certificate clearance from the PNP. The proposed statute clearly provides for the duties of importers, distributors and sellers of motors vehicles to keep record of stocks. It also provides for the duties of the Collectors of Customs on matters of records as mandated under the measure. Any person engaged in the manufacture of engine block, cha s sis or body manufacture in a convenient and conspicuous part thereof, which the LTO may direct for the purpose of uniformity and identification of the factory and shall submit to the LTO a monthly report of the manufacture and sale of engine blocks, chassis or body. (HoR)

Subsidy... from page 4

above their own limitations. “Thus, the government must recognize the efforts of PWDs to attain more meaningful, productive and satisfying lives,” he said.

The bill amends for the purpose Republic Act 7277, other wise k nown as the “Magna Carta for Disabled Persons.” (HoR)

Passage... from page 4

the National Economic and Development Authority. T h e l aw m a k e r s a r e optimistic that the 16th Congress would strongly reconsider all the reform measures already in their advanced legislative stages. Since the 8th Congress, the proposed Land Administration Reform Act (LARA) and related measures have been filed and refiled without much legislative success. (HoR)

Conditions... from page 4

device these schemes - a corporate mechanism, not really for the purpose of obtaining competitiveness but with the end in view of violating workers’ security of tenure, among other rights of employees.” “This plethora of prev iously u nfa mi l ia r corporate occurrences creates a trail of novel issues, such as the rights of employees and liabilities of the employers. This is when the issues of the security of tenure, diminution of wages and benefits and other employment terms and conditions come to fore,” Mendoza said. Mendoza has been strongly batting for his proposed measure saying it is the State’s policy to extend utmost protection to the security of tenure, wages, benefits and other employ ment ter ms a nd conditions of employees i n c a s e s of me r ge r or consolidation of the business of their employer with other entities. T he protec t ion sha l l extend in case an employer acquires, transfers, sells, assigns, conveys or leases all, or substantially all assets, business enterprise or going concern to another employer or business entity. Under t he me a su re , t he transferee employer shall have the obligation to continue the employment of the transferor employer’s employees, without loss of seniority rights and other privileges. In case of differences in the employment levels, wage and benefit scales, and other employment terms or conditions, the superior or most favorable to the employees shall prevail. The transferor employer shall be liable to money claims

pertaining to the period when the transferee employer was still the employer. The measure also aims to limit t he ground for termination of employment to redundancy and shall be liable for separation pay or other benefits as prescribed under the Labor Code. “Plus it sets a presumption that if the transferee employer or new company becomes a bigger entity than the prior one, there can be no declaration of redundancy as the business can absorb the employee,” Mendoza added. The measure also requires the new company to give an employee declared to be redundant in a certain position first priority for employment in the newly created position, if qualified. Finally, the measure sets out rules on recognition of existing bargaining agents and agreements, protecting not only the unions, but also the benefits worked hard for by them as embodied in the Collective Bargaining Agreements (CBA). (HoR)

Caution... from page 3

in Camarines Norte; Naga City, Calabanga, Magarao, Bombon, Bato, Bula, Buhi, Caramoan, Garchitorina, Goa, Lagonoy, Libmanan, Lupi, Pasacao, Presentacion, Sagnay, Sipocot, Pili, Ocampo, Tigaon, Canaman, Camaligan and Tinambac in Camarines Sur; Bagamanoc, Baras, Bato, Caramoran, Gigmoto, Pandan, Panganiban, Virac, San Miguel, Viga, and San Andres in Catanduanes; Aroroy, Baleno, Mandaon, Mi lagros, and Mobo in Masbate; and Sorsogon City, Gubat, Casiguran, Bulan, Irosin, Juban, Magallanes, Matnog, Barcelona, Bulusan, Castilla, Prieto Diaz, Donsol, Pilar, and Sta. Magdalena in Sorsogon. “Preparations in lieu of their respective disaster risk reduction management measures must always be ready, including evacuation of affected communities to safer grounds when necessary, when continuous rain for more than 3 days occurred in their localities” Pestaňo said. Pestaňo, however, clarified t hat residents of ot her localities not named are still encouraged to observe the necessary precaution and preparation to evacuate to safer grounds when in their area signs of an impending landslide/flooding may occur or have history of landslide and flooding in the past. Pestaño also renewed his

call on local chief executives of these cities and municipalities to take heed of the advisories on the likelihood of occurrence of geological hazards given to them by the bureau.

Hurst... from page 6

With Him you can be your real self. The person you really are under your mask. Real Christians will love and accept you, even though they may not approve of everything you do. They won’t be shocked by anything you’ve done because some of them used to do those things too, before Jesus forgave them and gave them the power to change. So won’t you be honest with yourself and ask Jesus to forgive you for your past wrongs. Jesus will accept you just the way you are, but He won’t leave you that way. He will also free and help you to start changing to reach your potential and become the person He created you to be. Just Think a Minute…

Diaz... from page 6

Let other government depa r t ment such as t he health and social services departments enjoy more budget than any other does. Another government that enjoys so much budget is the Department of Interior and Local Government Unit (DILG). W h a t f o r ? D I L G ’s mandate is to super v ise operation of local gover n ment u n it s such as provinces, cities, and municipalities. The interior department doe s prov ide f u nd s for t he op e r at ion of lo c a l government units. With an annual budget of more than P 121 billion, it becomes inevitable for Juan de la Cruz (the common man) to be disturbed. Ca ndid ly spea k ing, the interior government department is one of the highly expensive “white ele pha nt s” w hos e hu ge budget is u n fa i r to t he taxpaying public. Can anybody explain why t his govern ment could not deliver the basic services that the citizenry really needs? The health department’s 2013 budget is only P 54 billion, a budget a lmost equal to the annual budget of t he socia l ser v ices department of about P 54 billion, too. React: crisguardian@ yahoo.com

Cimagala... from page 6

far. So it cannot be detained at the academic or scholastic level alone where the sciences, the arts, some skills and technologies are learned. It has to engage us in all our needs as persons and children of God. And that means everything, all our needs that simply grow and grow. It’s a dynamic set of needs, not static. It has to carry out what St. Peter once said: “And you, employing all care, minister in your faith, virtue; and in virtue, knowledge; and in knowledge, abstinence; and in abstinence, patience; and in patience, godliness; and in godliness, love of brotherhood; and in love of brotherhood, charity.” (2 Pt 1,5-7) We simply have to go on. And we have to realize that education and formation goes far beyond the school or academic setting. It involves the home, the church, the social and cultural environment, and even the economy and our legal and political systems. Insofar as the academic setting is concerned, it has to be pointed out that all the subjects taught there have to be properly grounded and oriented toward the original source and the ultimate goal of knowledge, who is God.

It would be a disaster if we just get entangled in the merely intellectual and technical aspects of the subjects. We would open ourselves to the possibility of misusing and even exploiting them. That’s because we would be pursuing and using them according to our purposes, and not the will of God who created them. The very nature of these subjects can only ref lect the wisdom, the goodness and the love of God for us. If their nature is properly respected and used, these subjects can only lead us to God, and can involve us in the dynamics of love, the essence of God of whom we are the image and likeness. (Email: roycimagala@gmail. com)

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also serve as the bank of their respective governments. The central banks also guard their nation’s foreign exchange reserves. These are deposits in foreign currencies that can be used to deal, trade, or make payments internationally. According to the International Monetary Fund, the combined foreign exchange reserves of the world’s central banks is now worth $11 trillion. Since every country has its own history and laws, their central banks may also have characteristics unique to them. The United States of America’s central bank for instance, which is called the US Federal Reserve System (www.federalreserve. gov), has a unique structure with not one but 12 banks. The distinction is explained in the book The Federal Reserve System: Purposes and Functions. It said the “Fed” has one central government called the Board of Governors, which oversee 12 regional Federal Reserve Banks (FRB) situated in the country’s major cities. The Board sets the monetary policy while the FRBs serve as the “operating arms” of the system in their respective districts. The European Central Bank (ECB) is another interesting example. Founded in 1999 when the Euro was introduced as the single currency in Europe, the ECB (www.ecb.int) sets the monetary policy for its 17 member states, which include Spain, Germany, France, and Italy. The countries under it, however, still have their respective national central banks to help implement the policy and ensure the stability of the Euro. The reserves of each national bank are also separate from ECB’s reserves, which is shared by the member states. You may be wondering, is there also a bank for the world’s central banks? The answer is yes, and it is the Bank of International Settlements (BIS), the world’s oldest financial organization. Based in Switzerland, the BIS (http://www.bis.org) accepts deposits from central banks and serves as a forum for policy analysis and information-sharing among central banks. It does not, however, have any regulatory or supervisory powers over its member central banks. Knowing the global financial system that the BSP is part of will make us more appreciative of the positive reviews, credit ratings, and awards that the institution is getting. It is one of the youngest and certainly, not one of the richest (yet) but the fact that it was able to keep our economy strong while the rest of the world was in a financial crisis says a lot about both its potential and capability. So for its 20th “birthday,” my wish is that the BSP continues to soar as it develops to be a truly world-class monetary authority.

Least... from page 1

a positive, achievable, and tangible measure of human well-being and progress. Despite its improvement, the Philippines still ranks “among the least peaceful countries in AsiaPacific” such as Thailand and Myanmar, which “all face ongoing internal civil conflict.” The GPI 2013 also ranked the Philippines in 86th place or a “low” grade in its State of Positive Peace, with an overall score of 3.266 in its Positive Peace Index (PPI). Pillars of Peace The PPI is based on 8 Pillars of Peace, which are “highly interconnected and interacting in varied and complex ways to

form either virtuous or vicious cycles with causality running both ways,” such as (1) wellfunctioning government; (2) sound business environment; (3) equitable distribution of resources; (4) acceptance of the rights of others; (5) good relations with neighbors; (6) free f low of information; (7) high levels of human capital; and (8) low levels of corruption. In the 8 Pillars of Peace, the Philippines’ highest score was 4.427 for low levels of corruption, followed by a score of 4.239 for sound business e n v i r o n m e nt . It s l o w e s t score was 2.707 for equitable distribution of resources. “The 2013 PPI has ranked 126 countries on 24 indicators and found that the global average of positive peace improved in the period between 2005 and 2010 by 1.7%. There have been improvements in the equitable d ist r ibut ion of resou rces, levels of human capital, free f low of information, levels of corruption, acceptance of the rights of others and wellfunctioning governments,” the GPI 2013 said. Iceland topped the list of most peaceful country, thanks largely to its political stability, low homicide rate and small prison population. Joining Iceland in the Top Ten most peaceful countries, Western European nations dominated such as Denmark (ranked 2nd), Austria (4t h), Sw itzerla nd (5th), Finland (7th), Sweden (9th) and Belgium (10th). In AsiaPacific, the list is topped by New Zealand (3rd) and Japan (6th). The Americas (North America) is represented in the Top Ten by Canada (8th). In AsiaPacific Region, the Philippines ranked 16th, ahead of Thailand (17th), Myanmar (18th) and North Korea (19th). Leading the region is New Zealand, followed in order of ranking by Japan, Australia and Singapore (tie for 3rd and 4th), Taiwan, Malaysia, Laos, Vietnam, South Korea, TimorLeste, Indonesia, Mongolia, Papua New Guinea, China, and Cambodia. T he re p or t l i s t e d t he following as the world’s least peaceful countries: Afghanistan (162nd), Somalia (161st), Syria (160th), Iraq (159th), Sudan (158t h), Pa k ista n (157t h), Democratic Republic of Congo (156th), Russia (155th), North Korea (154th) and Central African Republic (153rd). Greatest deterioration: The report also noted that among all Middle East and N o r t h A f r i c a n ( M E N A) countries, Syria earned the distinction of being the most radica lly changed countr y during that time with a score that has plummeted by 70% since 2008. “Syria experienced by far the greatest deterioration in peacefulness in the world in 2012/13 and the largest fall in the history of the GPI,” the report said, adding that “in 2008, Syria was relatively peaceful, ranked 80th out of 138 countries.” The GPI is t he world ’s leading measure of national peacefulness. Now in its seventh year, it ranked 162 nations according to their “absence of violence.” It was developed by IEP under the guidance of an international panel of independent experts with data collated and calculated by the Economist Intelligence Unit (EIU). Data for the GPI, which is composed of 22 indicators, ranging from a nation’s level of military expenditure to its relations with neighbouring countries and the percentage of pr i s on p o pu l a t ion , i s sourced from a wide range of respected sources, including

the International Institute of Strategic Studies, the World Bank, various UN agencies, peace institutes and the EIU. T h e G PI i s c u r r e nt l y used by many international organisations, governments and NGOs including the World Bank, the OECD, and the United Nations. The GPI 2013 reported that global peacefulness declined over the past year, mainly because of the intensifying civil war in Syria; the rising number of homicides, especially in Mexico, Central America, and several sub-Saharan African countries; and increased military spending as a percentage of gross domestic product (GDP) in many nations. It also found out that Europe remained to be the world’s most peaceful region, while South Asia as the least peaceful because of Afghanistan, which ranked 162nd among 162 countries. IEP, however, noted in the GPI 2013 that while the number and intensity of internal conf licts has risen in recent years, hostility between states has fallen. Overall, they found that 110 states have become less peaceful and that 48 have become more so. Cost of unpeace: The GPI 2013 also estimated that the impact of violence — as assessed in major part by the costs, such as budgets for defence and internal security — on the global economy in 2012 came to at least US$9.46 trillion or 11 percent of the gross world product — nearly double the value of the world’s total food production. “Were the world to reduce its expenditure on violence by approximately 50 percent it could repay the debt of the developing world (US$4.076 billion), provide enough money for t he European stabi lit y mechanism (US$900 billion) a nd f u nd t h e a d d it ion a l amount required to achieve the annual cost of the Millennium Development Goals (US$60 billion),” the report said. The report also found a correlat ion bet ween t hose countries hardest hit by the 2008 global financial crisis and a decline in their peacefulness compared to those countries that were not as badly affected “Cuts to public services and social protection, alongside increasing unemploy ment, has led to increases in violent demonstrations, violent crime, and perceptions of criminality in many countries,” it said. The report also noted a dramatic rise in the number of homicides, with 59 countries i nc re a si ng t hei r m i l it a r y expenditure as a percentage of GDP were the key drivers in making the world a less peaceful place. In a six-year period, world peace has deteriorated by 5 percent, the report said. The economic impact of this 5% loss in peace came at a cost to the global economy of US$473 billion last year, or the equivalent to almost four times Official Development Assistance (ODAs) in 2012.

Cost... from page 1

“But with respect to impact it will be certain centavos because your capacity comes from so many sources. The impact will be minute with respect to price,” he told reporters Tuesday. The IMEM is an innovative government measure to address the power-shortage situation in Mindanao, embodied in the Department of Energy’s (DOE) Department Circular 2013-0001. Power generators and other entities are given the opportunity to sell their excess generation capacities based on the resulting market prices to

optimize the use of available generated power in Mindanao. The IMEM features a dayahead pricing market wherein t he generators or ma rket participants are supposed to submit their bids or offers a day before the actual delivery or curtailment of energy. The IMEM also mandates generators, directly connected customers and distribution customers to offer their excess generation capacities in order to augment and address the s upply d e f ic ienc y i n t he Mindanao grid. The generators’ nominations will help correct energy imbalances through the use of the merit order system, which gives dispatch priority to the lowest bidders. The PEMC is authorized to charge market transaction fees (MTFs) from WESM members or participants, pursuant to Section 30 of Republic Act 9136, otherwise known as the Electric Power Industry Reform Act (Epira) of 2001. MTFs are the costs pertinent to the administering and operating the WESM, and which have passed the ERC’s approval. The approved amount to establish the IMEM from the unused 2012 MTFs is subject to refund to Luzon and the Visayas WESM participants once the IMEM has started commercial operations. The PEMC will have to eventually file an application with the ERC for the approval of a refund mechanism to the Luzon and the Visayas WESM members. PEMC personnel are set to go around Mindanao in line with the registration to the IMEM program, which is targeted to start commercial operations in September this year. “We are just arranging the logistics for the registration guide. We will go to different locations in t he region to promote registration in the IMEM,” Jalocon said. Registration to the IMEM program already started last June 3 but Jalocon said no one has registered yet. “Although there are inquiries on the program and how to join it,” he said. Under this program, big entities like malls and industrial plants that own generators can be tapped to provide electricity to power cooperatives. Jalocon said grid generators and distribution utilities (DUs) are mandated to register to the program but not the private compa nies t hat have ow n generators. He, however, clarified that DUs cannot join the program as capacity load provider. About 150-200 megawatts (MW) capacity is expected to be generated from the IMEM program, which is among the temporary programs targeted to augment power in Mindanao. The Department of Energy (DOE) said there is power under-capacity in the country’s second largest region due to lack of power plants. The problem is expected to be addressed by 2015 when several new power plants are scheduled to start operations. Aside from the IMEM, other programs designed to address the current power deficit in Mindanao are the interruptible load program (ILP) and the provision of generator sets through loans. U n d e r I L P, p r i v a t e companies that have power generators need not tap electric DUs for their need but instead use their own facilities. In turn, they will be paid by the DUs based on the fuel and oil used in running their entities’ generators and on the depreciation of the equipment. Similarly, the DOE will use the government’s share in

the Malampaya gas project in Palawan to extend loans to the cooperatives. The loans for the acquisition of modular generation sets will be administered through the National Electrification Administration (NEA). Three electric cooperatives already passed their resolutions that will enable them to tap part of the P4.4 billion set aside by the government to fund the acquisition of generation sets. These cooperatives a re the Davao del Sur Electric Cooperative (DASURECO), Davao del Nor te E lec t r ic C o o p e r a t i ve (DA N E C O), and Davao Oriental Electric Cooperative (DORECO). (PNA)

Outlook... from page 1

over the impact on the expansion of industries such as call centres, tourism and gaming. A raft of private firms has rushed in recent months to put some $9 billion of new plants on the drawing board, but lead times for construction are around three years and environmental opposition to coal-f ired plants is already sparking delays. “Power plants will be put up, the only question is will they be put up fast enough to meet the demand,” said John Forbes, a consultant with the American Chamber of Commerce of the Philippines. The country is riding high, posting annual growth of 7.8 percent in the first quarter and having its credit rating raised to investment grade by Standard & Poor’s and Fitch Ratings. But power supply is seen as the biggest infrastructure challenge as President Benigno Aquino drives rapid growth. Just one major power plant has been added in the past 10 years in the industrial and commercial heartland of Luzon, where many were built during the last electricity crisis 20 years ago. The sout hern reg ion of Mindanao is facing blackouts until 2015. “We are talking about longgestation projects. If no new power plants are built, by 2016 we are in for a big problem,” says Sergio OrtizLuis, president of the Philippine Exporters Confederation. The call centre industry, which employs 600,000 workers, is aiming to grow at 15 percent a year for revenue of $15 billion by 2016, said the Philippines Contact Centre Association. “That will be difficult to meet if a power crisis hits us,” cautioned Jojo Uligan, the lobby group’s executive director. Generating capacity The Phi lippines’ tota l generating capacity is projected to reach about 15,300 MW this year and the country needs additional capacity of 2,500 MW in the four years to 2017, according to the Department of Energ y’s latest plans. Luzon, which accounts for about three-quarters of the country’s total capacity, will require an additional 1,600 MW by 2017, the DOE says, more than its own estimate of up to 1,130 MW due to come on stream from new projects. Howe ve r, t he Ph i l ippi ne Independent Power Producers Association industry group says Luzon will require some 3,280 MW by 2017 - double the government’s estimate. T he a s s oc iat ion s ay s t he Philippines as a whole will require at least 3,860 MW, as the economy is growing faster than anticipated and demand is rising more quickly. T he Ph i l ippi ne s’ bi g ge s t conglomerates such as Aboitiz Equity Ventures Inc, Ayala Corp and San Miguel Corp are among those eager to build power plants or increase the capacity of existing facilities over the next five years. Projec ts cu rrent ly on t he drawing board or being touted by private companies total around 4,400 MW up to 2018, including some from new entrants to the industry. But many of these projects are likely to face delays, either from environmental opposition to coal generation - the quickest plants to build and the cheapest to operate - or as proponents wait for power consumers to commit to off-take agreements.

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Environmental concerns Manila Electric Co, or Meralco, the country’s largest power utility, is leading a consortium that is building a $1.2 billion 600 MW coal-fired power project in Subic Freeport Zone northwest of Manila. It ha s delaye d by a ye a r its original 2016 target for the plant’s commercial operation, the company’s President Oscar Reyes told Reuters, because of a legal case relating to environmental concerns. Another coal-f ired project in Luzon, a planned 400-MW capacity increase for a 735-MW plant owned by Aboitiz Power and partner Marubeni Corp of Japan, is also facing resistance. An upgrade announced in 2011 has yet to start. Companies looking to build new plants are also worried about committing to projects without guaranteed long-term industrial buyers. Users, however, are eyeing the rash of interest in the sector and are wary of signing fixed-price long-term agreements, further delaying any development. “If you notice, ever yone’s planning to move into the power business,” Ramon Ang, president of San Miguel, the country’s biggest power producer, said recently. Government energy officials say Luzon should have sufficient power supply up to 2016, despite ongoing blackouts in the southern Mindanao region. “Shortage, I don’t think so. Not in Luzon, not yet,” Energy Department undersecretary Ramon Allan Oca told Reuters, although he declined to comment past 2016. Power suppliers are not so sure. And they warn reliance on older plants that need more maintenance will simply mean even more outages. “Businessmen in Mindanao are suffering,” said Ortiz-Luis of the exporters’ group. “In Luzon, although there seems to be enough reser ves, soon enoug h t hose reserves will be eaten up unless there are alternatives.”

Ayala... from page 1

and Seda Vertis North in Quezon City. Ayala Land Hotels and Resorts COO, Al Legaspi, who led the opening of the 150-key Seda Centrio in Cagayan de Oro last weekend, said the company would continue to choose locations where it has mixed-use developments for hotel development. “That’s the model for Seda. We want to be in areas where we synergise with malls, residential (properties) and offices.” Ayala also has six hotels under a new, yet-unnamed value brand in the pipeline, with locations most likely outside of Metro Manila. “We always looked at hotels as a support business – where we had larger developments, we’d put a hotel there, just to prime the area,” explained Legaspi. “Three years ago, we saw opportunity in the hotel business…so we made this a core business.” Legaspi also shared that Ayala would look to sell rooms through OTAs as doing so could secure as much as 30 per cent of business. It would also look at regional third-party management contracts in future within the region, where it has received offers. The company this year launched the Fairmont Makati and Raffles Makati (TTG Asia e-Daily, November 5, 2012), Holiday Inn & Suites Makati, and three Seda hotels.

Farming... from page 2

Team conducted series of briefings and orientation to the remaining 33 local government units aimed at helping them form a Municipal Organic Agriculture Board (MOAB). In the occasion of Farmers’ Heart Day and Ulat sa Bayan on February 11, OAP distributed three units of 1.5 ton capacity shredder and three units of bag closer to the local government units of Kidapawan City, General Santos City, and Columbio, Sultan Kudarat. “We also provided funds to develop frontage of stations such as in Balindog and Tupi ROSes as organic techno demo sites,” Dir. Natividad added. In the region, there are four units of organic trading posts being established in the towns of Midsayap and Tulunan in North Cotabato; Surallah in South Cotabato and Tacurong City. Recently, in DA 12’s Ulat sa Bayan on May 8-9, 2013, OAP turned-over four units of multicultivator with trailer to the LGU of Koronadal, GenSan, Columbio, and OPAG-South Cotabato. The team is also set to provide livelihood assistance to organic practitioners in the region.


BusinessDaily

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wednesday - june 19, 2013

Kalahi-CIDSS:

Feature

Advertising and Editorial E-mail : businessweekmindanao@gmail.com Contact nos. : 0917-7121424 • 0947-8935776

Developing Environmental Advocates “You could just add 5 pesos more and you could reach heaven in a jiffy.”

A silly joke on signifying that the area you are going to or have been to is quite far and Dangerous. A simple way to say this would be that the area is quite high a-top a mountainous area. But why is it that an exaggeration is used to tell how far and hard it is to get to a destination, especially if it is just a few meters below low-lying clouds? Maybe this is to signify that getting there would be hard or is hard, just to add to the bragging rights for reaching such far-flung areas. There are a lot of communities in Northern Mindanao tagged with the above phrase just because of the distance it has from other barangays in the municipality and the Poblacion and the difficulty of the terrain the barangay has. One could only reach these communities with the access to a habal-habal (powerful single motorcycle), big 4x4 SUVs or jeeps, a kumong-kumong (6-wheeled trucks commonly used for logging), or most commonly, a pair of two strong legs. Barangay Singalat in the municipality of Calamba, Misamis Occidental has this feature. Seven (7) kilometers from the nearest neighboring barangay; it is the outermost barangay of Calamba having to share mountain ranges with the municipalities of Sapang Dalaga and Concepcion. With the difficult terrain and access road going to Brgy. Singalat, there is difficulty bringing in services and bringing out products. The seven kilometers one embarks going to the barangay is a mix of steep slopes, passage through multiple rivers and creeks, and an endless rollercoaster ride if you take a vehicle. The two and a half hour walk is an experience one would not dare to have more than once. But amidst these circumstances the people of Brgy. Singalat are all hopes and prayers of having much suitable living conditions if only there was a better access to the neighboring barangays and the municipal Poblacion, basic services will surely be felt by the community. “Kung matarong lang kining among dalan, sigurado ako nga dali ra moabot ang serbisyo sa atong gobyerno diri sa amo. Karon man gud, tungod kay lisod man abton kining among lugar, mapugos among mga estudyante sa high school nga didto mopuyo sa sentro aron sila maka tungha kay wala man mi skwelahan sa high school diri kay maglisod man ug himo sa skwelahan tungod sa kalayo ug kadaot sa dalan”, Barangay Chairman Severino Bucog said. (If only our roads were in better condition, government services would reach our barangay easily. Right now, our high school students are forced to live at the Poblacion to be able to attend school because we do not have a high school here due to the fact that building one in our barangay is close to impossible because of the access to the area.) The worsened condition of the access road to Brgy. Singalat has is said to be due to the prevalence of logging (both legal and illegal) in the area. “Sukad ako bata pa, duna na gayud mga loggers diri sa among lugar, pero nisamot ug kadaghan na sa mga gapamutol ug kahoy karon. Duna man gud mga sapian dinhi sa Misamis Occidental nga nanag-iya ug mga yuta dinhing dapita nga nagtanum ug mga kahoy. Pero kasagaran nga gaputol dinhi illegal kay diri man sila gaputol sa bukid na gyud, unya dili sila ang tag-iya anang mga yuta-a”, Ms. Nineta Maglana (Brgy Treasurer) shared. (Since I was a child logging has already been present in our area, but this has become worse and more rampant as time went by. There are a lot of well off families in Misamis Occidental who own lands here and have planted them with trees. But mostly, those operating in the area are illegal loggers, because they operate in forests areas/lands which they do not own. The people of Brgy. Singalat are aware of the situation but feel desperate about the situation. Brgy. Chairman Severino Bucog shared that the logging situation has caused the destruction of the access road going to their barangay but feel helpless because they have raised the issue to the Local Government Unit and to other government agencies but the situation is still unsolved. “Dugay na namo kini gi-reklamo apan aduna pa gihapon mga loggers sa among lugar. Nagkadugay nagsamot na

Members of the Kalahi-CIDSS Regional Project Management Office experience the hardships of the people of Brgy. Singalat first hand during the LGU assessment in Calamba, Misamis Occidental. The community hopes that their approved and on-going implementation of the .84 kilometers Farm-to-Market Road will solve their problems of poverty in their barangay. [marko davey reyes]

kangil-ad among dalan. Salamat nalang sa atong Ginoo kay na prioritize mi sa Kalahi-CIDSS, maayo na gayud kining among dalan”, Chairman Bucog said. (We have already raised this problem to those in authority but still operations continue. This has worsened the condition of our roads the longer the operations are on-going. But we are thankful to God that we were prioritized in the Kalahi-CIDSS project, so now, our roads will surely be improved.) But this situation has prompted the Regional Project Management Office. One of the principles strongly promoted by Kalahi-CIDSS is SUSTAINABILITY. Before the barangay sub-project is completed, a full-proof plan to sustain the subproject must be already prepared. This ensures that the funded sub-projects will be kept operational and in good condition so that the future generations may be able to benefit from them. During the conduct of the LGU Assessment for Barangay Singalat, Engr. Roel Jumao-as, Regional Community Infrastructure Specialist posted a challenge to the community. Part of the project implementation coming up with an Operations and Maintenance plan. Engr. Jumao-as asked if the volunteers would be able to maintain the condition of their .84 kilometers Farm to Market Road once it was done. “Dili nato matago ang kamatuoran nga anaay logging sa inyong lugar. Kung magpadayon gihapon kining logging, sigurado gyud ako nga maguba gihapon kining dalan sa mga kumong-kumong (6-wheeled trucks). Karon, unsa man ang inyong solusyon niini? Na aba kita’y mabuhat ani nga problema?” Engr. Jumao-as inquired. (We cannot hide the fact that logging is rampant in your area. If the operations will continue, I am sure the road will be destroyed by the kumongkumong (6-wheeled trucks commonly used for logging) that will pass-by the area. Now, I ask you, what will be your solution to this dilemma? Is there something that we could do to solve this problem?) Mr. Rpger Alabado (Regional Community Project Specialist) on the other hand reminded the community that the Kalahi-CIDSS project uphold certain social and environmental safeguards. It is important that the project enlightens the community to several social and environmental issues, in which he says is one of the most important ways to empower the people or the community.

For a successful technology, reality must take precedence over public relations, for Nature cannot be fooled. ~Richard P. Feynman

“Atong hinumduman nga kita adunay obligasyon sa kinaiyahan ug sa katilingban. Dili nato itugot nga ang atong mga proyekto maoy mahimong hinungdan nga maabusar hinuon ang atong kinaiyahan ug matudluan atong katilingban sa butang nga dili maayo. Kun mahuman na kining atong sub-project, basin na hinuon modaghan ang mga loggers nga mosulod dinhi kay aduna na sila’y maagihan paingon sa bukid. Kinahanglan ato kining maatiman nga problema”, Mr. Alabado reminded the volunteers. (Let us remember that we have an obligation to protect our nature and uphold social decency. We must never allow our projects to be the tools of abusing our nature and promoting social insensitivity. I fear that if our sub-project is completed, maybe it will encourage more loggers to operate because they will have better access to the area. We have to deal with this matter.) This was already foreseen by the community. Led by their Community Facilitator Mr. Edgar Gudmalin and the rest of the Area Coordinating Team and the Municipal Coordinating Team, they have already come up with a good plan for the matter. A barangay resolution is on the way banning all logging operations in the area. Mr. Gudmalin even encouraged the community to come up with a community signature campaign condemning any logging operations in the area. The ACT/MCT on the other hand has met with Hon. Luisito Vilanueva Jr., Municipal Mayor of Calamba, Misamis Occidental, and brought the matter to the mayor’s attention. As action, the Mayor will support the resolution of the barangay to ensure that the sub-project will serve its purpose well. “Human kana gidala nga isyu sa akong opisina, amo kanang gipangitaan ug paagi. Gihatagan namo ang mga adunay kayutaan sa lugar nga anaa-ay mga tanom nga kahoy ug panahon nga maputol nila ang ilang mga tanum. Kung masugdan na ang sub-project, ato na gayud ibawal ang logging sa lugar. Mag-assign kita ug mga tao nga maoy mobantay diha aron maprotektahan ang dalan,” Mayor Villanueva said. (After the issue was raised, we made sure we found a way to solve the problem. We gave time to those who owned lands in the area to finish harvesting their logs. After that, once the sub-project is started, we will no longer allow all logging operations in the area. We will assign persons to man the area for loggers.) These are all plans. How to put them in action is another matter. But the people of Brgy. Singalat, after years of longing to have better road access to the Poblacion where they will be able to sell their products, promised to take care of this “Godgiven gift” to their community. With the cooperation of the Local Government Unit of Calamba, this endeavor of sustaining this farm to market road, which is very relevant to the community, will be attained. The Kalahi-CIDSS Project does not only provide infrastructure projects to the community. Above all else, the Project gives the community and the LGU an opportunity. An opportunity for the community to make their lives better through their own hard work and determination and an opportunity for the LGU to improve their governance by maximizing on the needs of their constituents with the help of the Program.


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BusinessDaily (June 19, 2013) by Mindanao Daily News - Issuu