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BusinessDaily Mindanao (June 3, 2013 Issue)

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Briefly No market rehab CAGAYAN de Oro City Mayor Vicente Emano on Friday said the city government has cancelled plans to uplift the public market in Puerto, a coastal barangay east of the city. “It is unfortunate that the plan to pursue the Puerto Public Market Redevelopment Project has been put off,” Emano said in a statement released to media outlets here. He said that the proponent of the project under a “BuildOperate-Transfer” scheme has withdrawn the proposed market redevelopment plans. Emano sought the understanding of market vendors in Puerto, one of the three largest public markets in Cagayan de Oro City, since “my term would end in June this year.”

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Lower wage hike seen Tripartite board to release figure early this month

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By CHRISTINE CABIASA, Reporter

ORTHERN Mindanao’s minimum wage earners are expected to get their salary adjustments as soon as the National Wages and Productivity Commission (NWPC) finally approves the region’s tripartite board’s recommendations. Department of Labor and Employment (DoLE) Regional Director Johnson Cañete, however, declined to provide figures on the impending new wage order, but noted it would be less than the amount pushed by the labor sector.

In April this year, the Associated Labor UnionsTr ade Un ion C ong re s s of the Philippines (ALUTUCP) filed an P88-wage hike petition in Northern Mindanao and t hat t he current minimum wage, set at a maximum P286, be

adjusted to P374. “We cannot divulge the amount yet pending the result of the NWPC en banc meeting, but for sure there will be another round of increases this year and we will be giving you the exact amount early [this month],” Cañete said. He said the Regional Tr i p a r t i t e Wa g e s a n d Productivity Board decided on the rate of increase after it conducted provincial wage consultations and a regionwage/PAGE 11

Workers in a food company in Cagayan de Oro City. Minimum wage earners in northern Mindanao are expected to get a much lower wage hike this year than what has been proposed by the labor sector.

Korean fashion brand Basic House to open store at Centrio Mall

Waste facility CAGAYAN de Oro is now studying a proposal for the construction of a medical waste facility that would process, treat, reprocess, and dispose infectious medical waste here, City Councilor Prexy Elipe said on Friday. The “Basura ATBP Inc.,” a private corporation, has submitted the proposal to the city council for the approval of a memorandum of agreement for the construction of the medical waste facility in Upper Dugong in Carmen here. The proposed MOA provides the terms and conditions the premises, usage fees, default p ay m e n t , p u b l i c u t i l i t i e s , insurance, prohibitions, undertakings of both parties, among others, Elipe said. Elipe, who chair the city’s environment committee, said that the Local Government Code of 1991 mandates local government units to promote the public health and safety of its inhabitants, enhance the right of the people to a balanced ecology.

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By BUTCH D. ENERIO, Correspondent

BACK TO SCHOOL. Shoppers take advantage of a weekend sale of school supplies, shoes and uniforms at one of the malls in Davao City as classes start today, June 3. mindanews photo by toto lozano

FILIPINO fans here of Korean street style will definitely have an array of choices with the opening of a Korean fashion brand- well-received for its fresh and preppy spin to everyday wear. Basic House is poised to excite the industry’s ready-

to-wear segment and fulfill the market’s fascination for Korean fashion on June 5 when it opens its store at the Ayala Centrio Mall. Living up to its philosophy of reinventing fashion staples everyday, Basic House has Korean/PAGE 11

Bigger profit for banana farmers sans aerial spraying, says study By MindaNews

KORONADAL City -- Small banana growers in the Davao region will earn more income if banana plantations will shift from aerial to ground spraying, results of a study commissioned by t he I nter f ac e De velopment

Interventions, Inc. (IDIS) showed. IDIS said the study– “Financial Assessment of Shif ting from Aeria l to Ground Spray in Banana Plantations in Davao Region” conducted by Anabeth San

Gregorio in 2011–found that a shift from aerial to ground spraying resulted “to an increase in potential gross profit from P116,000 to P138,200 per hectare per year, or an incremental profit Profit/PAGE 11

NO AERIAL SPRAY. Worker does manual spraying in a banana plantation in Bukidnon. Aerial spraying of pesticides has been banned in some areas in Mindanao. mindanews file photo

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

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Women weavers get more aid Singapore eyes fruit,

vege imports from PH

By DANILO E. DOGUILES Contributor

KORONADAL City -- More technica l assistance are coming to a group of women loom weavers in Midsayap in North Cotabato through the Department of Science and Technology (DOST) – 12. Z en a id a Hadji R aof Laidan, DOST 12 regional d i r e c t o r, c o n f i r m e d today that the agency, the PALMA-PB Alliance, the local government unit of Midsayap and the Midsayap Rural Improvement Club Loom Weavers’ Association (MRICLWA) have signed a memorandum agreement for a collaborative project that would boost the group’s loom weaving venture. T he projec t, dubbed “Enha ncement of Loom We a v i n g I n du s t r y f o r the Empowerment of the Women Sector of Midsayap” is being assisted via the agency’s Small Enterprises Te c h nolog y Upg r ad i ng Program (SETUP). As a flagship program of DOST, SETUP assists and enhances the competitiveness of micro, small, medium and enterprises (MSMEs) with an end-point of upgrading their capability to become industry models. “The project (in PALMAPB) envisions to enhance the loom weaving industry for the empowerment of the women

sector as active contributors in the attainment of socioeconomic development and sustainability in the area,” Laidan said. PALMA-PB stands for the allied LGUs of Pigcawayan, Alamada, Libungan, Midsayap, Aleosan, Pikit, and Banisilan. She added that DOST has already provided the MRICLWA with initial loom weaving equipment. With the new agreement, additional sets of equipment will be provided to the group next year to help the members

produce more quality woven products. In April, 30 members of MRICLWA in Barangays Bulanan and Sambulawan u n d e r w e nt a t r a i n i n g advanced handloom weaving and designing geared toward enhancing their capabilities and competitiveness. The training focused on latest technologies on loom setting, design interpretation, and advanced weaving. Science Research Specialist 1 Josefa Garlitos a n d S c i e n c e R e s e a rc h Assistant Ramiro Guab, both

from the Philippine Textile Research and Development Institute (PTRI) of DOST, served as resource persons. MRICLWA members have been producing varieties of handwoven fabrics using silk threads and yarns. These fabrics are made into bags, slippers, pillow cases, and mats. Laidan said, t he silk fabrics woven by the group has particularly caught the eyes of some fabric designers who a re now using t he product in their fashion weavers/PAGE 11

THE Philippines has a lot of opportunities for the fruits and vegetables in the Singapore market due to its rising demand. This was the message of Joyce Lim, Executive Manager of the Agri-Food and Veterinary Authority (AVA) of Singapore during a recent seminar at the International Food Exhibition (IFEX). Lim cited that Singapore imports more than 90% of its food from the different countries. With these, she said that they want to enable the consumers to enjoy key food items at adequate supply and stable prices with assurance of food safety. She informed the participants that Singapore imported fruits from 52 countries in 2012, Malaysia and China being the top two sources of fruits. She

added that the Philippines accounted for seven percent of Singapore’s total imports last year. The top fruit imports from the Philippines are banana, pineapple, papaya, ma ngo, Hawa ii papaya, lemon, avocado, plum mango and pomelo. On the other, Singapore imported vegetables from 43 countries in 2012, with Malaysia and China still the top two sources of vegetables. She added however that the Philippines accounted for only one percent of Singapore’s total imports last year. The top vegetable imports from the Philippines are sha l lot, sweet corn, capsicum (bell pepper red); oyster mushroom, capsicum (bell pepper green), asparagus and abalone mushroom. Lim pointed out that Eyes/PAGE 11

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Bukidnon boy makes it to RP football team competing in Myanmar By Walter I. Balane

MALAYBALAY CITY – One of the members of the Philippine team competing in the 42-country Asian Football Confederation (AFC) U14 Championship 2014 Qualifiers in Naypyidaw, Myanmar hails from this city. Elljhone Clyde Rasonable, 13, is part of the team that won its first game with Brunei Darussalam Tuesday afternoon with a score of 4-0. Playing under “Group E” i n t he eig ht-g roup tou r na ment , t he tea m w i l l ne x t t a c k le ho s t team Myanmar at 6 p.m. Wednesday, then Malaysia at 9 a.m. Friday, and Vietnam at 3:30 p.m. Sunday. The tournament is scheduled to end June 3. Rasonable, ta k ing defender position in the team, is the only one from Northern Mindanao in the 17-member team supported by the Philippine Football Federation. He is a member of the M-Kids Malaybalay football club. He i s a n i nc om i ng eighth grade student at the Bukidnon National High School. His family lives in Barangay 9 here. Elljhone’s father Claudio

said his son’s interest in footba ll bloomed lately when he joined MKids. But Claudio admitted that being a basketball player himself, he thought Elljhone would want to follow his footsteps so he brought his son with him in his games. “Eventually, a friend convinced me to consider encouraging him to play football instead,” the elder Rasonable recalled, citing his son regularly watched football games at the Capitol grounds. The elder Rasonable said Elljhone was not enrolled in his high school’s special program for sports because they did not expect he would be interested. “But he caught us by surprise and we are so happy for him,” he added. Rasonable said it was only lately when they learned that their son wanted to become a “professiona l football player.”

MK ids won t he U14 football tournament with t he Bu k id non Footba l l Association in Del Monte in 2012. They qualified to represent Bukidnon in the regional tournament in Gingoog City, where Elljhone was discovered by Eliezer Obias Faborada, a coach from the PFF. He w a s t hen l i s te d in a training camp for national pool members of the Philippine U14 (Boys) Team in San Carlos City in Negros Occidental last April 5 to 25. Sarah Valderrama, MKids officer, said they welcome Rasonable’s inclusion in the national team and the group is proud that even after only three years, they were able to produce an athlete with Rasonable’s caliber. She added that they were inspired to continue their work with the young people, especially the poor who excel and have interest in football. But Valderrama added that even when they started, among the serious challenges of the youth who could play football is online gaming.

IMPROVISATION. A habal-habal motorcycle carries a heavy load of falcata lumber in Prosperidad, Agusan del Sur. mindanews photo by erwin mascarinas

Water crisis hits Surigao City By Roel Catoto

SURIGAO CITY (MindaNews / 30 May) – Extreme drought brought down the water level in the Parang-Parang Watershed into critical level that resulted in inadequate water supply in the city. The Surigao Metropolitan

PH tourism looks forward to more double-digit gains Philippine tourism sustains its robust performance as foreign visitor arrivals for the first four months of 2013 reached 1,649,458 million or a 10.12% increase from the same period in 2012. The first four months represent 30 percent of the target arrivals for 2013, with the month of January yielding the largest volume of 436,079 visitors and February generating the highest growth of 15.52%. For t he f irst four months of the year, Korea has contributed the largest arrivals with 406,595 visitors, keeping its undisputed pole position with the biggest market share of 24.65% to the total inbound traffic and a double-digit growth of 23.0 8% . T he Un ited States remains the second biggest source market with 246,011 visitors or a share of 14.91%. Japan is third with 148,950 or 9.03% of the overall visitor volume. China has kept its position as the

fourth biggest market with 132,307 or an 8.02% share. Australia is fifth with 72,015 arrivals, constituting 4.37% of the total visitor count. Its double-digit increase of 12.06% from last year catapulted it to the fifth spot, moving Taiwan to sixth. The latter delivered 68,654 visitors, ref lecting a slight decline of 8.30%. Rounding up the top producers in terms of volume a nd percent age g row t h are: Singapore with 55,096 (15.90%); Canada with 50,352 (4.25%); Hongkong with 45,734 (12.87%); United K i n g d o m w i t h 4 3 , 0 55 (3.10%); Ma lay sia w it h 35,069 (8.36%); and Germany with 28,799 (9.16%). Other source markets with doubledigit gains include Russia (30.33%), India (23.13%), and France (20.10%). “ T h i s g row t h i s a n affirmation of our various marketing and destination tourism/PAGE 10

Water District (SMWD) said that it has been a month now that they are facing a lack of water supply. SMWD general manager Benjamin R. Ensomo Jr. said t he Parang-Parang Watershed, the city’s main source of potable water, now

only has 10 inches of water at the mini-dam. On normal days, water level is at one or two meters high, he noted. “Right now we can supply 13 million liters – 13,000 cubic meters – per day or,” Ensomo told MindaNews. Crisis/PAGE 7

NGCP surpasses target set for frequency of tripping ON its way to fulfilling its mission of becoming the best transmission company i n S out he a st A sia , t he National Grid Corporation of the Philippines (NGCP) surpassed the target limit for frequency of tripping (FOT) set by the Energy Regulatory Commission (ERC) for the year 2012. The FOT is a corporate performance indicator set by the ERC that measures the number of times the high-voltage transmission lines tripped or experienced forced outages for every 100 circuit kilometers (ckm). The ERC established t he indicator to ensure minimal disturbance on power delivery service and to continuously improve the transmission system operator’s facilities. NGCP’s goal is to lower the FOT for t he Luzon, Visayas, and Mindanao grids. For the year 2012, the target FOT for Luzon Grid was set at 4.63 trippings per

100ckm, the Visayas Grid at 5.7 per 100ckm, and the Mindanao Grid at 5.52 per 100ckm. Hav i ng suc c e s sf u l ly reinforced the crucial lines and continuously improving the rest of its facilities, NGCP was able to reduce the frequency of trippings to 1.959 for Luzon, 1.081 for Visayas, and 2.595 for Mindanao, respectively. This represents a 58-percent improvement over the ERC-set acceptable levels for Luzon, 81 percent for Visayas, and 53 percent for Mindanao. NG CP spoke sperson Atty. Cynthia P. Alabanza confirmed the actual FOT ratings. ”NGCP’s operations are centered on strengthening the transmission backbone that is why we strive hard year on year to lower our FOTs. Our FOT ratings, which are considerably better than the acceptable levels NGCP/PAGE 7

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hink a minute…Remember the first people to ever fly A Minute an airplane? By Jhan Tiafau Hurst There were the Wright brothers, just a week before Christmas, 1903. T hey were so excited they sent an urgent telegram message to their sister which said: “First flight in history today! Hope to be home for Christmas.” Their sister rushed to the local newspaper with the message. The next day, the newspaper headline read: “Local Brothers to Be Home For Christmas.” Not one word was said about their flying! The newspaper editor had completely missed the point of the message: for the first time in the history of the world, human beings could fly. Did you know another even bigger misunderstanding in history? It’s Christmas. How many of us celebrate Christmas every year? Yet we keep missing the point. We still have not gotten the message and understand what it means. This is all the more surprising since the life of Jesus Christ is the turning point of all history. The world’s calendar is based on His birth. No one in history has ever been announced hundreds of years before he was born. No one else ever died and was buried for 3 days, then brought Himself back to life. This is because no other man, religious teacher or prophet was God Himself. Only this one man Jesus Christ. “If you’ve seen Me, you’ve seen God the Father, because I am God the Son. And I will come again to judge this world and whomever has chosen not to believe me and ask for my gift of hurst/PAGE 7

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n two previous articles, we wrote about the “problem of plenty” brought about by the surge of dollar inflows into the country. The Bangko Sentral has responded by “sterilizing” the dollars. We explained that the “sterilization” operations were quite costly but necessary in order to relieve pressure on vulnerable sectors such as our OFWs, our exporters, and the BPO sector and other dollar earners. Recently, the Bangko Sentral came up with additional rules liberalizing the purchase of foreign exchange both by residents and non-residents from authorized agent banks. Somehow, these rules will facilitate the outf low of foreign exchange, thus alleviating current and expected capital inflows into the economy. A side benefit will be a possible shift in foreign transactions from the informal market to the formal banking system. Also, the new rules will benefit residents who have dollars obligations abroad or who intend to invest abroad. “Residents can now buy a higher amount of foreign exchange to meet the costs of education and medical bills incurred offshore, for foreign travel and other services, without need for supporting documentation,” BSP Deputy Governor Nestor Espenilla Jr. said. Espenilla added, “Philippine residents will also have more foreign currency dominated investment instruments

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to choose from that can be funded from foreign exchange O ut that can be bought from our By Ignacio Bunye banks.” On the other hand, nonresidents will be afforded wider f lexibility in funding their authorized peso accounts and later on reconverting these pesos into dollars. Summarized below are the salient features of the new forex measures: — Increase the amount of forex that may be sold overthe-counter by authorized agent banks to residents without documentation for non-trade current account transaction to US$120,000 (up from US$60,000). — Increase the maximum amount of forex that may be purchased (at prevailing exchange rate) using unspent pesos of departing non-resident tourists or balikbayans without need to show proof/s of previous sale of forex for pesos to US$10,000 (up from US$5,000). — Relax the rule on the funding the peso accounts of bunye/PAGE 7

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by Engr. Robert F. Mallillin, ammer chairman of the Philippine and A nvil Chamber of Commerce and By Mike Baños Industr y’s (PCCI) energ y committee shows a similar cost advantage. According to Dodong, “regulating the Lake Lanao energ y storage is likened to batter y being charged by alternator using voltage regulator - the Rule Curve (RC) guide. Without the Charger equivalent of the Power Barges, NPC engineers are left with no option when the actual Lake Lanao elevation drops below the RC except “Load Shedding” or reducing the Load from the hydro plants,” which result in rotating brownouts. Mindanao’s comparative advantage is unique: it has Lake Lanao which can impound 350 square kilometers of water under strict environmental control, unlike dams in other countries which have limited impounding capacity. Dodong also differs from Bob in his analysis of the way the diesel plants in Mindanao are now utilized, most especially the two 100MW former power barges of Napocor which were purchased and now operated by Aboitiz Power affiliate Therma Marine Inc. (TMI). Although he agrees with Bob the diesel plants are under utilized as purely “peaking plants,” he takes exception specially for the two TMI power barges which since 2011 baños/PAGE 7

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Charging Lake Lanao

wo of my fellow advocates in the energy industry have proposed similar, albeit slightly different short term solutions to the Mindanao Power Crisis which ostensibly can address the prevailing energy shortage in the island. However, the common denominator to both options is running Mindanao’s big diesel plants 24/7 instead of only during peak hours, thereby increasing their capacity or load factors (the total energy potential of an engine) and enable the National Power Corporation which operates the Agus-Pulangi hydroelectric power complexes in Lanao and Bukidnon provinces to store more water and then release them during peak hours. Engr. Cerael “Dodong” Donggay, former Vice President for Mindanao of the Napocor, likens the diesel power plants to a charger which enables the Agus-Pulangi hydroelectric power complexes to store power reserves (as the ‘battery’) during the “off-peak” hours and release them during the evening “peak hours.” This scheme would in effect eliminate the rotating brownouts now plaguing Mindanao and dispel the need for hard up rural electric cooperatives to borrow the PhP 4.4-billion allocated by the national government as soft loans through the National Electrification Administration (NEA) to either purchase or lease modular diesel generators which would ostensibly also eliminate rotating brownouts but would cost the coops PhP 18 per kilowatt hour (/kWh). Compare this to the estimated incremental cost of PhP 1.34/kWh (over the present grid rate of PhP 4.00/kWh) and any grade school kid with a modicum of math can tell you that’s way cheaper than the PhP 18/kWh which coops would pay with the modular gensets. The scheme proposed

Crystaline pino ATTY. MARIO T. JUNI

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he law is clear that candidates should file their statement of expenditures after the election period win or lose. Having lost the election I thought it best to file these expenditures in keeping with the law. Realizing even its chairman violates the Automatic Election Law; in keeping with the “matuid na daan” I thought it best to file anyway. Interestingly enough I was dumbfounded upon filing. Even the comelec receiving the form for expenditures was confused not knowing what to do with my report submission. The question then is; is the comelec under its chairman confused with all the resolutions and all the trickery that seems to have taken place? Is this independent institution of a government body all about the purchase of machinery it forgets to administrate over its rules and regulations promoted? At the rate they are operating the comelec there is reason to doubt them. As for the other candidates I don’t think you need to file expenditures. They don’t know what the hell they’re doing in that office anyway. What is disturbing are the employees and staff which seem to roam aimlessly around having nothing to do but watch TV all afternoon and mope. There was one staff busy selling hand bags to another staff. Then of course there as the usual geek playing games on the i-pod or phone. Watching other staff looking intently at the computer monitors, I am certain it had to be facebook. It is not hard to imagine how our government funds are lost to the bureaucracy like this one, and believe me there are many. Imagine the chair of the commission asking to re schedule

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the barangay elections because they are too busy with the last B randing elections due to protests, the By Harry Tambuatco manual audit, etc. It is no wonder they are too busy when to begin with the complaints are mounting due their discrepancies. Then there is the office that has no work (or refuse to work) you be the judge. The cit izenr y is held h o s t a g e by g ov e r n m e nt w it h i n c omp e t e n c e a n d irresponsibility being characteristic of the bureaucracy. What are we to do? Either way command responsibility points to the commander in chief being the president on issues like this. It makes you wonder; what is preferable... a leader who is clean and does not steel but who is incompetent or a leaders that robs us blind but is competent? Again you be the judge! There are a number of unresolved national issues that have tilted against our favor such like the China intrusion of our waters, then there are the Malaysians who blatantly hunted down Filipino Muslins belonging to the royalty army of Sultan Kiram. We now have issues with Taiwan who as of this writing refuses to accept any apology from the President. Last Tambuatco/PAGE 7


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Bunye... from page 6

non-residents so as to allow the following: Onshore peso receipts of non-residents from residents for ser vices rendered by former to the latter. Peso receipts of onshore expatriates with short-term work contracts representing s a l a r y/a l low a nc e /ot he r benefits. Onshore peso funds of foreign students enrolled in the Philippines and nonresident Filipinos. Allow depository banks to conver t to forex t he balance of the peso deposits funded by said accounts up to US$60,000 per day. — Expand t he list of a l low a b l e for m s of investments for Philippine residents for which forex funding may be purchased from authorized agent banks: Of fshore forexdenominated global/mutual funds and UITFs. Forex intercompany loans of resident enterprises to their offshore parent companies/ subsidiaries with an original tenor of at least 1 year. Real property abroad, including condominium units. Debt securities issued offshore by both residents and non-residents that are in local bank’s asset inventory. Equity securities issued by residents that are listed abroad.

Baños... from page 6

merely supplying its various customers instead of acting as the “battery charger” for the Lake Lanao “Battery” as they were utilized during his tenure as VP-Mindanao of Napocor. Dodong’s proposa l is being carried by the Oro C h a m b e r t h r ou g h t h e R e g ion a l D e ve lopme nt Council and the Mindanao Development Aut horit y while Bob’s proposal is being endorsed by the PCCI. Either way, they would require TMI’s concurrence and the Energy Regulatory Commissions’ (ERC) approval to redo the energ y supply contracts already signed with industrial clients and distribution utilities. Perhaps, both proponents should also have a “Plan B” involving the diesel assets of CEPALCO and Davao Light which together already exceed 100MW which I’m sure both would willingly run 24/7 for the greater good of all DUs in Mindanao.9

Hurst... from page 6

and eternal life.” Friend, what we decide and do with Jesus Christ in this life now, decides what Jesus must do with us after we die. S o I hop e you now understand the point and meaning of Christmas. That God loves us so much, He humiliated Himself to become a human being named Jesus Christ and die for our sins, so we could be

forgiven and free to start life all over again. Only this time, we’ll be living our Maker’s way, which is the right way that always works. The choice is yours. Just Think a Minute…

Tambuatco... from page 6

we witnessed the bungling of the Hong Kong tourists gunned down on national TV with the President smiling upon an ocular. Either way the people have chosen or at least the majority has – so be it!

Crisis... from page 4

But the problem is, current dema nd is 19,0 0 0 cubic meters, he pointed out. C ompa rat ive data of w ater supply f rom t he months of January to April for the years 2012 and 2013 showed a downward trend, Ensomo said. January last year, water supply reached 596,050 cubic meters. Same time this year, it is only 557,473 cubic meters. February last year, it was 519,385 cu.m., but only 509,472 cu.m. this year. It w a s on l y for t h e mont h of Ma rch t hat supply somehow stabilized – 568,295 cu.m. last year as compared to 567,457 cu.m. this year. But April again showed a drastic drop in the water volu me – f rom 56 4, 215 cu.m. to 500,859 cu.m. Ensomo stressed that over the last 10 years, the city never experienced water shortage in the months of April and May. He admits that he did not anticipate water shortage as early as these months of the year. He pointed out that water shortage usually occurs in the months of July to September. Ensomo said they are c u r rent ly f a s t-t r ac k i ng projects tapping other water sources in the neighboring municipalities of Sison and San Francisco in Surigao del Norte. These projects will be operational this year and expected to generate a total of 240 liters per second. These water sources, he said, are outside the ParangParang Watershed area. Ensomo attributed the water shortage to the lesser volume of rainfall and the increasing number of water c onsu mers , w h ich now number 19,000. And SMWD expects an additional 3,000 more this year. To help solve the problem, Ensomo said they divided Surigao City into areas to ration water supply. While many are complaining, he said this approach has its benefits as even those living in elevated areas do get their water as the lines in other areas are shut down. “We don’t use fire trucks (to deliver water to remote areas) anymore because it’s expensive and the people will be hassled because of the long queues,” he said. Several water

consumers have expressed dissatisfaction on the water u t i l i t y ’s p e r f o r m a n c e because the shortage has become a yearly occurrence. Roverly Mor a le s , of Payawa n 2 i n Ba ra ngay Luna, lamented that his faucets are dry during the day, the water coming out only between 10 p.m. and 2 a.m. “I have to keep awake until midnight or 1 o’clock in the morning so I can fill a ll t he water containers we have,” he complained. It ta kes hi m about t wo hours to fill all their water containers for the family’s needs all day. Morales said the

situation is so disturbing bec ause a side f rom t he water shortage, they still have to deal with rotating brownouts. He calls it a “double whammy.” Several Facebook users ranted on their wall over the water shortage. One of them, Lhord Peter Bigay, complained he stank all day because he couldn’t take a bath. Businessmen expressed dismay, too. Willy A. Gan, president of the Surigao Chamber of Commerce and Industries (SCCI), said the water shortage, coupled with the rotating brownouts, has greatly affected the business sector in the city.

NGCP... from page 4

set by ERC, are a result of the continuous upgrade, expansion, and reinforcement of our facilities,” she said. “Ou r customers a nd the public can be assured that NGCP will continue to improve its performance and exceed the targets set by the ERC to provide more reliable and efficient power transmission service,” she added. NGCP is a pr ivately owned corporation in charge of operating, maintaining, and developing the country’s power grid. It transmits high-voltage

7

electricity through “power superhighways” that include the interconnected system of transmission lines, towers, substations, and related assets. NG C P ’s r e g u l a r maintenance activities and expansion projects aim to enhance the reliability and quality of electricity delivered to grid-connected customers like generators, distributors, and large industries. (PNA)

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DENR hails PHL ranking in minerals management By BONG D. FABE

THE Department of Environment and Natural Resources (DENR) has welcomed the Philippines’ placing 23rd among 58 resource-rich countries in the Revenue Watch Institute’s (RWI) recent global report, attributing such “meaningful progress” to the government’s sweeping reforms in the mining industry. The New York-based policy institute gave the Philippines a score of 63 out of 100 in “ institutiona l and lega l setting” category because of these reforms, according to RWI’s 2013 Resource Governance Index released last week. “Such good show ing for t he cou nt r y i n t he i nst it ut iona l a nd lega l setting category was due to the Aquino government’s initiatives to reform the mining sector,” Environment Secretary Ramon Paje said in a statement. Paje said t hat t he government is clearly moving towa rds bet ter minera l resources management.

The country’s score is its highest in any index component which included reporting practices, sa feg ua rds a nd qua l it y cont rols , a nd enabl i ng environment. “ T he i nter nat iona l community has noted the comprehensiveness of our mining laws and how they faci l itate t ra nspa renc y, accountability and open or fair competition,” Paje said. He said the RWI ranking is a strong recognition of Aquino’s Executive Order 79, which seeks to balance important concerns on mining development in reinforcing environmental protection measures, promoting

responsible mining, providing more equitable revenue sha r i ng a nd prov id i ng coordinative mechanisms among stakeholders. “This is indirectly a recognition that the issuance of EO 79 by President Aquino was indeed t he perfect vehicle to reform

the mining industry and improve government royalty rates while at the same time ensuring intergenerational equity,” he stressed. EO 79 bans mining in pri me ag ricu ltu ra l a nd fishing areas as well as in 78 designated ecotourism sites, including almost the

Port facility boosts economy in Lamitan

DOMINGO Narciso, the m a n a ge r of a f a r m i n g cooperative in Lamitan, a town in the island-province of Basi la n, i n t he Su lu Archipelago, reca lls t he former process of getting his co-op’s rubber, coffee and copra harvests to buyers in Zamboanga City. “It was time-consuming, due to the ‘double handling’ of cargo,” Narciso said. The produce had to be trucked into Lamitan, unloaded at the port, then stacked aboard the ferry. After the two-hour sea voyage to Zamboanga City, the produce would again have to be unloaded, and packed into a hired vehicle. This was before USAID’s Grow t h w it h Equ it y i n Mindanao (GEM) Program upgraded Lamitan port and outfitted it with a “roll-on, roll-off ” (RORO) ramp. entire province of Palawan. The RORO facility allows It also stopped issuing cargo trucks and other land new mining permits until vehicles to simply roll off Congress passes a measure or on to a ferry. In addition increasing the royalty tax to the faster movement, imposed on the gross earnings this also helps minimize of mining companies to 5 handling damage to goods in percent from the current 2 transit and reduces handling percent. charges. Lamitan/PAGE 11 denr/PAGE 10

UN panel: Big firms should Trillanes PHL ramps up renewable energy report environmental impact on the run BIG companies should report their impact on the environment in addition to their earnings under a UN plan to boost economic growth and ease poverty by 2030, according to recommendations by a panel of world leaders released recently. Slowing climate change and protecting the environment should be at the core of global development, said the 27-member panel, led by British Prime Minister David Cameron, Indonesian President Susilo Bambang Yudhoyono and Liberian President Ellen Johnson Sirleaf. “There is one trend — climate change — which will determine whether or not we can deliver on our ambitions,” the report said. “Without environmental sustainability, we cannot end poverty; the poor are too deeply affected by natural disasters and too dependent on deteriorating oceans, forests and soils.” The report — handed over by Yudhoyono to UN Secretary-General Ban Ki-moon in New York — recommends 12 so-called illustrative goals to replace eight Millennium Development Goals that were aimed at reducing poverty and hunger. Those goals were agreed to by world leaders in 2000 and expire in 2015. The goals recommended on Thursday will be the basis for a two-year debate among the 193 UN members on a development agenda for 2015-2030. Like the Millennium Development Goals, which included a bid to halve extreme poverty, any specific new numeric targets will be non-binding. Among the recommendations, the 69-page report says large businesses should be obliged to report firms/PAGE 10

S U R I G A O C I T Y— A n env ironment activ ist in Surigao del Sur is now on the run, seeking sanctuary in an unknown but safe places after unidentified men attempted to enter his home early morning Friday last week in what he believes is a move to “silence” him. C h ito Tr i l l a ne s , spokesperson of the Social Action Center (SAC) Vicareate for the Carrascal-CantilanMadrid-Carmen-Lanuza and Parang (CarCanMadCarLanPar) Zone in Surigao del Sur, is one of the active leaders in the fight against illegal logging and mining activities in the province. Trillanes is one of the active leaders of the antimining struggle in the five towns of Surigao del Sur, including the month-long barricade held last March until April at the Mines and Geosciences Bureau (MGB) regional office here. In a mobi le phone run/PAGE 10

AS the Philippines grapples with frequent power outages and a growing demand for energy, government agencies and private groups say the answer to the country’s power needs may lie in alternative sources. Currently, three million households lack access to electricity in this country of 9 4 m i l l i on p e o pl e . Some provinces only have electricity for several hours each day, while countless households on the country’s more remote islands still rely on d iesel-powered generators. E nerg y r ate s i n t he country remain among the highest in Asia, placing a heav y burden on the 26 percent of the population that lives below the poverty line. According to a 2011 survey by the Japanese External Trade Organisation (Jetro), electric rates in Manila were pegged at $0.23 per kilowatthour (kWh), higher even than Tokyo and Singapore, which both stand at $0.20

per kWh. A growing demand for energy has accompanied the Philippines’ economic g row t h, w h ic h h it 6 . 6 percent in 2012, according to the World Bank. Supply can barely cope with the increasing demand, which is projected to grow by four per cent annually from 2011 to 2015. In l ig ht of t his, t he c o u nt r y ’s D e p a r t m e nt of Energy is ramping up renewable energy initiatives. In a recent forum on enhancing energy security in Manila, director of the DOE’s renewable energ y ma nagement bureau, Mario Marasigan, said the department has two solarpowered projects in the pipeline, as well as “three wind farms and severa l hydropower plants, in a bid to reduce dependence on fossil fuels.” He says the Philippines currently uses between 38 and 39 percent renewable ene r g y i n it s pr i m a r y energy mix. DOE figures

on gross power generation in the Philippines show that geothermal and hydropower plants each account for 14 percent of renewable power. Other renewable s ou rc e s suc h a s w i nd , solar and biomass are still either underrepresented or nonexistent, and therefore offer the largest potential. “The DOE has approved three new wind projects to proceed with commercial operations including Alternergy’s 67.5-megwatt (MW) facility in Pililla [in the eastern province of Rizal], the Energy Development Corp.’s 87-MW wind farm in [the northern region of] IIocos Norte and Trans Asia’s wind farm in Guimaras [a western island province in the Visayas region],” said Marasigan. So far, the Bangui Wind Farm located on the foreshore of Bangui Bay in Ilocos Norte is the only commercial wind farm in the Philippines. Ma naged by t he Nor t h Wind Power Development phl/PAGE 11

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Tourism... from page 4

development ac t iv it ies, strengthened by partnerships with the various stakeholders. W hi le t he upsu rge may primarily be attributed to the summer season, it is also a clear indication that the nation has galvanized its reputation as an attractive destination. We have been seeing a sustainable increase in arrivals since last year. This building enthusiasm for the Philippines, aided by our government’s good governance agenda, gives us the confidence to achieve our target of 10 million tourist arrivals by 2016. Central to this, we are reaching out to industry, government, and civil society to continue investing in sustainable projects and partnerships to secure our continued growth,” Tourism Secretary Ramon R. Jimenez, Jr. said.

Firms... from page 8

and environmental impacts, in addition to their financial accounts. About a quarter of bu s i ne s s e s now m a k e environmental reports, it said. “We suggest that a mandatory ‘comply or explain’ regime be phased in for all companies with a market capitalization above $100 million equivalent,” the report said. “The same principle should apply to governments. National accounting for social and env ironmenta l ef fects should be mainstreamed by 2030.” Last year, Britain became the first country to force major companies to publish their greenhouse gas emissions in corporate earnings reports. The requirement applies to 1,800 companies listed on the

London Stock Exchange. ‘Grave pressures’ Jim Leape, director general of the World Wide Fund for Nature, said this was a welcome change from the earlier goals wh ich he sa id had ba rely addressed the environment. “Nearly fifteen years on, there is finally recognition that poverty cannot be eradicated and the well-being of people across the globe cannot be secured without addressing the grave pressures on the environment,” he said in a statement. The UN panel proposes goals for 2030 such as doubling the share of renewable energy in consumption, phasing out harmful fossil fuel subsidies a nd doubl i ng t he r ate of i mprovement i n energ y efficiency from buildings to transport. About 13 percent of the world’s primary energy comes f rom rene w a ble s suc h a s hydropower, wood, solar and wind power, according to the International Energy Agency. The panel said it was not present ing a “prescript ive blueprint … The suggested targets are ones for humanity to aspire to. They would not be legally binding, but they can be monitored closely,” the report said. The United Nations had hoped to set specif ic 2030 goals in areas such as water, food security and energy at a summit last year in Rio de Janeiro. But governments fell short, distracted by the global financial crisis and unrest in the Middle East. “We envision a world in 2030 where extreme poverty and hunger has been ended. We envision a world where no person has been left behind, and where there are schools,

clinics, and clean water for all,” the panel said. The repor t said t he Millennium Development Goals had made a lot of progress in reducing poverty. Even so, the 1.2 billion poorest people account for only 1 per cent of world consumption while the billion richest consume 72 percent, it said. And it pointed to threats, including climate cha nge. “We must act now to slow the alarming pace of climate change and environmental degradation, which pose unprecedented threats to humanity.” (Reuters)

DENR... from page 8

The Executive directive also calls for a thorough review of existing mining operations to ensure compliance with mining and environmental laws. It likewise underscores the need for national laws and local ordinances to be harmonized to ensure the proper management and regulation of the lucrative industry. RWI specifically measured the Philippines for its mineral resources since the country produced 11 percent of the world’s nickel in 2010. The Philippines also has major copper deposits, chromium, gold, and silver; minerals that made up 8 percent of merchandise exports in 2011. The southern Philippine island of Mindanao, according to the Environment department’s Mines and Geosciences Bureau (MGB) is very rich in copper, gold, silver, nickel and chromite deposits. Topping this year’s survey were Norway, the United States and United Kingdom. The RWI survey aimed at promoting effective, transparent a nd accou nt able resou rce

ma na gement t h roug h t he resource governance index.

Run... from page 8

i nt er v ie w, t he out s p ok en laity worker said he believes the motive behind the “open threat to his life” has to do with his advocacy in the recently concluded political exercise. “I would like to believe that because of my participation to help green candidates who we consider as environmental champions is one of the principal motives in this obvious attempt to liquidate me,” Trillanes said. But he is not discounting the possibility that people involved in illegal logging could also be the one after him. It was learned that even before the May 13 elections, he had been receiving reports that some armed men, with financial backing from politicians “who support mining,” are out to silence him. Tr i l l a n e s s u p p o r t e d the successful campaign of reelectionist Cantilan Mayor Genito Guardo, who is known as the only anti-mining advocate among mayors in the five towns in Surigao del Sur affected by mining – Carrascal, Cantilan, Madrid, Carmen and Lanuza. According to Trillanes, since the end of the elections in the past two weeks, men on board a black Kawasaki Rouser 135 motorcycle have been tailing him. The night before the alleged attempt to break into his house in Cantilan, the same black motorbike was seen 20 meters from where he was staying in Lanuza. During this time, he was already moving from one place to another for his safety. And while he was on his way home to Cantilan late that night, he believed the same

motorbike trailed him, too. Arriving at his home about 11 p.m., Trillanes said he managed to sleep past midnight, only to be awakened by his mother less than an hour later. He said his mother heard a noise near the window of the front porch at 1:15 a.m. and decided to check. When she opened the porch light, she saw two men carrying a bag who were hurriedly going towards a motorcycle, which he believes could be the same Rouser 125. Trillanes said he already brought the matter to the local police “for them to intensify their intel(ligence) monitoring activities.” But he lamented that “they have not done anything.” But Chief Insp. Jesus Aranco, chief of Cantilan police, said in a text message Thursday morning that that he already instructed his deputy “to conduct roving patrol to preempt any unusual eventualities.” This, he said, includes patrolling Trillanes’s residence and the rest of the town. Insp. Ra ndy M. A zote, Aranco’s deputy, said they were only made aware of Trillanes’s situation after receiving a text message from the PNP regional command based in Butuan City. He said Trillanes has not officially filed a report or blotter to the station. Meanwhile, the Alyansa Tigil Mina (ATM), a nationwide alliance of non-government organizations, peoples organizations and communities in the forefront against largescale mining activities in the country, will raise Trillanes’s case to the Commission on Human Rights (CHR) as soon as possible. Jaybee Garganera, ATM national coordinator, said they will immediately raise the issue

to CHR chair Etta Rosales. ATM has been in partnership with SAC and environment and civil societ y groups in the CarCanMadCarLan area in Surigao del Sur for years and Garganera said his group will not back down in its support for the struggles of anti-mining groups in the area as reports of harassments and killings have reached them. E a rly t h i s ye a r, t r iba l Ma nobo leader Ma nuel “Dat u K aju g jog” G a rd igo was shot and killed by three unidentified gunmen while on his way home after attending a neighbor’s wake. Kajugjog was the president of the Kalasag organization in Lanuza. He led the anti-illegal logging campaign in the area for the last several years. Garganera said ATM is gathering more cases of human rights violations in the area and urged local human rights groups and peoples organizations to document, collate and complete mining related incidents of harassments and threats. “We a re a lso verif y ing re p or t s of hu m a n r i g ht s violations against IPs (indigenous peoples) who have barricaded a mining company in Cantilan,” Garganera said. Mea nwhi le, a not her environmental group, Green Mindanao, Inc., said in a text message that another shooting incident occurred at 9:35 p.m. last Tuesday along the national highway of Brgy. Bocawe, also in Lanuza. According to Green Minda nao spokesperson Nokie Calunsag, the victim wa s ident i f ied a s Vicente Orillaneda, supporter of a losing mayora l ca nd idate. Initial reports said the victim was shot using a caliber .45 handgun. (MindaNews)


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After the Lamitan facility was completed in May 2005, RORO traffic in Basilan quickly grew - from 200 vehicles per month in January 2006 to 900 vehicles per month by the end of the year. Vessels calling at the port experienced faster turnaround times, and shipping costs were reduced. This has mea nt higher earnings for Domingo Narciso’s co-op, which is comprised of both Christian and Muslim members, including former c om b at a nt s of t he Moro Nat iona l Liberat ion Front (MNLF). The success of the co-op has resulted not just in higher incomes for its members, but has also encouraged other growers to expand their own agricultural production. Through the GEM Program, USAID is helping to bring about and consolidate peace in Mindanao and the islands of the Sulu Archipelago, and to accelerate its economic growth while ensuring that as many people as possible benefit from that growth. In Basi la n, as in ot her con f l ic t-a f fec ted a rea s of M i n d a n a o a n d t h e S u lu A rch ipela go, GE M work s with many partners: growers’ a s s o c i a t i o n s (i n c l u d i n g cooperatives comprised of former combatants); chambers of commerce; parent-teacher associations; a nd, loca l governments and national line agencies. The Lamitan RORO facility is one of six port improvements projects undertaken by GEM in western Mindanao.

PHL... from page 8

Corporation, it hosts 20 wind turbines with a total rated capacity of 33 MW. Solar power also remains largely untapped despite its huge potential. The Philippines is still lagging behind in terms of policy implementation and deployment for solar, said to be the most environment-friendly and promising energy source. To date, existing on-grid solar capacity is limited to the one-megawatt CEPALCO Solar Power Plant in Cagayan de Oro, located in the southern Philippines. The country has set the target of tripling its renewable energ y capacity by 2030 to at least 15,000 MW installed capacity. This will also bring it closer to meeting global targets on carbon emission reduction, s i nc e “e ve r y k i l ow at t of electricit y from renewable sources [represents a] saving on carbon dioxide emissions,” said Markus Poller, managing director of M.P.E. GmbH, a German consulting company specialized in wind and solar farm planning. Coal clouds progress: Environmental groups like Greenpeace believe that bolder

moves are in order if the country wishes to secure a sustainable energy future, adding that power generation is still dominated by coal (37 percent) and natural gas (30 percent). According to Greenpeace climate and energy campaigner Anna Abad, the government continues to embark on projects for coal-fired power plants, even while claiming renewable energy is a priority. “Despite the passage of the Renewable Energ y Law in 2008, the DOE has been approving coal-fired power plants left and right, further stalling the development and mainstreaming of renewable energy systems in the country,” Abad said. The 2008 law was intended to facilitate implementation of renewable energy projects. It encourages the establishment of va r ious i ncent ives a nd supportive schemes in order to stimulate investments in renewable energies. DOE figures cited in the Greenpeace publication Green is Gold show that in addition to ten existing coal-fired power plants, there are 23 others in the pipeline, at least three of which are located in the middle of urban communities. Abad fe a rs t hat , onc e operational, these plants will “edge out any potential for renewable energ y and lock the country into use of dirty energy for the next three to four decades.” A not her cha l lenge to achieving renewable energy potential is the high cost of prov id ing energ y to 7,107 scattered islands. The DOE must also overcome administrative hurdles, insufficient financial incentives and technical issues on grid integration, experts say. “Variable energy sources like wind and solar energ y represent new challenges for the Philippines in terms of forecast ing, pla nning a nd operation of the power grid, g r id stabi l it y a nd ma rket development,” explained Poller, a grid integration expert. He stressed that planning is crucial, since wind farms need to be built in places where the wind is strongest, often far from urban areas. Meanwhile, hydropower is most viable during the rainy season, and must be tapped accordingly. Part of the uphill climb for the DOE includes winning support for renewable energy from a consumer base that equates alternative sources with higher prices. Speaking to the press on the sidelines of the forum, Marasigan dismissed these fears as a “misconception”, adding that the switch to renewables would actua lly benef it the average consumer “in the long run.” “While prices for fossil fuels and diesel will only escalate in the coming years,” he said, “prices for renewable energy will be pegged at the same rate for the next 20 years.” Following a petition by the

National Renewable Energy Board, the Philippines’ Energy Reg u lator y Commission approved an initial feed-in tariff (FiT), which sets a fixed price for each kWh of electricity from a defined source of renewable energy. In July 2012, the ERC set FiT rates of $0.23 per kWh of solar energy, $0.20 per kWh for wind, $0.16 per kWh for biomass, and $0.14 per kWh for hydro resources. (Eco-Business/ Jakarta Globe)

Weavers... from page 2

ensembles. In response, PALMA-PB Alliance program manager Orly Maraingan lauded DOST 12 for the sustained assistance to the women’s group. “DOST 12 has been very sincere in providing technical a ssist a nce a nd l ivel i hood oppor tunities to uplif t the economic status of our constituents,” he said. He noted that the loom weaving industry in the area is a potential and viable industry for the women in PALMA-PB. Through SETUP, DOST helps MSMEs improve productivity by product quality improvement, human resources development, cost minimization and waste ma nagement , a nd ot her operation-related activities. Support that can be availed from t he program include new technologies, manpower training, access to capita l and market, use of product standards and testing facilities, appropriate packaging and product labeling, supply of raw materials, access to information and efficient transport facilities. MSMEs that may avail of assistance should be involved in the following priority sectors food processing; furniture and home furnishings; gifts, holiday decors and fashion accessories; marine and aquatic resources; hor t ic u lt u re ; me t a l s a nd engineering; information and communications technology; and halal. (DEDoguiles-PIA 12)

Eyes... from page 2

Singapore consumers prefer vegetables such as cabbage, tomato, c apsic u m, ga rl ic , chili, onion, potato, cucumber, C h i ne s e c abba ge , g i nger, broccoli, caulif lower, caixin, xiao baicai, batam, kalian, spinach, and lettuce head. She also mentioned that AVA has adopted a sciencebased risk assessment and management approach that is based on international standards to ensure safety of imported food. She added that they are rigorously testing for pesticide residues and other harmful contaminants like preservatives, heavy, microbial contaminants, among others.

Wage... from page 1

wide public hearing last month. In an earlier statement, ALU-TUCP President Michael

Democrito C. Mendoza said the current minimum wage is not a living wage and added to that many enterprises do not pay minimum wage. “[With this] the workers’ quality of life has substantially deteriorated,” Mendoza said. Eva B. Arcos, ALU-TUCP national vice-president for education and information, also said the daily take home pay of minimum wage earners in the region was P254.85 at most. This was the amount left after Social Security System, Philippine Health Insurance Corp. and Home Development Mutual Fund contributions and income tax deductions. The last wage adjustment in Northern Mindanao was on July 24, 2011. The minimum wage was set at P286 for nona g r ic u lt u r a l workers a nd P274 for plantation and nonplantation workers.

Korean... from page 1

a lways stood by its classic and simple aesthetics while rei n forci ng g loba l t rend s every season to create fresh and contemporary collections that can be worn time and again. Established in Korea in 1996, the brand is inarguably one of the most aggressive and fastest growing clothing companies in Asia, with 158 stores in Korea and increasing number of stores across key cities in Singapore, Hong Kong, China and Russia. The brand is best known for balancing fashion and comfort, working with extremely versatile but comfortable fabrics for its tees, polo shirts, chinos, blazers, cardigans, jackets and knitwear. Basic pieces instantly become fashion standouts when mixed and matched with the season’s sartorial trends. For its spring/summer 2013 collection, Basic House comes out with fresh variations of the brand’s classic looks and dabbles with cool and bright colors for a summer palette that perfectly complements the warm weather. Pat ter ns a nd g r aph ic s are paired dow n to retain the brand’s overall theme of simplicity, sticking to basic stripes, paisleys, f lorals and a lot of soft pastels. “Sleek, clean and contemporary, Basic House’s timeless pieces do not only capture the essence of Korean fashion but also blend well with different personal styles,” said Thomas Owen Tee, brand manager of Robinson’s Specialty Stores Inc. (RSSI). He said that Chinos and polos are smart choices for the young professional while plain basic tees can be dressed up with tailored blazers and cropped jackets per fec t for casua l Fridays. Girls, meanwhile, will surely love the cardigans which are both preppy and chic as well as the f loral jumpsuits and knitted pullovers which can be stylishly layered with other pieces. R S SI i s t h e e x c lu s i ve franchisee of Basic House in the Philippines.

Profit... from page 1

of P22,200” for every small banana farmer. “ This is because sma l l farmers, who are contracted by the plantations to grow Cavendish bananas, no longer have to pay for the aerial spraying which is being administered by the banana companies,” Ann Fuertes, IDIS executive director, said in a statement on Friday. “Banana companies charge their operation costs for aerial spray ing to the individua l accounts of each banana farmer that they contract to grow bananas. But because of the high cost of the aerial spraying operations, these small farmers end up with a negative income because their profit from the sale of the crop has been eaten up by the cost of aerial spraying,” she added. In 2007, the local government of Davao City, which reportedly hosts 5,000 hectares of banana pla nt at ion s , approve d a n ord i na nce ba n n i ng aer ia l spraying due to health and environmental reasons. The banana industry group Philippine Banana Growers and Exporters Association (PBGEA) claimed t he ba n wa s u nconst it ut iona l a nd challenged the decision of the local government. The Supreme Court has yet to issue a ruling on the case. In Davao City, MindaNews sought Stephen Antig, PBGEA president, for comment and he said that “for small areas, the mode of delivery has always been manual spraying.” “If t he sma l l areas are contiguous then they sometimes avail of air spraying. As to whether it is cheaper if they manually spray will depend on how they do the spraying. From experience and expert opinions, you actually use more inputs when manually spraying,” he said.

11

Antig said he would give additional comments af ter analyzing the figures cited by the IDIS study On t he average, aer ia l spraying operations cost P68,600 per hectare per year for large plantations. In the present practice in which this cost is charged against the account of small farmer, the farmer will end up paying a total estimated average of P73,800 per hectare per year, according to the study. But if ground spraying is adopted, the small farmer will only spend about P53,600 per hectare per year, translating to savings of P20,200 per hectare per year, it added. Und er s t a nd a bly, l a r ge pla nt at ions “prefer aer ia l spraying because shifting to ground spraying will impose an additional P28,700 per hectare per year,” the Davao City-based IDIS said. The study, which has yet to be published, added that from an average of P68,600 per hectare per year, it will increase to P97,300 per hectare per year with the use of ground spray. This is because additional infrastructure development is needed in order to maximize the results of the ground spraying method, IDIS said, noting the study identified the need for additional road networks and trucks as well as additional labor. However , Fuertes said that this does not mean that shifting to manual spraying will bankrupt plantation companies. “O vera l l, despite t he potential losses that companies may incur, they will still have an acceptable profit margin at the end of every harvest,” she said. The IDIS statement noted that “banana contract growers will benefit more from the shift and plantation companies will be able to absorb the additional costs that manual spraying will entail.”

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