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US accuses China of escalating tit-for-tat

THE US called a decision by Beijing to impose restrictions on all American diplomats on Chinese soil an “escalation,” the latest rebuke in an ongoing titfor-tat dispute over foreign missions.

Relations between the world’s top two economies have deteriorated in recent months, with both sides locked in fierce recriminations over trade disputes, human rights and the origins of the coronavirus pandemic.

On Friday, China announced “reciprocal restrictions” against US diplomats, days after Washington announced new restrictions on staff working for Beijing’s foreign missions.

Beijing said that the unspecified countermeasures will apply to all US embassy and consulate staff, including the consulate-general in Hong Kong and its personnel, and called the move a “legitimate and necessary response.”

But the US said Saturday that the Chinese measures went further than anything it had done.

A State Department spokesperson who spoke on condition of anonymity said Beijing’s move was an “escalation,” citing the targeting of its representative in Hong Kong and restrictions on Chinese citizens meeting with Americans in the form of a “new meeting pre-notification requirement.”

“These notification requirements now include American citizens with no affiliation to the US government. We have no such requirement for PRC citizens,” the spokesperson said, using the acronym for the People’s Republic of China.

The dispute over foreign missions flared up in July when Washington ordered the closure of the Chinese consulate in Houston, prompting Beijing to shutter the American presence in Chengdu.

The battle over diplomatic outposts is only one front in an escalating confrontation between the US and China.

Washington has imposed sanctions on officials accused of helping orchestrate China’s mass internment of Uighurs and other mostly Muslim minorities in the country’s Xinjiang region, a program that has prompted a global human rights outcry.

Last month it blacklisted officials it accused of suppressing “freedom and democratic processes” in Hong Kong, after the imposition of a national security law aimed at quelling civil unrest in the financial hub.

The move prompted China to issue its own sanctions against several prominent Americans.

President Donald Trump has also provoked a furious reaction from Chinese officials by blaming Beijing for the global spread of the coronavirus

And Washington has additionally accused Chinese tech firms and platforms – from Huawei to TikTok – of working in the interests of the Chinese Communist Party.

Beijing denied on Friday it was attempting to meddle in the upcoming US presidential election after tech giant Microsoft said it thwarted cyberattacks from overseas groups – including from China. AFP

ART IMITATES LIFE. An elderly pedestrian wearing a face mask due to the COVID-19 pandemic walks past a graffiti depicting subjects within famous artworks – such as Edvard Munch’s The Scream – but wearing masks, in Glasgow after the Scottish government imposed fresh restrictions on the city after an rise in cases of the novel coronavirus. AFP

Republic of the Philippines ENERGY REGULATORY COMMISSION San Miguel Avenue, Pasig City

IN THE MATTER OF THE APPLICATION FOR CONFIRMATION AND APPROVAL OF EMERGENCY CAPITAL EXPENDITURE PROJECT, NAMELY: PURCHASE AND INSTALLATION OF NEW 10MVA POWER TRANSFORMER FOR BAGANGA SUBSTATION

DAVAO ORIENTAL ELECTRIC COOPERATIVE, INC. (DORECO),

Applicant. x-----------------------------------------------------------------x

ERC CASE NO. 2020-010 RC Promulgated: August 24, 2020

NOTICE OF VIRTUAL HEARING TO ALL INTERESTED PARTIES:

Notice is hereby given that on 10 March 2020, Davao Oriental Electric Cooperative, Inc. (DORECO) filed an Application dated 27 January 2020 seeking the Commission’s approval of its emergency Capital Expenditure (CAPEX) project in the purchase and installation of a new 10MVA transformer for Baganga Substation.

The pertinent provisions of the said Application are hereunder quoted as follows: 1. DORECO is a non-stock, non-profit electric cooperative, duly organized and existing under and by virtue of the laws of the Republic of the Philippines, with principal office at Madang National Highway, Barangay Central, City of Mati, Davao Oriental; 2. It holds an exclusive franchise issued by the National Electrification Commission, to operate an electric light and power distribution service in Mati City and certain municipalities of the province of Davao Oriental, namely: San Isidro, Governor Generoso, Lupon, Banay-Banay, Tarragona, Manay, Caraga, Baganga, Cateel and Boston.

LEGAL BASES FOR THE APPLICATION

3. Pursuant to Republic Act No. 9136, ERC Resolution 26, Series of 2009 and other laws and rules, and in line with its mandate to provide safe, quality, efficient and reliable electric service to its consumers, DORECO submits the instant application for the Honorable Commission’s confirmation and approval of its Emergency Capital Expenditure (CAPEX) Project, namely: Purchase of New 10 MVA Power Transformer for Baganga Substation.

STATEMENT OF FACTS

4. Sometime on October 9, 2019 at around 8:03 P.M., the head of the Substation Evaluation and Substation Tending Section of DORECO received a report regarding power interruption of SF6 Circuit Breaker which has detected a fault current, thereby causing an abrupt breakdown of the 5MVA Power Transformer of Baganga Substation, resulting in total power outage in the municipalities of Baganga and Caraga, and some areas in the municipality of Manay. 5. Immediately thereafter, DORECO’s technical personnel performed a series of tests on the 5MVA power transformer to determine the cause of the detected faults. After the final testing with the assistance of the technical personnel from Asiaphil Energy Solutions, Inc.,it was confirmed that the power transformer was damaged. 6. The personnel who performed the tests recommended the replacement of the damaged power transformer which has likewise already reached its economic life. 7. Hence, the emergency capital expenditure project subject of the instant application.

PROJECT DESCRIPTION

8. The project subject of the instant application involves the Purchase and Installation of a New 10 MVA Power Transformer for Baganga Substation.

PROJECT JUSTIFICATION

9. There is an urgent need to replace the damaged 5MVA power transformer at Banganga Substation and at the same time upgrade its power transformer to 10MVA, to ensure efficiency and stability of the delivery of power supply to the three municipalities served by the substation, namely: Baganga, Caraga and Manay, ensure the safety of the substation, and farther meet the growing demand in the covered municipalities in the years to come. 10. This project will also serve power to two more municipalities, Cateel and Boston, in case of maintenance or unexpected interruption of the Cateel Substation.

PROJECT SCHEDULE

11. The project was commenced on December 1, 2019 and completed by December 20, 2020.

PROJECT COST

12. The cost of the purchase and installation of a brand new 10MVA Power Transformer for Baganga Substation is Twelve Million Two Hundred Thousand Pesos (PhP12,200,000.00).

FINANCING PLAN

13. The project is financed through a loan from the Rural Electrification Financing Corp. (REFC).

Amortization of the loan is computed based on a 7.25% interest rate per annum payable in five (5) years.

RATE IMPACT

14. The table below shows that DORECO’s projected collections of Reinvestment Fund for Sustainable Capital Expenditure (RFSC) is insufficient to cover the annual capital project cost and loan amortizations of the cooperative in 2021 and 2022 after implementation of the project. RFSC collections will be able to cope with the annual loan amortizations only by year 2023, as shown below:

Forecasted Energy Sales, kWh Cash Balance beginning, Php excess/(shortiall) CASH INFLOWS

Available Cash for disbursement

2019 2020 2021 2022 2023 TOTAL

135,826,677 143,467,238 151,330,442 159,342,780 167,450,167 757,417,304

29,224,710.23 55,992,617.50 3,328,247.75 (137,416.51) (913,098.54) 87,495,060.42

Current Year Collection @ Php 0.3534/ kWh @ 95% 45,601,090.27 48,166,255.81 50,806,169.29 53,496,15153 56,218,044.57 254,287,711.47 Loan Proceeds (CAPEXRegular), Php Loan Proceeds (CAPEXEmergency), Php 12,200,000.00 151,000,000.00 151,000,000.00

12,200,000.00

Government Subsidy (if any), Php Total Cash Inflows, Php 57,801,090.27 199,166,255.81 50,806,169.29 53,496,151.53 56,218,044.57 4i7,487,711.47 Cash Balance Ending, Php, excess/(shortfall) Excess/(Shortfall) on RFSC, Php/kWh Old debt (Old CAPEX amortization) 31,033,183.00 31,043,183.00 54,271,833.56 54,271,833.56 54,271,833.56 224,891,866.68 New Amortization (CAPEXRegular), Php 20,312,456.04 20,312,456.04

New Amortization (CAPEXEmergency), Php 2,916,194.52 2,916,194.52

ERC Permit Fee, Php 91,500.00 91,500.00

Total Cash Outflows, Php 31,033,183.00 217,589,001.42 54,271,833.56 54,271,833.56 54,271,833.56 445,679,309.24

55,992,617.50 3,328,247.75 (137,416.51) (913,098.54)

0.4122 0.0232 (0.0009) (0.0057) 1,033,112.46

0.0062 59,303,462.65

0.0783

SUBMISSION OF DOCUMENTARY AND PRE-FILING REQUIREMENTS

15. Finally, in compliance with the documentary as well as profiling requirements under ERC Resolution 26, Series of 2009 and the ERC Rules of Practice and Procedure, respectively, the following documents are being submitted herewith to form integral parts hereof, as follows, to wit:

Markings Nature of Document

Annex “A”

Annexes “B”and series

Annexes “C” and series Executive Summary of the Emergency Capital Expenditure Project Proof of furnishing of copies of the Application to the Sangguniang Panlungsod of Mati City and Sangguniang Panlalawigan of Davao Oriental Proof of publication of the Application in a newspaper of general circulation in DORECO’s franchise area or where it principally operates.

PRAYER

WHEREFORE, premises considered, it is respectfully prayed of this Honorable Commission that after due notice and hearing, DORECO’s Emergency Capital Expenditure Project: Purchase and Installation of New 10 MVA Power Transformer for Baganga Substation, be confirmed and approved accordingly.

Other reliefs, just and equitable in the premises are likewise prayed for.

The Commission has set the instant Application for the determination of compliance with the jurisdictional requirements, expository presentation, pre-trial conference, and presentation of evidence on 01 October 2020 (Thursday) at two o’clock in the afternoon (2:00 P.M.), through a virtual hearing using the Zoom Application as the online platform for the conduct thereof.

Due to the continuous threat to public health and safety brought about by the coronavirus disease 2019 (COVID-19), the Commission deemed it necessary to conduct and convene the virtual hearing through video conferencing, subject to certain limitations as set forth herein.

ACCORDINGLY, DORECO is hereby directed to host the virtual hearing at DORECO’s Main Office in Madang National Highway, Barangay Central, Mati City, Davao Oriental, as the designated venue for the conduct thereof, and ensure that the same is open to the public and that the community quarantine guidelines are observed at all times. Moreover, DORECO shall guarantee that, during the conduct of the expository presentation, the participation of the public shall not be impaired.

Any interested stakeholder may submit its comments and/or clarifications at least one (1) calendar day prior to the scheduled virtual hearing, via electronic mail (e-mail) at records@erc.gov.ph and records.erc.gov.ph@gmail.com, copy furnish the Legal Service through legal.erc.gov.ph@gmail. com. The Commission shall give priority to the stakeholders who have duly submitted their respective comments and/or clarifications, to discuss the same and propound questions during the course of the expository presentation.

Moreover, all persons who have an interest in the subject matter of the instant case may become a party by filing with the Commission via e-mail at records@erc.gov.ph and records.erc.gov.ph@ gmail.com, copy furnish the Legal Service through legal.erc.gov.ph@gmail.com, a verified Petition to Intervene at least five (5) calendar days prior to the date of the initial virtual hearing and subject to the requirements under Rule 9 of the 2006 ERC Rules of Practice and Procedure, indicating therein the docket number and title of the case and stating the following: 1) The petitioner’s name, mailing address, and e-mail address; 2) The nature of petitioner’s interest in the subject matter of the proceeding and the way and manner in which such interest is affected by the issues involved in the proceeding; and 3) A statement of the relief desired.

Likewise, all other persons who may want their views known to the Commission with respect to the subject matter of the case may likewise file through e-mail at records@erc,gov.ph and records. erc,gov,ph@gmail.com, their Opposition or Comment thereon at least five (5) calendar days prior to the initial virtual hearing and subject to the requirements under Rule 9 of the 2006 ERC Rules of Practice and Procedure. No particular form of Opposition or Comment is required, but the document, letter, or writing should contain the following: 1) The name, mailing address, and e-mail address of such person; 2) A concise statement of the Opposition or Comment; and 3) The grounds relied upon.

All such persons who wish to have a copy of the Application may request from Applicant that they be furnished with the same prior to the date of the initial hearing. Applicant is hereby directed to furnish all those making such request with copies of the Application and its attachments, through any of the available modes of service, upon their agreement, subject to the reimbursement of reasonable photocopying costs. Any such person may likewise examine the Application and other pertinent records filed with the Commission during the standard office hours. In the alternative, those persons who wish to have an electronic copy of the Application may request the Commission for the e-mail addresses of the Applicant by sending an e-mail to records@erc.gov.ph and records.erc.gov.ph@ gmail.com, copy furnish the Legal Service through legal.erc.gov.ph@gmail.com. Nonetheless, any person may also access the Application as posted by the Commission in its official website at www. erc.gov.ph.

Finally, all interested persons may be allowed to join the scheduled initial virtual hearing by providing the Commission, thru legal.virtualhearings.erc.gov.ph@gmail.com, with their respective e-mail addresses and indicating therein the case number of the instant Application. The Commission will send the access link/s to the aforementioned hearing platform within five (5) working days prior to the scheduled hearing.

WITNESS, the Honorable Commissioners ALEXIS M. LUMBATAN, CATHERINE P. MACEDA, FLORESINDA G. BALDO-DIGAL, and MARKO ROMEO L. FUENTES, Energy Regulatory Commission, this 12 th day of August 2020 in Pasig City.

FOR AND BY AUTHORITY OF THE COMMISSION:

IN BRIEF

Ex-Ghosn aide goes on trial

THE lengthy saga of ex-Nissan chief Carlos Ghosn takes a new turn next week when the auto titan-turned-fugitive’s former assistant Greg Kelly goes on trial in Tokyo.

Ghosn’s arrest in the Japanese capital in November 2018 on allegations of financial misconduct made headlines worldwide and kicked off an astonishing fall from grace for the businessman, once hailed as a corporate saviour for rescuing Nissan from the brink of bankruptcy.

But Kelly was also detained that day, having been effectively lured back to Japan from the United States on the premise of an urgent meeting.

And with Ghosn in Lebanon as an international fugitive after he made an audacious escape while out on bail in Tokyo last year, Kelly is now the only person expected to face trial any time soon in connection with the case.

The American lawyer appears in court from Tuesday facing a single charge: of conspiring to under-report tens of million of dollars in pay that Ghosn was allegedly promised after his retirement.

Kelly, who will turn 64 on the day the trial opens, denies any wrongdoing. He faces up to 10 years in jail if convicted. AFP

Russia holds regional polls

RUSSIANS on Sunday voted in regional polls overshadowed by the poisoning of main opposition leader Alexei Navalny, an economic crisis exacerbated by the coronavirus and major protests in some regions.

In 41 of the country’s regions, Russians are voting for regional governors and assemblies as well as in four by-elections for national MPs and other polls.

Coming a year ahead of parliamentary elections, the vote will be seen as a key test of the Kremlin’s electoral machine amid simmering public anger over falling incomes and economic trouble.

Tatyana Stanovaya, head of the R.Politik analysis firm, said the results of the polls will help the Kremlin determine whether the unpopular ruling party United Russia needs to be reformed and if parliamentary elections should be pushed forward.

Navalny’s poisoning could also influence voters and bring about “contradictory effects,” Stanovaya told AFP.

After he was evacuated from Siberia to Berlin, German doctors said Navalny had been poisoned with a Novichok nerve agent.

His associates believe the use of the banned chemical weapon shows only the Russian state could be responsible.AFP

‘Superfungus’ vs. golden frogs

COCOONED from the outside world, some 200 critically endangered golden frogs are living a sheltered existence in Panama, protected from a devastating fungus that threatens to wipe out a third of the country’s amphibian species—a situation scientists describe as “critical.”

The frogs, which are yellow or gold with black spots, enjoy a controlled environment inside fish tanks installed at the Smithsonian Tropical Research Institute (STRI), a 465-square-meter facility in Gamboa, north of Panama City.

Though endemic to the lush Central American country, no Panamanian golden frog can be seen in its natural habitat, threatened as it is by the chytrid fungus—a so-called “superfungus”—that has decimated amphibians in the wild.

According to a report by the World Wildlife Fund (WWF) published this week, the planet has lost more than two-thirds of its vertebrates in less than 50 years.

The situation is especially dire in the tropical areas of Central and South America, where the extent of loss is pegged at 94 percent.

Believed extinct in the wild, only about 1,500 of the tiny Panamanian golden frogs are found in zoos where they can reproduce.

But it is not only frogs that are vulnerable to the fungus. Toads, salamanders and caecilians —limbless amphibians similar to snakes--are also at risk. AFP

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