Indonesia, Philippines - in better economic position than Europeans

Indonesia and the Philippines, able to raise funds at a lower cost than Italy, may be poised to get the highest credit ratings since the 1997 Asian financial crisis as the nations step up efforts to boost investment.

Officials from Standard & Poor's, the only company to grade Indonesia's debt as junk, are visiting the largest economy in Southeast Asia this week after raising the nation's bonds to BB+ a year ago, according to the Finance Ministry. Philippine Finance Secretary Cesar Purisima said March 23 that he's confident about getting a rating upgrade after meeting with S&P last week.

"Asian economies, including the Philippines and Indonesia, have finally shaken the effects of the Asian financial crisis," said Frederic Neumann, co-head of Asian economic research at HSBC Holdings Plc in Hong Kong. "This period thus marks the return to high rates of growth."

Emerging markets, with budget deficits at 1.7 percent of gross domestic product in Indonesia and 3.8 percent in the Philippines in 2009 compared with the Euro area's 6.4 percent, are winning rating boosts even as developed markets from Europe to the U.S. get downgrades. Borrowing costs for the two Southeast Asian nations have fallen 0.6 of a percentage point this year as plans to boost investment in roads and rail systems support growth prospects amid faltering global demand.

Yields Narrow

The extra yield investors demand to own Indonesia's dollar bonds instead of U.S. Treasuries has narrowed 61 basis points this year, or 0.61 percentage point, to 1.89 percentage points as of March 26, while that for the Philippines (JPSSEMPH) has fallen by 62 points to 1.76 percentage points, according to JPMorgan Chase & Co.'s EMBI+ Indexes. They compare with the additional yield of 3.16 percentage points to buy emerging-market dollar-denominated debt instead of U.S. securities.

Indonesia's dollar bonds due May 2021 are trading at 3.79 percent while Philippine dollar debt due January 2021 is trading at 3.44 percent, compared with 6.25 percent for Italy's dollar notes due September 2023 and 4.12 percent for Russia's dollar notes due April 2020, according to prices from Royal Bank of Scotland Group Plc. and compiled by Bloomberg. S&P rates Russia two steps above Indonesia and three levels higher than the Philippines.

Ratings upgrades could underscore confidence in the Southeast Asian economies' resilience as a slowdown in China's growth adds to the threat to Asian expansion, which has already been crimped by Europe's debt crisis.

Chinese Profits

Chinese industrial companies had their first January- February profit decline since 2009 as slowing exports and a government campaign to cool property prices damped earnings, a report showed today. Net income dropped 5.2 percent from a year earlier to 606 billion yuan ($96 billion), the National Bureau of Statistics said on its website.

In contrast, a report showed South Korean consumer confidence rose to the highest level in four months, buoyed by signs of improvement in the U.S. economy and progress in containing Europe's crisis. The sentiment index rose to 101 in March from February's 100, the Bank of Korea said.

The global economic outlook is improving, though "severe downside risks remain," International Monetary Fund Deputy Managing Director Naoyuki Shinohara said today in Bangkok, adding that emerging economies need to "stay vigilant for the spillover from advanced economies."

Asian economies will experience only a modest slowdown in growth as domestic demand remains resilient, supported by strong employment and high capacity utilization, he said. The Asian economy as a whole will expand by 5.9 percent this year, with growth accelerating to 6.4 percent in 2013, while the economy of the Association of Southeast Asian Nations will grow by 5 percent this year and 5.5 percent in 2013, he said.

French Confidence

Reports in Europe may show consumer confidence rose in March in Finland while holding steady in France, according to Bloomberg surveys. The Netherlands will report final GDP data for the fourth quarter after a preliminary estimate showed the economy contracted 0.7 percent from the previous three months. Turkey and Hungary may keep interest rates unchanged, Bloomberg surveys showed.

In the U.S., the Conference Board's release today may show its consumer confidence index was little changed at 70.1 this month after reaching a one-year high of 70.8 in February, a survey median showed.

Presidents Susilo Bambang Yudhoyono in Indonesia and Benigno Aquino in the Philippines have both won upgrades from Fitch Ratings and Moody's Investors Service in the past year as they pledged to contain their budget deficits, fight corruption and woo investment to spur economic growth. The two companies have brought Indonesia to investment grade, while the Philippines remains one step behind at Fitch and two steps below at Moody's.

Credit Default Swaps

Five-year credit-default swap contracts on Philippine debt traded at 141 basis points on March 26 and 161 for Indonesia, according to data provider CMA, which compiles prices quoted by dealers in the privately negotiated market. The contracts insure debt against non-payment, and traders use them to speculate on credit quality. That compares with 370 basis points for Italy and 422 points for Spain.

"I'm hopeful that S&P will raise Indonesia's rating within this year, which will bring in foreign investors again," Ezra Nazula, Jakarta-based head of fixed income who helps manage 24 trillion rupiah ($2.6 billion) at PT Manulife Asset Management, said in a March 20 interview. "It will be a plus point for Indonesia if the government can show that they are willing to increase the fuel prices and reduce the subsidies' burden on the budget."

Raising Prices

Indonesia's plan to raise diesel and petrol prices to 6,000 rupiah per liter from 4,500 rupiah is subject to approval by lawmakers. The country must raise fuel prices to curb a subsidy bill that threatens to sap funds from pivotal health, education and road and port building programs, National Economic Committee Vice Chairman M. Chatib Basri said in an interview with Bloomberg Television in Hong Kong on March 23.

Ratings changes aren't necessarily accompanied by corresponding moves in bond prices. Instead of falling in value after S&P stripped the U.S. of the top AAA sovereign rating, Treasuries rallied and the government's borrowing costs fell to record lows. While stocks fell, wiping $2.5 trillion from the market value of global equities on the first trading day after S&P on Aug. 5 cut the U.S. by one level to AA+, the gain in benchmark 10-year government notes sent yields down almost a quarter percentage point, to 2.32 percent.

Asian Crisis

Still, a rating upgrade would endorse Indonesia's efforts to move its economy out of the shadows of the 1997-98 Asian financial crisis, when it needed a bailout from the IMF.

The nation's parliament approved a land-acquisition bill in December that will allow Yudhoyono's administration to accelerate road, port and airport projects. The government is also setting up a new financial market regulator that is due to start operating in January 2013, supervising capital markets, insurers, pension funds and other non-bank institutions.

In the Philippines, Aquino is seeking $16 billion of investments in projects including roads in the capital and airports in the provinces to upgrade the nation's infrastructure.

Indonesia's $707 billion economy has expanded more than 6 percent for five straight quarters, weathering a decline in global demand that has hurt growth across Asia. The Philippine economy grew 3.7 percent last quarter from a year earlier.

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56,000 OFW in South Korea is ready to evacuate – North Korea Missile Launching

The Philippines on Monday (March 26, 2012) said it was ready with a contingency plan to protect the safety of more than 50,000 overseas Filipino workers (OFWs) in South Korea if tensions with North Korea over its plan to launch a new rocket escalated into a full-blown crisis.

If crisis will arise, this is more complicated as nuclear weapon is link to this and unlike Middle Eastern crisis which evacuation is tolerable but for nuclear issue; no place to hide and no time to move.

Locals or Korean national are aware of this without any panic that they will survive if there is a way to survive or otherwise, just accept the destiny.

Vice President Jejomar Binay, who is in Seoul attending a nuclear security summit with other world leaders, also said the government would direct local governments with migrant workers in South Korea to be prepared for any eventuality.

"Our embassy (in Seoul) is ready for a worst-case scenario," Binay said in a statement released by his office.

Pyongyang has said it plans to launch a satellite into space aboard a new rocket between April 12 and 16, triggering warnings from the United States and its allies that the launch was intended to test a missile capable eventually of delivering an atomic warhead.

North Korea has said the first stage of the rocket is expected to fall in international waters about 140 kilometers off the South Korean west coast. The second stage is projected to splash down some 190 km off the northeast coast of the Philippines.

"This is an unfortunate situation because there are existing United Nations resolutions and North Korea has said it will comply with the resolutions," Binay said. "We hope it does not happen and North Korea complies with the UN resolutions."

A UN Security Council resolution passed after North Korea staged missile and nuclear tests in 2009 bans a ballistic missile launch for any purpose.

April 2012 ASEAN summit

The North Korean issue will be discussed by President Benigno Aquino III and other leaders of the Association of Southeast Asian Nations (ASEAN) during the April 3-4 ASEAN summit in Phnom Penh, Cambodia, presidential spokesperson Edwin Lacierda said in Malacañang.

The 10-nation ASEAN includes the Philippines, Indonesia, Malaysia, Thailand, Singapore, Vietnam, Cambodia, Brunei Darussalam, Laos and Burma (Myanmar).

"I think there will be a topic on DPRK (Democratic People's Republic of Korea)," Lacierda said, adding the Department of Foreign Affairs (DFA) was "on top of the situation" insofar as contingency plans for OFWS were concerned.

He said there were around 56,000 Filipinos in South Korea and seven to nine Filipinos in North Korea working with UN-related agencies.

4 alert levels

Told that North Korea had already moved the rocket to its launch site and asked whether the Philippines would join the US call for China to rein in its North Korean ally, Lacierda said "the most effective means of addressing the North Korean issue has always been the six-party talks."

He was referring to the dialogue on ending North Korea's nuclear program that began in 2003 and involves the United States, China, Japan, Russia and the two Koreas.

Foreign Secretary Albert del Rosario has told the Philippine Daily Inquirer that the Philippines will press Pyongyang to abandon its rocket launch plan.

The Philippine Embassy has posted on its website a 10-page advisory on the contingency plan for Filipino workers in South Korea.

Written in Filipino, the advisory directs the workers to familiarize themselves with four alert levels.

Convergence points

Under Alert Level 1, the OFWs are required to observe heightened alertness. Alert Level 2 calls for restriction of movements, while Alert Levels 3 and 4 call for relocation and actual evacuation, respectively.

Three "convergence areas" for evacuees have been marked: Seoul, Daejeon and Busan (or Pusan), which is some 330 km southwest of Seoul. If the Gimpo and Incheon international airports are already closed, Busan will be the main convergence point.

From Busan, the embassy plans to evacuate Filipinos, using both the city's major port and Gimbae International Airport.

For OFW in Korea; it is also advice that the Subway Line Number 5 or purple line is built for safe from hazard and any possible attack so traveling or evacuating using Subway line number 5 is safer.

Relocating to Busan is also unsafe using air transport so OFW must not be panic if alert level 3 is issued. Traveling via land is more safer but traffic is expected and almost 6 hour travel time from Seoul to busan.

OFW is encourage to carry and study the map how to find safer place and how to manage self evacuation to the southern part of South korea.

Monitoring Crisis for North Korean Missile Launching

All 90 Philippine embassies and consulates worldwide have a contingency plan for Filipinos, the DFA said.

Raul Hernandez, the DFA spokesperson, said "that could include the mobilization of a network of Filipino community leaders, logistical movements of Filipinos to safer areas and possible evacuation of nationals to the Philippines."

"This plan is amended or revised as needed depending on the actual situation on the ground," Hernandez said.

However, "no crisis alert level [for Filipinos] in the two Koreas has been declared" by the DFA, he said.

'Helpless observer'

The Senate defense committee chairman, Panfilo Lacson, said in a text message that North Korea's launch plan should be a cause for concern "because it automatically threatens the peace and security in the Asia-Pacific region."

Lacson said the situation was not helped by North Korea being a "secretive" country.

He added: "Unfortunately, [the situation] is further aggravated by some tough talk from [US President Barack] Obama and warnings from the West. How China reacts to the situation will surely affect the stability in the area."

Lacson also said: "The Philippines, being a helpless observer, may be better off staying that way. Our efforts are limited to using our diplomatic channels with our neighboring countries, to speak as one voice with them."

The Senate defense committee vice chairman, Gregorio Honasan, said: "I'm sure this is more about saber rattling, threat and counterthreat. Even North Korea understands the global implications of what it plans to do. So this is not a doomsday scenario, I'm sure diplomacy would come into play."

Honasan said there was no cause for panic. "For concern and worry, yes. But let's not be paranoid … Realistically, our best bet is our regional and global alliances," he stressed.

Senator Antonio Trillanes IV warned "conflict may arise" in the Asia-Pacific if countries displeased with North Korea's plan took stronger measures.

But Trillanes added: "The public isn't alarmed too much because people are more concerned about the more evident gut issues like the rising oil and power prices, fare hike, and later on, the increase in the prices of commodities." With reports from Christine O. Avendaño and Cathy Yamsuan

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DOH Failure: OFWs, recruiters to protest medical exams procedure

Overseas workers and recruitment agency officials will mount a protest against the Department of Health (DOH) for its failure to protect the welfare of overseas workers by not stopping the decking practices of a group of medical clinics.

In a statement, the Federated Associations of Manpower Exporters (FEDAMANEX) said it will lead a rally to protest the DOH's failure to stop the Gulf Cooperation Council Approved Medical Centers Association (GAMCA) from "decking" overseas workers.

The practice of decking involves requiring overseas workers to file their requests for health examination online through the GAMCA website. The group then assigns and fans them out to the 17 clinics that are members of the association.

FEDAMANEX president Alfredo Palmiery notes that Republic Act 10022 guarantees overseas workers the freedom to choose the medical clinic for their health examinations.

"Pursuant to the law, the Department of Health issued an administrative order to stop the practice of decking by GAMCA," Palmiery said.

"But strangely, despite said issuance and admonition fro the Congressional Committee on Overseas Workers Affairs, the DOH has refused to impose appropriate sanctions against the violators by the simple acts of suspending and canceling the accreditation of the medical clinics under GAMCA," he added.

Palmiery said they have already written to Health Secretary Enrique Ona and asked him to penalize the medical clinics under GAMCA.

"Unfortunately, our appeal remains unheeded," he said.

Thousands of overseas workers who were principal victims of the decking system are expected to take part in the rally on Monday morning in front of the DOH building.

"For years, the overseas workers have endured the hardships brought about by decking," Palmiery said.

Palmiery said overseas workers, especially those from the provinces, were "farmed out to medical clinics" that were far from their residences, and were required to undergo 2nd X-ray examinations even if they have already passed their first tests.

Overseas workers were also referred to other GAMCA medical clinics even for a "simple ailment as skin rash," and were provided with sub-standard medical facilities and poor services, Palmiery said.

FEDAMANEX is an umbrella group of 12 associations of licensed recruitment agencies, with a total membership of 600 companies.

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Filipinos "Noynoying" are huge destruction of the entire Philippines & OFWs abroad

Noynoying mockery is a destruction with harder and more disparaging effect than Fukushima earthquake in Japan

Point of view taken from the communist of Manila Bulletin from an economist, political analyst and businessman Andrew James Masigan, and from an independent writer, an international economist & OFW Denis Somoso.

Noynoying has going viral on Facebook, Twitter and Tumblr which have its own Wikipedia page now and are images of President Aquino in various poses appearing dumbfounded, bored and confused. Beneath it is the caption, "Noynoying", a new term coined to denote one overcome by sloth, one who is intellectually challenged, or one pretending to be busy.

Mr. Masigan; an economist, political analyst said "I'm not sure if those spreading "Noynoying" images on the Net are aware of how much damage they are causing the country. In their minds, it is an amusing anti-Noynoy campaign. But in reality, it is like washing dirty linen in public". Whether we like it or not, the President is the embodiment of the nation's abilities and aspirations, at least in as far as the international community is concerned. Having images of "Noynoying" plastered on the Internet for the world to scoff at is like mocking our own competencies as a race and enjoining the world to follow the bash-fest. It is careless, irresponsible and the height of being anti-Filipino. It's disappointing that partisan politics, insular thinking and crab mentality are getting the best of the Filipinos again.

A self destruction is a suicidal and the sad thing is the negative effect of this is for the majority of Filipinos who approved the competency of the sitting president to uplift the country's economy and improve the living of the masses but a few are destroying the country's image that could affect the entire Filipinos around the world.

It is really unfortunate that this "Noynoying" nonsense has gone viral at a time when the country is just on the brink of turning its image around.

For the first time in 15 years, global financial institutions like the International Monetary Fund (IMF), World Bank, the Asian Development Bank (ADB), the World Economic Forum, JETRO, etc., are finally taking notice of the advances made in the economy of the Philippines and how we've managed to maintain one of the strongest economic fundamentals in the region, despite the financial turmoil in Europe and the Americas. From the "sick man of Asia," we are now being regarded as a real economic contender.

In the midst of all this, our very own kababayans are the first to shoot us down; hence, the disappointment among many. To me, they are saboteurs who mock the efforts of all those making great sacrifices to put our country back on the road to recovery.

Unrealistic viral mass destruction

Mr. Masigan said; "I am by no means close to the President, but have been observing both his work ethics and thinking processes for some time now. If I were to describe his working style, two adjectives come to mind: thorough and stern. Ethically, I see him as being truly sincere in his quest to restore good governance in our institutions—a mission he pursues with the stubbornness of a pit bull. These are my personal impressions and I'm just calling it as I see it".

Lest anyone think that I am in any way connected with the Palace, let me clear the air and affirm that I am not attached to government in any way, shape or form. In fact, people close to me know that I supported another candidate in the 2010 Presidential campaign. I am no one's minion and I don't "kiss ass." My writing proves that I never hold back in speaking up when I think certain government policies are out of line.

Having said this, I believe that the "Noynoying" campaign and the connotations attached to it are both inaccurate and unfair. I hold the Palace's Communications group responsible for the mismanagement of the President's image on two counts.

First, they failed to "sell" the President for his strong points—his integrity, meticulous nature and vision for a morally upright government. From where I sit, it appears that they spend the lion's share of their time and resources defending the President's every move and those of his cabinet's rather than going on a media offensive to give the public reason to be proud of their Chief Executive.

Second, and more critically, the vision of the Aquino Government has not been clearly communicated to the public even after 20 months in office. Having a broad-based buy-in on a Chief Executive's vision is as much a basic foundation in government as it is in a private corporation.

What the Communications group fails to realize is that if they don't make "noise" on the President's vision and progress towards achieving it, only the noisy "Noynoying" side is heard.

There is much good news to tell. It's time the Communications group amps up its efforts.

Let the Numbers Speak

As for me, I couldn't care less whether or not our President is a genius or works himself until he's blue in the face. What's important to me is that he delivers results. What I care about is his competence in steering the economy and the speed by which he solves our greater problems of poverty and unemployment.

What people may not realize is that the economy is in a far healthier state today than it ever was in the last 15 years. As an economist and businessman, I can't complain about our progress. True, much still needs to be done, but we have certainly come a long way in improving the country's fundamentals.

For those who missed my economic round-up on this space last week, let me give you a brief summary of where we stand—then you be the judge.

The economy grew by a slow 3.7 percent last year on the back of weak government spending. This is probably the reason some people think P-Noy isn't making much impact on the economy. However, what they may not realize is that the greater part of 2011 was spent reviewing workflows of line agencies to purge them from loopholes that allow corruption to occur. It was an investment in self-improvement—something we had to go through to move forward with stronger institutions. Unfortunately, the Palace's Communications group did not explain this well enough.

For the most part, the purging process ended last October and massive spending ensued beginning the first quarter this year (again, this was not communicated). Fact is, as early as February this year, 91 percent of CAPEX (capital expenditures) budget appropriations amounting to R150 billion have already been released by the DBM to various line agencies. As a result, we expect robust growth this year, with more aggressive spending on infrastructure and social development projects. Sec. Paderanga of NEDA estimates a GDP expansion of between 5 to 6 percent, while Sec. Domingo of the DTI is more aggressive, predicting 7 percent growth assuming the DOTC delivers on its infrastructure projects. These are good numbers by any means of measure.

On the fiscal side, gross international reserves or the amount of gold and foreign exchange in our treasury stood at a record high last February with US$77.4 billion—US$15 billion more than our external debt. Inflation is better than target, standing at only 3.9 percent in January and 2.7 percent in February. National revenues are up, increasing by 13 percent last year without the benefit of new taxes. Balance of payment was in surplus territory, registering net inflows of US$10 billion last year and US$800 last January. Fiscal deficits greatly improved as well, from 3.5 percent of GDP in 2010 to just two percent in 2011. The banking sector is healthier than ever, with Non-Performing Loans (NPL) ratio of only 3.1 percent and Capital Adequacy Ratio at a healthy 17.4 percent.

All these point to another credit rating upgrade by international credit rating agencies Moody's, Fitch and Standard & Poors. To Juan dela Cruz, this means more jobs as investors are bound to respond positively to a credit rating upgrade. It also means more liquidity for government to spend on social projects, as savings will be generated on interest expenses.

As for industry, government is headstrong in developing the Tourism, BPO and Agro-processing industries as our top foreign exchange earners and job generators. Last year, 1.2 million new jobs were put online, 200,000 more than target. Trends suggest 1.5 million new jobs every year until 2016.

The numbers on our "Economic Report Card" speak for themselves, and something like this cannot be achieved by a lazy, intellectually challenged Chief Executive. This is why I stand in the President's defense on this score.

The People power and the Laws for self destroyer

People power is famous for regaining back the democracy of the country back 1986 EDSA revolution. The Philippines regains its democracy and freedom by the power of the people or the majority Filipinos which every Filipino is responsible in protecting the democracy and use it in the proper way not against the neighbor, the family, the country and not against the entre country.

The leniency of freedom in the Philippines is already abused by the few and self destruction or own country is also a crime or destroying own country is no difference from terrorism and bomb explosions that killed thousands of the masses.

Empowering the people as the most powerful body of the country; a law must be passed to punish the people who are destroying the country for their own interest. A freedom of expression would not be violated if it will not harm the majority Filipinos.

Noynoying is not just a mockery of the few to the sitting president but destruction to the whole Filipinos around the world. If Noynoying will affect only the the sitting president then there could be no issue on it for him to be more assertive but if the Noynoying is becoming viral and destroying the Philippines then it is the time to punish the criminals.

Do not click to Stop destruction

The destruction of Noynoying mockery to the Philippines President is even harder than the destruction of the Fukushima in Japan as the viral destruction will slowly eroding the Philippines credibility, the effect of the OFW in finding jobs, and the effect of all Filipinos as a whole that 1 day soon no one will accept Filipinos to avoid Noynoying habit which is far from the truth.

One day soon; these activist would realize that even them would be fired from their job or could not find a job anymore because of the noynoying habit that is tagged in their race as Filipino.

The brainless activist is trying to destroy not just the country but even themselves.

One day soon no more OFW will save the Philippines economy for a possible bullying and abuse from other host country because of the tagged "noynoying" to the entire Filipino race.

Its time to punish the destroyer and be responsible internet netizen. The destruction of the Filipino credibility is a betrayal to his won country and must face the people of the Philippines, must be sanction and must be jail.

Getting viral of a certain website or image is an effect of a click or searching of a particular topic or image online or posting it in any social network and gaining more clicks.

Your clicks is a virus that send signals to the giant search engines that such topic or image is getting famous. The concept is when a certain issue is click by many, it will create traffic in the information superhighway and it will infect other traffic resulting to become a top issue in the search engine.

Every click will create a viral effect to the online world so to avoid the viral topic, ignore it. Do not read about the issue, do not click and do not search about the issue so the spreading viral effect will stop.

Andrew James Masigan is an economist, political analyst and businessman. He is a 20-year veteran in the hospitality and tourism industry. For comments and reactions, e-mail andrew_rs6@ yahoo.com. Follow Andrew on Twitter @aj_masigan. Denis Somoso is an International Taxation Specialist of the fortune 100 firm 2012, an economist, SEO, and Overseas Filipino Worker.  Follow Denis on twitter @Prince_Denison

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Texas Quantum will break-ground for $2.6 Billion 10 Plasma Electric Power Plants in the Philippines

Texas-based Quantum International Group Inc. plans to invest more than $2.6 billion on five plasma gasification plants in the country that can produce as much as 13,000 megawatts (MW) of electricity, a top company executive said.

Five more plasma gasification plants using industrial waste will be put up, and this can cut the cost of electricity by 25 percent in five years, Quantum International president and chief executive Al Johnson said.

The power firm, which announced projects in Surigao last week, announced yesterday at a press briefing its medium-term plans to produce 13,000 megawatts of electricity daily once five of its plants become operational.

Plasma gasification facilities apply heat to waste to produce combustible gas which in turn is used to fuel electric turbines.

Output is seen to bring down power costs for the country. Furthermore, the use of industrial, commercial and household waste to produce electricity and alternative fuels will also help local government units phase out gradually landfills and improve sanitation.

"I would like to put up 10 plasma plants in the Philippines that you will have so much electricity, you will have to export it. I want five plasma plants in the Philippines this year. Next year, I'd like to do another five," Al Johnson, QI chief executive officer and director of operations, told reporters.

"There will be five contracts done within the next 45 days. [...] From the time the contract is signed, breaking ground will take 45 days. Building a plant will typically take 18 months, while smaller models will only need 12 months," he continued.

For the first five facilities, QI intends to put up four plasma plants in Mindanao and one in Bataan, each with a waste processing capacity of between 2,000-5,000 metric tons (MT) daily.

The projects, Mr. Johnson explained, will be set up near dumpsites to ensure a steady flow of waste materials needed for the plasma gasification chambers.

QI has built plasma gasification plants for Japan and were later taken over by their local power companies.

The benchmark investment for a 1,000-MT plasma gasification facility is between $250-350 million.

He said the benchmark investment will be $250-$300 million for a plasma plant that can gasify 1,000 metric tons (MT) of garbage, $450 million for the 2,000-MT plant and $850 million for a 4,000-MT unit.

The plasma technology gasifies materials like coal and industrial waste at 5,000 to 7,000 degrees Celsius, then converting it to electricity.

For every MT of garbage, Quantum can produce 800 kilowatts up to one MW of electricity.

Johnson said initially, four plasma plants capable of gasifying 2,000 MT of garbage per day will be put up in Davao and Surigao del Norte. A plant with the capacity of gasifying 5,000 MT of garbage per day will be built in Surigao del Norte.

To date, the Luzon, Visayas and Mindanao grids have a peak demand of 7,047 MW, 1,350 MW and 1,256 MW, respectively.

"The only thing that we require is garbage. We need long term contracts with a minimum of 1,000 MT per day," Johnson said.

Quantum is already in talks with local government units for the garbage supply.

Johnson said the company also wants to sell electricity at market prices.

Given the amount of power that will be produced by the firm, Johnson said "in five years, rates in Philippines will drop 25 percent, then two years more, 50 percent."

This will help local industries to be more competitive as the country's electricity cost is the highest in Asia, he said.

Johnson said the ports in Surigao del Norte and Bataan can be used to import garbage for more power production.

The plasma gasification technology was developed by the US military in the 1960s to get rid of unstable emissions and explosives.

"The nice thing about plasma for non-military purposes is we can get rid of hazardous and toxic compounds," Johnson said.

Deadly elements in the industrial world include heavy metals, radioactive wastes, industrial sludge, asbestos and medical waste.

A plasma gasification plant can start commercial operations after 18 months of construction, Johnson said.

To date, Quantum is building a plant in Brunei, Malaysia, Bangladesh and South Africa.

Johnson said the company will fund, own and operate plasma gasification plants while allotting five percent of net revenues to host communities.

Quantum International, which is also into construction, low-cost housing, mining operations, military and police contracts and joint venture commercial project in the US, is backed by five investment trust funds.

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Australia urged Philippines, USA, India, ASEAN & allies to counter China’s 9 rocks claim in WPS

The Philippines must counter China's intrusive actions in the disputed Spratly islands and protect its territory, an Australian expert on political and security issues in Southeast Asia said.

Carlyle Thayer, emeritus professor at the University of New South Wales and the Australian Defense Force Academy, prodded the Aquino administration and even Vietnam to take steps in enhancing their "national sovereignty" over their exclusive economic zones.

In his paper, titled "Security Cooperation in the South China Sea: An Assessment of Recent Trends," Thayer, a Southeast Asia regional specialist, said Manila's weakness will only invite Beijing "to act more assertively."

He also prodded the Association of Southeast Asian Nations and the international community, whose ships transit through the South China Sea, to diplomatically confront China over its "aggressive assertiveness."

Thayer went to Manila last year where he spoke during the two-day conference on the South China Sea.

He raised concerns over China's behavior in the disputed territory through "its actions and deliberate encroachments into the islands legally owned by the Philippines under international laws and agreements, including the United Nations Convention on the Law of the Sea [UNCLOS]."

He noted of the wave of Beijing's intrusions into the Kalayaan Island Group (KIG) last year, including the harassments by Chinese patrol boats of Filipino vessels that were conducting seismic surveys in the Reed Bank near Palawan.

Illogical sovereignty claim of China

ANALYZING China's behavior, Thayer said its incursions into the country's territory and even in areas occupied by Vietnam is a way of demonstrating its legal jurisdiction over the South China Sea, which it had falsely claimed through the so-called 9 dash line, 9-dotted line or Ox tongue, whose map it submitted to the United Nations Commission on the Limits of the Continental Shelf in May 2009.

"China's claim is based on the nine rocks it occupies in the Spratly archipelago. In other words, China claims that the rocks are in fact islands in international law and thus attract a 200-nautical-mile EEZ," he said.

"This is a legal fiction. Islands must be able to sustain human habitation on their own and have an economic function. Rocks, which do not meet these criteria, cannot claim EEZ or continental shelf," he added, echoing the belief of marine specialists.

Beijing's 9-dash mark cut into the EEZ of the Philippines and even Vietnam that have been firmly established under UNCLOS.

Still, the oil explorations in the Reed Bank and other areas in the KIG and even in Hanoi's occupied territory were viewed by China as acts of "plundering of resources" and a challenge to its existence.

Soong Enlai, chairman of the board of the China National Offshore Oil Corp. (CNOOC), had said his country had been losing about 20 million tons of oil annually or about 40 percent of China's total offshore production owing to such activities in the South China Sea.

Thayer said that in March last year; Chinese Foreign Minister Yang Jiechi declared that Beijing's foreign policy would serve the country's economic development.

The pronouncement was immediately followed by a warning against any exploration in waters it claimed in the South China Sea, increased maritime patrols and the recruitment of additional 1,000 personnel for China's marine service that would bring its staff to 10,000.

Superpowers involvement and Assistance to the Philippines and Vietnam

SINCE the South China Sea is not only being used by Southeast Asian countries but also by other countries, including India, the United States and its big allies as a shipping route, these regional powers should assist the Philippines and Vietnam in countering China's aggressiveness, Thayer said.

"It is in the interest of the United States and its allies as well as India to assist both nations [Philippines and Vietnam] in capacity building in maritime security. At the same time, this coalition of like-minded states should back ASEAN in its efforts to secure an agreement on a code of conduct for the South China Sea," Thayer said.

He added that the ASEAN could draw up a "Treaty on Conduct in the South China Sea," which after its ratifications should open it to accession by nonmember-states.

Thayer, however, doubted whether such could work among the members of the ASEAN since there are "nervous nellies" among its members.

Thayer revealed an alarming analysis over China's actions in the Reed Bank when it harassed Filipino vessels that are doing seismic surveys.

"Chinese actions in the Reed Bank area are designed to expose ambiguities in the US-Philippine Mutual Security [Defense] Treaty over whether or not the Kalayaan Island Group is covered by this treaty," he said.

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