Bidding: 25 firms keen on ₱60 Billion LRT 1 extension project -PPP

More than 20 Firms both local and foreign firms have expressed interest in the ₱60-Billion Light Rail Transit (LRT) Line 1 Extension, Operations and Maintenance Project under the Aquino administration's Public-Private Partnership (PPP) program.

The Department of Transportation and Communication (DoTC), during the pre-qualification conference on July 10, 2012; said it was reviewing the rules to determine whether 100 % foreign-owned entities could be allowed to operate the LRT 1 project extension.

The Constitution provides that operators of "Public utilities" should be at least 60 percent Filipino-owned.

The project, one of the largest in the infrastructure portfolio of the government, will extend the existing LRT Line 1—which now runs from Roosevelt in Quezon City to Pasay City—to Bacoor, Cavite.

The project is meant to "capture a large population base that regularly travels between Cavite and Manila," said Transportation Secretary Mar Roxas. When completed, the estimated travel time from end-to-end would be one hour and 10 minutes which would slash up to 50% off travel time.

The firms that purchased pre-bid documents, according to the DoTC, include the following firms:

1. San Miguel Corporation – Infrastructure (Philippine Company)
2. Macquarie Group (Australian Firm)
3. Mitsubishi Corporation (Japanese Firm)
4. Marubeni Corporation (Japanese Firm)
5. D.M. Consultant Incorporated
6. Hanjin Heavy Industries and Construction Co. Ltd.  (Korean Company)
7. Sumitomo Corporation (Japanese Firm)
8. Leighton Contractors (Australian Firm)
9. Sycip Salazar Hernandez & Gatmaitan (Philippine Company)
10. FSG Capital Incorporated
11. EFC Enterprises
12. FF Cruz & Co. Incorporated
13. BPI Capital Corporation
14. ING Bank (Netherlands)
15. Jorgman Planning Development Corporation
16. RATP Development (France)
17. Benchtel Overseas Corporation (USA)
18. Commbuilders and Technology Philippines Corporation  (Philippines)
19. Lenvoisa Construction Incorporated
20. APT Global Incorporated
21. Makati Development Corporation (Philippines)
22. Tranzen Group
23. Serco Group(Australian Firm)
24. Cathay Energy Service Corporation
25. Systra Group (France)

The 11.7-kilometer extension, seen to increase ridership by 500,000 passengers daily, will have eight stations and three intermodal facilities.

Transportation Secretary Mar Roxas said "The cost of travel to work will be cheaper. The quality of life of the people will be better and the project will help the development of the countryside".

Secretary Mar Roxas said the pre-qualification conference was held to ensure that companies would have the required financial, technical and management capability to undertake the project.

The Department of Transportation and Communication (DoTC) will identify the prequalified bidders and issue bid documents in October 2012. The bidding will be held in the first quarter of 2013. The project will likely be awarded in the second quarter 03 year 2013.

The project

Discussed during an investors' briefing and pre-qualification conference held Tuesday morning, July 10 are the project's two components.

First, the operation and maintenance of the existing 20.7 kilometer (km) LRT line 1 from Baclaran to Quezon City. It had transported 69 million passenger-riders as of June 30, 2012. Over 500,000 passengers ride the rail line daily.

Second component is the construction of an additional 11.7-km elevated railway system from Baclaran station of Line 1 all the way to Bacoor in Cavite City. It will have 8 stations inclusive of 3 intermodal facilities, with an option for two future stations. A satellite depot in Zapote will also be constructed.

Below are the expected timelines for the project:

• August 2012 - The government will hold a series of roadshows in London, Madrid, Japan and South Korea to entice more foreign investors to take part in the project. "We want the countries in Europe and Asia to know about this project. How many projects worldwide amount to about US$ 800 million?" said Roxas, adding that the cost of the project is expected to go down as more investors bid for it. He said foreign firms are welcome to partner with local groups to participate in the auction.
• August 22, 2012 - Deadline for those that have purchased the pre-qualification documents worth ₱10,000.00 to submit their requirements. That is also the time the parties reveal what are the parties or the members of of a concessionaire that are vying for the contract.
• October 2012- Schedule for the pre-qualification of interested bidders and the issuance of bid documents to those who will pre-qualify. The pre-qualification process ensures that the companies or the consortia to be formed have the required financial, technical, and management capability to carry out the project.
• 1st quarter 2013 - Deadline for submission of bids.
• 2nd quarter 2013 - DOTC will issue notice of award.

This project was initially planned to be bidded out last year. After a long wait, the Transportation Department issued an invitation to interested private sector players to pre-qualify and bid on June 4.

Roles of government and contractor

The government and private contractor will equally split the estimated ₱ 60 billion project cost. The government will spend its ₱30 billion share to purchase up to 39 new car train sets, construction of the satellite depot, among others.

Roxas said the government's obligation include the

• Turn-over of the existing line 1 assets for rail operation and maintenance
• Acquisition and delivery of right of way
• Implementation of the automated fare collection system (AFCS) project
• Ensure the application of periodic fare adjustments

The winning bidder, on the other hand, is responsible for:

• The finance, design and construction of the Cavite extension
• The immediate operation and maintenance of existing system and the integrated system upon completion of the extension project
• Undertaking the future system maintenance and upgrades
• Assuming ridership risk
• Receiving fare box
• Undertaking an approved commercial development

Automated fare collection

Roxas said the government will hold another auction for the centralized AFCS. "For the LRT fares, we will move from zone-based fare to boarding-plus-a-distance fare scheme. There will also be periodic fare adjustments over the concession period. But the government will hold a separate bidding for the AFCS. This project shall be tendered parallel to line 1."

The Transportation Department has taped the International Finance Corporation (IFC) as its transaction advisor. IFC, in turn, has tapped URS and Pinsent Masons as its technical and legal specialists.

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Philippine "C" King Dolphy Died at 83

The Philippines' "King of Comedy," the performer fondly called Dolphy by generations of Filipinos, has died.

Famous of the name Dolphy from it real name Rodolfo Vera Quizon Sr. was 83. He died Tuesday night  (July 10, 2012) at Makati Medical Center of multiple organ failure and complications from pneumonia, according to an email from the hospital where he had been treated. He also suffered from kidney failure.

With his lean physique and humble demeanor, Dolphy's memorable characters, notably as the down-on-his-luck family man John Puruntong in the long-running sitcom "John and Marsha," effectively captured the travails of the common Filipino who is able to find humor even in the direst situations.With his lean physique and humble demeanor, Dolphy's memorable characters, notably as the down-on-his-luck family man John Puruntong in the long-running sitcom "John and Marsha," effectively captured the travails of the common Filipino who is able to find humor even in the direst situations.

Dolphy died after a five-year battle with chronic obstructive pulmonary disease (COPD), according to his long-time partner, actress and singer Zsa Zsa Padilla.

"We would like to inform the public that Mr. Rodolfo 'Dolphy' Quizon, passed away today, at 8:34 p.m. due to multiple organ failure, secondary to complications brought about by severe pneumonia, chronic obstructive pulmonary disease and acute renal failure," the Makati Medical Center said in a statement.

"We join the entire Filipino Community in praying for the soul of Mr. Quizon and his dearly beloved family and friends. To the Quizon Family, we extend our deepest condolences," the hospital said.

Philippine government officials, fellow movie and TV celebrities and common folk heaped praise on Quizon, who shot to fame for portraying gay roles and odd characters.

One of the late actor's sons, Eric Quizon, read a family statement before a huddle of TV cameras and journalists, thanking millions of Filipinos for supporting his father and asking for prayers.

"Heaven is a happier place with him there," said Quizon, who is also an actor.

The elder Quizon started performing on stage in the 1940s during the Japanese occupation of the Philippines and made his final comedy flick, where he played a priest, two years ago.

One of Quizon's biggest comedy hits was 'Facifica Falayfay," where he played a gay man. He also starred in a popular, longtime television comedy, "John en Marsha," where he played a man perpetually at odds with his mother-in-law.

Quizon starred in more than 200 films in his 66-year career, according to the state-run Philippine News Agency.

Many of his comedy flicks were produced by his own movie firm, RVQ Productions, which he set up in the 1960s.

President Benigno Aquino III said Quizon was a kind man who represented the Filipino everyman and gave his countrymen "a reason to smile for the daily happenings" in their lives.

Ex-President Joseph Estrada, a former actor, says Quizon should receive the prestigious National Artist award.

Quizon had never been married but bore children with a number of women. Some of his children also entered the movies, with a few following in his footsteps as a comedian.

As a young boy, he worked as a laborer, watching comedy stage shows before he himself became immensely popular. Philippine presidential candidates had sought his backing during elections to endear themselves to his massive following.

Caught by surprise

 Dolphy's family was caught by surprise over his death on Tuesday night.

 According to a medical bulletin issued Tuesday at 4 p.m., Dolphy was said to be responding well to treatment.

 "Dolphy underwent dialysis and blood transfusion yesterday. Platelet apheresis is also being performed. X-ray results show that he is responding very well to the treatment and recovering from his pneumonia," the bulletin said.

 Doctors noticed, however, that compared to yesterday, Dolphy was asleep most of the time on Tuesday.

 "He is not as lucid and active as yesterday, however, and is seldom awake. Doctors are awaiting other results from the tests and the treatments, and has advised to give him a rest day today," the bulletin added.

 Eric Quizon, spokesman of the Quizon family, rushed to the Makati Medical Center after he received information that his father had passed away.

 Dolphy's remains were brought to the Heritage Memorial Park in Taguig City past midnight.

 Colorful love life

 Apart from his work as an actor, Dolphy was just as known for his colorful love life.

 "Sinasabi ko, huwag pamarisan ang mga ginagawa ko doon. Well, doon napunta ang buhay ko. Madali akong umibig, magdali akong magmahal kaya ganoon," he said in his biography "Dolphy: Hindi Ko Ito Narating Mag-Isa," which was released by ABS-CBN in time for the comedian's 80th birthday.

Dolphy had 18 children with six women: Manny, Salud, Rodolfo Jr., Freddie, Edgar and Raul with Engracia Dominguez; Mariquita, Carlos, Geraldino and Edwin with Gloria Smith; Ronaldo, Enrico, Madonna and Jeffrey with Baby Smith; Vandolph with actress Alma Moreno; and Zia and adopted daughter Nicole with Padilla.

He also had a child, who's now living in the United States, with Evangeline Tagulao.

Tondo boy

Born Rodolfo Vera Quizon, Sr. on July 25, 1928 to ship mechanic Melencio Quizon and seamstress Salud Vera in Tondo, Manila, Dolphy was probably fated to enter show business.

As a young boy, Dolphy sold peanuts and watermelon outside a nearby theater.

He took on other lowly jobs – as a porter and shoeshine boy – amid the hardships of World War II before trying out as a dancer and chorus boy at the Avenue and Lyric Theaters, where he took on the name "Golay."

He reverted to his given name when he was discovered by Fernando Poe Sr. This led to Dolphy's first movie "Dugo ay Bayan," which he made when he was 19.

In 1952, he joined the stable of Sampaguita Pictures, where his star slowly began to shine with films such as "Sa Isang Sulyap Mo, Tita" with Tita Duran and Pancho Magalona," "Jack 'N Jill," "Silveria," "Tanzan," "The Big Broadcast" and many others.

In interviews, Dolphy had said his favorite and most memorable movie was "Jack and Jill," where he portrayed a gay character for the first time. Dolphy also said this was the movie that made him a star.

The country's iconic comedy duo of Dolphy and Panchito was born in 1963, when the two comedians were cast on the ABS-CBN show "Buhay Artista," which was conceptualized by ABS-CBN patriarch Eugenio Lopez Jr. and renowned TV director Ading Fernando.

Two years later, Dolphy founded his own film company, RVQ Productions, which helped propel his status as the country's comedy king with movies such as "Dolfinger," "Fefita Fofonggay," 'El Pinoy Matador" and numerous others.

TV times

But for many followers of showbiz history, Dolphy's biggest triumph was the multi-awarded sitcom "John en Marsha," with the late Nida Blanca as his wife and a young Maricel Soriano as his daughter. The TV comedy series about the struggles of a poor man working hard for his family while enduring the contempt of his condescending mother-in-law (Dely Atay-atayan) premiered in 1971 and ran for 15 successful years. It also spawned eight movies.

It was also around this time when Dolphy was finally recognized for his acting skills, after he bagged the FAMAS Best Actor prize for the critically acclaimed "Omeng Satansya." He also earned raves for his dramatic turn as a transvestite raising a young boy in Lino Brocka's "Ang Tatay Kong Nanay."

By the late 1980s, however, Dolphy's career took a downturn after his controversial breakup with Alma Moreno and news of his relationship with Padilla.

But in 1991, the comedian staged a major comeback with the ABS-CBN sitcom "Home Along Da Riles."

Using the same formula that made "John en Marsha" a hit, "Home Along Da Riles" revolves around an extended Filipino family living alongside the railroad tracks. Dolphy played the family breadwinner Kevin Kosme, who works as a messenger and janitor but dreams of working overseas. While the Kosmes are poor, they, like the Puruntongs, are happy, maintaining a positive outlook on life.

The series, which ran for 11 years from 1991 to 2002, featured at one time or another several actors who later on would become major stars in show business, including Claudine Barretto, Rica Peralejo and Vhong Navarro.

Later years

Dolphy would once again win an acting award for yet another gay role when he starred in 2001's "Markova: Comfort Gay," about the real-life story of a Filipino homosexual who was forced to have sex with Japanese soldiers occupying Manila in World War II.

Dolphy shared the role with his real sons Eric and Epi Quizon, who played Markova in various stages of the character's life. All three shared the Best Perfomer award at the Brussels International Film Festival.

Amid public clamor to have him declared a National Artist, Dolphy, who would have turned 84 this July 25, 2012, was awarded the Grand Order of the Golden Heart by President Benigno Aquino III in November 2010 for his contributions to art and culture.

It was also in 2010 that Dolphy released his last film "Father Jejemon," an entry to the 2010 Metro Manila Film Festival, for which he won the Best Actor trophy. It was a double victory for him as he also took the Best Supporting Actor award for his performance in another entry, "Rosario."

He also managed to star in a one more television show, "Pidol's Wonderland," for TV5.

Sickness

According to the comedian's son, Eric Quizon, his father was diagnosed with COPD five years ago. The illness, which hinders the flow of air to the lungs, is generally permanent and may be progressive over time.

Likening COPD to cancer, Quizon said Dolphy's illness has developed into a toxic metabolic encephalopathy, which could lead to sepsis or the poisoning of the blood.

"It's a progressive disease. Para siyang cancer pero hindi kasing grabe ng cancer. 'Yung body niya, patuloy lang siyang manghihina. It's like emphysema. Ang ganitong klaseng sakit, five years ago sinabihan na siya na parang stage 4 ang sakit na iyon. In cancer terms, very critical na iyon," Quizon explained.

Reports of Dolphy's deteriorating health surfaced in late 2010, triggering numerous rumors about his death. Since then, he had been in and out of the hospital due to respiratory problems. Quizon said Dolphy survived ten bouts with pneumonia before the disease hit him again last June 9.

Yet despite his frail condition, Dolphy still managed to attend the launch concert of his daughter Zia Quizon last year."Kahit medyo tagilid ako kailangan andito ako, bunso ko yan eh. I wish her all the luck," he said at the time.

Throughout his battle with his illness, Dolphy maintained his sense of humor until the end, poking fun at the undying rumors about his condition.

"Huwag niyong madaliin; darating din tayo dyan," he once said.

But on late Tuesday of July 10, 2012, in Makati, Philippines - the laughter had finally come to a stop.

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Philippine Export hit almost $5 Billion -17 month high in May 2012 (Q2)

Merchandise exports hit a 17-month high in May 2012, the National Statistics Office (NSO) reported Tuesday.

Total earnings from exports soared by 19.7 percent or $4.93 billion in May 2012, higher than the $4.12 billion recorded in the same period last year.

Month-on-month, it increased by 6.4 percent from the $4.64 billion reported in April 2012. 

Meanwhile, aggregate exports for the first five months of the year grew by 8.4 percent to $22.44 billion from the $20.71 billion registered in the same period last year, NSO said.

It added that the country's major export includes the following:

• Electronics products which accounted for 38 %
• Wood-crafts and furniture - 3.6 %
• Clothing - 3.1 %
• Metal components - 2.8  %
• Wiring sets  - 2.6  %

Manufactured goods accounted for 85.8 percent of the total export receipts, total agro-based products for 6.7 percent, mineral products for 4.2 percent and petroleum products for 0.4 percent, according to the NSO.

The country's biggest export market in May 2012 accounted to the following:

• Japan, buying 23 %  of the country's total exports.  
• United States of America  -14.5 % 
• Thailand - 11.5 %
• China - 11.4 %
• Hong Kong - 7 %

Read more in National Statistics Office website - www.census.gov.ph

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Philippine Military Denial of Using US Killer Drones –Killings Abu Sayyaf Leaders

The Philippines military denied that the United States staged a drone strike in the Philippines to kill Indonesian terrorist Umar Patek in 2006 in the mountainous and remove province of Sulu in trouble Southwestern Mindanao .

Armed Forces of the Philippines (AFP) spokesman Col. Arnulfo Burgos Jr. said US troops in the country are not involved in combat operations but just mere consultants and advisers.

"That's (US troops' involvement in actual combat operations) against the law. The United States does not participate in [actual] military operations here in the Philippines," Burgos said.

He was referring to the 1987 Constitution which forbids the involvement of foreign armed forces in military combat operations.

Burgos said the activities of American soldiers in the country are limited to sharing of information and training.

Former AFP chief Hermogenes Esperon Jr. said the military had conducted air surveillance under his watch but the US soldiers had not been involved.

Esperon said that American forces that belong to the Joint Special Operations Task Force merely provided "technical assistance" to his troops.

"They (US soldiers) are not active in combat," Esperon, who served as AFP chief from July 21, 2006 to May 12, 2008, said.

Esperon said that while the AFP had acquired aircraft to beef up its capability, it never had a Predator drone.

"We sent planes for surveillance, but we did not stage an attack using drones," he said.

Lately, the Philippines government confirmed that they killed the Al qaeda linked Abu Sayyaf leaders using the US technology which they called "Smart Bomb" which deployed in the middle of the dawn to attack the camp of the abu sayyaf leaders.

An article that appeared on the July 1, 2012 publication of New York Times claimed that US troops in the Philippines staged a drone strike that targeted Patek in 2006.

In the article "The Drone Zone," writer Mark Mazzetti said a Predator drone was sent to the jungles of the Philippines to eliminate the international terrorist.

The attack, which reportedly involved a "barrage of Hellfire missiles," failed to kill Patek, who was tagged in the bombings in Bali, Indonesia that claimed the lives of 202 persons.

The same New York Times article claimed that Pentagon is increasing its fleet of drones by 30 percent.

Patek is a member of the Jemaah Islamiyah, which has links to international terror cell al-Qaeda and local terrorist group Abu Sayyaf.

Earlier reports claimed that Patek had managed to sneak into the Philippines to meet with local militants.

Patek had been arrested and slapped with a 20-year jail term for his participation in the Bali bombings.

Leftist group in the Philippines protested and accused the Philippine Government for violating the 1987 constitution for he said US Drone attacks which said to be conducted in the trouble Southern Philippine territory killing the Al qaeda linked abu sayyaf group leaders. 

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Philippines Protested for Chinas’ New Sansha City in the International Waters of West Philippines Sea

The Philippines on July 7, 2012 protested China's move placing virtually the entire West Philippine Sea (South China Sea), including the Philippine territory of Macclesfield Bank and its surrounding waters, under the jurisdiction of a newly created city.

Manila's protest came as the latest sour turn in relations between the Philippines and China, which have yet to find a temporary solution to their dispute over Panatag Shoal (Scarborough Shoal), a resource-rich reef in the West Philippine Sea just west of Zambales province.

Also on the following day, President Aquino urged the Chinese authorities to "balance their statements with the truth" in response to their accusation that he was trying to stir tension in the West Philippine Sea by asking for US help in monitoring the disputed waters.

Aquino convened his Cabinet—the second time in a week under an administration that rarely holds full Cabinet meetings—to discuss territorial issues with China and hear views on dealing with the country's increasingly aggressive neighbor.

Strongest statement to China

The President issued his strongest statement yet since he threatened last week to send government vessels back to Panatag Shoal unless China called its ships and fishing boats home.

"It's not clear with me what the provocative statements that have been said to have come from Philippine officials, but we know there are many things being said from the other side," Aquino told reporters in Malacañang.

"They should read what has been written from their end and, with all due respect, perhaps they should balance what they are saying with the truth," he said.

"It has been almost three weeks since our Coast Guard vessel pulled out of [Panatag Shoal]. If [China's] vessels … have also gone home, there's already no more issue," the President said. "So who could be the one prolonging this [dispute over] Panatag Shoal?"

Asked when he would order government vessels back to Panatag Shoal, Aquino said, "That will be, of course, dependent on the weather."

Macclesfield Bank is a huge underwater group of reefs and shoals located east of the Paracel Islands, southwest of the Pratas Islands and north of the Spratly Islands in the center of the West Philippine Sea. 

Macclesfield Bankis beyond 200 Nautical Miles Exclusive Economic Zone of Vietnam and China and located in the center of the West Philippine Sea.

The Philippines claims Macclesfield Bank and administers it through the provincial government of Zambales. It is one of the largest atolls in the world, covering an area of 6,500 square kilometers, and is surrounded by excellent fishing waters.

Policy of de-escalation

China's Ministry of Civil Affairs said in June that putting Macclesfield Bank, the Paracels and the Spratlys under Sansha would "further strengthen China's administration and development" of the three island groups.

There was no immediate comment from the Chinese Embassy in Manila on the Philippines' Macclesfield protest.

The Philippines on June 15 stepped back from a two-month maritime standoff with China at the shoal and had since imposed a policy of deescalation.

But on July 2, 2012, President Aquino said the government might ask the United States to deploy spy planes over the West Philippine Sea to help monitor the disputed waters.

And on Wednesday, after weeks of inaction, the Department of Foreign Affairs (DFA) protested China's latest move that impinged on Philippine sovereignty over its parts of the West Philippine Sea.

Diplomatic protest

In a statement issued Thursday, the DFA said it summoned Chinese Ambassador to the Philippines Ma Keqing on Wednesday and handed her a note protesting China's recent declaration that placed Macclesfield Bank under the prefectural oversight of newly established Sansha City.

In June, China's State Council declared Macclesfield Bank, Paracel Islands and Spratly Islands—known in Chinese as Zhongsha Islands, Xisha Islands and Nansha Islands—parts of Sansha City, to tighten its grip on contested parts of the West Philippine Sea amid territorial disputes with the Philippines and Vietnam.

The DFA said the extent of Sansha's jurisdiction "violates Philippine sovereignty over the Kalayaan Group of Islands and Bajo de Masinloc (Scarborough Shoal)."

China's move also "infringes on Philippine sovereign rights over the waters and the continental shelf of the West Philippine Sea," the DFA said.

The expansive jurisdiction of Sansha, the DFA said, "contradicts the spirit of the Declaration on the Conduct of Parties in the South China Sea" between China and the 10-member Association of Southeast Asian Nations (Asean)." The Asean and China signed the nonaggression accord in 2002.

The DFA reiterated that the Kalayaan Group and the Bajo de Masinloc, which Manila also calls Panatag Shoal, and their surrounding waters "form an internal part of Philippine territory and maritime jurisdiction."

Help from treaty ally

On asking the United States for spy plane overflights, Aquino said the Philippines was well within its right to ask an ally for assistance in monitoring its own territory.

"America is a treaty ally. We have a lack. They have a capability," Aquino said. "If ever our capability would fall short, I believe we can approach them to add to our situational awareness, especially in the West Philippine Sea."

Aquino said, however, that asking for US help in monitoring is just an option, correcting a report that seemed to indicate permission has been given for overflights.

The meeting on the territorial dispute with China began at about 1:30 p.m.

Talks, not ships

Among those seen going into the meeting were Senate President Juan Ponce Enrile and Senator Antonio Trillanes IV. Enrile is a former secretary of national defense, while Trillanes is a former Navy officer.

As the Cabinet prepared for the discussions, Manila Auxiliary Bishop Broderick Pabillo urged Malacañang to deescalate the growing tensions with China over Panatag Shoal.

Pabillo said the government should continue talking to the Chinese instead of sending back ships to the shoal.

"We can achieve [peace] through dialogue," Pabillo said. "Don't aggravate the situation [by sending the ships back]. Hold dialogues."

Situation stable

On Tuesday, Liu Weimin, a spokesperson for the Chinese Ministry of Foreign Affairs, told a press briefing in Beijing that the situation in the West Philippine Sea was stable with no Philippine vessels at Panatag Shoal.

But China, the Chinese Embassy in Manila quoted Liu as saying, is "willing to continue to hold dialogues and consultations" with the Philippines on their dispute over Panatag Shoal.

GMA News

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New Consistent & Organized Mining Policy of the Philippines lauded by COMP – Investors dream

Signal to all investors to com in!

The issuance of the long-awaited Executive Order No. 79 on mining reforms drew generally positive reactions from the mining industry in the Philippines.

The Chamber of Mines of the Philippines (COMP) said the policy offered solutions that would encourage the development of the country's mineral resources.

"We submit that legislation should also include a review of the Local Government Code, the Indigenous Peoples Rights Act and the Internal Revenue Code in a purposive effort to harmonize conflicting provisions of these laws with the mining policy," COMP said in a statement.

"Our members applaud the policy's directive to ensure consistency of local ordinances with the Constitution and national laws, as well as LGU cooperation," it said.

The COMP said it respected the government decision to close certain areas to mining, adding that environmentally critical and protected areas should be preserved for future generations.

It also lauded the Aquino administration's intent to improve the small-scale mining industry, and to develop downstream industries.

"We view the time spent on developing the policy as recognition of the important role of responsible mining as a catalyst for economic growth. The mining policy is a signal to all investors of government's desire to establish a consistent and stable business environment founded on a level playing field. We are hopeful that the policy will harmonize conflicting interests, encourage investments, and foster sustainable development especially in the countryside where it is greatly needed," COMP said.

Increasing Tax Collection

Philippines said it was seeking to increase royalties from mining companies while imposing more restrictions to protect the environment and local communities.

The policy contained in a new executive order signed by President Benigno Aquino said no new mining permits would be approved until Congress passed a bill backing the increase.

The order, announced by Environment Secretary Ramon Paje after months of heated debate between mining firms, environmentalists, tribal groups and church leaders, seeks to impose a 5% royalty on the companies' gross earnings compared to the existing 2% tax.

"Basically, the executive order intends to increase the revenues of government from mining," Paje told reporters.

The order extends a moratorium on mining permits that Aquino imposed last year when he was still drafting the new executive order. Paje stressed the order would respect existing mining agreements with the 33 mining operations already in the country, but would be imposed on new entrants.

He said existing contracts would be reviewed to ensure the companies are complying with their obligations.

Paje said if the law was passed by 2016 the country could earn an additional ₱16 Billion Pesos ($381 Million US Dollars) from the higher royalties.

In addition, the order designates all abandoned mine waste and tailings as state property, allowing the government to extract any remaining minerals. This could potentially raise another ₱ 50 Billion Pesos, Paje added.

The order also bans mining in 78 areas designated as "eco-tourism" sites and in "prime agricultural and fishing areas", and imposes controls on poorly-regulated "small-scale mining industry", particularly banning the use of mercury, which can poison the environment.

Finance Secretary Cesar Purisima expressed confidence the new order would help the industry and boost revenues.

"We are confident that by investing in a stronger regulatory framework and a more equitable revenue sharing mechanism, we are improving mining's long-term growth potential," he said in a statement. The Chamber of Mines of the Philippines said it welcomed the new rules, hoping it might end lengthy debates over the sector.

"We are hopeful that the policy will harmonize conflicting interests, encourage investments, and foster sustainable development especially in the countryside where it is greatly needed," a chamber statement said.

The executive order still leaves hanging the issue of whether local governments can overrule mining permits issued by Manila, an issue affecting a potential project by Swiss giant Xstrata. The project worth some $6.0bn in the strife-torn island of Mindanao has been delayed by the local government's ban on open-pit mining. While the new order asserts national laws are above local ordinances, Paje said it would be up to the courts or the local government department to determine if the open-pit ban would hold up.

The Philippines is believed to have some of the biggest mineral reserves in the world—the government estimates the country has at least $840bn in gold, copper, nickel, chromites, manganese, silver and iron ore deposits.

However, the minerals have been largely untapped, partly because of a strong anti-mining movement led by the influential Catholic Church, while poor infrastructure and security concerns have also kept investors away.

Options

The order also says the Department of Environment and Natural Resources (DENR) may continue to grant and issue exploration permits, which allow a person or entity to explore for minerals in a specified area. No actual mining or mineral extraction may be conducted during the exploration phase of a project.

But those given exploration permits and those who actually discover minerals shall be given the preferential option when government issues a mineral sharing agreement.

The EO said the DENR shall likewise review existing mining contracts and agreements for possible renegotiation of the terms and conditions.

The order says the grant of all mining rights and mining tenements over areas with known and verified mineral resources and reserves shall be undertaken through competitive public bidding, not through a first come, first served basis.

 Mining Ban Areas

 As a clear concession to the anti-mining advocates, the order closes the following areas to mineral contracts, concessions, and agreements:

Areas expressly enumerated under Republic Act No. 7942 or the Philippine Mining Act of 1995;

Protected areas categorized and established under the National Integrated Protected Areas System under RA No. 7586 or the "National Integrated Protected Areas System Act of 1992;

Prime agricultural lands, in addition to lands covered by RA No. 6657 or the Comprehensive Agrarian Reform Law of 1988, including plantations and areas devoted to valuable crops, and strategic agriculture and fisheries development zones and fish refuge and sanctuaries declared as such by the Secretary of the Department of Agriculture (DA);

Tourism development areas, as identified in the National Tourism Development Plan (NTDP); and other critical areas, island ecosystems, and impact areas of mining as determined by current and existing mapping technologies, that the DENR may identify.

The Department of Tourism (DOT) has identified at least 78 sites it wishes to preserve, Paje said.

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A Church in the Philippines makes 3 Guinness World Records

Iglesia ni Cristo (INC)  A non-Catholic Church of Christ broke three Guinness health world records in 8 hours one event in Parola, Manila.

The whole day health mission of Iglesia ni Cristo's (INC), sponsored by the Felix Manalo Foundation to celebrate INC's 98th year in Manila's depressed area on July 7, 2012 broke 3 Guinness world records, Guinness official adjudicator Tarika Vara said.

About 4,128 people in Parola, Tondo underwent dental health check, which beat India's record of 3,377, said Vara.

About 8,026 residents were given blood pressure reading, which beat the 7,203 record of Kuwait Heart Foundation, which was achieved on October 28, 2011, said Vara.

At the same time, 5,217 residents underwent numerous blood glucose level (BGL) tests, beating the 3,573 record achieved by the Novo Nordisk Education Foundation in Bangalore, India, on November 13, 2011, said Vara.

About 200 doctors, 600 paramedics, hundreds of nurses and other volunteers participated in the eight-hour medical mission.

The medical mission extended X-ray, ultrasound, 2D-echo and laboratory services, apart from putting up temporary 10 hospital beds for minor surgeries.

INC also distributed medicines and wheelchairs to Parola's residents, including 50,000 bags with rice, noodles, and canned goods.

About 100,000 people who live in nearby depressed areas in Tondo also flocked to Parola where the medical mission was held.

"This was truly extraordinary…. I have truly not seen anything like this not just as a representative of Guinness world record, but in my life," said Vara, after she and INC general auditor Glicerio B. Santos Jr, finished the tally.

INC's victory was also a victory for the Philippines, said Vara.

Some 5,000 residents were displaced by fire at Parola's Isla Puting Bato last month.

Iglesia Ni Cristo (INC) is founded in the Philippines on July 27, 1914 the country's religious group known to demand block voting from its estimated five million members, making it also an influential political group.

Iglesia Ni Cristo (INC) which is founded in 1914 and Iglesia Filipina Independiente (IFI) or Philippine Independent Church which is founded in 1902 are the only 2 pioneering churches in the Philippines. Both churches followed Christianity but of absolutely opposite system.

The Iglesia Filipina Independiente (IFI) or Philippines Independent Church advocates full and unlimited freedom and democracy while Iglesia Ni Cristo (INC) are fully united as "One for All" and "All for One",  known of demand block voting and strictly follow the order of their leader . 

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Japan offered 10+2 - 40 meters Patrol boats with Philippines Maritime Security ties commitments

July 09, 2012: The Philippines and Japan have agreed to enhance their bilateral cooperation on "shared regional strategic concerns," including maritime security, the Department of Foreign Affairs (DFA) said.

The cooperation was forged after Foreign Secretary Albert del Rosario met with his Japanese counterpart, Koichiro Gemba, and Deputy Prime Minister Katsura Okada during the DFA head's official visit to Tokyo last week.

"The two ministers engaged in comprehensive discussions reviewing key aspects of relations and affirmed their respective governments' commitments to advancing the multifaceted bilateral relations on the two countries' shared values and long history of cooperation," the DFA said in a statement.

Their discussion was focused on the refinement of political dialogue, economic cooperation, official development assistance and business-to-business and people-to-people ties, as well as on the furtherance of bilateral cooperation on shared regional strategic concerns, including maritime safety and disaster risk reduction, the DFA added.

The foreign office, however, did not provide details about the two officials' dialogue on maritime security-related matters.

Establishing Minimum credible Defense

Del Rosario earlier said that aside from the United States, three other countries—Japan, South Korea and Australia—were helping the Philippines establish a minimum credible defense posture to complement its diplomatic capacity in dealing with its territorial disputes with China in the West Philippine Sea (South China Sea).

Bewildered neighbors are closely monitoring the situation as china escalates the disputes in the West Philippines Sea (South China Sea) resulting the standoff in Panatag Shoal (Scarborough Shoal). Chinese government barred the Philippine Maritime Police from catching the Chinese poachers in the Philippines territory.

Chinese poachers are disguising civilian Chinese fishermen that equipped with military capabilities including GPS system and guided with instruction from china's army where to poach.

China used the same strategy by using disguising civilian Chinese fishermen back 1990's during the administration of former Philippines president Fidel Ramos and gained control the Mischief reef of the Kalayaan Islands a few kilometers from the mainland of the Province of Palawan and well within the Exclusive economic zone of the Philippines. Recently, china established a military garrison in the said reef.

Philippines is in no bout with china's capability. Concerned neighbors pledge to help the Philippine to establish a minimum credible defense posture and to deter china's invasion in the Philippine territory.

Meanwhile, China is also expanding to the waters of South Korea and hinting to gain control in the South Korea's administered "IEO DO" or "IEO Islet" south of Jeju Island. To date, South Korea accelerates its construction of a new Airbase in Jeju to have a strong deterrence capability against china's invasion to their territory.    

Not only the Philippines, Vietnam and South Korea suffered the hegemony plan of china but also the powerful Japan. Senkaku island of Japan is now annoyed by china's poachers with China Government Backups. Japan while discussing with the Philippines for the maritime issues, they are also bracing up to deter china's invasion to their territory.

12 patrol boats for the Philippines

Del Rosario disclosed that Tokyo was likely to provide the Philippine Coast Guard with 12 patrol boats.

"They're considering 10 40-meter boats on official development aid and two larger ones as grants," Del Rosario said.

Minister Shinsuke Shimizu, head of the embassy's chancery, said that Tokyo would continue to help the Philippine Coast Guard deal with its maritime safety and law enforcement concerns.

Shimizu clarified, however, that "it is of different nature from establishing the minimum credible defense capabilities" of the Philippines, "nor is it aimed at addressing a specific regional situation," referring to the dispute between Manila and Beijing regarding Panatag (Scarborough) Shoal.

The diplomat noted that "since 1990, Japan has been helping the Coast Guard in its capacity-building program."

Before Del Rosario's three-day trip to Japan, Shimizu said the DFA head would discuss with Gemba "ways to continue Japanese government cooperation with the Coast Guard."

"But it is cooperation for the purpose of dealing with various maritime safety and law enforcement issues, such as piracy and search-and-rescue," Shimizu explained.

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