By Rene Acosta, Rea Cu, Lenie Lectura, Recto Mercene & Catherine N. Pillas
FOR so long as it is good for the country, the military is supportive of its incoming Commander in Chief’s proposal for a shift to the federal form of government from the current system.
Most of the officers of the Armed Forces of the Philippines (AFP) randomly asked about the shift said they were fully supportive of the plan of incoming President Rodrigo R. Duterte, especially if it will bring peace in Mindanao.
They echoed the earlier statement of Acting AFP Chief of Staff Lt. Gen. Glorioso Miranda that the soldiers will always follow, support and obey their Commander in Chief, knowing it is for the good of the Filipinos.
“As servants of the Filipino people and subservient to the will and directives of the Commander in Chief, we will always follow whatever his orders are,” one junior Army officer who requested anonymity said.
“We are not allowed to participate in any political activity, other than casting our votes, but if this federal form of government is the best for the country as our Commander in Chief determines, then, by all means, we will follow and support it,” added the officer who is unauthorized to speak on behalf of the AFP.
Military officers said it is high time for the government to try another system as the current form of government is always struggling to bring the desired peace and development.
“Let us try this new system and see what it will bring to the country in the end,” said another officer with a rank of a lieutenant colonel. “If this will bring peace and progress in Mindanao and will assuage our brother Moros, then, by all means, let us shift to federalism.”
Another officer said many soldiers are tired of fighting and, perhaps, giving the Moros and other residents of Mindanao a greater autonomy through the federal form of government could end the rift. “Let us try the proposal, then revert to the current system” if that doesn’t work.
RH implementation
THE economic adviser of Duterte also sees the gains from federalism as justification for the Philippines’s adoption of this form of government.
According to Ernesto Pernia, University of the Philippines School of Economics Professor Emeritus, Duterte’s eight-point economic agenda will be augmented by the swifter implementation of the reproductive-health act, in a bid to respond to the country’s widespread poverty.
“We need to accelerate the implementation of the responsible parenthood and reproductive-health [RH] law,” Pernia said at a postelections assessment forum held by the Australian-New Zealand Chamber of Commerce. “If you really want to reduce poverty, we have to do something about this. It is the poor families who are having a lot of children.”
The lower-income sector of society has been experiencing rapid population growth compared to the national average, he noted.
According to Pernia, surveys have shown impoverished families themselves are in favor of limiting the number of children from their social class and curbing unwanted pregnancies.
“This is the objective of the RH Law. It’s not to coerce these families to practice contraception. It’s to enable them to have an informed choice on the number of children. This will help to reduce poverty,” Pernia said, adding that a family-planning program in Davao is in place.
Miners confidence
MINERS grouped under the Chamber of the Mines of the Philippines (COMP) also point to rural development as a potential benefit of the Duterte proposal to change the current type of government.
COMP Executive Vice President Nelia Halcon said in response to questions sent via electronic mail to the BusinessMirror, a federal economic center in the regions that will oversee the development of provinces based on their priorities and economic advantage will be a welcome development. Hopefully, such will ensure real bottomline plans and execution of development projects, Halcon added.
At the same time, Halcon said, federalism will also put officials of local government units (LGUs) on their toes since no LGU would want to be left behind the development track.
According to COMP, minerals production both operated by large-scale mining companies and non-metallic mines will be improved under a federal form. The group, which represents the mining industry, said they are confident that LGUs will toe the line in seeing to it that no illegal mining operations will be allowed under a transparent governance.
With the growth of the mining industry, Halcon said perspective of the industry to link its Social Development Management Program (SDMP) with LGU’s development plan will further enhance the province or region’s economic base thereby providing catalyst for economic growth
“The development of industries, no matter how big or small, can promote the development of industrial centers of growth in the region and can reverse migration to the cities,” she added.
Not overnight
THE COMP said federalism will not happen overnight.
And Halcon said improvement of mineral productions will still depend on the implementation of the system of processing permits and licenses.
Halcon said conflicts in the implementation of laws governing environmental protection measures such as ban in open-pit mining, which is allowed by law, ban on mining in several provinces, which is against the law, as well, and nontransmittal of very late transmittal of rightful share of LGUs on mining taxes and expansion of “no-go” areas without clear justification will be avoided.
“Streamlining the process is a must and if the presumptive president’s instructions that permits be issued or rejected within 72 hours, this will speed up businesses,” she said.
While the mandate of the national government, in this case the Department of Environment and Natural Resources (DENR), will not be diminished and devolution of functions and responsibilities will be clear, it will be easier for the mining industry to work with LGUs.
Under federalism, COMP also believes that the industry can help harness the technical capabilities of government agencies, which, in a way, can help capacitate LGUs, COMP added.
Waiting for signs
SOME government officials, however, are waiting for clear signals from the Duterte camp.
Officials of the Department of Finance (DOF), for one, said they want to let the incoming administration fully spell out their plans first before advising on certain points.
“While we’re very happy to talk about the accomplishments of the past six years, and the economic policies that ought to sustain this growth for the next six, the DOF does not feel that it is in our place to comment on the specific plans of the next administration [i.e., federalism], especially since this is a sensitive time when we are preparing to transition to their leadership,” a statement from the DOF said. “Our DOF officials likewise caution against telling our next cabinet secretary what s/he ought or ought not to do, especially even before they’ve gotten a chance to spell out their plans and settle in. We defer to incoming team out of respect.”
In the power sector, meanwhile, industry stakeholders continue to work on feeding the country with stable, reliable and cheap electricity.
With a new Philippine president set to rule the country, government agencies, as well as the private firms engaged in the distribution, transmission and generation business, await new policy directions from the President.
Energy Secretary Zenaida Y. Monsada told the BusinessMirror in an interview “the structure of the power sector already complies with whatever is stated under the Electric Power Industry Reform Act [Epira].”
“We don’t know what the incoming administration has in store for the power sector,” Monsada said. “We do have suggestions, though.”
Power ideas
ON top of the list of the Department of Energy (DOE) and the National Grid Corp. of the Philippines (NGCP) is the urgent passage of a binding law that will prohibit any activities compromising the integrity of the grid. These activities refer to obstructions beneath the transmission facilities, such as vegetation and structures.
“We need a law to criminalize the planting of vegetation or putting up of structures that can impact on continuous flow of electricity,” said Monsada.
While Duterte has yet to name a new energy secretary, Monsada said she has not been approached yet if she will be replaced or asked to stay on.
The new president also has to appoint a Power Sector Assets, Liabilities and Management Corp. (Psalm) president.
Both positions are crucial to the power sector, which is made up of generation, distribution and transmission.
Power generation in the Philippines is not considered as a public-utility operation, which means interested parties do not need to secure a congressional franchise to operate a power generation company. However, power generation is regulated by the Energy Regulation Commission (ERC), which issues a certificate of compliance to interested parties to ensure that the standards set forth in the Epira are followed.
Pursuant to the Epira, maintenance and operations of the nationwide transmission system was subjected to competitive public bidding conducted by Psalm.
The NGCP, operator of the country’s transmission system, was the highest bidder. It assumed control of the national transmission system from the National Transmission Corp. (Transco).
Ownership of transmission assets, such as poles, cables, land, etc., still belongs to Transco.
Other policy recommendations that will be provided for the next administration include matters pertaining to the Electric Power Industry Reform Act, such as the Retail Competition and Open Access, Competitive Selection Process for power supply contracts, establishment of Wholesale Electricity Spot Market in Mindanao, Renewable Portfolio Standards, RE Market and the Green Energy Option. Furthermore, the DOE would also push for the 30-30-30 balanced energy mix (renewable energy, coal and gas), wherein the remaining 10 would include an open option for nuclear energy and other alternative energy.
For ERC’s part, the regulator has lifted the suspension on the issuance of licenses to new retail electricity suppliers, paving the way for the revival of the power industry’s shift to open access and retail competition regime.
For the fuel sector, Monsada said she hopes “to strengthen implementation of the Retail Rules to fully eliminate the bote-bote scheme and illegal refilling of liquefied petroleum product to deliver an orderly competition.”
Finally, the DOE would recommend energy efficiency policies starting with energy labeling for industries and transportation, she said.
Image credits: AP/Bullit Marquez