United States President George W. Bush made a telephone call to President Gloria Macapagal-Arroyo last night (Manila time) and expressed appreciation for her leadership in the war on terrorism and pledged continued support for her effort to defeat the Abu Sayyaf Group.

During their brief conversation, the US President also said he was looking forward to the visit of the Filipino leader to Washington in April, White House Press Secretary Ari Fleischer said in a briefing for Washington reporters.

"President Bush also praised President Arroyo’s leadership on Iraq, and emphasized that the regime in Baghdad must disarm or that it would be disarmed by a coalition of the willing," Fleischer added.

The US President also emphasized the importance of passage by the Philippine legislature of effective new legislation to combat money laundering, Fleischer said.

The White House spokesman said President Bush began his day (Tuesday) with three calls to foreign leaders. He first spoke with President Macapagal-Arroyo, and then with President Eduardo Dos Santos of Angola and Prime Minister Tony Blair of Great Britain.

President Macapagal-Arroyo was among the first world leaders to express support to the US-led global war on terrorism following the Sept. 11, 2001 attacks on the New York World Trade Center and the Pentagon.

The Filipino leader also initiated an anti-terrorism coalition among Southeast Asian nations to share intelligence on terrorist activities, tighten patrol activities along common borders and partake in joint peacekeeping operations.

The White House announced earlier this month that Bush will host President Macapagal-Arroyo for a state visit on April 2 and looks forward to discussing how the US and the Philippines can further strengthen bilateral relations, including cooperation in the war on terrorism.

The World Bank and the donor community have recognized the efforts of the Macapagal-Arroyo government in sustaining growth and in ensuring the country’s macroeconomic stability.

In a recent meeting with the government’s economic managers, World Bank Country Director Robert Vance Pulley particularly commended the administration for the passage of key legislations, such as the e-procurement law and the special purpose asset vehicle law.

Speaking on behalf of the donor community, Pulley noted the importance of current efforts of government in strengthening the Anti-Money Laundering Act (AMLA), adding that donors were pleased to hear that the executive and legislative branches are closely working to pass amendments to AMLA.

A bicameral committee is now working on the final draft of the AMLA amendments and would submit the bill to President Gloria Macapagal-Arroyo for signature.

The donors also indicated that several important measures that the government has been working on are coming to fruition. They noted that there is a sense of urgency from the government to quicken the pace of reforms and their implementation.

"Fiscal management, particularly revenue enhancement, continues to be the major economic challenge to the government, and there is broad donor support for the government’s efforts to address this challenge," Pulley said at the close of the meeting.

The donors also commended the government for the recent improvements in the implementation of projects funded by official development assistance (ODA) but reiterated the need for the government to sustain this improvement by ensuring continued budget coverage for foreign-assisted projects in the 2003 budget.

"Without sufficient budget cover for foreign-assisted projects, the recent acceleration in the pace of ODA absorption would be seriously threatened and could adversely affect poverty reduction programs which the overall ODA project program supports," Pulley said.

During the meeting, Secretary Emilia Boncodin of the Department of Budget and Management (DBM) assured the donor countries that for this year, the DBM had earmarked higher appropriations for foreign-assisted projects (FAPs) compared to last year.

Socioeconomic Planning Secretary Romulo Neri informed the donor community that the government intends to fast track the passage of key bills, including those that will enhance the government’s chance of reducing its fiscal deficit.

Neri said supply-side measures such as those that will support small and medium enterprises (SMEs) and agriculture will be vigorously pursued while the implementation of the Special Purpose Vehicle Act is expected to shore up bank lending.

He added that the policy directions for the next 18 months include reducing downside macroeconomic risks, boosting investor confidence, and implementing microeconomic reforms.

President Gloria Macapagal-Arroyo and President George W. Bush talked by phone last night. The conversation covered the following:

President Gloria Macapagal-Arroyo has issued Executive Order No. 175 directing the Department of Budget and Management (DBM) to allocate the additional amount of P500 million for an automated election system for the May 10, 2004 national and local elections and subsequent national and local electoral exercises.

The Chief Executive issued E.O. No. 175 upon the request of the Commission on Elections (Comelec).

In E.O. 175, the President ordered the DBM to source the additional P500 million from existing appropriations and from other sources authorized by law, to augment the amount of P2.5 billion which was allocated to the Comelec by virtue of Executive Order No. 172 dated January 24, 2003, to fund the full requirements of establishing an automated election system in time for the May 10, 2004 national and local elections.

The P2.5 billion is inclusive of whatever amounts have been previously released or appropriated for an automated election system.

The President tasked the DBM to ensure that, like the amount of P2.5 billion allocated by virtue of E.O. 172, the additional amount of P500 million shall be used exclusively for automated election system as prescribed under Republic Act No. 8436, particularly "the process of voting, counting of votes and canvassing/consolidation of results of the national and local elections."

In her speech last December 30, 2002 at the 106^th anniversary of the martyrdom of Dr. Jose Rizal in Baguio City, the President announced that she would not be running for election but would be working for clean and honest elections in 2004.

The President said all executive orders, rules, and regulations inconsistent with any provision of E.O. No. 175 shall be deemed revoked, amended or modified accordingly.

President Gloria Macapagal-Arroyo today thanked the members of the Philippine-American Medical Mission of Metropolitan Washington for giving free medical assistance and medication to thousands of Filipino patients in Guagua, Pampanga.

The Fil-Am medical mission, which will be going back to the United States on Friday, February 21, has been treating patients for various illnesses at the Guagua Provincial Hospital since Monday, February 10.

"We are proud we were able to make a difference in the life of our kababayans," Dr. Henry Balagtas, president and medical mission director of the Philippine-American Medical Mission of Metropolitan Washington, told the President.

This is the third year that the medical mission has come to the Philippines to provide free treatment to patients with different ailments "from head to toe."

In 2001, the medical mission went to Pampanga and last year to Tarlac. In 2004, they are planning to have a medical mission in Bulacan.

The President, who was supposed to go to Pampanga today, informed the group that she has cancelled her appointments to monitor what she called "the war going on in Mindanao."

President Gloria Macapagal-Arroyo today hailed the formal start of the reconstruction of the North Luzon Expressway (NLE), saying that this is "a strong and firm affirmation" from investors and creditors on the viability of the Philippines as an economic growth area.

In a statement, the President said that the fact that the private sector is putting up the entire $371 million to reconstruct and modernize the NLE "attests to the soundness of the project and the viability of the country as an investment haven."

Socioeconomic Planning Secretary Romulo Neri represented the President during the formal groundbreaking ceremony for the project at the site of the proposed new Mexico Interchange at Km. 73 in Barangay Panipuan, Mexico, Pampanga.

The President said that the NLE modernization is a significant milestone in her administration’s continuing mission to generate economic growth and create opportunities by opening up avenues for trade, tourism and investments in Central and Northern Luzon.

In his brief remarks, Neri said the financial structure for the project is along the directions the government would like to take for infrastructure projects with commercial potentials.

Neri said that the NLE modernization project is laudable in the sense that risk is borne by the private sector and not by government and that there is no additional debt burden, contingent liabilities or guarantees on the part of the government;

"We would like to see such projects to be economically and operationally efficient and in the process serve the best interests and welfare of our people," Neri said.

Neri also cited the sheer persistence and faith of all sectors involved in the project.

"I know for a fact that the MNTC and all those involved in this project have worked very hard to get to where we are now, the first step in the journey to open the growth corridors of Central and Northern Luzon," he said.

Neri, who is also the director general of the National Economic and Development Authority (NEDA), thanked the foreign investors for showing their commitment to the growth and stability of the Philippines and its people.

"It is their vote of confidence in the viability of the project and in the prospects of our economy that makes this project even more significant," Neri said.

Oscar Lopez, chairman of the Manila North Tollways Corporation (MNTC), which undertakes the project, said that the modernization of the NLE is a giant leap on the part of the private sector because it shows it can assume a more active role in nation-building.

"We commit to a new and novel partnership with the government and vow that we will not waver from our commitment to progress and prosperity for the nation and the people," Lopez said.

Jose de Jesus, MNTC president and chief executive officer, said that the NLE will truly be world class, a fitting symbol "of our collective aspirations to move ahead with an agenda of economic growth and prosperity."

"We are talking about a vision of the future for Central and North Luzon in particular, and for the entire nation in general," de Jesus said.

The transformation of the NLE into a world class transport system will be undertaken by Leighton Contractors Asia Ltd (LCAL) of Australia over the next two years in a 24-hour, three shift work groups.

The $371 million project will be partly funded through borrowings from top international lenders, with MNTC putting up $117.5 million and the remainder of $253.5 million coming from foreign sources.

Sources of foreign funds include the Asian Development Bank, International Finance Corp., Export Finance and Insurance Corp., COFACE (on behalf of the French government), the Multilateral Investment Guaranty Agency, ABB Structure Finance B.V., Mizuho Corporate Bank, Lt., Credit Agricole Indosuez, DZ Bank AG, and Westdeuche Landesbank Girozentrate.

The MNTC is a joint venture composed of the Lopez Group of Companies through the First Philippine Infrastructure Development Corp. (FPIDC), the state firm Philippine National Construction Corporation (PNCC), tollway operator Egis Projects S.A. of France, and Leighton Asia Ltd. of Australia.

President Gloria Macapagal-Arroyo will finally sign tomorrow in Malacanang Republic Act No. 9189, also known as the Overseas Absentee Voting Act of 2003, to allow Filipinos living and working abroad to vote in the 2004 elections and subsequent polls.

RA 9189 will allow all citizens of the Philippines abroad, who are not disqualified and at least 18 years old on the date in the Philippines, to vote for candidates for president, vice president, senators and party-list representatives.

Overseas voters, however, will not be allowed to vote in plebiscites and referendums.

Immigrants and permanent residents who are recognized as such in their host country will have to execute, upon registration, an affidavit prepared for the purpose by the Commission on Elections (Comelec) attesting that he or she will assume actual physical permanent residence in the Philippines not later than three years from approval of his or her registration and that he or she has not applied for citizenship in another country.

Those who have expressly renounced their Philippine citizenship and who have pledged allegiance to a foreign country are disqualified to vote.

Under RA 9189, the registration and actual casting of ballots by the overseas absentee voter will be done at the embassy, consulate or other foreign service establishments or at any polling place designated and accredited by the Comelec.

A basic requirement for registration is a valid Philippine passport or a certification from the Department of Foreign Affairs (DFA) that it has reviewed the appropriate documents submitted by the applicant and found them sufficient to warrant the issuance of a passport.

For the May 2004 elections, the Comelec will authorize voting by mail in not more than three countries, subject to the approval of the Congressional Oversight Committee.

Voting by mail may be allowed in countries that would satisfy the following conditions:

• if their mailing system is fairly well-developed and secure to prevent occasion for fraud;

• if there exists in these countries a technically established identification system that would preclude multiple or proxy voting; and

As of 2:00 p.m. today, I have ordered the Armed Forces of the Philippines to capture and occupy the Buliok complex fronting the Liguasan Marsh area in Central Mindanao. The Buliok complex has been identified as the base of operations, and refuge area, of the notorious Pentagon kidnapping gang and other heavily-armed criminal groups in Mindanao.

This AFP campaign, which I have ordered, is not directed against the Moro Islamic Liberation Front. However, our troops will defend themselves against any force blocking their mission to eliminate criminal gangs in Mindanao.

Malacanang today said that the government is still looking forward to making peace with the Moro Islamic Liberation Front (MILF) despite recent snags in the peace process.

In his regular press briefing this afternoon, Presidential Spokesman Ignacio Bunye said "the desire for peace remains very strong."

"We believe that we could still go ahead with the proposed (ceasefire committee) meeting with the MILF," Bunye said.

Earlier, Presidential Assistant for Mindanao Jesus Dureza called for a meeting of the Ceasefire Committee panelists of the government and the MILF, following the reported engagements between government troops and MILF rebels in Pikit, Cotabato.

However, representatives of the MILF did not show up in the meeting.

Bunye said government commanders in the field have shown proof that there were bandits or elements of the notorious kidnap-for-ransom Pentagon Gang near the rebel lair in Pikit to warrant military operations.

"The present situation is an offshoot of an earlier pursuit operation which started actually in Columbio. There was an encounter in Columbio, after which government forces ran after the perpetrators of the clash. Another clash occurred in President Roxas. And the pursuit converged in Rajah Muda," he said.

Bunye clarified that the AFP operation in Cotabato "is a plain and simple operation against bandit groups" who fled in a supposedly MILF territory.

The peace negotiations between the government and the MILF had been going on and a ceasefire agreement had been put into place.

Officials believe that a final agreement will eventually bring about peace and economic stability for the people of Mindanao.

Earlier in a statement, President Gloria Macapagal-Arroyo said that she has ordered the Armed Forces of the Philippines (AFP) to capture and occupy the Buliok complex fronting the Liguasan Marsh area in Central Mindanao.

"The Buliok complex has been identified as the base of operations, and refuge area, of the notorious Pentagon kidnapping gang and other heavily-armed criminal groups in Mindanao," the President said in a statement.

But she made it clear that the AFP campaign was "not directed against the MILF."

"However, our troops will defend themselves against any force blocking their mission to eliminate criminal gangs in Mindanao," she said.

The President also reechoed the government’s commitment to achieve a peaceful settlement with the MILF.