The President has extended the olive branch to the CPP-NPA despite the groups’ terrorist attacks, for the sake of national unity so that the country may move forward.

This is consistent with her statement of December 30, 2002.

The government’s draft peace accord has the support of the Cabinet, including the Defense department and the Armed Forces.

It seeks to end 30 years of insurgency in the country which has taken a huge toll in terms of lives, properties lost and political division.

If the NDF is sincerely for peace, it will give this draft accord a chance.

STA. RITA, Batangas--President Gloria Macapagal-Arroyo today appealed to the Senate to pass the franchise of the National Transmission Corp. (Transco) as she warned that the non-passage of the bill would result in a power shortage in some parts of the Philippines.

"I want the senators now blocking the passage of the bill, I want to save them from having to explain to the Visayas, especially why the Visayas will soon have a shortage of electricity," the President said during the inauguration of the $500 million, 500 megawatt (MW) San Lorenzo Power Plant here.

"The Visayas grid is the most vulnerable and will be the most affected by the delay of Transco privatization," the President said.

She said that Transco, which is the transmission firm of the National Power Corporation, has plans to upgrade the first phase of the Batangas transmission by January 2004 to maximize the utilization of Malampaya Gas.

"That is why whether or not we get the Transco bill passed in the Senate, we will commence the privatization of Transco," the President said.

The President explained that what would happen, if the Transco franchise bill would not be passed, is that the market price for Transco would probably be only one fourth of what it would have been if it had a franchise to go with it.

"I hope that the privatization of Transco would result in the award of a concession to the winning bidder by mid-2003 so that Transco plans would be done by the private sector," the President said.

Moreover, the privatization of Transco would pave the way for the sale of Napocor’s generating assets, 70 per cent of which must be completed by June 2004, the President said.

"Because of the staggering numbers involved, foreign capital and technology are key to privatization," the President said, adding that privatization is the framework for greater competition and level playing field for power generators.

The first key to privatization, the President said, is to create an investment climate that is attractive to both domestic and foreign investors.

"The second key is to create a privatization process that is transparent and free of corruption," the President said.

In a briefing material, Malacanang said that the privatization of the transmission facilities of the Napocor would mean more efficient power distribution in the country.

"If these transmission lines are privatized, there will be additional inflow of investments. And the operations will be a lot more efficient if the lines are privatized," Malacaņang said.

Malacanang today said it is still hoping that the Communist Party of the Philippines (CPP) and its military arm, the New People’s Army (NPA), would respond to the draft of the comprehensive peace agreement that the government has presented to them.

In his press briefing this afternoon, Presidential Spokesman Ignacio R. Bunye said that the government has undertaken a long process to really formulate the comprehensive peace plan.

"We would like them to give this peace plan a chance," Bunye said.

Bunye was reacting to press reports that CPP founding chairman, Jose Ma. Sison, has rejected the draft peace accord, saying that it is nothing but a demand for the surrender of the principles of the CPP-NPA.

Sison, who is now based in Utrecht, the Netherlands, is the chief political consultant of the CPP’s political arm, the National Democratic Front (NDF). The NDF has been conducting peace talks with the government in Oslo, Norway until the talks were suspended sometime last year.

When told that NDF chief negotiator Luis Jalandoni has not actually junk the draft peace accord despite Sison’s pronouncement, Bunye said that it was a good sign.

"Actually, Sison is not a part of the negotiating panel of the NDF. The panel is headed by Mr. Jalandoni, so this negotiating panel can start, well, they can start the ball rolling," Bunye said.

Bunye said that the government has presented the draft peace accord to achieve national unity so that the country can move forward.

"It seeks to end 30 years of insurgency in the country which has taken a huge toll in terms of lives, properties lost and political division," Bunye said, adding that the deepest hopes of the Filipino people are expressed in this accord.

STA. Rita, Batangas – President Gloria Macapagal-Arroyo today said her administration would vigorously pursue its power sector reform program to ensure enough and dependable electricity for the citizenry and the power industry.

Speaking at the inauguration of the $500-million, 500-megawatt (MW) San Lorenzo Power Plant (SLPP) here, the President said she is giving prime attention to Panay island, which has no indigenous energy and is farthest from the geothermal sources in Leyte.

The President pointed out that even today, Panay’s demand for 190 megawatts is bigger than its current total dependable capacity of 138 megawatts.

"Thus on February l, I will deliver a power barge to Panay while we await the investments that will address the shortage more permanently," the President said, adding that on that day, February 1, she will roll out her power sector program to the Visayas and Mindanao.

For Luzon, the President said the government will fast-track the privatization of the Sucat and Limay power plants to allow investors sufficient time to convert these plants to natural gas. "Investors will have the option to use reasonably-priced indigenous or imported natural gas," she said.

To complement these efforts, the President instructed the Philippine National Oil Company (PNOC) to spearhead the development of the Batangas-Manila and the Bataan-Manila gas pipelines and LNG Receiving facilities in Bataan. "In doing so, PNOC must maximize private sector participation in these projects," the President said.

The President emphasized that future power requirements in Luzon shall be met by additional gas power plants, wind power for Northern Luzon, and geothermal from Bicol and Leyte.

"My administration’s thrust is to promote cleaner fuel and renewable energy for the country," the President stressed, saying that the Department of Energy (DOE) and the Energy Regulatory Board (ERB) will establish a policy and regulatory framework to create a market bias for renewable energy.

"This will help up become the world’s number one producer of geothermal power by developing an additional 800-MW installed capacity by 2012," she added.

Part of this capacity will be delivered by the geothermal plants in Rangas and Tanawon in Sorsogon, Mambucal and Palinpinon in Negros, and San Juan and Burauen in Leyte, the President said.

The Chief Executive also said that hydro power could provide another l,200 MW, while other renewable energy sources, like wind and biomass, can deliver another 224 megawatts.

Pointing to the fact that the country has the greatest potential for wind power in Southeast Asia, the President urged the proponents to complete by 2004 the 25-MW North Wind project funded by Danish investors and the 40-MW PNOC wind project, both in Burgos, Ilocos Norte.

These two projects, the President said, will be the first among the 415 MW megawatts available for wind power development in the next ten years.

The President has also cited studies showing that the Philippines will be needing at least P400 billion of private sector investments over the next ten years to finance the whole generation capacity build-up and other power-related infrastructure requirements.

Historically, the President said, the main companies providing these power-related assets have been the National Power Corporation (Napocor) for power generation, National Transmission Corp. (Transco) for power transmission and Meralco for power distribution.

"But the capital expenditure needs of Meralco, Napocor and Transco have ballooned all these decades," the President said as she underscored the fact that government subsidies to the power sector to the tune of P38 billion annually should instead be used to fund other services.

"This amount can build more than 100,000 classrooms, irrigate more than 100,000 hectares, put up more than 75,000 low-cost houses, or construct more than 6,000 kilometers of road," the President said.

Taking Napocor as a case study, the President said that in the past five years, Napocor has incurred losses of P73 billion and has seen its debts rising from $4.5 billion in 1983 to P6.6 billion in 2002.

On top of these losses and borrowings, the level of service of Napocor has been unreliable, and in the course of its operations, Napocor has been accused of inefficiency and corruption, the President said.

"We need to stop the continuous hemorrhage of government funds due to the financial losses of Napocor," the President said.

She said that the privatization of TRANSCO will pave the way for the sale of Napocor’s generating assets, 70 percent of which must be completed by June 2004.

The $500-million, 500-megawatt (mw) San Lorenzo Power Plant (SLPP) has been bankrolled and built by the First Philippine Holdings Corp. and BG Ple through special purpose firm FGP Corp. It complements the adjacent 1,000-mw Sta. Rita Power Plant in completing the power plant capacity needed to develop the $4.5-billion Malampaya gas-to-power project in Palawan.

FGP officials look at the gas-fired combined cycle SLPP as a major player in ensuring the growth of the natural gas industry, while enjoining active private sector participation and competition in the power sector.

Natural gas power plants are expected to replace power producers that use imported fuels, significantly cutting the country's dependence on oil and releasing valuable foreign exchange for other productive endeavors.

Further, the SLPP allows the Lopez-owned Meralco to meet the immediate and growing demand for power in the Luzon grid. A Power Purchase Agreement between FGP and Meralco was signed on July 22, 1999.

Financed without the need for any government guarantee, the SLPP is one of Asia's infrastructure projects that had speedily reached a financial close.

Worth $500 million, 75 percent of the project cost or $375 million is funded through loans while the remaining $125 million is sourced through equity.

The project includes the installation of an eight-kilometer on-shore natural gas transmission pipeline from the gas processing station in Tabangao, Batangas City to Sta. Rita.

It is described as having been designed on world-class standards and highly efficient technology.

The government’s "Visit Philippines 2003" program under the Department of Tourism (DOT) is now in full swing.

In a report this afternoon to the National Economic and Development Authority Executive Committee Meeting (NEDA-Execom) presided over by President Gloria Macapagal-Arroyo, who is also the NEDA chairman, Tourism Secretary Richard Gordon said some 2.4 million tourists are expected to flock to the country during the year.

Gordon said that the project is composed of the following components: Intramuros as the center of Visit the Philippines 2003, the Best of the Regions, and the "Wow Makati," making the Philippines the shopping capital of Asia.

"The Visit the Philippines 2003 brings new image to the historic walls of Intramuros. The DOT is bringing the whole country to Intramuros to enable the local and foreign tourists to see the country’s best regions through cultural shows and travel marts," Gordon said.

He pointed out that the project will have its soft opening on February 1 where the best of the country’s 16 regions will be featured in Intramuros.

"The ‘Best of the Regions in Intramuros’ will showcase the best of music, dances, festivals, arts and crafts of various regions comprising the Philippines," he said. Gordon said Southern Tagalog will be the first region to be featured for the month of February.

He pointed out that featuring the 16 regions in Intramuros for the whole year of 2003 will provide the regions an opportunity to advertise their wares, destinations, and services to the foreign tourists who come to the country, with Manila being the main gateway to approximately 85 percent of international arrivals.

It can be noted that World Tourism Organization (WTO) has declared the Philippines as a featured country in 2003, with the special celebration of Visit Philippines Year.

Gordon said "Visit Philippines 2003" program is a rallying call to all Filipinos, especially to government and community leaders, to inculcate a culture of tourism that will make Filipinos commit to the task of attracting all guests, foreign and domestic, to the country.

It will assure tourists that the Philippines is a country of world-class wonders and make Filipinos realize that tourism can mean jobs and livelihood opportunities for all, Gordon said.

The other component of the Visit the Philippines 2003 is the ‘Wow Makati’ which is already in the 8-point program of the President. ‘Wow Makati’ transforms the Philippines into Asia’s shopping capital.