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| 25 SEPTEMBER 2007 | ||
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| 25 SEPTEMBER 2007 | ||
| Statement of the President: On broadband & cyber education projects |
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We have suspended the national broadband and
cyber education projects in response to political criticisms. When we learned of alleged bribery attempt in connection with the broadband projects, we instructed that the matter be discreetly investigated. The results of the investigations were reported as uncorroborated. We proceeded with the preliminary processes regarding the project because we need to keep our good relations with China, even as we consulted with their highest authorities about a possible deferment. We announced the deferment as soon as they indicated that they will try to understand our predicament. China is the fastest growing country in the region and the world. We see it rise as a significant opportunity for the Philippines. Our overall relations with China have become more confident, mature, and comprehensive, punctuated with substantial and important projects aimed at deepening exchanges in a number of areas, including trade and official development assistance. China is currently our third largest trading partner with whom we have had a substantial trade surplus since 2002. Our Framework Agreement on Expanding and Deepening Bilateral Economic and Trade Cooperation is expected to further enhance bilateral merchandise trade with China. I am creating a special panel to oversee projects under the China official development assistance program. The China Projects Oversight Panel shall be headed by Secretary Peter Favila as the overall coordinator of our Framework Agreement with China, with Secretary Rolando Andaya as the Chairman of the Government Procurement Policy Board, Secretary Cerge Remonde as Chairman of the Pro-Performance Group, a Church leader whom we shall invite, and a representative of the Union of Local Authorities of the Philippines as members. Even as we defer the said China projects, this should not be construed as a precedent for every disgruntled project proponent and his backers to undermine undertakings that comply with the law and benefit the nation. All branches of government must ensure that vested interests do not exploit our democracy to block our development. We also assure our hardworking, competent civil servants planning and doing the technical work that we appreciate their laudable work. Under our separation of powers, the Executive shall continue to invest in our land and our people, subject to budgets and laws enacted by Congress and rulings handed down by the courts. In my inauguration address last 2004, I said: “Hangad kong makapasok sa eskuwela-ang-bawat bata, may sapat na lugar sa silid aralan at may computer sa bawat paaralan.” Distance-learning is part of our ten-point program. I also shared the vision that by 2010 the network digital infrastructure on which our government had embarked will have linked the entire country. The suspension of the said projects has created a gap in these aspects of our ten-point agenda. Government telecom savings of P3 billion a year from broadband may not be forthcoming, slashing that much from funds for social services. And world-class ICT might no longer reach 4th to 6th class municipalities and the least endowed schools. For this reason, I have asked Secretary Leandro Mendoza to discuss with private telecom companies how government can cut its phone, fax and online expenses, so we can spend more on programs and projects. The state remains committed to making long-overdue investments in our country and our people. |
| PGMA: Economic progress must stand alongside environment protection |
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ORMOC CITY---President Gloria Macapagal-Arroyo
underscored here today her administration’s thrust that economic growth must
be achieved alongside the preservation and protection of the environment for
the Philippines to be a modern nation. The Chief Executive said while other developing and developed nations believe that the environment must be sacrificed for economic development, the Arroyo administration “believes otherwise.” “We believe that we have a unique opportunity to get it right from day one: to introduce new industries that are clean and profitable. This ranges from sustainable furniture, to eco tourism, to developing a biofuels and geothermal industry that helps our energy independence, create jobs and keeps our nation clean for future generations,” the President said. In her message during the formal turnover ceremonies of the 51-megawatt Optimization Geothermal Plants in Leyte under the build-operate-transfer (BOT) contracts with Ormat Leyte Co. Ltd. to the Philippine National Oil Co.-Energy Development Corp. (PNOC-EDC), the President said her administration is prioritizing its Green Philippines Agenda. “We deeply believe that we must both sustain our natural environment and grow our economy at the same time. We are developing and promoting our Green Philippines Agenda which puts an emphasis on a sustainable economic model that brings economic opportunity and a concern for our environment,” the President said. The President said the turnover of the Leyte geothermal plants by Ormat Leyte Co. Ltd. to the PNOC-EDC, which is one proof that her administration is for tapping clean and renewable energy in order to sustain economic growth, “comes at a time when we are developing and promoting our Green Philippines Agenda…” and when the Philippine economy “has reached a new level of maturity and stability with some of the strongest macroeconomic fundamentals in 20 years.” She cited the generation of more revenues, the strong peso, the bullish stock market, the balance budget in August, pre-paying of debts and more jobs as a result of the tough economic and fiscal reforms she initiated to improve the economy. “Today, the Philippines is on path to permanent economic growth and stability. Investments are pouring in, our peso is strong, our stock market has reached historic heights and we have created six million jobs,” she said. And, the President said, “the world is taking
notice” that the Philippines is now a very attractive investment destination
in Asia as she vowed to focus on ensuring that these economic gains would be
sustained. “We are committed to consolidating the gains in new revenue by making long overdue investments in human and physical infrastructure. This includes billions of pesos in education, healthcare, and training along with billions in new bridges, roads and ports to upgrade the competitiveness of the Philippines,” she said. “We take pride in the discipline of our administration to focus on the economy and our overall economic health. We are proud of the fact that external debt is being pre-paid at a rapid clip, optimistic that we will balance the budget in 2008, two years ahead of schedule, and that we are making sure to use the gains to invest in vital social and economic needs,” she added. The Optimization Geothermal Plants turned over today include four facilities: the Mahanagdong A and B Topping Cycle Plants, Tongonan Topping Cycle Plant, and Malitbog Bottoming Cycle Plant, which have a combined installed capacity of 51 MW. The turnover comes at a time when prices of crude oil in the world market have reached $81 per barrel. All of these plants use geothermal energy from PNOC-EDC's Leyte Geothermal Production Field (LGPF). PNOC-EDC said geothermal fluids go to the optimization plants either before they are directed to the main power plants, referred to as "topping," or after being directed to the main power plants called "bottoming" for additional electrical output. The Tongonan 1, Malitbog and Mahanagdong A and B plants provide power to the National Power Corp. for distribution to Cebu, through the Leyte-Cebu transmission interconnection project, and to Luzon through the Leyte-Luzon interconnection project. With the turnover today, all geothermal plants under the BOT scheme would be now under the PNOC-EDC operations as the four plants are the only ones under BOT contracts that PNOC-EDC has yet to take over. PNOC-EDC assumed last July the operation of the 232.5-MW Malitbog and 180-MW Mahanagdong geothermal power plants from CalEnergy International Ltd. when the 10-year cooperation period under the plants' respective energy conversion agreements ended. PNOC-EDC took over last year the operation of the 132-MW Upper Mahiao power plant, also from CalEnergy. The Leyte Optimization Plants, together with the Upper Mahiao, Malitbog and Mahanagdong facilities all use steam from the LGPF. The LGPF is PNOC-EDC's biggest steam field, powering nearly 60 percent of the company's total installed capacity. PNOC-EDC is the country's largest geothermal energy producer, with an installed capacity of 1,198 MW, or 60 percent of the country's total installed geothermal generating capacity. The President has been an advocate of the
development of clean alternative energy sources like geothermal power so as
to lessen and eventually eliminate the country’s dependence on imported
crude oil for power as well as contribute to the lessening of gas emission
that contributes to climate change. The President witnessed the signing and handover of Transfer Agreement by Ormat Vice President Aaron Choresh and PNOC-EDC President Paul Aquino at the PNOC-EDC Milagro Administration Complex Clubhouse gymnasium. Among those who also witnessed the ceremonies were PNOC-EDC Chair Pedro Aquino Sr., Energy Undersecretary Mariano Salazar, Southern Leyte Vice Gov. Damian Mercado, Ormoc City Vice Mayor Nepomuceno Aparris and Kananga, Leyte Mayor Elmer Codilla. |
| PGMA says gov't to lose P3 billion a year from suspension of NBN, cyber education deals |
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President Gloria Macapagal-Arroyo called today
her suspension of the $329-million National Broadband Network (NBN) and
cyber education deals with Chinese firms as a waste of opportunity and a
setback to her 10-point legacy agenda to provide computers for every
classroom in the country. In a statement read before she convened the Joint Pro-Performance Steering Committee and Government Procurement Policy Board (GPPB) Transparency Board meeting in Malacañang this afternoon, the President said the government stands to lose P3 billion a year from the suspension of the projects. “The suspension of said projects has created a gap in these aspects of our ten-point agenda. Government telecom savings of P3 billion a year from broadband may not be forthcoming, slashing that much from funds for social services. And world-class ICT (information and communications technology) might no longer reach 4th to 6th class municipalities and the least endowed schools,” the President said. The President, however, maintained that the suspension of said deals is not a precedent which “every disgruntled project proponent and his backers” may use to their advantage. “Even as we defer the two China projects, this should not be construed as a precedent for every disgruntled project proponent and his backers to undermine undertakings that comply with the law and benefit the nation,” she explained. In an attempt to soften the effects of the lost income from the deals, the President has tasked Transportation Secretary Leandro Mendoza “to discuss with private telecom companies how government can cut its phone, fax and online expenses so we can spend more on programs and projects.” The President underscored the importance of trading with China which she called the “fastest growing country in the world” whose rise is a significant opportunity for the Philippines. “Our overall relations with China have become more confident, mature and comprehensive, punctuated with substantial and important projects aimed at deepening exchanges in a number of areas, including trade and official development assistance,” the President said. “China is currently our third largest trading partner with whom we have had a substantial trade surplus since 2002,” she added. “Our Framework Agreement on Expanding and Deepening Bilateral Economic and Trade Cooperation is expected to further enhance bilateral merchandise trade with China,” the President said. To ensure that trade relations with China remain intact, President Arroyo has created the China Projects Oversight Panel to oversee the implementation of official development assistance (ODA) programs from China. The panel, she said, will be headed by (Trade) Secretary Peter Favila as overall coordinator of the Framework Agreement with China with Budget Secretary Rolando Andaya as Chairman of the Government Procurement Policy Board, Presidential Management Staff chief Cerge Remonde as Chairman of the Pro-Performance Group, a Church leader who shall be invited, and a representative of the Union of Local Authorities of the Philippines (ULAP) as members. The President assured the Filipino people that despite this drawback, “the state remains committed to making long-overdue investments in our country and our people.” |
| Statement of Secretary Ignacio R. Bunye: On Prime Minister Fukuda |
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The President welcomes and congratulates Mr.
Yasuo Fukuda on his election as Prime Minister of Japan. Mr. Fukuda brings to his high office a wealth of experience that auspiciously began with him serving as secretary to his late father Prime Minister Takeo Fukuda, whose "Fukuda Doctrine" --- announced in Manila in 1977 - - defined Japan's relations with Asia. The President is confident that under the leadership of Mr. Fukuda, the close and friendly ties between the Philippines and Japan will further prosper, and that the principles and values embodied in the Fukuda Doctrine will continue to foster stability and prosperity in East Asia. |
| Privatization of power generation and supply sector remains a top priority -- PGMA |
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ORMOC CITY--- In line with her administration’s
thrust to ensure enough and cheap energy supply for communities and
industries, and to attract more investors into the country, President Gloria
Macapagal-Arroyo stressed anew today the need to privatize power generation
and supply sector. “Privatization of power generation and supply sector remains a top priority,” the President said in her message during the ceremonial turnover of the 51-megawatt (MW) Optimization Geothermal Plants in Leyte by Ormat Leyte Co. Ltd to the Philippine National Oil Co.-Energy Development Corp. (PNOC-EDC) through a 10-year build-operate-transfer (BOT) scheme. “It hasn’t been happening fast enough for me, but now, I’m glad we are making progress,” the President said as she cited the oversubscribed PNOC-EDC initial public offering in December 2006 and the follow-on stock offering last July. The President added that the PNOC-EDC privatization is solid proof that the government’s privatization policy is viable and that is why she is “eager to move along the privatization of Napocor (National Power Corp.) which will free the government of its subsidy and allow us to make more investments in other infrastructure areas.” She reiterated the need to reform the country’s power sector as power stability and lower cost is “essential for our long-term health.” “We will not be able to take the economy to the next step without it. We are seeing progress in this front this year,” the President said. She expressed concerns about the power prices that consumers and industrial users pay. ”I want them lower,” she stressed. In line with this thrust, the government has stepped up the privatization of the Napocor assets in a move to boost business confidence and generate needed investments for future power needs of the country. The President has noted that without competitive power prices, stable energy (supply) would not be competitive. "Stable energy supply is an important indication of a Strong Philippine Republic," the President has said. The Power Sector Assets and Liabilities Management (PSALM), the state agency tasked with selling Napocor’s assets, is set to privatize 50 percent of the firm’s assets within the year. Napocor operates 28 power plants in the country and with the sale of its assets, the government stands to save some P40 billion annually in financing costs. The assets up for sale include the Calaca coal-fired power plant, the Palimpinon geothermal plant, the Ambuklao-Binga hydroelectric power plant, and the Masinloc power plant. |
| President Gloria Macapagal-Arroyo's Departure Statement on Her Visit to the USA, September 25, 2007 |
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Tonight we leave for New York to deliver our
Country Report to the United Nations General Assembly, to actively
participate in two international fora, to meet with US business leaders with
present and potential investment in the Philippines, and to meet our
kababayans in New York and environs. All these meetings are in pursuit of
our policy of active global engagement. In all these fora, I will bring to our international audience and stakeholders the very important message that is threatened to be drowned by the chronic political noise. Our economy has reached a new level of maturity and stability with some of the strongest macroeconomic fundamentals in 20 years. We have aimed high and have met the challenge: six years ago, no one thought we could get more revenues, cut down on tax cheats, strengthen the peso and move the stock market. And no one thought we could bring our budget into balance, as we did last month, prepay our debts and raise employment, but we have. Today, the Philippines is on a path to permanent economic growth and stability. Investments are pouring in, the peso is strong, our stock market has reached historic heights and we have created 6 million jobs in six years. And the world is taking notice: I believe the Philippines offers one of the best values in Asia for domestic and foreign investors. The surge of investments has been anchored by the billion-dollar investments in the Philippines of several major international companies, including Texas Instruments, Korea’s Hanjin and Japan’s Marubeni and Tokyo Electric and lately, America’s AES. This is happening across the board in a number of industries. We are working to ensure this will be sustained. We are committed to consolidating the gains in new revenue by making long overdue investments in human and physical infrastructure. This includes billions of pesos in education, healthcare and training along with billions in new bridges, roads and ports to upgrade the competitiveness of the Philippines. We take great pride in the discipline of our administration to focus on the economy and our overall economic health. I am personally proud of the fact that external debt is being prepaid at a rapid clip, optimistic that we will balance the budget in 2008, two years ahead of schedule, and that we are making sure to use the gains to invest in vital social and economic needs. As an economist, I believe in the power of the global trading system to alleviate poverty and modernize nations through market forces. This does not mean that we believe that countries like the Philippines are ready to compete head-to-head today in every sector, but it does mean that we cannot afford to be afraid of globalization. We have been aggressive in seeking multilateral and bilateral trade relations. We have taken a personal and hands-on role in trying to move the Doha Round forward because I believe it is good for the Philippines. And I believe my faith in the marketplace both at home and abroad has been a boon to the Philippine economy. Mabuhay. God bless the Philippines. |
