Saturday, July 14, 2012

PRESIDENT AQUINO’S EO 79 AFTERMATH: Xstrata Philippine mine project ‘may go to court’ - AFP News

The fate of Xstrata’s $5.9 billion copper-gold project in the southern Philippines, which has been delayed by a ban on open-pit mining, may be decided in court, a provincial governor said Saturday.

Arthur Pingoy, governor of South Cotabato province where the project is located, said his government maintained its ban on open-pit mining which effectively bars the Swiss giant’s project.

President Benigno Aquino recently issued a mining order saying the national government overruled local ordinances but Pingoy said his ban remained in effect until a court ruled otherwise.

“Probably, this will be taken to the proper court, so we will see if (the company) or the national government will raise it,” he told AFP.

The Tampakan project of an Xstrata-led joint venture on the troubled southern island of Mindanao has been delayed for months by South Cotabato’s ban on open cast mining.

Pingoy said he was aware of the massive economic benefits of the project but said people in his province were still wary of its environmental impact.

He said both the natural resources and local government ministers were due to meet with him soon and he expected them to bring up the Xstrata project, which was originally due to go into commercial operation in 2016.

Meanwhile, the head of the government Mines and Geosciences Board Leo Jasareno expressed optimism that legal action could be avoided and that South Cotabato officials could be persuaded to lift the ban.

“There are many ways this can be addressed. The national government can talk to the local government, discuss the matter… it can be done through consultation, persuasion,” he told AFP.

He said Aquino’s new order would provide a guide in settling the dispute.

Jasareno said the Aquino government still considered the mining project, one of the biggest foreign investments in the country’s history, to be a “priority”.

In a statement, Sagittarius Mines, Inc., the local subsidiary of the Xstrata-led joint venture, said it would study Aquino’s new mining order to see how it relates to its mining project.

“We are encouraged that the implementation of this policy should assist in the resolution of the South Cotabato Environment Code which bans open-pit mining in the province contrary to national law,” the statement added.

The State of Moro Human Rights under President Noynoy Aquino

CONTINUING POVERTY, INJUSTICE AND IMPUNITY

When President Aquino assumed into power, he promised a different Mindanao. His Mindanao 2020 boasts of a plan to push for agricultural development in Mindanao by transforming it into a modern agricultural center for self-sufficiency and be competitive.

Three SONA’s (State of the Nation Address) after, Mindanao remains poor. Based on the latest official poverty statistics released by the National Statistical Coordination Board (NSCB), 36% of the country’s poorest families live in Mindanao.

The country’s three poorest regions are in Mindanao – CARAGA (39.8%), ARMM (38.1%), and Zamboanga Peninsula (36.6%). People in the ARMM has highest cost of living (more than P1,287 ) among all regions in the Philippines, but they only get P232 minimum wage(18% of the cost of living).*

This year, Mindanaoans suffered long hours of brownouts, yet compared to other countries, we were paying the highest electricity rates in Asia. We were blamed for the power crisis yet the national government is not shelling out bigger budget for Mindanao. Instead, they implemented the dole-out Conditional Cash Transfer or Pantawid Pampamilya Program whose budget came from World Bank loans.

In Mindanao, the foreign and local businessmen and landlords are the ones cashing in on the resources of Mindanao. The government has given permits for mining, exploration of oil and natural gas reserves, operations of coal-fired power plants, and expansion of agricultural plantations – which have further pushed the people into poverty and landlessness due to displacement.

The military and their CAFGU’s and CVO’s are employed to guard these business establishments, militarizing not only the countryside but urban dwellings as well. The economic interests of the US government are ensured by deploying US troops, setting-up “temporary” bases and conducting successive military exercises in Mindanao. War mongering against China is but a front to his subservience to US politico-military interests in Asia.

Under the guise of counter-terrorism, the people of Mindanao are held hostage by business interests. Communities who defy military presence are tagged as terrorist havens, residents as supporters. Communities are bombed and residents displaced purportedly to wipe out terrorists in the area.

Since 2001, more than 200 have been arrested and detained – accused as Abu Sayyaf members. Instead of reviewing security policies that discriminates Moro people, or put a stop to militarization and bombardment in the communities, Aquino called for an “All-Out Justice” which only intensified human rights violations in Moro areas.

In Aquino’s time, the wheels of justice remain slow. Despite incarceration, the Ampatuan family continue to wield power in Maguindanao. Adding to the death toll Maguindanao Massacre victims are state witnesses against the Ampatuan family.

There is a continuing reign of impunity as perpetrators of human rights violations remain scot free, while civilians and human rights defenders rot in jail. Aquino is no different with Arroyo in implementing the US counter-insurgency guide. Under his watch, two foreign NGO workers were killed while several activists are being arrested, detained and killed.

We pin our hopes in the peace negotiations, yet the Aquino administration continue to disregard previous agreements and push new agenda that gloss over the root-cause of the problem and only prolong the talks.

Let us expose the true situation of our communities and oppose state policies that continue to violate and deny our rights.

KHADIDJA BABAYE

Commentary: Mindanao power is more expensive than Asia’s major cities

A RADICAL’S NUT

By Arnold J. Padilla

Mindanao power is more expensive than electricity rates in major cities in Asia but Aquino wants the region to pay more to supposedly address its power crisis (Photo from manilastandardtoday.com)

Mindanao must pay more to end the rotating brownouts, the President declared in his Power Summit speech. The region, said Aquino, needs more power supply but “cheap” power rates are discouraging private investors from building new power plants to meet Mindanao’s growing energy needs.Pay more “But how can you entice anyone to invest—and this is the question—if their generating cost is more than their selling cost?” Aquino, in his speech, asked. “The simple truth is: we can have a lot more energy, but we have to provide the incentives for businesses to come here to put up those plants. Therefore, there will be a change in what we have to pay. We will have to pay, perhaps, a bit more… You have to pay more because this is the reality of economics… Everything has its price. We have to pay a real price for a real service. There are actually just only two choices: pay a little more for energy, or live with the lack of energy and the continuation of the rotating brownouts.”
Cheap rates?
Aquino must apologize to the people of Mindanao for blaming them for the power crisis and accusing them of being spoiled by “cheap” power rates. Aquino must apologize for being shamelessly insensitive to the plight of Mindanao where 36% of the country’s poorest families live (based on the latest official poverty statistics released by the National Statistical Coordination Board or NSCB).
The premise that Mindanao has been unjustifiably enjoying “cheap” power rates is totally wrong. True, Mindanao has lower power rates than Luzon and Visayas. Latest available comparative data show that the region has an effective residential rate of P6.69 per kilowatt-hour (kWh). Luzon has P9.84 while Visayas has P8.19. (Data from 18^th EPIRA Implementation Status Report, which may be downloaded here)
Most expensive in Asia
Aquino, however, did not mention one very important fact. Mindanao power is “cheap” only because the country has the highest electricity rates in Asia. In a survey conducted by the Japan External Trade Organization (JETRO), Manila posted the most expensive residential rate (P10.16 per kWh), while Cebu (P8.39) is ranked third (Singapore ranked second with P8.83). JETRO conducted the survey in January 2011 to compare investment-related costs, including electricity, in 31 major cities in Asia and Oceania. (See the table at the end of this article for the complete list; Download the JETRO survey here)
While Aquino is blaming the power crisis on the people of Mindanao for being pampered by “cheap” power, Mindanao is actually paying much more than most major cities in Asia. Did you know that residential consumers in the Autonomous Region in Muslim Mindanao (ARMM), Cagayan de Oro City, Northern Mindanao, and the Davao and CARAGA regions are paying twice the electricity rates of residents in Seoul and Beijing? Except for CARAGA, all the Mindanao regions I mentioned also have more expensive residential power rates than Hong Kong. These areas in Mindanao, plus Cotabato City, Iligan City, SOCCKSARGEN, and the Zamboanga Peninsula all have higher residential rates than major Asian capitals like Taipei, Kuala Lumpur, Jakarta, New Delhi, Bangkok, and Shanghai, among others. All in all, Mindanao is paying an average of P1.82 per kWh more for electricity than the collective average residential rate of the 31 major cities in Asia and Oceania surveyed by JETRO.
I summarized these findings in the chart below, which culled data on residential rates from the JETRO survey and data on average residential rates of private distribution utilities (PDUs) and average systems rates of electric cooperatives (ECs) from the 18^th EPIRA report. The red bars represent Mindanao regions and cities.

Poorest region
Note that Mindanao has an average official poverty incidence of 33.5% of families (the national average is 20.9%). The country’s three poorest regions are in Mindanao – CARAGA (39.8%), ARMM (38.1%), and Zamboanga Peninsula (36.6%). ARMM does not only have the most expensive power rates in Mindanao, it also has (consequently) the highest cost of living (more than P1,287 based on the family living wage released by the NSCB in July 2008) among all regions in the Philippines, while the minimum wage there is just P232 (or just 18% of the cost of living). Amid this condition, the people of Mindanao are being forced to pay for electricity that is way beyond the rates in Asia’s richest cities. Yet Aquino wants Mindanao to shell out more money to supposedly solve its power crisis.
Blame EPIRA
Mindanao has lower rates than Luzon and Visayas not only because it sources its energy supply from cheaper hydropower but also because the region has been relatively and temporarily spared from the privatization and deregulation drive under EPIRA. State-controlled/owned installed capacity in Mindanao is still about 82% of the total (as of 2010 data from the DOE), compared to 18% in Luzon and 36% in Visayas where most power plants have already been privatized and are now controlled by the country’s profit-seeking “power lords”. Furthermore, unlike Luzon and Visayas, Mindanao does not have an EPIRA-created wholesale electricity spot market (WESM), which has only become a venue for price manipulation and speculation by power monopolies, sparking off wild spikes in power rates.
But EPIRA is also to blame for Mindanao’s energy insecurity. While government retained control over most of the installed and dependable capacity in Mindanao, it did not invest in additional capacity to meet the growing power demand of the region. Government abandoned its strategic role to design and implement power development projects consistent with a long-term industrialization plan and instead focused on selling the assets of the National Power Corporation (NAPOCOR) to private investors as mandated under EPIRA.
Reverse privatization
To fully solve the energy insecurity of Mindanao and the rest of the country as well as the problem of expensive electricity, there is no other recourse but for the state to take over. Aquino could no longer use the excuse that doing so will just further bankrupt the government. Despite the EPIRA, NAPOCOR remains trapped in deep debt (read here). So instead of further wasting limited public resources on a flawed energy program – which only made electricity bills more exorbitant and power supply more insecure – government should start reversing the privatization and deregulation of the energy sector. #

Friday, July 13, 2012

COTABATO JAIL WARDEN SACKED OVER JAILBREAK

COTABATO CITY, July 12 (PNA) – Maguindanao Gov. Esmael "Toto" Mangudadatu has sacked Provincial Jail Warden Kasan Odin following the escape of 10 inmates, including high profile inmate Datukan Samad.
Mangudadatu named Bukid Baman as the new provincial warden. The governor learned that Odin was only acting jail warden and his appointment was only as "Jail Guard 2."
"He was not even qualified to act as officer-in-charge because he has no proper training and expertise in jail management," Mangudadatu said.
The police investigating the July 10 escape of 10 inmates found that one of them was a "key keeper" and trusted aide of the provincial jail guards.
Senior Supt. Danilo Reyes, Cotabato City police chief, said inmate Basco Puas was a trusted inmate and served as “key keeper” of cell Nos. 1, 3 and 8.
Samad alias Lastikman who was facing extortion, bombing, kidnapping and murders, was the brain of the daring escape which happened at 1 a.m. Tuesday.
Puas remained at large along with “Lastikman” and the other escapees.
Reyes said police investigators learned that Puas, who was facing murder and frustrated murder charges, opened the door of other cells after Lastikman made his great escape.
Kagem Omar, one of the escapees who was recaptured hours later, said that it was Samad who planned everything.
“Samad was the one who sew the iron grill of the comfort room every night or when the guards are not seeing him," he said in the vernacular.
“He would saw the iron grills every now and then," he added. "To camouflage the cuts, he will rub it with bath soap.”
Omar said while every one in the cell knew of what Lastikman was doing they simply ignored it and waited for the opportunity to escape with him.
Police said two motorbikes with two men were seen waiting for Lastikman to escape and fled with him amid light down pour on Tuesday dawn.
Reyes said a tracking team has been out to locate other inmates through their relatives.
The military, which had been helping the police locate the wanted persons, also seek the help of the Moro Islamic Liberation Front (MILF) ceasefire committee in locating Lastikman.
Major Gen. Rey Ardo, 6th Infantry Division chief, said the joint ceasefire committee, composed of military and MILF officials, can help in tracking down the escapees.
Ardo said Lastikman may have some relatives with the MILF ranks “so we need the help of our friends in the MILF because in cases like these the military must coordinate with the MILF.”
To avoid mis-encounter while state forces are enforcing police actions against lawless elements in areas identified with the MILF, a mechanism was set up for joint GPH-MILF manhunt operation. (PNA)

DTI, Davao del Norte‏ to developed poor towns in province

TAGUM CITY, Davao del Norte, July 12 (PNA) -- The Department of Trade and Industry (DTI) Davao and provincial government of Davao del Norte are partnering anew using the Local and Regional Economic Development (LRED) program in jump starting various economic activities in the less developed towns of the province.

Trade and Industry Undersecretary for Regional Operations Group Merly M. Cruz said LRED is a process by which stakeholders from both public and private sectors are mobilized to become partners in a joint effort to improve the economy of a defined sub-national territory to increase its competitiveness.
Initially, the collaboration will focus on the development of Braulio E. Dujali, a municipality 57 kilometers north of Davao City. It is one of the nine areas in Davao del Norte identified by the National Anti-Poverty Commission (NAPC) as among the 609 priority municipalities/cities for poverty reduction under the Aquino administration.
Cruz said other focus areas are the municipalities of Asuncion, Kapalong, New Corella, San Isidro, Santo Tomas, and Talaingod and the cities of Panabo and Samal Island.
She said that with the right planning and staunch support from government and private partners, Dujali can be developed into a tourism site.
“The area could be utilized for the development of pangasius or tilapia. Therefore, it will be a destination for those people who love fishing. Before you know it, Dujali is already a popular tourist destination,” she said.
To further enhance the town’s tourism potential, she said its products can be improved in order to become more marketable and enticing for tourists.
“Let’s identify products which are unique to Dujali. We can value-add on that and that will be the role of DTI,” she said.
Meanwhile, Davao del Norte Governor Rodolfo P. del Rosario said the week-long celebration of the 45th Kadagayaan Festival on June 24-30, is the starting point of the plan to develop Dujali.
“Let’s start with Dujali then other municipalities,” he said, adding that pasalubong centers will be established for the value-added products of Dujali.

“Five years from now, we envision Dujali to be a resort area. It will be a half-way house between Bukidnon and Davao del Norte,” he added. (PNA)
LAM/JGMM/ldp/mec

Army lauds Davao Norte for posting high number of rebel returnees‏

DAVAO DEL NORTE, July 13 (PNA) – Brig. Gen. Ariel Bernardo of the 10th Infantry Division (ID) of the Armed Forces of the Philippines (AFP) here congratulated Governor Rodolfo P. del Rosario for the noticeable increase in the number of surrenderees in the province, with 73 recorded surrenderees in the first half of 2012.

At the recently held meeting of the Regional Peace and Order Council (RPOC XI) in Davao City, he attributed this to the favorable spike in massive community immersion activities of the Provincial Government of Davao del Norte under the Convergence for Peace and Development program, where the AFP and the Philippine National Police (PNP) are its partners.
The Army official said a total of 190 rebels yielded and joined the government in the first half of this year. Next to Davao del Norte with the highest number in the region is Compostela Valley with 35, Davao del Sur with 28, and Davao Oriental and Davao City, both with 27 rebel returnees.
He said Gov. del Rosario, who is also the current RPOC XI chairman, reaches out to the far-flung areas in Davao del Norte. It rolls out various socio-economic services in human health, agriculture, animal legal, and support to the environment, among others.

Of the 477 immersion activities, 136 were conducted in Davao del Norte, 124 in Davao del Sur, 101 in Davao Oriental, 65 in Davao City and 21 in Compostela Valley, he added. (PNA)

New mining law addresses concerns of industry -- Tanada

MANILA, July 12 (PNA) -- House Deputy Speaker and Quezon Rep. Lorenzo "Erin" Tanada III said Executive Order No. 79 recently signed by President Benigno S. Aquino III, coupled with a new mining law, will address the concerns of the mining industry.
Tanada, author of House Bill No. 206 or the "Alternative Minerals Management Bill," said that EO 79 on mining has sparked renewed interest in the industry, and coupled with his proposed measure, "the concerns of the mining industry will be fully addressed."
"If we pair EO 79 with the House Bill 206, we have the mining industry striking it's first gold," he stressed.
Tanada said mining has been such a problematic industry for so long as it implicates issues in areas of governance, economic policy and environmental sustainability.
Despite the implementation of the EO, he said it is still important to enact a new mining law "because many of the industry's problems can be traced back to the Mining Act of 1995 -- in the endless tax holidays of mining companies, in the lack of safeguards against irresponsible contractors, and the rent-seeking system of applying for mining permits."
"The real problem of mining is the faulty premise in the Mining Act that the industry creates revenues and jobs -- which it doesn't -- and therefore its needs trump the interests of the community being mined," he noted.
Tanada said mining "implicates issues in areas of governance, economic policy, and environmental sustainability. Naturally, the scope of a law to fix those glitches is broad and requires a lengthy process of consideration and debate."
As such, he said it is still important to enact a new law on mining.
Tanada cited figures from 2000-2009 which stated the industry's job-creation at a negligible 0.376 percent while its revenue effort averaged around half the national figure at 7.8 percent.
Though effective, he averred that the EO is "not a substitute for a new mining law."
"Because of the inherent limitation of an executive order, it can only prescribe rules for the execution of a law, it cannot change the law. What the Executive has given us here is a starting push, but it cannot do our work for us. Legislation is Congress' work and beyond even the President's powers," he noted.

Tanada, however, stressed that the EO, though limited, "was a success of the campaign for mining reforms because it accepted the fundamental position of the advocates that some drastic change has to be made to the industry." (PNA)

BUKIDNON