LRC-Luzon Regional Office

Wednesday, August 16, 2006

Wealthy nations face water crisis like poor -- WWF

First posted 09:46am (Mla time) Aug 16, 2006
Agence France-Presse

http://news.inq7.net/archive_article/index.php?ver=1&index=1&story_id=15547

GENEVA -- Wealthy nations are facing a water crisis mirroring the one experienced by drought-plagued poor countries, the environmental group WWF warned in a report Wednesday.

The report, "Rich countries, poor water," said that climate change, drought, and loss of natural wetlands that store water, along with mismanagement of freshwater resources, pollution, and overconsumption by industry, agriculture and big cities were stripping supplies.

The report singled out Australia, European countries, the United States, and Japan.

It also warned that major schemes in emerging nations, such as redirecting rivers like China's Yangtze, merely shifted problems elsewhere and replicated errors made in the past by rich nations.

"Economic riches don't translate to plentiful water," says Jamie Pittock, Director of WWF's Global Freshwater Program.

The report underlined that the crisis was best tackled first by conservation of natural resources.

"The crisis in rich nations is proof that wealth and infrastructure are no insurance against scarcity, pollution, climate change and drought. They are clearly no substitute for protecting rivers and wetlands, and restoring floodplain areas," adds Pittock.

In Europe, countries on the Atlantic seaboard have experienced more droughts while Mediterranean nations are squandering natural resources with poorly thought out expansion of tourism and agriculture in some areas, according to the report.

Meanwhile, contamination of wetlands polluted by industry in Eastern Europe has yet to be tackled, the WWF said.

In Australia, annual rainfall has been declining since a sudden drop of 15 percent in the 1970s, prompting the western coastal city of Perth to build a desalination plant to meet its needs.

Natural groundwater sources that gave the Australian desert town of Alice Springs its name were "ancient" and no longer recharged, the WWF underlined.

"Alternative water sources are likely to be both expensive and similarly limited," it added.

Despite high rainfall in Japan, the report said the country's population density was gaining the upper hand on what it acknowledged was "high quality" supply and sanitation engineering.

The report said Japanese water supplies were increasingly contaminated.
Big cities were proving to be ever thirstier.

In some instances, such as in Houston or Sydney, they were simply overconsuming, according to the report. In London, leakage from ageing water mains is estimated at 300 Olympic-size swimming pools a day.
But the WWF praised New York, noting that it had less severe water problems because of a tradition of conserving key catchment areas and green areas in New York State.

Other areas of the United States are already using substantially more water than can be replenished naturally, a situation that is likely to be exacerbated by climate change, the report said.

Increased salt levels or contamination by pollutants that would otherwise be diluted were also a growing threat in areas suffering from water scarcity, it added.

Monday, August 14, 2006

It Pays To Be Green

Businesses can earn extra by protecting the environment
(From Newsbreak, August 14, 2006, pages 29 & 30)By Melody M. Aguiba

http://newsbreak.com.ph/newsbreak/story.asp?id=555

GOING “GREEN” certainly makes business sense, especially if one knows how to cash in on one’s contribution to helping save Planet Earth. Just ask Marlon Centeno and his colleagues at NorthWind Power Development Corp. (NWPDC) , which uses a renewable resource—the wind. For solving, rather than causing, environmental and social problems, they can earn US$57,600 a year on top of their revenues from selling power.

NWPDC’s wind farm located in Bangui Bay at the northern tip of Luzon displaced previous diesel-based power generation sources, which are not only unreliable energy sources, but are also major pollutants. Centeno knows. He used to be an official of a major fossil fuel-burning power plant in Cebu and had also witnessed how the business was at the mercy of skyrocketing fuel prices.

So while the wind farm project addresses environmental considerations, economics was also a major factor for investing in it. Business ventures that reduce greenhouse gases are rewarded with easy access to financing, technology transfer from experts, and of course, the goodwill that comes with being good corporate citizens.

They have the worldwide movement to reduce discharges of greenhouse gases to thank. Greenhouse gases, such as carbon dioxide, methane, nitrous oxide, and sulfur oxide, among others, are said to cause global warming which is triggering extreme weather conditions everywhere, melting icebergs and inundating and sinking island villages and coastal areas.

NWPDC and a good number of other “green” companies located in developing countries are riding on the business opportunities brought about by the Kyoto Protocol which was signed last year by more than 160 countries, including the Philippines.

The protocol binds the industrialized countries—Japan, Australia, United Kingdom and European countries, which produce most of the greenhouse gases released into the air – to timebound targets. The goal is to collectively reduce by an average of 5.2 percent their emissions from 2008 to 2012 with 1990 as the baseline. To meet their commitments, industrialized countries have the option to reduce part of their emissions domestically, or they can trade with their neighbors who are themselves First World countries.

The third option takes into consideration the fact that greenhouse gases are dispersed throughout the atmosphere, thus making the location of the greenhouse-reducing project irrelevant. Businesses and governments could then engage with those in the developing countries to offset what they could not meet in their commitments to the protocol. Developing countries do not have emission targets because they are generally less industrialized.

CARBON CREDITS

The last option is popular because of cost considerations. According to the World Bank, every ton of reduced carbon dioxide costs anywhere from US$25 up to $50 in the industrialized countries. On the other hand, the same effort in the developing world costs only about $5 per ton. This intrinsic comparative advantage of developing countries presents an opportunity for international trade. It then makes sense for the industrialized countries to look out for projects they can fund in developing countries, like the Philippines, so they can reduce the cost of their compliance.

When companies and industrialized countries anticipate that they will not meet their quota for carbon credits, they engage in a project-based system called the Clean Development Mechanism (CDM), one of the three Kyoto mechanisms. CDM compels companies in the industrialized countries to finance projects for reducing greenhouse gas emission in developing countries, or transfer and deploy their energy-efficient technologies.
For doing so, they participate in the trading of a new commodity: carbon credit, or the market value of one metric ton of carbon dioxide that is not released into the air.

NWPDC’s project, when evaluated, can earn 44,000 carbon credits every year for preventing the equivalent metric tons of carbon dioxide emitted by alternative energy sources. With an indicative value of $4 to $5 per metric ton, the company’s carbon credits command a sale price of $1.46 million to $1.78 million over its 10-year contract. These represent earnings of the company over and above its usual revenue stream of selling power.

EMMISSION TRADING

NWPDC, however, already has the World Bank as its ready buyer for 35,200, or 80 percent, of its carbon credits. The World Bank advanced US$200,000 for the company’s feasibility study and also financed the verification and certification by an independent auditor of each unit of greenhouse gas emission reductions so the company can qualify for carbon credits. For this project, the World Bank is representing a public-private partnership, made up of six governments and 17 private companies from the developed countries, which authorized the World Bank, as their trustee or liaison, to purchase carbon credits from this project on behalf of the participants of the fund.

The remaining 20 percent of NWPDC’s carbon credits is a buffer in case the wind farm generates lesser wind power in a year. Otherwise, the company can sell this to the open carbon market through a CDM developer, a broker, or other investment agencies. There are already emissions trading exchanges in Europe and the US where volumes continue to expand every year. Trading agencies have been sprouting as a result of the profitability prospects of buying and selling carbon credits.
The emissions trading market has intricacies that consider not the rise and fall of their earnings or corporate deals, but factors like weather patterns, such as a forecast of a heat wave that could mean power plants in some First World countries need to burn more coal for more air conditioners that will be turned on. Rainstorms, on the other hand, will have the opposite effect, and will mean less demand for carbon credits, thus lower prices. As of this writing, carbon credits are fetching a high of $12 per metric tons in the open market. This means if NWPDC officials decide to cash in on their free carbon credits (the 20 percent), they can realize additional profits of up to $57,600.

NWPDC’s Centeno, however, told NEWSBREAK that at the moment, they have no plans of participating in open trading. They remain focused on their main business, which is generating power. “We don’t depend on our carbon credits for our viability,” he said.

Nonetheless, the CDM remains the key attraction for entrepreneurs in developing countries like the Philippines, because it represents an opportunity to attract foreign investments into these less carbon-emitting projects. But while market risks limit the flow of these investments to the country, multilateral agencies such as the World Bank and Asian Development Bank, and also institutions like the Danish International Development Agency, have, in the meantime, stepped in to fill the slack, acting as market facilitators and catalysts. Environmentally friendly endeavors are high on their priority lists. Basically, they provide the financing and technical assistance for these projects. All these, however, are made in coordination with local government agencies, such as the Development Bank of the Philippines and the Department of Environmental and Natural Resources (DENR). In the case of renewable energy projects, like NWPDC’s, the wind project was an offshoot of a pilot program of the Department of Science and Technology.

Countries that now have the highest number of CDM-registered projects are India (71 projects or 31 percent of total); Brazil (48 projects or 20.96 percent); Mexico (17 projects or 7.42 percent); Chile, 13 projects or 5.68 percent; China (11 projects or 4.8 percent); Honduras (nine projects or 3.93 percent); Korea and Malaysia (five projects or 2.18 percent each; and Argentina (four projects or 1.74 percent).

In the Philippines, aside from NWPDC’s wind power plant, seven other projects have received letters of approval from the DENR for their greenhouse gases emission reduction, contributing to the Philippines’ capturing a 3.49 percent share in worldwide CDM projects.

Six of these projects will cut methane emission from wastewater produced by five hog farms and one distillery. To cut emissions, the hog farms have adapted ingenuous technologies, like the covered-in-ground anaerobic reactor, while the distillery is using thermophilic anaerobic digestor technology.

The methane recovery, developed by the Philippine Bio-Sciences Company Inc. was made for five hog farms: Gaya Lim Farm Inc., Gold Farm Livestock Corp., Joliza Farms Inc., Paramount Integrated Corp., and Uni-Rich Agro-Industrial Corp. These farms are found in Bulacan, Tarlac, and Nueva Ecija.

The wastewater treatment plant for the distillery in Lian, Batangas of Absolut Chemicals Inc., a subsidiary of Tanduay Distillers Inc., is being developed by Mitsubishi UFJ Securities and Kingsford Environmental Phils. Inc. “The projects are highly valued by farmers as the treated wastewater will be applied as liquid fertilizer for free, reducing farmers’ reliance on chemical fertilizers. The projects also increase diversity and secure energy supply through the ethanol plant while the hog farms can use biogas as fuel for electricity,” the DENR said.

RENEWABLE ENERGY

The replacement of energy sources that depend on burning fossil fuels, however, remain the top projects eligible for CDM, mainly because the shortage of access to clean energy is recognized by the funders as one of the obstacles to development. No wonder the 20-megawatt geothermal plant in Negros Occidental was recently given CDM approval. Other projects that qualify for the CDM are renewable energy with a maximum output capacity equivalent of up to 15 megawatts, energy efficiency improvement projects that reduce energy use by up to 15 gigawatt-hours per year, and other projects that cut anthropogenic emissions and emit less than 15 kilotons of carbon dioxide equivalent annually.

DENR allays fears on approved forest contract

Inquirer
Last updated 05:35am (Mla time) 08/14/2006

Published on page A22 of the August 14, 2006 issue of the
Philippine Daily Inquirer

http://newsinfo.inq7.net/inquirerheadlines/regions/view_article.php?article_id=15116

LUCENA CITY -- Officials of the Department of Environment and Natural Resources in Quezon province have allayed fears of environmentalist groups that the Malacañang-reinstated forest management contract would lead to the destruction of the Sierra Madre mountain range.

“Before TFPI (Timberland Forest Products Inc.) can start actual operation, it should first undergo the required public hearing to get the side of the community. The operation is still a long way to go,” Antonio Diwa, the community environment and natural resources officer based in Real town, told the Inquirer over the phone.

Diwa said a lot of documents must be submitted for approval before any forest management activities could be started.

“The company would still need to submit an environmental compliance certificate and resource management plans, among many other voluminous papers,” he stressed.

He clarified that it was not the DENR that reinstated the controversial forestry contract of the logging company owned by Bulacan logger Wilson Ng.

“It was a Malacañang decision. My office has nothing to do with it,” Diwa said.

He vowed to strictly monitor the activities of TFPI once it started operations.

“That IFMA (Integrated Forest Management Agreement) will not be an instrument nor will it be an avenue for any illegal logging activities. The company should strictly follow the terms and conditions specified in the contract,” Diwa said.

An IFMA is a contract entered into by the DENR and a qualified person to occupy and possess, in consideration of a specified rental, any forest land of the public domain to establish an industrial forest plantation.

There are two types of IFMA. One allows companies to plant and harvest trees in production forest while the other allows firms to cut trees in partially denuded areas before trees are planted.

“It’s one form of selective logging. An IFMA holder is allowed to cut mature, over-mature and defective trees inside the production forest but at the same time, they are also mandated to plant forest trees,” Diwa explained.

Environmentalist groups in Quezon protested when they learned on Thursday from a DENR regional official that Ng’s IFMA contract covering more than 36,000 hectares of land in Sierra Madre inside the province territorial jurisdiction had been approved with finality by an unidentified Palace official.

The IFMA has long been opposed by residents and local officials of Real, Infanta and General Nakar towns.

The 25-year IFMA was granted to Ng on Nov. 12, 2002, when Heherson Alvarez was then environment secretary.

Alvarez’s successor, Elisea Gozun, revoked the IFMA on Jan. 13, 2004 on grounds that “fraud, misrepresentation and omission of material facts” allegedly surrounded the contract.

Based on DENR records, TFPI’s IFMA was reinstated by the Office of the President on March 4, 2005, four months after the tragic flash floods and landslides in the three Quezon towns.

But the Palace held back its implementation after it was met with a howl of protest.

The left-wing fishermen alliance Pambansang Lakas ng Kilusang Mamamalakaya ng Pilipinas (Pamalakaya) urged Environment Secretary Angelo Reyes to disclose the identities of alleged Malacañang officials behind the reinstatement of TFPI’s forestry contract.

“This is unfair to 1,000 farmers and fishermen who were killed by flash floods and landslides resulting from the environmental disaster in 2004 brought about by large-scale logging in Sierra Madre,” Pamalakaya national chair Fernando Hicap said in a statement sent to the Inquirer.

Delfin T. Mallari Jr., Inquirer Southern Luzon

Friday, August 11, 2006

Minding Mindanao's mining industry

First posted 04:20am (Mla time) Aug 03, 2006
MINDANAWORLD

By Joji Ilagan- BianInquirer

http://news.inq7.net/archive_article/index.php?ver=1&index=1&story_id=13201

THE Philippine mining industry is one of the most promising industries in Asia. The country has vast mineral resources and its strategic location makes exports to other Asian nations easier.
Our proximity to China and India, which are the biggest markets for mineral products in Asia, makes investors from South Korea, Japan, Australia, Canada, the United States, and South Africa interested in investing in the industry.

The country is at the Circum-Pacific belt of fire where the earth's tectonic plates collide and the process of volcanism most active.

These processes of volcanism and plate convergence result in the formation of important metallic mineral deposits, such as gold, copper, iron, chromate, nickel, cobalt and platinum. Based on past production and defined resources, the Philippines is the fifth most mineralized country in the world and has established reserves of 13 known metallic and 29 non-metallic minerals. The country has nine million hectares of mineralized land, of which only 420,000 hectares have been tapped.

Two decades ago, the local mining industry was among the top five largest mineral exporters in the world with annual export revenue of $1.2 billion. Global ranking in mineral deposits in the 1980s placed the Philippines at the second spot in gold deposits, fourth in copper deposits, fifth in nickel deposits, and sixth in chromate deposits.

At present, the industry's export contribution has been reduced by almost 50 percent from its performance in the 1980s.

The National Economic and Development Authority estimates that $840 billion worth of mineral wealth in the country is untapped. Mindanao is said to account for 70 percent of the national total mineral deposits. The decline in the mining exploration activities in the country has greatly affected Mindanao's economic development.

Of the 23 major metallic projects operating in the Philippines, nine are in Mindanao (primarily in the Caraga and Davao regions).

According to the Mines and Geosciences Bureau (MGB), existing mining rights in Mindanao account for only 1.4 percent of the mineral areas.

The 516 tenement applications under study by the MGB, if approved, would raise the rate to 15 percent.

Exploration companies operating in Mindanao include Silangan Mindanao Exploration Co. (in Tubod town in Surigao del Norte province), Tampakan Mineral Resources Corp. (in Tampakan, South Cotabato), and Toronto Ventures Inc. (in Siocon, Zamboanga del Norte). These companies are engaged in activities aimed at promoting the development of their host communities through infrastructure support and provision of livelihood.

Mining could bring considerable wealth to remote areas -- providing jobs, developing local industries, and improving physical and social infrastructure. Hence, the development of the industry can be an effective peace and development strategy in Mindanao.

Notwithstanding the presence of such companies, most of Mindanao remains untapped for its mineral potential.

Mining, social development

Agriculture and mining are the oldest industries in the world. The world could not have developed without the use of minerals and metals. The negative perception on mining arises from the old mining laws that did not provide for adequate environmental protection and social development.

Mindanao business leaders are very much aware of the significance of an active mining industry to the socio-economic development of the island. The government and the private sector have joined together to revitalize Mindanao's mineral industry.

The Mindanao business sector is pushing for responsible mining with the primary objective of maximizing environmental, economic and social benefits.

Mining remains one of the country's options to free itself from the economic deprivation and attain a better quality of life for its people. The hard reality is that we do not get most of the minerals that we need for industrialization from our own resources; instead, we import them. However, there is always a choice of producing the minerals ourselves.

Social responsibility

Mining companies are mandated to spend at least 1 percent of their annual direct mining and milling costs for community development and the development of mining technology and geosciences. Of the amount, 90 percent should be earmarked for community development under a social development and management program (SDMP). SDMP should provide alternative livelihood opportunities for employees and their dependents, and for neighboring communities during the life of the mine.

If strictly implemented, this will greatly benefit Mindanao, in terms of infrastructure and financial resources development.

Case in point is Silangan Mindanao Exploration Co., a joint venture between Philez Gold Philippines, Inc. and Anglo American Exploration Philippines Inc.

While conducting exploration activities, Silangan employed over 200 people in the area and initiated a number of community development programs. It has since played a vital role in the improvement and repair of community roads, water system, and other infrastructure support. It has contributed immensely to community health care.

There are many ways to push for the development of mining activities in Mindanao, while simultaneously protecting the environment and empowering the people living in the mining community. The proper enforcement of the mining law of 1995 is necessary. The development of effective and credible monitoring is vital in ensuring strict compliance of national standards.

E-mail comments to jojibian2@yahoo.com.

Thursday, August 10, 2006

Centcom move to Balamban pushed

First posted 10:44am (Mla time) Aug 10, 2006
Cebu Daily News
http://specials.inq7.net/theenvironmentreport/index.php?ver=1&index=1&story_id=14471

THE Cebu provincial government will ask the Department of Environment and Natural Resources (DENR) to facilitate the “re-declaration” of the areas covered by national park in Balamban town.

Gov. Gwendolyn Garcia said that this would pave the way for the setting up of a military camp in the area within the reserve for use of the Armed Forces of the Philippines Central Command (AFP Centcom) Headquarters.

Garcia said she would meet with DENR Secretary Angelo Reyes to discuss Capitol's request.
This will be made when the Capitol eventually takes back 80 hectares presently being occupied by the Centcom headquarters in Cebu City.

Governor Garcia during her State of the Province Address (SOPA) said that she hopes to retrieve the properties and transform them into an economic enterprise for the Capitol through lease.

“This will now be utilizing resources for more revenues to deliver better services,” Garcia said.
The Capitol legal office including Garcia along with officials from the Department of National Defense met in Manila last Monday to discuss the details of the transfer.

The governor said details of the discussions will be revealed in a later date. She said that they will be signing a memorandum of agreement with the military, which will also include the inclusion of an adjacent lot owned by the AFP to be included in the Capitol's development of their 80- hectare lot.

Garcia said that the military wanted to include their own property so that it will also earn when the Capitol lots eventually gets developed.

The governor said that the AFP wanted the earnings for their properties to be used as additional funds for its modernization program.

Reporter Dale G. Israel

DENR explains hand in Narra mining

First posted 02:53am (Mla time) Aug 10, 2006 Inquirer http://specials.inq7.net/theenvironmentreport/index.php?ver=1&index=1&story_id=14404Editor's
Note: Published on Page A12 of the August 10, 2006 issue of the Philippine Daily Inquirer

THIS has reference to the news item titled "Permits absent in Narra mining." (Inquirer, 7/26/06) According to the report, Platinum Group Metals Corp. (PGMC) is operating in Narra, Palawan, without a permit. On the other hand, Sara Marie Mining Inc. (SMMI) continues to drill in the same area despite an earlier Cease and Desist Order (CDO) from the Department of Environment and Natural Resources-Mines and Geosciences Bureau (DENR-MGB).

The report further implied that the DENR has not been fair in enforcing the law against mining firms, particularly in the case of PGMC, which was accused by the Kilusang Laban sa Mina sa Narra of having ties with Environment Secretary Angelo T. Reyes. Our records show that our actions on these companies were based on existing rules and regulations and were not influenced by anyone.

Our regional office issued a CDO against SMMI last July 16, 2006 because it was conducting exploration activities without an Exploration Permit. The CDO is still in effect up to this day.
PGMC, on the other hand, is operating by virtue of the Small-Scale Mining Permit issued by the provincial governor of Palawan. It is thus unfair to drag the name of Secretary Reyes into the controversy involving a permit issued by the local government.

HORACIO C. RAMOS, director, Mines and Geosciences Bureau, Department of Environment and Natural Resources, North Avenue, Diliman, Quezon City

Tuesday, August 08, 2006

Church firm on stand against mining

First posted 10:28am (Mla time) Aug 08, 2006
Cebu Daily News
http://news.inq7.net/archive_article/index.php?ver=1&index=1&story_id=14104

Iloilo City — The Roman Catholic Church has reiterated its stand against mining amid reports that 19 towns in Iloilo and three in Guimaras are now targets of several mining applications.
“Kung pasugtan naton ang mina, makalbo ang Iloilo (If we allow mining, Iloilo will go bald),” said Monsignor Meliton Oso of the Jaro Archdiocesan Social Action Center.

“Mabutang gid ang kabuhi sang pumuluyo sa peligro (The lives of the residents will be put at risk),” Oso said during a symposium on mining sponsored by the Jaro Archdiocesan Social Action Center held at the St. Joseph's Hall of St. Vincent Ferrer Seminary in Jaro district.
Among those who attended the forum were Marinduque Representative Edmundo Reyes, some students, lay ministers, priests and bishops as well as members of religious organizations.

Oso appealed to the Ilonggos to stand up against mining and save the environment after he received reports that three towns in Guimaras and 19 towns in Iloilo had been targets of mining applications. He identified the three Guimaras towns as Jordan, Buenavista and Nueva Valencia.
The affected towns in Iloilo were Ajuy, Carles, Sara, Concepcion, Oton, Sta. Barbara, Pavia, San Dionisio, Barotac Viejo, Anilao, Dingle, San Enrique, Banate, Maasin, Leon, Alimodia, San Joaquin and San Rafael.

Oso said mining operators were only after profits and seldom did they care about the adverse effects to the environment that mining would bring. /Inquirer

Mining firm says it hasn’t started digging

First posted 00:36am (Mla time) Aug 08, 2006
By Jofelle TesorioInquirer
http://specials.inq7.net/theenvironmentreport/index.php?ver=1&index=1&story_id=13996

Editor's Note: Published on Page A14 of the August 8, 2006 issue of the Philippine Daily Inquirer

PUERTO PRINCESA CITY—MacroAsia Mining Co. has denied it has started operations even without an environmental compliance certificate in its more than 1,000 hectares of concession in Brooke’s Point, Palawan, as alleged by antimining groups.

Lawyer Marivic Moya, MacroAsia spokesperson, told the provincial council, that questioned the firm’s Mineral Production Sharing Agreement (MPSA), it had not brought a single shovel to the site as it did not know yet what to extract from the operations.

Despite this, the company has granted scholarships to students from indigenous communities in five barangays in the area. It was about to begin a medical program but decided to suspend it because of the charges raised, she added.

Another mining project, in Narra town, got positive reception from local officials.
The town’s mayor, Lucena Dimaala, in a statement said the mining project of Platinum Group Metals Corp. (PGMC) was able to provide job opportunities in the past two years and helped lower the unemployment rate in Narra and its nearby barangays.

She said 75 percent of the residents of Narra were gainfully employed at PGMC.
“The firm did its best to help the local government unit address the unemployment problem here,” she said in the statement.

She said PGMC is also committed to provide scholarship grants to poor but deserving students in the high school and collegiate levels.

She said indigenous peoples from Narra received 1 percent of their share of P2,384,500 derived from the nickel mining operation last year, while PGMC is set to turn over another P2.1 million this year.

The provincial government earlier expressed surprise at the Department of Environment and Natural Resources’ grant to MacroAsia of an MPSA for large-scale mining in about 1,130 hectares of land in Brooke’s Point.

Gov. Joel Reyes sent a letter to Environment Secretary Angelo Reyes on May 10 seeking the suspension or cancellation of MacroAsia’s MPSA because it had failed to comply with the province’s standard process for mining applications.

Reyes said MacroAsia bypassed the provincial government when it obtained its MPSA as all he could remember was the company’s application for an exploration permit.

Monday, August 07, 2006

Masinloc options readied

http://www.manilastandardtoday.com/?page=business01_aug07_2006

By Alena Mae S. Flores


YNN Pacific Holdings and partner Ranhill Berhad of Malaysia failed to come up with the $227.4 million down payment for the 600-megawatt Masinloc coal-fired power plant, Energy Secretary Raphael Lotilla said yesterday.

Lotilla, a member of the Power Sector Assets and Liabilities Management Corp. board, said the government did not receive payment from YNN-Ranhill as the asset purchase agreement officially lapsed yesterday.

Lotilla said he was informed that the consortium did not pursue the cash payment due to the lack of a supply contract for the Zambales power plant.

YNN-Ranhill was negotiating a supply contract with Manila Electric Co., the country’s largest power distributor, but the deal did not materialize.

The supply contract would have assured YNN-Ranhill of a captured market for the output of the coal-fired power plant.

Lotilla said PSALM would determine its next move, including a possible rebid. A new bidding, however, is not expected to fetch a higher bid price in the absence of a power supply contract.
PSALM announced last week that it would no longer accept an upfront payment from YNN-Ranhill after Aug. 6.

PSALM president Nieves Osorio said the company would not bend backward to accommodate YNN-Ranhill and accept the $227.4 million upfront payment.

“Our relationship with YNN will cease upon the effectivity of the termination notice on Aug. 6,” Osorio earlier said.

The 30-day notice of termination for the sale contract was on July 7.
Osorio said the sale of Masinloc was done in accordance with the mandate stipulated in Republic Act No. 9136, or the Electric Power Industry Reform Act, and the provisions stated in the bidding procedures and the transaction documents, which include the asset purchase agreement.

She said bid documents were submitted to the Commission on Audit before the bidding for the Masinloc power plant was conducted.

PSALM earlier seized the $14 million performance bond of YNN-Ranhill when the group failed to deliver the $227 million payment before the June 30 deadline.

YNN submitted the highest bid of $561.74 million for the Masinloc plant in December 2004.
The plant, considered one of the country’s biggest power assets to be privatized, was bid out a merchant plant, or without any power purchase agreement with any electric distributor or major electricity user attached to it.

Safe drinking water offered to poor Palawan communities

First posted 06:43am (Mla time) Aug 07, 2006
Inquirer

http://news.inq7.net/archive_article/index.php?ver=1&index=1&story_id=13863

Editor's Note: Published on page A18 of the August 7, 2006 issue of the Philippine Daily Inquirer

PUERTO PRINCESA CITY -- A single drop of water does not only give hope but is also a powerful instrument to unite people around the world.

The remark came from Filipino-American Gemma Bulos, founder of A Single Drop (ASD), a US-based non-government organization helping communities have access to safe drinking water by promoting a water filter that uses only cheap materials, such as gravel and sand.

Bulos said she believed in water as an equalizer of life, owing to the fact that all living things -- of any kind and of status in life -- need water in order to live.

“With equality, there will be unity, with unity there is peace,” she claimed.
With the Philippines being rich in water resources, Bulos believed that problems steaming from lack of water should be addressed simply by tapping available resources.

By using cheap materials, Biosand makes safe drinking water accessible to the poor.

The Biosand filter is being pilot tested in Quezon, Roxas and Brooke’s Point.

Palawan was chosen as one of the pilot areas because the community members themselves wanted potable water and the residents were willing and cooperative.

The installation and construction of the filter were still in process.
The Biosand filter is like a traditional slow sand filter being used in most commercialized water purifiers.

“It is simply a concrete container, with layers of sand and gravel inside it. The sand and gravel remove dirt, bacteria, viruses and parasites and other impurities from the water,” Bulos claimed.

The Biosand filter, she said, removes more than 90 percent of fecal coliform, 100 percent of protozoa and helmints, 50 to 90 percent of organic and inorganic toxicants, and up to 67 percent of iron and manganese. It also removes most suspended sediments in water.

The “affordable, simple and sustainable” filter, which can “produce up to 60 liters of filtered water per hour,” could be used for many years, according to Bulos.

The ASD has gained approval and support from the Department of Health.
With the technology having passed through several scientific testing, Bulos looked forward for support from local government units that would make the technology acceptable to local communities.

A Single Drop reached Puerto Princesa last June through a workshop hosted by the Palawan NGO Network Inc. and co-sponsored by the Women’s Global Green Action Network, while the Center for Affordable Water and Sanitation Technology provided the trainers.

Bulos said the filter is easy to build as done by the participants in the workshop that brought together 18 persons from different towns in Palawan during the first set of workshops and 27 participants in the second set.

She said the filter would not directly compete with commercial water purifier traders as it is intended for the poor or “those who wouldn’t buy bottled water.”

“The Biosand technology also gives health workers an opportunity to go and speak up to the household level to tackle about hygiene,” she said.
The Palawan NGO Network Inc., the partner NGO of A Single Drop, said the latter will open its office in Puerto Princesa City this month to make the product more accessible to the poor.

Jofelle Tesorio, PDI Southern Luzon Bureau

Sunday, August 06, 2006

Repeal of mining law unlikely

First posted 11:12am (Mla time) Aug 06, 2006
Cebu Daily News

http://news.inq7.net/archive_article/index.php?ver=1&index=1&story_id=13752

ILOILO CITY— The Mining law is unlikely to be repealed by Congress despite the strong opposition of the Catholic Church and environmental groups, an anti-mining congressman said yesterday.

Marinduque Rep. Edmundo Reyes Jr. said the repeal of Republic Act 7942 or the Mining Act of 1985 is "far-fetched."

"It will not be repealed in the immediate future," Reyes said in a press conference here Friday following a forum on mining organized by the Archdiocese of Jaro.

Reyes pointed out that the Arroyo administration has "made it clear that mining is one of the industries that can help us get out from weak economic position right now."

He said the government expects annual earnings from mining to reach between $5 billion and $7 billion.

Until there is an industry that can bring in similar revenues, the government will allow large-scale mining to continue, said Reyes.

Party-list congressmen have filed several bills seeking to repeal the law but Reyes said even if Congress enacts the bill, the President could still exercise her veto power.

The Catholic Bishops Conference of the Philippines (CBCP) on January 29 issued a pastoral letter reiterating its position issued in 1998 calling for the repeal of the mining law.

In its statement, the CBCP said the Mining Act "destroys life." The prelates had said that mining "threatens people's health and environmental safety through the wanton dumping of waste and tailings in rivers and seas" and they decried the absence of safeguards against environmental disasters.

The CBCP called for stopping 24 priority mining projects of the government and the closure of large-scale mining projects.

But mining firms have warned that heeding the call of the bishops would result in loss of jobs and livelihood to millions of people and would also drive away investors.

Reyes said because of the difficulty in repealing the Mining Act, campaigns against mining should be directed at the grassroots especially in areas with ongoing or proposed mining projects.

"This will be the battle ground," said Reyes. "We should learn from lessons of the past," Reyes said, pointing out to the massive environmental damage in his home province of Marinduque after an accident in a copper mine sent millions of tons of mining wastes to a river down to the provincial capital of Boac in 1996. Inquirer

Mining law repeal far-fetched, says legislator

First posted 06:22am (Mla time) Aug 06, 2006
By Nestor P. Burgos Jr.Inquirer

http://news.inq7.net/archive_article/index.php?ver=1&index=1&story_id=13696

Editor's Note: Published on page A14 of the August 6, 2006 issue of the Philippine Daily Inquirer

ILOILO CITY—Congress is not likely to repeal the Mining Act despite pressure from some Church leaders and environmental groups, an antimining congressman said Friday.

Marinduque Rep. Edmundo Reyes Jr. said the repeal of Republic Act 7942 or the Mining Act of 1995 is “far-fetched.”

“It will not be repealed in the immediate future,” Reyes said in a press conference here Friday following a forum on mining organized by the Archdiocese of Jaro.

Reyes said the Arroyo administration has “made it clear that mining is one of the industries that can help us get out from weak economic position right now.”

He said the government expects annual earnings from mining to reach between $5-7 billion.
Until there is an industry that can bring in similar revenues, the government will allow large-scale mining to continue, said Reyes.

Party-list congressmen have filed several bills seeking to repeal the law but Reyes said even if Congress enacts the bill, the President could still exercise her veto powers.

The Catholic Bishops Conference of the Philippines (CBCP) on Jan. 29 issued a pastoral letter reiterating its position issued in 1998 calling for the repeal of the mining law.
In its statement, the CBCP said the Mining Act “destroys life.” The bishops said that mining “threatens people’s health and environmental safety through the wanton dumping of waste and tailings in rivers and seas.”

They said there is no safeguard against environmental tragedies and accidents despite the assurance of the Arroyo administration.

The CBCP also said residents in communities with mining operations are subjected to human rights violations and economic deprivation.

It called for the stop to 24 priority mining projects of the government and the closure of large-scale mining projects.

But mining firms have warned that heeding the call of the bishops would result in loss of jobs and livelihood for millions of people and would also drive away investors.

Reyes said because of the difficulty in repealing the Mining Act, campaigns against mining should be directed at the grassroots, especially in areas with ongoing or proposed mining projects.

He said local executives and legislators have to take a stand on the issue at each proposed mining area.

“This will be the battle ground,” said Reyes.

Saturday, August 05, 2006

Bulacan govt bucks landfill project near Ipo Dam

http://www.malaya.com.ph/aug05/envi1.htm

Bulacan Governor Josefina dela Cruz has joined forces with environment groups in opposing a controversial landfill project in the municipality of Norzagaray near the Ipo Dam watershed.
In a letter sent to the Ecowaste Coalition, Dela Cruz conveyed the support of her administration to the position taken by the Coalition against the questionable grant of Environment Compliance Certificate (ECC) by the DENR Region III to Waste Custodial Management for the establishment of an 18-hectare landfill in Sitio Tiacad, Barangay San Mateo, Norzagaray, Bulacan.

It will be recalled that 18 groups belonging to the Ecowaste Coalition wrote to Dela Cruz and the Bulacan Provincial Board to signify their strong opposition to the landfill project.

Signing the letter were the representatives of Archdiocese of Manila Ecology Desk, Bangon Kalikasan Movement, Buklod Tao Foundation, Cavite Green Coalition, Concerned Citizens Against Pollution, Global Alliance for Incinerator Alternatives, Greenpeace Southeast Asia, Health Care Without Harm, Institute for Educational and Ecological Alternatives, Montalban Environmental Protection and Develoment Council, Miriam PEACE, Mother Earth Foundation, November 17 Movement, Pesticide Action Network Sanib-Lakas ng Inang Kalikasan, Sining Yapak, and Zero Waste Philippines.

De la Cruz and the environmental groups scored the company’s failure to obtain ECC before undertaking site preparation activities in violation of Section 38, Article 6 of Republic Act 9003 or the Ecological Solid Waste Management Act of 2002, which requires ECC to be secured prior to any site preparation and construction of a new waste facility.

The Bulacan provincial government also echoed the groups’ concerns about the landfill threats to the environment, which is situated near the Ipo Dam and, as pointed out by the Laguna Lake Development Authority, is a watershed. RA 9002 prohibits the construction or operation of landfills or any waste disposal facility on any aquifer, groundwater reservoir or watershed.
Landfills, according to the coalition, produce toxic garbage juice or leachate that can contaminate groundwater or surfacewater supplies with chemical pollutants such as heavy metals. Even with a liner, landfills will eventually leak and threaten the water supply. The coalition added that landfills generate large quantities of methane, a major contributor to the "greenhouse effect," which is driving climate change.

Bulacan provincial officials assailed the lack of proper briefing on the details of the project, and likewise bewailed the contractor’s lack of track record in the field of sanitary landfill.

"For the record, the Sangguniang Panlalawigan has passed a resolution opposing the dumping of Metro Manila garbage in Bulacan. It is the concern of the Provincial Government of Bulacan to ensure that Waste Custodial Management will not violate this position," De la Cruz said

Friday, August 04, 2006

Nickel mining covered by permit, says DENR exec

http://specials.inq7.net/theenvironmentreport/index.php?ver=1&index=1&story_id=13370

First posted 02:18am (Mla time) Aug 04, 2006 Inquirer

Editor's Note: Published on Page A18 of the August 4, 2006 issue of the
Philippine Daily Inquirer

PLATINUM Gold Metals Corp. (PGMC) continues to comply with provisions in the mining permits issued by the provincial government of Palawan to operate in the town of Narra in a bid to help generate local jobs and government revenues.

Guillermo Estabillo Jr., chair of the Provincial Mining Regulatory Board, said in a letter to the Inquirer that the operations of PGMC had sustained the efforts of the government to generate hundreds of jobs, improve the lives of residents, and raise taxes for countryside development.
Estabillo sent the letter in reaction to an Inquirer report on July 26 that PGMC and other firms were operating without permits in Narra.

He said the firms possessed small-scale mining permits issued by the provincial government.
He added that Environment Secretary Angelo Reyes “has nothing to do, as far as processing and approval of the small-scale mining permits are concerned” to clarify allegations made by the environment group Kilusang Laban sa Mina sa Narra (KLMN) that PGMC owner Rafael Atayde and Reyes “are close to each other.”

Estabillo added that the permits were issued long before Reyes took over the Department of Environment and Natural Resouces.

He said PGMC had been complying with all the conditions of its operations as stipulated by its permit from the provincial government.

Estabillo, who is also the concurrent regional director of the Mines and Geosciences Bureau, said the company was able to satisfy the requirement of holding a series of public consultations before it started operations.

PGMC also passed the stringent conditions and scrutiny of the regulatory board and the provincial government, he said.

Gov. Joel Reyes approved the operations of PGMC in 2004, allowing it to extract 50,000 metric tons of nickel per year for two years until November.

A two-year extension has been granted to PGMC.

The provincial government is mandated by law to approve and issue mining permits, while the regulatory board functions only as a recommendatory body.

Estabillo said periodic inspections showed that the mining operations did not violate any provisions in the environmental compliance certificate issued to PGMC.

“PGMC even adopted an environmental protection and enhancement program,” he noted. PDI Southern Luzon Bureau

Mayor suspended over marble transport fees

First posted 03:43am (Mla time) Aug 04, 2006
By Carmela ReyesInquirer
http://news.inq7.net/archive_article/index.php?ver=1&index=1&story_id=13393

Editor's Note: Published on Page A19 of the August 4, 2006 issue of the Philippine Daily Inquirer

SAN MIGUEL, BULACAN—Ombudsman Merceditas Gutierrez has suspended Mayor Edmundo Jose Buencamino of this town for six months on charges of abuse of authority filed against him by the head of a mining company operating at the Biak-na-Bato mountain range.
Gutierrez ordered Buencamino’s suspension on April 24. A copy of the order was received by registered mail on Wednesday by Constantino Pascual, president and chair of the board of Rosemoor Mining and Development Corp. (RMDC).

The Inquirer tried but failed to reach Buencamino for comment.

Pascual filed in August 2004 complaints of grave misconduct, abuse of authority and conduct prejudicial to the best interest of the service against Buencamino for allegedly getting from his firm at least P12 million in pass-way fees for more than a year.

According to Pascual, the amount did not go to the municipal treasury. He claimed there were no original receipts issued to RMDC and its contractors.

Since Buencamino became mayor in 2004, the operations of his firm and his contractors had been disrupted, he said. He said the mayor and his men collected a P1,000 fee from each truck carrying marble blocks or quarry materials.

Buencamino had earlier denied that the receipts he issued to RMDC and its contractors were fake.

But Director Emilio Gonzalez of the office of the Ombudsman and Victor Fernandez, deputy Ombudsman for Luzon, found that the receipts were not signed by the municipal treasurer.
“This only shows that the official receipts … were just manufactured because these were not signed by Municipal Treasurer Marciano Cruz,” Gutierrez said in her order.

Buencamino said he ordered the collection of the fees based on a municipal ordinance requiring trucks loaded with marble blocks or quarry materials passing through the roads of San Miguel to pay the fees.

But Pascual said the ordinance had been voided by a provincial board resolution. Buencamino, however, said he was not aware of the board resolution and that he collected the fees “in good faith.”

Thursday, August 03, 2006

Lepanto suffers P24.6M loss in first half

First posted 04:12pm (Mla time) Aug 03, 2006
Xinhua Financial News Service

http://news.inq7.net/archive_article/index.php?ver=1&index=1&story_id=13305

LEPANTO Consolidated Mining Co. said its net loss narrowed to 24.6 million pesos in the first half to June from 172.1 million a year ago, as gains from higher gold prices softened the impact of lower output from a year ago and an interest payment.

Despite remaining in the red over the first six months, Lepanto said it expected to achieve full year net profit of 104 million pesos, recovering from last year's net loss of 410 million.

"The (first half) loss was mainly due to (reduced) gold production and the payment of interest due on the Gold Delivery Agreement with Dresdner Bank AG," the company said in its stock rights offering prospectus filed with the stock exchange.

But this was partly offset by an increase in the average gold price to 592.59 dollar per ounce from last year's average of 426.29.

Lepanto produced a total of 28,153 ounces of gold in the first half compared to 30,760 for the same period last year.

Under its rights offering program, the company will offer shareholders one share at 20 centavos apiece for every eight shares held in the firm as of August 16. The offering will run from September 11 to 20. Net proceeds of about 636 million pesos will be used to repay bank loans and advances from shareholders and to settle employee-related accounts.

Lepanto A shares, restricted to Filipinos, closed down 0.01 peso at 0.27. Its B shares, available to both local and foreign investors, were steady at 0.30.

(One dollar = 51.64 pesos)
Related Site:LEPANTO Consolidated Mining Co.

Wednesday, August 02, 2006

Dream projects estimate now P372B; $3B debts set

http://www.tribune.net.ph/business/20060802bus1.html

By Sherwin C. Olaes
08/02/2006

Economic officials have started to scrounge for sources of the cost of President Arroyo’s dream projects spelled out in her State of the Nation Address (Sona) as the latest computation of the Department of Budget and Management places the total amount of the projects at P372.02 billion.

The government said it is negotiating with China and Japan for a total of $3 billion or more than P150 billion in loans but Japan, which has been the biggest source of official development assitance (ODA) to the country, had indicated it would be selective in the granting of cheap loans.

Japan has noted the slow take up of ODAs by the government and had stopped providing low-cost funds in the past three years. The Arroyo administration has failed to put up counterpart financing, blaming the fiscal crisis, on the missed ODA projects.

Mrs. Arroyo announced the massive public spending program last month, which has since been greeted with disbelief by critics but also encouragement by Filipinos and foreign investors who have long complained about poor infrastructure.

Budget Secretary Rolando Andaya told reporters the 92 “big-ticket” items listed by Mrs. Arroyo would cost that much and about half the funding would come from the annual national budgets for 2007-2010.

Part of the program would be funded with development assistance from donor countries, he said.

Socio-Economic Planning Secretary Romulo Neri said the government is talking with China and Japan for billions of dollars in loans to fund the government’s priority infrastructure and social services projects, “China Eximbank has indicated willingness to consider $2 billion a year for the next three years,” Neri said.

Neri added the government is trying to convince Japan to foot $1 billion of the costs from yen loan packages.

Earlier government estimates placed the required funding for the Sona projects from P207 billion to P290 billion.

The private sector would be asked to tender for P68.4-billion worth of projects, 18.39 percent of the total, that would be undertaken through “build-operate-transfer” or similar schemes, while state-run firms would spend P116 billion or 31.8 percent of the total cost of the program.

Local government units would put up P1.33 billion of the total cost, Andaya added.
“The cost per project can still go up or down depending on the prices of construction materials. For example, if oil prices go up, then an escalation in the project cost is to be expected,” he added.

Rail projects account for 48 percent of the project cost, including a light rail loop covering metropolitan Manila.

Road projects would make up 27 percent of the spending, while 43.1 billion pesos or 11 percent of the total would be needed to build or improve 23 airports.

Sea ports, irrigation canals, bridges, windmills, machine-readable passports and refrigerated warehouses make up the rest of the projects, the budget department said in a statement.
Foreign Secretary Alberto Romulo said the project cost breakdown provided by the government should “answer now all the nitpickers, the critics that are appearing in the papers.”
Mrs. Arroyo told reporters all 92 projects she announced represented about a third of the government’s medium-term public infrastructure program.

“That’s why I am quite confident that we can afford it,” she added.

Tax collections have improved over the past two years as the legislature passed a 12-percent sales tax and raised excise taxes on tobacco and alcohol products.

Senate to grill FVR over Masinloc deal

http://www.tribune.net.ph/nation/20060802nat1.html

08/02/2006

Former President Fidel Ramos heads the list of those expected to be grilled intensely by senators and congressmen on the alleged questionable sale of P30-billion Masinloc coal-fired power plant in Zambales, as invitation had been served to him for his needed attendance in tomorrow’s Joint Congressional Power Commission (JCPC) hearing.

Ramos’ alleged links with winning bidder YNN Pacific Consortium’s partner Malaysian Ranhill Berhad, had earned him an invitation to the bicameral panel, his third appearance in the Senate so far.

The former Chief Executive, responding to the letter sent by JCPC, confirmed attendance and expressed willingness to shed light on the charges leveled against him, particularly the reported supposed links of his political party Lakas with the Malaysian counterpart ruling party, UMNO.
This early, however, Ramos had denied the accusations, describing as unfounded the supposed UMNO-Lakas links in having the contract to YNN and Ranhill Berhad pushed.

Ramos, along with executives from the Power Sector Assets and Liabilities Management Corp. (Psalm), had been called by the commission to explain recent decisions giving extension to the deadline set for YNN to fulfill its financial obligations, despite opposition from various sectors.
The JCPC is co-headed by Sen. Miriam Defensor-Santiago, a known nemesis of the former leader, and Rep. Alipio Cirilo Badelles.

Calls to ban YNN from the sale of Masinloc is snowballing in the Senate as such recommendation earlier made by Sen. Joker Arroyo is now being backed by minority leader Aquilino Pimentel Jr.
Arroyo, during an interview with reporters, said he intends to insist on this matter, pushing that JCPC members put it to a vote when they convene tomorrow to hear the issue.

This is seen to force Psalm and Malacañang to finally junk the YNN deal and pave the way for the holding of a new bidding for the privatization of the biggest asset of the National Power Corp.

There had been at least three instances when YNN had a default in the handing over its downpayment of $227 million which is 40 percent of its $562 million bid price since its auction in December 2004.

The senator said he would ask the JCPC to put the matter to a vote to “end the YNN-Masinloc privatization fiasco for the truth to be finally known.”

Pimentel urged Malacañang and energy authorities to purge the privatization of the power sector of bogus industry players by immediately terminating the contract of YNN-Ranhill Berhad.

He also sought the rejection of another payment deadline extension for YNN having received of a supposed information on another chance in settling the $227-million downpayment to Sept. 30.

Pimentel noted that the last deadline, which that had lapsed last July 31, is supposed to be “non-extendable”

He said the final cancellation of the purchase contract with YNN by Psalm will spare electricity consumers from the threat of higher power rates that YNN Pacific-Ranhill Berhad are expected to demand in order to recoup the unusually high cost incurred in acquiring the power plant. Angie M. Rosales

Pantabangan auction lures seven bidders

http://www.manilastandardtoday.com/?page=business02_aug02_2006

By Alena Mae S. Flores

Power Sector Assets and Liabilities Management Corp. yesterday said seven interested parties attended the second prebid conference for the sale of the 100-megawatt Pantabangan and the 12-megawatt Masiway hydroelectric power plants in Nueva Ecija.

PSALM, the agency overseeing the privatization of National Power Corp. assets, discussed with investors the provisions contained in the revised draft of the operation and maintenance agreement for the two plants.

It also threshed out the terms and conditions set by the National Irrigation Administration regarding the commercial and technical operation and maintenance of the nonpower components of the plants.

Under its charter, the irrigation agency administers all irrigation systems and other pertinent nonpower components of multi-purpose hydropower facilities. These include the Pantabangan and Masiway dams that supply the water used by the two hydropower plants to generate electricity.

“PSALM will always endeavor to settle in a timely manner any unforeseen plant specific issues through consultation and dialogue with the interested bidders and concerned agencies of the government,” Froilan Tampinco, Psalm vice president for asset management and electricity trading, said.

Psalm did not identify the interested parties. However, industry sources earlier said Kepco Philippines Corp. (Kephilco), CalEnergy, Aboitiz Equity Ventures with partner Norwegian firm SN Power, First Generation Holdings Corp. and TransAsia Power were among the interested bidders.

Citinickel asks DENR to stop Palawan mining

http://www.manilastandardtoday.com/?page=business03_aug02_2006

02 Aug 2006
By Elaine Ruzul S. Ramos

Citinickel Mines and Development Corp. has asked the Department of Environment and Natural Resources to stop a company from further exploiting its mine sites in Southern Palawan due to alleged serious violations of the country’s mining laws.

In complaints submitted to Environment Secretary Angelo Reyes and the department’s Panel of Arbitrators in Region IV-B, Citinickel alleged that mining operator Platinum Group Metals Corp., which is owned by a certain Rafael Atayde, was engaged in illegal large-scale mining in the municipalities of Narra and Española in Southern Palawan.

The two mine sites, originally owned by Olympic Mines and Development Corp., are being operated by Platinum by virtue of a July 18, 2003 operating agreement between the two firms dated.

As operator of the mine sites, Platinum was allowed to secure two small scale mining permits pending the approval of Olympic’s application for a mineral production sharing agreement.
Issued by Palawan Gov. Joel Reyes in November 2004, each permit allows Platinum to extract no more than 50,000 tons of ore per year per mine site for a period of two years ending November 2006.

However, Platinum allegedly violated its permits by extracting more than 282,729 tons in less than two years of operations in the Narra mining site alone.

Because of this, Olympic terminated its operating agreement with Platinum on April 24.
In terminating the agreement, Olympic cited Platinum’s alleged misrepresentation that it was the owner of Olympic’s mine sites when it applied for its own permit. Olympic executed a deed of assignment on June 9, 2006 transferring and assigning to Citinickel all its rights and interests in the two mine sites.

Islanders get clean water

INQUIRER MINDANAO
PDI 02 Aug 2006

http://newsinfo.inq7.net/inquirerheadlines/regions/view_article.php?article_id=12499

By Julie AlipalaInquirerLast updated 04:57am (Mla time) 07/30/2006
Published on page A15 of the July 30, 2006 issue of the Philippine Daily Inquirer
RAIN is like gold here. “If there’s no rain, we will have no money, we will have no food,” said Musa Mohammad, the maintenance officer of the rainwater catchment program in Tictabon Island.

The catchment is one of the three major projects introduced by the Alliance for Mindanao Off-Grid Renewable Energy Program or Amore in 2004 after organizing the community into the Tictabon Barangay Renewable Energy and Community Development Association (Tibrecda).
Amore poured in about P200,000 for the construction of the communal rain water catchment in February 2005.

The island experiences rain at least once a month that hardly fills the 14,000-liter capacity rainwater tank.

“The most we can get is 400 liters, which is not enough for the more than a thousand households,” said Baki Tibrecda treasurer Abdurahim, 62.

Each member of a family requires 30 liters of water a day, “but with about 400 liters, it poses a huge problem for the community,” Abdurahim said.

But villagers do not run out of ideas to get clean and safe water.
Barangay chair Wahid Musa said the community, which is about an hour-long boat ride to the city’s mainland, is dependent on water peddled by nearby island barangays.

“Water is really scarce here. Each 20-liter container costs us P5 and another P3 for the fare, that’s about P8 per container,” Musa said.

In February this year, members and officers of Tibrecda went through a formal Water Disinfection Training led by the Department of Health for Western Mindanao.
A tablespoon of solution is mixed to a 20-liter container water.

Musa said priority is given to the poorest members of the community for the water gathered from their rain water catchment.

The group even demonstrated their new found knowledge with National Anti-Poverty Commission Secretary Zamzamin Ampatuan.

“I am very impressed, even the most ordinary and not fully educated fishermen and farmers could now produce safe water for their own people,” Ampatuan said.

Maria Theresa Capelan, head of Amore Philippines, along with USAID Senior Technical Adviser Rosario Calderon, expressed satisfaction on the transformation of Tictabon.

Capelan said two years ago, Tictabon did not have water and light “and the people were disorganized.”

Two years ago, just about 500 households, mostly belonging to the Samah Bangingi tribe, lived on the island. The community now has 1,200 households, comprising of Yakan, Samah and Tausugs.

Tictabon is also now well lit after getting the 55-watt solar home systems in 2004 and two units of 75-watt street lights last year.

“Now we highly appreciate the rain and the sun. When it rains, we have water. And the sun provides us electricity,” Abdurahim said.

Tuesday, August 01, 2006

Local gov’ts get share of national tax take

BY FELIPE F. SALVOSA II, Senior Reporter
businessworld august 1, 2006

http://www.bworldonline.com/BW080106/content.php?id=051&src=1

Local government units (LGUs) finally got their share of national tax collections for the years 2000 and 2001. But they had to lose P4.5 billion under a scheme that securitized the receivables and gave them the discounted value, rather than wait for annual installments up to 2013.

In ceremonies yesterday, Land Bank of the Philippines (Landbank) and the Development Bank of the Philippines (DBP) gave P6.91 billion to a total of 21,291 LGUs in the first tranche of a program converting their internal revenue allotment (IRA) collectibles into cash.

The receivables actually amount to P14.3 billion, but local governments will get only P9.8 billion, forced to shoulder a discount rate of 29.84%.
Mel Senen S. Sarmiento, mayor of Calbayog City, Western Samar and secretary-general of the League of Cities, said local governments had no choice but to be on the losing end of the IRA monetization scheme because the funds are needed badly to augment spending for social services.

He warned of a repeat of the situation, noting Congress’ failure to pass the 2006 national budget, which could mean there would be no increase in the IRA. Under the Local Government Code of 1991 -- which gave LGUs more autonomy -- provinces, cities, towns, and barangays must get P0.40 for every P1 in taxes collected by the National Government.

As tax collections increase, the LGUs’ mandatory share must automatically rise, but Congress has to include it in the yearly budget. Under the Estrada administration in 2000 and 2001, Congress refused to fund some P20 billion in IRA because of poor government finances. Last year, the Supreme Court ruled this move illegal.

The Arroyo administration has decided to honor the obligations, but could pay only through seven annual installments starting next year. Local governments were, however, given the option to get it in cash but at a discount. Under that scheme, Landbank and DBP sold "investment certificates" with the government’s payment notices to LGUs as underlying assets. The proceeds were given to local governments, net of interest and other charges.

Out of the P20 billion in withheld IRA in 2000 and 2001, P17.5 billion were left unpaid, but the issue size was reduced to P14.3 billion as the League of Municipalities went ahead with its own monetization program.

Socioeconomic Planning Sec. Romulo L. Neri, who pursued the program when he was still Budget chief, said LGUs actually got a "fair shake" with the Landbank and DBP, as the 29.84% rate is the lowest discount of all monetization programs offered to LGUs. Elsewhere, the discount factor would have been at 35% to 40%, he said.

With the government operating under the 2005 budget this year, Finance Sec. Margarito B. Teves said a supplemental budget being crafted would include an increase in IRA and a "reiteration" that the IRA is supposed to be appropriated automatically even in the absence of a new budget.

Unable to raise much money on their own, local governments remain largely dependent on subsidies from Manila in the form of IRA.

Data from the Union of Local Authorities of the Philippines show that IRA accounts for more than 60% of LGUs’ financial resources.

Provinces are the most dependent at 73%, followed by municipalities at 60%, and cities at 44%

John Hay to sign new lease pact with BCDA

BY JOSEFA LABAY CAGOCO, Reporter
Businessworld August 1, 2006

http://www.bworldonline.com/BW080106/content.php?id=041&src=1

Camp John Hay Development Corp. (CJHDevCo), the developer of the former United States rest and recreation base in Baguio City, expects to sign any time soon a revised lease agreement with the Bases Conversion and Development Authority (BCDA) that would restructure its obligations to the state-run body.

Negotiations are under way and Frederico Alquiros, chief operating officer of the Fil-Estate-led consortium, said that both parties have agreed in principle to make amendments to its current contract following setbacks the developer has suffered since it won the 50-year lease to the former base in 1996.

Disputes first arose in 2000 when the developer failed to settle rental dues with its lessor. BCDA estimated accumulated debt at P2.2 billion.

Under the existing lease agreement, CJHDevCo must pay BCDA P425 million annually for the first five years and P150 million or 5% of the gross revenues annually, whichever is higher, in the succeeding 20 years.

Meanwhile, Mr. Alquiros said they have paid BCDA P1 billion since 1996.
Market slowdown and a weakened economy following the Asian financial crisis in 1997 have caused at least five to six years setback to their timetable, noted Mr. Alquiros.

"The [property] market became very soft. It’s been in the doldrums in the Philippines since the crisis," he reasoned. "Had all things remained the same, in five years we would have recovered [investment] and built up all necessary structure."

Fifty percent of the development project, including the Camp John Hay Manor and Golf Club, has been completed while Mr. Alquiros said the other half should be finished by 2010.

CJHDevCo is also negotiating for amendments to its contract following the Supreme Court decision in 2003 that nullified tax exemptions and incentives granted to special economic zones. This may include possible compensation of taxes CJHDevCo has since paid.

The High Court ruled that Malacañang, under President Fidel V. Ramos, went beyond its power when it extended the privileges given by Republic Act 7227, or the Bases Conversion and Development Act, to the Subic Special Economic Zone to former bases such as Clark and John Hay.

BCDA spokesperson Lyssa Pagano-Calde declined to comment on the negotiations but said that they are trying to remedy the effects of the Supreme Court decision. She explained that John Hay Management Corp. (JHMC), a BCDA subsidiary, has applied with the Philippine Economic Zone Authority that Camp John Hay be registered as a special tourism economic zone under RA 7916.

"JHMC has likewise been supporting moves for the grant of tax amnesty and an amendment of RA 7227," she said.

The Lower House recently approved two priority bills: House Bill 4900 which grants tax amnesty to businesses in the Clark, John Hay, Morong and Poro Point ecozones for back taxes incurred due to the Supreme Court ruling, and House Bill 5064 which amends the BCDA law to include Clark, John Hay, Morong and Poro Point among the areas where locators can enjoy exemptions from internal revenue taxes.

The said measures are pending before the Senate.

Despite these issues, Mr. Alquiros said that CJHDevCo remains optimistic. Investors and joint-venture partners are just waiting for CJHDevCo and BCDA to reach an agreement, he added.

On top of the P2.3-billion assessed investment, Mr. Alquiros noted that the consortium would be infusing another P2.5 billion into the project over the next three years. In effect, CJHDevCo would be doubling the minimum investment it initially pegged at P2.6 billion or $100 million, when the foreign exchange was still at P26 is to $1.

Aside from Fil-Estate Management, Inc., the other members of the consortium behind CJHDevCo are College Assurance Plans (Philippines), Inc., and Penta Capital.