Smartmatic bags ₱1.7-Billion Php voting machine contract for 2016 Election

In Resolution No. 2015-004, the Comelec Special Bids and Awards Committee -1 has recommended the issuance of the "Notice of Award" to Smartmatic-Total Information Management for its bid offer of more than ₱1.7 billion Php. photo: PhilStar

Smartmatic bags ₱1.7-B voting machine contract

MANILA, Philippines - The Commission on Elections (Comelec) has approved the awarding to Smartmatic-Total Information Management (TIM) of the contract to lease 23,000 optical mark reader (OMR) machines for the 2016 polls.

In Resolution No. 2015-004, the Comelec Special Bids and Awards Committee -1 (SBAC-1) has recommended the issuance of the "Notice of Award" to the joint venture for its bid offer of more than P1.7 billion.

"SBAC-1 resolves to recommend to the head of the procuring entity the issuance of the Notice of Award (to the joint venture) as the bidder with the lowest calculated responsive bid for the lease with option to purchase of election management system and precinct-based OMR or optical scan system," the committee said.

The project has an approved budget of ₱2.5 billion Php, but Smartmatic-TIM's bid offer was only ₱1.72 billion Php.

SBAC-1 had disqualified Smartmatic-TIM twice after it found the joint venture's bid documents to be "non-responsive" they did not contain Articles of Incorporation and actual bid price offer. The Comelec approved the joint venture's appeal for reconsideration.

The Comelec also declared a failure the joint venture's demonstration of its machines during the post qualification stage of the bidding. But when the joint venture protested, the poll body relented.

SBAC-1 added in its resolution that Smartmatic-TIM is required to "post its corresponding performance security in an amount equal to a percentage of the total contract price."

Currently, the Comelec is looking at two options for the conduct of polls next year.

One option is to refurbish some 81,000 precinct count optical scan (PCOS) machines, while the other option is to lease 70,000 more OMR machines.

The 23,000 OMR machines will supplement whichever of the two options is chosen.

Meanwhile, Comelec Chairman Andres Bautista met with officials and members of the Catholic Bishops' Conference of the Philippines (CBCP) last Sunday to brief them on what to expect from a computerized conduct of polls in 2016.

CBCP president Lingayen-Dagupan Arcbishop Socrates Villegas said the meeting coincided with the 111th Plenary Assembly of bishops.

Villegas said the prelates would further tackle election issues in the next plenary assembly in January. While the CBCP did not issue post-assembly statement on the elections, Villegas said it's the consensus among the bishops that next year's polls should be transparent, efficient and with public accountability.  – Evelyn Macairan :Sheila Crisostomo  - Philstar

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AFP is reinforcing rusting Navy ship on Spratly Ayungin reef outpost with Welding and Cement

Filipino soldiers wave from the dilapidated Sierra Madre ship of the Philippines Navy as it is anchored near Ayungin shoal (Second Thomas Shoal) in the Spratly group of islands in the South China Sea, west of Palawan, Philippines, in this photo taken in May. Photo: Reuters

Philippines reinforcing rusting Navy ship on Spratly reef outpost

Manila:  The Philippines navy is quietly reinforcing the hull and deck of a rusting ship it ran aground on a disputed South China Sea reef in 1999 to stop it breaking apart, determined to hold the shoal as Beijing creates a string of man-made islands nearby.

Using wooden fishing boats and other small craft, the navy has run the gauntlet of the Chinese coastguard to move cement, steel, cabling and welding equipment to the BRP Sierra Madre since late last year, according to two navy officers who have been inside the vessel.

The BRP Sierra Madre, a marooned transport ship which Philippine Marines live on as a military outpost, photographed last year. Photo: Reuters

The 100 meter-long tank landing ship was built for the US Navy during World War Two. It was eventually transferred to the Philippines navy, which deliberately grounded it on Second Thomas Shoal to mark Manila's claim to the reef in the Spratly archipelago of the South China Sea. A small contingent of Philippine soldiers are stationed onboard.

Manila regards Second Thomas Shoal, which lies 195 km south-west of the Philippines region of Palawan, as being within its exclusive economic zone. China, which claims virtually all the South China Sea, says the reef is part of its territory.

"We know China has been waiting for the ship to disintegrate but we are doing everything to hold it together," said one of the officers, adding that while the work was progressing slowly, it should be finished by the year-end.

A newly deployed Philippine Marine, part of a military detachment stationed aboard the BRP Sierra Madre, fishes near the ship in the disputed Second Thomas Shoal, part of the Spratly Islands in the South China Sea in this photo taken last year. Photo: Reuters

The other naval officer said welding was being done at night because of the heat. Concrete foundations were being laid inside the ship's hull to try to stabilize it, he added.

Without giving exact dates, both sources said they witnessed the repairs taking place earlier this year. They declined to be identified because they were not authorized to speak to the media. The soldiers currently stationed on the ship, who are demolition experts, were doing the work, said the second source.

Just to the west of Second Thomas Shoal is Mischief Reef, one of seven coral formations in the Spratlys that China is rapidly turning into islands that Beijing says will have undefined military purposes.

Vietnam, Malaysia, Taiwan and Brunei also have overlapping claims to the Spratly waterway, which is some 1,100 km from the Chinese mainland.

Asked about the repairs, Philippine Foreign Ministry spokesman Charles Jose declined to comment. But such work would not violate an informal code of conduct signed in 2002 by China and south-east Asian states that prohibited any change to the status quo in disputed areas, he said.

"In our view, repairs and maintenance of existing facilities are allowed ... especially if such repairs and maintenance work are for the safety of our personnel and safety of navigation," Mr Jose added.

A Philippines general familiar with the repairs  said the ship's hull and deck were being strengthened, and air-conditioning units added.

"We are improving the living quarters inside, to make life for our soldiers more comfortable," he said, declining to give further details about the repairs or to be identified.

Photos show a pockmarked vessel covered in rust, sitting on the permanently submerged reef but listing slightly to one side. Much of the boat's hull is visible.

Besides being a military outpost, the BRP Sierra Madre is also a commissioned Philippine navy ship.

That means Manila could request U.S. military assistance under a decades-old security treaty with Washington if the ship was attacked, said senior Philippine military officials.

"Even if it's covered with rust, it will remain an active duty commissioned navy ship. It's a symbol of our sovereignty," said the Philippine general.

Second Thomas Shoal illustrates the mismatch in power between the Philippines and China.

Since the start of 2014, the Philippine navy's regular attempts to resupply soldiers on the BRP Sierra Madre with food and water have become a cat-and-mouse routine, with large Chinese coastguard vessels on patrol in the area trying to block the path of the smaller Philippine boats, naval officials said.

The Philippine vessels have always got through by making a run for the shoal's shallow waters, which aren't deep enough for the Chinese coastguard, naval officials said. The tear-shaped shoal itself is large, some 10-11 nautical miles from top to bottom.

Zhang Baohui, a mainland security expert at Hong Kong's Lingnan University, said Beijing would be angry about the repairs, adding that Chinese ships would probably continue their "menacing" tactics. But they would not do anything that could be considered an act of war, Dr Zhang said.

"The larger geo-strategic context is more important than Second Thomas Shoal," he said. - Reuters/The Sydney Morning Herald

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Google Maps removes Chinese name for disputed South China Sea reef Scarborough Shoals

Google Maps shows the name Scarborough Shoal for the disputed island Photo: Google Maps

Google drops Chinese name from Maps after South China Sea controversy

Following pressure from the Philippines, Google redacts the Chinese name for the disputed Scarborough Shoal in the South China Sea

Google has removed the Chinese name for a disputed shoal in the South China Sea from its Maps service, following protests from Philippine citizens.

Google Maps English service on Tuesday corrected the labeling of the atoll to read Scarborough Shoal, the internationally neutral term for the territory claimed by both the Philippines and China.

Chinese protesters in Los Angeles, part of an escalating territorial dispute over the Huangyan Island, the Chinese name for Scarborough Shoal (Alamy)- image: The Telegraph

The move came after more than 2,000 people signed an online petition on Change.org asking for Google to stop identifying the shoal as part of China’s Zhongsha Island chain.

“We’ve updated Google Maps to fix the issue. We understand that geographic names can raise deep emotions which is why we worked quickly once this was brought to our attention,” Google’s office in Manila said in a statement.

In 2012, China and the Philippines engaged in a standoff at Scarborough Shoal, a rich fishing ground, after a Philippine warship attempted to expel Chinese fishing boats in the area. China has controlled the shoal since, though it is some 650 km away from Hainan island, the nearest major Chinese landmass.

China bases its claim to the area on its “nine-dash line”, a demarcation based on historical records that decrees almost the entire to South China Sea as Chinese territory.

A Filipino holds a sign during a demonstration in front of the Chinese embassy in Los Angeles (Alamy) - image: The Telegraph

The Philippines claims the shoal as part of its exclusive economic zone under the UN Convention on the Law of the Sea (UNCLOS).

“China’s sweeping claim of South China Sea under their nine-dash line purportedly historical boundary is illegal and is creating tension among nations,” the petition read.

“Google maps showing this is part of Zhongsha island chain gives credence to what is plainly a territory grab that peace loving nations should stand against.”

Construction at Kagitingan (Fiery Cross) Reef in the disputed Spratly Islands in the south China Sea by China (EPA) -image: The Telegraph

The kerfuffle comes at a moment when tension between China and the Philippines over South China Sea territory is high, following months of rapid and dramatic land reclamation work by China on the Spratly Islands, another disputed archipelago.

Last week the Philippines launched a case in the Permanent Court of Attribution in The Hague in an attempt to prove that China’s “nine-dash line” claim is incompatible with UNCLOS. - Source: The Telegraph

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Japan agency upgrades PH's credit rating to BBB+

Japan credit rating agency raises Philippine rating

THE Philippines has received another credit rating upgrade, which is the highest rating the country has ever achieved.

In a report released Monday, Japan Credit Rating Agency Ltd. (JCR) gave the Philippines BBB+ from BBB rating. This was just a notch away from the minimum score in the "A" category.

The latest upgrade from JCR is the 22nd positive rating action (covering both improvement in outlook and actual credit scores) for the Philippines from major international credit rating agencies since 2010, the Investor Relations Office (IRO) of the Bangko Sentral ng Pilipinas said.

This development places the Philippines' credit rating two places ahead of Indonesia's BBB- and at par with that of India, whose economy is seven times the size of that of the Philippines.

"JCR is of the view that the Philippine economy will, by and large, sustain an annual growth of around 6 percent in the years to come driven by strong domestic demand," the rating agency said.

In the report, JCR highlighted the ability of the Philippines to maintain sound fiscal position, high external liquidity, and solid economic growth.

It also cited general stability in the country's political situation even as potential candidates for national positions gear up for the 2016 elections.

JCR also noted the stable social situation amid inroads in poverty reduction, with the poverty rate falling from 28.6 percent in 2009 to 25.8 percent in the first half of 2014.

The new credit rating is assigned a "stable" outlook, which means adjustment is unlikely in the short term.

Government economic officials welcomed the upgrade, which marked the third positive rating action from JCR over the past five years.

"The latest ratings decision of JCR, which makes the Philippines very close to securing a rating within the 'A' category, appropriately reflects the strength exhibited by the economy. Inflation has remained low, external liquidity ample, and banking system sound. All this has been achieved despite a challenging external environment," BSP Governor Amando Tetangco said.

"The upgrade to BBB+ is a recognition partly of how the country’s fiscal sector has transformed since 2010. Fiscal reforms, both legislative and administrative, have resulted in more buoyant revenue collections, manageable deficits, and lower debt service burden. The pace by which the debt burden has declined over the years is one solid proof of the rare kind of fiscal discipline that the Philippines exercises," Finance Secretary Cesar Purisima said.

IRO, which serves as the government's central point of contact for credit-rating agencies, underscored the need for public vigilance to ensure that the Philippines keeps its hard-earned investment grade sovereign credit ratings beyond 2016.

"The Philippines has achieved unprecedented gains in its credit standing over the past five years. After suffering from stubborn speculative credit ratings not too long ago, the Philippines now enjoys a seal of good housekeeping from all major international credit rating agencies," IRO Executive Director Editha Martin said.

"There should be no turning back. The need to maintain good governance – which boosts confidence of investors, creditors, rating institutions, and the general public – even after a change in leadership in 2016 cannot be overemphasized," Martin said.- (SDR/Sunnex)

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The Fate of West Philippine Sea/South China Sea at the United Nation's Tribunal begin its Journey in Hague vs China

The Philippine delegation, with lawyers and advocates, before the start of Commencement of the 1st Round of Philippines Argument.- Image CNN Philippines

South China Sea dispute: Philippines warns China flouting UN maritime laws

THE HAGUE: The Philippines has appealed to an international tribunal to declare China's claims to most of the South China Sea illegal, warning the integrity of United Nations' maritime laws is at stake.

In opening comments to the tribunal in the Hague on Tuesday, Foreign Secretary Albert del Rosario said the Philippines had sought judicial intervention because China's behavior had become increasingly "aggressive" and negotiations had proved futile.

Del Rosario said the UN's Convention on the Law of the Sea, which the Philippines and China have both ratified, should be used to resolve their bitter territorial dispute.

"The case before you is of the utmost importance to the Philippines, to the region, and to the world," del Rosario told the tribunal.

"In our view, it is also of utmost significance to the integrity of the convention, and to the very fabric of the legal order of the seas and oceans."

China insists it has sovereign rights to nearly all of the South China Sea, a strategically vital waterway with shipping lanes through which about a third of all the world's traded oil passes.

Its claim, based on ancient Chinese maps, reaches close to the coasts of its southern neighbors.

The Philippines, Vietnam, Malaysia, Brunei and Taiwan also have claims to parts of the sea, which have for decades made it a potential military flashpoint.

Tensions have risen sharply in recent years as a rising China has sought to stake its claims more assertively.

Following a stand-off between Chinese ships and the weak Filipino Navy in 2012, China took control of a rich fishing ground called Scarborough Shoal that is within the Philippines' exclusive economic zone.

China has also undertaken giant reclamation activities that have raised fears it will use artificial islands to build new military outposts close to the Philippines  and other claimants.

China has rejected all criticism over its actions, insisting it has undisputed sovereign rights to the sea.

However del Rosario told the tribunal in the Hague that China's argument of claiming the sea based on "historic rights" was without foundation.

"The so-called nine dash line (based on an old map used by China) has no basis whatsoever under international law," he said.

The Philippines submitted its case to the Hague-based Permanent Court of Arbitration, a 117-state body that rules on disputes between countries, in early 2013.

Del Rosario's comments, held in closed door proceedings but released by his office in Manila on Wednesday, were part of the Philippines' opening oral arguments.

China has refused to participate in the proceedings and said it will not abide by any ruling, even though it is has ratified the UN's Convention on the Law of the Sea.

However the Philippines hopes a ruling in its favor will pressure China into making concessions.

Any ruling from the tribunal is not expected until next year.

The week covering July 7 to 13 will be pivotal to the Philippines’ legal battle to assert its claims over the portion of the South China Sea that it calls the West Philippine Sea.- Image CNN Philippines

Day 1: PH begins arguments in The Hague

On July 7, 2015, the Philippines has begun arguing before the Permanent Court of Arbitration in The Hague that the treaty-based court has jurisdiction — and should intervene — in the country's dispute with China over the West Philippine Sea.

Malacañan said the first day of hearings began with Solicitor General Florin Hilbay's introduction of the Philippines' case, and his presentation of the order of speakers.

Foreign Affairs Secretary Albert del Rosario made a plea for the tribunal to recognize its jurisdiction. He noted that the case is important not just to the country but also to the global community, owing to its impact on the rule of law in maritime disputes.

Paul Reichler, chief counsel of the Philippines, presented the justification for the five-man tribunal's jurisdiction over the Philippine claims under the United Nations Convention on the Law of the Sea (UNCLOS).

Reichler was followed by Philippe Sands, who explained that the Philippines did not raise questions of sovereignty over land or maritime delimitation.

Sands is the director of the University College London's Centre on International Courts and Tribunals.

The first round of Philippine arguments will continue Monday  (July 8) with two more hearings, from 4 p.m. to 7 p.m. and 8:30 p.m. to 11:30 p.m., Philippine time.

A few hours before the hearing, Undersecretary Abigail Valte, deputy presidential spokesperson, told CNN Philippines that the delegation is cautiously optimistic that the tribunal would rule in favor of Philippine' on the jurisdiction issue.

Valte is also in The Hague with the Philippine delegation.

"We have been preparing every day, every step of the way to come to a proceeding like this," she said.

China has refused to take part in the proceedings. It prefers to conduct bilateral talks with the Philippines. Sources: CNN Philippines and The Economic Times

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Philippines will host Southeast Asian Games in 2019

The opening ceremony of the 2005 SEA Games in the Philippines, where the Philippines finished number one overall. File Photo by Joel Nito/AFP

Philippines set to host 2019 SEA Games

The biennial regional meet returns to the Philippines for the first time since 2005

MANILA, Philippines – The Philippines has agreed to host the 2019 Southeast Asian Games, the Philippine Sports Commission (PSC) announced.

Brunei previously pulled out of hosting the 2019 Games due to lack of venues and preparation time.

PSC said it will maximize existing facilities it used when the Philippines last hosted in 2005 and will touch base with the management of Mall of Asia (MOA) and Iglesia Ni Cristo for use of the MOA Arena and the Philippine Arena.

PSC Chairman Richie Garcia reportedly said he doesn't think the budget "will be that big" as they also plan on using the Subic Freeport for water sports. He said most of the events will be held in Metro Manila.

The MOA Arena is constantly used for local sporting events such as the UAAP, NCAA and PBA, but it also hosted the 2013 FIBA Asia Championship, the 2013 NBA Global Games and the 2015 UFC Fight Night Manila.

The Philippine Arena is a multi-purpose indoor arena opened in 2014 and is owned by Iglesia Ni Cristo. It has a capacity of 55,000 and is located in Santa Maria, Bulacan.

Within the same vicinity is also a 25,000-seater Philippine Sports Stadium that hosted the national men's football team Philippine Azkals's World Cup Qualifiers match against Bahrain. (IN PHOTOS: A glimpse inside the Philippine Sports Stadium)

The Philippines last hosted the regional games in 2005 where it won its first overall championship. The country's performance in the biennial meet has since plummeted with the Philippines suffering its worst ever finish at 7th in the 2013 edition in Myanmar.

The Philippines improved its standing to 6th this year as Singapore hosted but still equaled its gold medal haul of 29 from 2013.

Malasya is set to host the 2017 SEA Games.

2019 could be a big year for Philippine sports if it also manages to snag the hosting rights to the FIBA Basketball World Cup to be held in the same year.

The final bid for the World Cup hosting will take place on August 7. – Rappler.com

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Philippines preparing Billion Dollars fund for Acquisition of NEW Submarine, Missiles, Ships, radars for AFP Upgrade

Kilo Class Diesel Submarine. Del Rosario said that between 2018 and 2023 the Philippines would buy electric-diesel submarines ($200 - $500 Million USD per unit)and advanced missile systems.

PH ramps up military spending in face of China threat

MANILA - The Philippines plans to ramp up military spending over the next 13 years, earmarking more than $20 billion to modernize its forces in the face of Beijing's maritime ambitions in the disputed West Philippine Sea (South China Sea), a top Air Force official told Reuters.

Major-General Raul del Rosario, military chief of plans, said the blueprint includes installing radars and sensors, and buying equipment such as submarines, frigates, fighters, surveillance planes and missile systems.

"By the time, we complete this plan, we will have complete coverage of the South China Sea," said del Rosario, a former fighter pilot, showing the military's detailed plan that was approved on Friday.

"We will have 24/7 awareness of what is happening in the disputed area and we'll be able to respond quicker to any contingency in our own exclusive economic zone."

He said the ambitious plan was initiated in 2013, but top brass had only approved overall spending of 998 billion pesos ($22.11 billion) last week.

Del Rosario said 83 billion pesos had been earmarked for the first five years, ₱444 billion pesos for the second five years and ₱471 billion pesos for the last five years.

In 1995, Congress had earmarked ₱364 billion pesos for a similar 15-year plan. Less than one-tenth of that sum was actually spent by 2010.

The modernization program is designed to strengthen Manila's claims in the South China Sea, believed to be rich in energy deposits.

China has become increasingly assertive in the South China Sea, building artificial islands in areas over which the Philippines and other countries have rival claims. The moves have sparked alarm regionally and in Washington.

SUBMARINES, MISSILES AND SURVEILLANCE PLANES

President Benigno Aquino has promised the military about ₱34 billion pesos this year, which will fund the purchase of two frigates and a twin-engine long range maritime aircraft.

So far, the government has given the military ₱9.4 billion pesos in 2014. This has been used to purchase eight combat utility helicopters and as a downpayment for 12 FA-50 fighter-trainers from South Korea. Two of the aircraft are expected in 2016.

Del Rosario said that between 2018 and 2023 the Philippines would buy electric-diesel submarines and advanced missile systems.

Three aerial surveillance radars with a range of 350 nautical miles will also be installed in Ilocos Norte, Lubang island and Mount Salacot in Palawan, all facing the South China Sea to detect movements in the disputed area.

These will complement the navy's two surface sensors capable of detecting ship activities 200 miles away. Three surveillance planes will also be on constant patrol in the area.

"We do not aim to defeat China," del Rosario said. "But our goal is make any state think twice before attacking. We will make sure anybody attacking us would end up with a bloodied nose." -  ABS-CBN News

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Philippine Azkals Football Team reach highest ever FIFA ranking

Philippine Azkals National Football Team - image:Philstar.com/File

Azkals ascend in FIFA rankings

The Philippine Azkals got on Thursday their highest FIFA rankings so far at 124.

The Azkals that was ranked 137th in the world last month, climbed 13 notches following their success in the joint World Cup and Asian Cup qualifiers.

Consequently, the Philippines remained the No.1 team in the Southeast Asian region and No.17 in the continental rankings. The Azkals will continue their journey to the World Cup on September 8 when they face Uzbekistan in a home game at the Philippine Sports Stadium.

Meanwhile, Newbie Azkal Luke Woodland might be the possible answer to the team’s center back problem according to veteran defender Rob Gier.

“I do see him as a central midfielder in the future but in the meantime having more competition for places in all areas of the team can only be good for the development of the squad,” Gier said on Woodland in an interview with The Manila Times.

Woodland, who is currently searching for a club after being released by long-time team Bolton Wanderers FC, last played for Oldham Athletic FC on a one-month loan agreement with his mother club.

At the young age of 19, Woodland is a seasoned competitor having represented England in youth level international tourneys.

Gier believes that Woodland, standing six-foot tall fits perfectly in the back-line.

“Seeing his size and physique in person, it was obvious that he could also be an asset at the back,” Gier said.

He added that Woodland could also fill-up a defense position.

“Center back has been a position we have struggled to find any real depth so learning that Luke is capable of play there is a big positive,” he said.

Having three natural center backs, Gier, Juani Guirado and Amani Aguinaldo, it is crucial for the Azkals to put a competent man in the center back position.

After being barred to play in the first game against Bahrain because of eligibility issues, Woodland is now cleared to play for the Philippines.

He was part of coach Thomas Dooley’s new 3-5-2 formation used by the Azkals in their second game against Yemen.

“He dealt with the disappointment of missing out on the first game very professionally and produced a solid display against Yemen,” Gier said.  - The Manila Times

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Philippines sets up innovation center- A new Silicon Valley in Asia

Philippines sets up innovation center, takes a page from Singapore, Malaysia

The Philippines has announced a plan to build a national innovation center – taking cue from Silicon Valley in the US, Block 71 in Singapore, and MaGIC in Malaysia.

Government agencies, including the Department of Science and Technology (DOST) and the Department of Trade and Industry (DTI), are collaborating with startup accelerator IdeaSpace for this effort.

With initial funding of ₱30 million Php (US$665,000) from the government and counterpart funding of up to ₱15 million Php (US$332,000) from private sector and academe, the innovation center will have two locations – both of which will be near the country's premier universities.

"When we founded IdeaSpace in 2012, we wanted to find the next big innovative idea and create a startup ecosystem that embodies the Silicon Valley-mindset of using technology and science to create massive change in the world," said Earl Martin Valencia, president and co-founder at IdeaSpace.

"Now, we realize the dream to create Philippines' own innovation hub with our initial collaboration with the government and the academe where startups and high-potential research can get the support they need in order to grow and thrive," Valencia added.

The Philippine innovation center will foster technology advancement and startup ecosystem growth. Valencia said the hubs will be set up near key academic institutions to imbibe the spirit of innovative and entrepreneurial thinking among students, to tap into a wellspring of engineering and technology talent from these universities, as well as to address the growing interest of students in founding their own startups.

Calling on more partners

The center will also serve as a venue for government agencies and academic institutions to promote products, facilitate transfer of their R&D results, and establish connections with the investment community.

"It has always been DOST's thrust to support technology transfer of R&D output, either through commercialization or deployment for public good. The innovation center, we believe, will be a critical and effective agent in delivering R&D results to the people," DOST undersecretary Rowena Cristina Guevara said.

DTI undersecretary Nora Terrado added: "The DTI strongly supports entrepreneurship and innovation in the Philippines to realize economic growth that is truly inclusive. Tech startups present a growing spectrum of opportunities for Filipinos to compete in the international stage as they create new solutions to pressing social and environmental problems. In the process, this will spur economic activities resulting from the value and employment generated."

Valencia notes the initiatives represents the Philippines' first ever public-private partnership that focuses on innovation and aims to improve the country's position in the global digital economy. "We can't do it alone, so we're calling on more partners… to help us push this initiative forward."

The creation of the innovation hub will be a critical component in boosting the Philippines' ranking in the Digital Evolution Index (DEI), which ranks countries in terms of their readiness for the quickly expanding digital economy.

The Philippines is one of the so-called "break-out" nations in the recent global DEI study conducted by the US-based Fletcher School at Tufts University, using data from 2008 to 2013. The country stands alongside China, Malaysia, Thailand, and Vietnam as one of the "rapidly advancing countries" in the global digital topography.

What do you think of the Philippines' plan to build its own innovation hub? Will it take off? What are the challenges? And what lessons can the Philippines learn from neighbors Singapore and Malaysia? Feel free to share your thoughts. Editing by Malavika Velayanikal and Terence Lee - TECHINASIA

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Swimming at the Airport? First Resort Airport in the World Kicks off in Cebu Philippines

Mactan-Cebu touted to be first of several world-class airports

PH breaks ground for world’s first resort airport

The Department of Transportation and Communications (DOTC) marks another milestone as it breaks ground for the world’s first resort airport – and the Aquino Administration’s first airport public-private partnership (PPP) project – on June 29.

“The kick-off ceremony for the construction of the new international terminal for the country’s second-biggest gateway, the Mactan-Cebu International Airport (MCIA), is touted to be the start of Philippine airports matching the best in the world,” said DOTC Secretary Joseph Emilio Aguinaldo Abaya.

“It will not only cement our place on the global map as a major tourist and business destination, it will boost the local economy and is projected to generate jobs especially in Cebu,” he added.

The project, which is envisioned by concessionaire GMR-Megawide Cebu Airport Corporation (GMCAC) to be regarded as the first resort airport in the world, covers the construction of a new world-class international passenger terminal building (PTB), as well as the renovation of the existing PTB and its conversion into an exclusively-domestic facility.

Construction of the new terminal will be completed in three (3) years, or by 2018, while the renovation of the existing terminal is slated to be completed in 2019. The airport’s passenger capacity will surge from 4.5 million to 12.5 million per year.

GMCAC won the auction for the 25-year PPP contract last year, after offering the government a premium bid of P 14.4 billion. Operations and maintenance (O&M) of the airport was turned over to the consortium in November 2015.

‘Soft Improvements’ implemented since last year

Immediately upon assuming O&M responsibility, GMCAC began implementing ‘soft improvements’ to the existing terminal, or those improvements which did not require major civil works, to enhance passenger experience at the gateway.

For instance, a centralized security check (CSC) system was opened earlier this month to speed up the processing time for departing guests. It features four (4) X-ray machines that can be used interchangeably, which then doubles the capacity of the final check-in counters.

To further reduce passenger queues, GMCAC also opened additional immigration counters and self-service kiosks wherein passengers can pre-check-in.

Other ‘soft improvements’ included the installation of LED bulbs for brighter lighting; the optimized use of floor space, which included transferring certain offices in exchange for more check-in counters and waiting areas; redesigning seating patterns to increase usage by passengers; and now, offering self-service check-in kiosks for faster processing.

“It is clear to us that GMCAC brings international expertise into running an airport, immediately it has already made substantial improvements without making structural works yet. What it will do now that we are breaking ground is exciting for us, and especially for travelers to and from Cebu,” Abaya remarked. - dotc.gov.ph

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2 of 12 FA-50 Fighter jets delivered - now flying with Philippine Air Force

Philippines Receives Two F-50s From Korea

Two of the 12 FA-50 fighters of the ₱18.9 billion Php contract signed by President Benigno C. Aquino III in South Korea on March 28, 2014 has been received by the Philippine Air Force (PAF) ahead of schedule in December 2015. "FA-50PH's maiden flight took place on 19 June after the Philippines has signed a contract

Two of the 12 FA-50 fighters of the ₱18.9 Php billion contract signed by President Benigno C. Aquino III in South Korea on March 28, 2014 has been received by the Philippine Air Force (PAF) ahead of schedule in December 2015.

"FA-50PH's maiden flight took place on 19 June after the Philippines has signed a contract for 12 KAI FA-50 fighter aircraft in March last year," South Korea's Korean Aerospace Industry said

The FA-50 is an armed variant of the T-50 advanced jet trainer, which KAI jointly developed with Lockheed Martin. Other variants include the TA-50, a lightly armed variant of the original aircraft, and the T-50B, which is optimized as a performance aircraft. The T-50B is operational with South Korea's display team, the Black Eagles

High timer PAF pilots were selected to train using the FA-50 fighters in South Korea. These pilots will then become the instructor pilots to train the other pilots in army. The new FA-50s have a more advanced weaponry system than what the country has in present, which are 'ancient' planes like Nomad which can do only 8-9 hour round trips, as Pres. Aquino told reporters in Busan, South Korea. It could load up to 4.5 tons of weapons and has a wide-range of mobilization system. FA-50 has also, 20 mm three-barrel gun that can fire at extremely high rate internally installed. FA-50 can be fitted with AIM-9 Sidewinder, a short-range air-to-air missile; AGM-65, an air-to-surface missile designed for close-air support missions; cluster bombs and rocket launchers. KAI assured that by 2017 the procurement will be complete. - Manila Channel and Flight Global

 

 

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Philippine Economy is the Strongest in the World - Findings of Washington USA Think Tank

Philippines has most resilient economy – study

(CNN Philippines) — Should an economic crisis akin to last decade's Great Recession happen again, the Philippines would be the most "resilient" country and be able withstand it, despite its status as an emerging-market economy.

That's the assessment of Center for Global Development (CGD), a think tank based in Washington, D.C.

It's not that hard to imagine another financial crisis happening: Growth in China — the world's second largest economy — has slowed, the United States' bull market hasn't had a correction since 2011, and in the Eurozone, debt-ridden Greece has yet to strike a deal with its creditors.

Economist Liliana Rojas-Suarez of the CGD recently created a "resilience indicator" that measures the vulnerability of an economy to future financial shocks.

Her metric looks into several economic indicators that fall under two categories:

• a country's ability to withstand external shocks 
• government's ability to "rapidly" implement policies that counteract the effects of such shocks 

"I compare the values of the identified variables in 2007 (the preglobal financial crisis year) with the respective values at the end of 2014," she said.

Rojas-Suarez explained: "A country is said to be highly resilient to adverse external shocks if the event does not result in a sharp contractions of economic growth, a severe decline in the rate of growth of real credit and/or the emergence of deep instabilities in the financial sector."

Of the 21 countries she studied, Rojas-Suarez ranked the Philippines as the most resilient economy, ahead of South Korea and China, which fall at second and third, respectively.

Rojas-Suarez found that the Philippines posted a strong improvement in its indebtedness. The debt indicators had substantial influence over the country's ranking.

For example, she points out that the country cut in half its external debt to GDP ratio "from around 40 percent in 2007 to around 20 percent in 2014." This figure stands in stark contrast with most whose ratios are "without significant changes" within that same time period.

She also cites the country's lower government debt to GDP ratio which stood above 40% in 2007, and subsequently shrank to below that figure in 2014.

Likewise, the country also stood out because of its improved inflation performance in 2014 relative to 2007. Rojas-Suarez pointed out that inflation rates have been within the government's targets.

Latin American countries did not do well in the study: "Four of the six Latin American countries in the sample have deteriorated their positions in the ranking. This includes Argentina, which now holds the last position. "

Apart from "bad luck in terms of unfavorable trade," Rojas-Suarez explained that such countries ranked lower because of "the squandering of opportunity to implement needed reforms in the good post-crisis years."

Her study ultimately affirms a long-running cliché: An ounce of prevention is better than a pound of cure.

"Policy decisions taken in the precrisis period played a major role in explaining a country's macroeconomic performance during the global economic crisis (of last decade)," explained Rojas-Suarez.

"[I]nitial conditions at the onset of a severe adverse external shock matter a lot. The good news is that, besides the commodity price shock, the most feared external shock: a sudden rise in interest rates in the US has not (yet) materialized. Time is still on the side of emerging markets’ authorities." - CNN

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Senator Santiago backs Ombudsman, SC: "Gobenciong case" - Binay should leave Makati City hall

Mayor Junjun Binay vs Senator Miriam Santiago- Politics.com

Ombudsman not liable for acting quickly on Mayor Binay suspension—Santiago

MANILA, Philippines — Ombudsman Conchita Carpio-Morales and other concerned officials were not liable for immediately implementing the suspension order on Makati City Mayor Jejomar Erwin “Junjun” Binay, Senator Miriam Defensor-Santiago said on Wednesday.

Santiago was reacting to a contempt case filed by Binay against the Ombudsman and other officials for defying a temporary restraining order issued by the Court of Appeals on his suspension. It was the Office of the Ombudsman that issued the preventive suspension order on Binay in connection with the allegedly anomalous Makati City Hall 2 carpark building.

But Santiago pointed out that in the 2008 case of Gobenciong v. Court of Appeals, the Supreme Court ruled: “The Office of the Ombudsman can, as a matter of statutory empowerment, validly order the immediate execution of a preventive suspension after determining the propriety of the imposition, regardless of the remedy of reconsideration made available under the law to the suspended respondent.”

“Thus, the Ombudsman can order the immediate suspension of a sitting mayor, who is not allowed to plead that he needs time to file a motion for reconsideration,” the senator said in a statement.

Santiago said that in the Gobenciong case, the high tribunal rejected the argument that the sitting official was denied due process of law, just because the suspension was immediately implemented.

“In the Gobenciong case, the Supreme Court said there was no legal basis for the argument that immediate implementation of the preventive suspension would deny due process. In fact, the Supreme Court added that since preventive suspension is not a penalty for an administrative offense, preventive suspension can be imposed without prior hearing,” she said.

The SC, she said, denied the motion to cite the Ombudsman in contempt on the ground that it had “become moot and academic for the preventive suspension had been served.”

Under the Gobenciong ruling, Santiago said the Ombudsman could not be held in indirect contempt because under the Rules of Court there was no “disobedience of or resistance to a lawful writ of a court.”

“A contempt order usually arises according to the Rules of Court for ‘any improper conduct tending, directly or indirectly, to impede, obstruct, or degrade the administration of justice.’ It is not the case,” she said.

But Santiago also pointed to a 2011 case, Strategic Alliance Development Corp. v. Star Infrastructure Development Corp. where the Supreme Court held: “Although the general rule is to the effect that a writ of preliminary injunction cannot be issued against acts already fait accompli it has been held, however, that consummated acts which are continuing in nature may still be enjoined by the courts.”

She said this “apparent collision” between the 2008 Gobenciong case and the 2011 Strategic Alliance case should be resolved by the Court of Appeals.

One of the petitioners, she said, might also elevate the case on a petition for review on certiorari concerning a question of law to the Supreme Court, which has discretion on whether to pass upon the petition. - INQUIRER

 

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Philippines gets first ₱1.8 Billion worth New C-295 Plane this March 2015

In this photo released by Airbus Defence and Space, Portugal's C295 tactical airlifter is seen releasing chaff and flare countermeasures- image source: philSTAR

 

Philippines gets first C-295 plane this month

MANILA, Philippines - The government will receive this month one of the three medium lift fixed wing aircraft it acquired from a Spanish firm.

Defense Undersecretary Fernando Manalo said the first C-295 plane would be delivered by Airbus Military in Clark within March 23 to 25.

"It will be the first delivery of the brand new aircraft. We will be there to receive the aircraft delivered from Spain," Manalo said in a recent interview.

The Air Force welcomed the development, saying the aircraft would provide added capability in times of disasters.

"It will serve as additional transport support to the armed forces' requirements [and complement] the three existing C-130s," Air Force spokesman Lt. Col Enrico Canaya said.

"They will be especially helpful in HADR (humanitarian assistance and disaster response) operations," he added.

Last year, The STAR reported that Airbus Military won the bidding for the supply of three medium lift fixed wing aircraft worth ₱5 billion.

The notice of award was issued to the aircraft manufacturer in February 2014.

Airbus offered to supply three C-295 planes for ₱5.29 billion, lower than the approved budget of ₱5.3 billion.

Airbus said the C-295 is "the most capable and versatile transport and surveillance aircraft." It can carry as much as nine tons of payload or up to 71 people at a maximum cruise speed of 260 kt or 480 kilometers per hour.

The acquisition is expected to boost the overall lift capability of the Air Force.

The two other C-295 planes are scheduled to arrive next year.

Other aircraft due for delivery this year are six units of close air support aircraft worth ₱4.97 billion, eight units of combat utility helicopters worth ₱4.8 billion, eight units of attack helicopters worth P₱.44-billion, two units of lead-in fighter trainer jets worth ₱3.16 billion and two units of light lift aircraft worth P813 million. - philSTAR

Infographic: Philippines among world's fastest-growing economies 2015

MANILA, Philippines — Business news network Bloomberg surveyed top economists around the world who projected 10 economies to have the highest gains in growth in 2015.
While the world is expected to grow by 3.2 percent this year, Asian and African economies will pick up faster than those in other regions.
RELATED: Trade chief: Philippines growth can top 8%

Infographic by Philstar.com / Jonathan Asuncion

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Ramos Killed NSC Asia's Biggest Steel Factory in ILigan City to allow China Dominates the Philippines

Former Philippine President Fidel V. Ramos Sold the National Steel Corporation (NSC) in Iligan City to Malaysia as part of his Privatization program. NSC was Asia's largest Steel factory.

Bulacan to host Chinese - Philippines’ biggest steel plant

Steel Asia, the country’s largest steel manufacturer, is investing P6 billion to put up the biggest steel plant in the country.

Steel Asia said the plant in Plaridel would be among the most modern in the world.

“It will be using the latest available technology that allows production efficiency and environmental protection at the same time,” the company said.

The Plaridel plant will have a production capacity of 1.2 million metric tons, more than double the capacity of its recently inaugurated P3 billion Davao plant which is at 500,000 metric tons.

The Davao plant generated around 2,000 direct and indirect jobs while the Plaridel plant is expected to create nearly 3,000 direct and indirect jobs, Steel Asia said.

Roberto Cola, Steel Asia vice president, said the Plaridel plant would feature an array of environmental measures that will allow the company to fully comply with existing laws.

Despite various groups who are against the project, Steel Asia said majority of the residents of Plaridel are now supporting the rolling mill project in the area.

Steel Asia said an independent survey conducted by Greenboroughs Tech Inc. showed 82 percent of the sampling from the direct impact area support the project.

The company said it has been conducting continuing efforts to explain the technical and environmental aspects of the plant, and its benefits to the community and its environment.

In an official public consultation conducted last month, Steel Asia said the project has obtained the support from more than 5,000 federation of tricycle associations of Plaridel.

The project was also supported by the youth many of whom have already taken advantage of the free skills upgrade training program Steel Asia has been conducting for the community, the steel manufacturer said.

“Being open and transparent with the community was key to the support we are getting for our project. We even brought some members of the Plaridel community to our newly opened Davao plant for them to see and appreciate that we are real partners in progress and we care for the environment as we go about our business,” Cola said.

Steel Asia has existing plants in Cagayan de Oro, Davao, Cebu, Batangas, and two in Bulacan.

NSC Iligan plant rots

National Steel Corporation, Asia's Biggest Steel Manufacturing Facility is rotting .... image source: Manila Bulletin

While the government is moving heaven and earth to revive the country’s manufacturing sector, which is the biggest hope to provide employment to the less educated Filipinos who cannot be accepted in call centers and BPO works, it has lost sight of the country’s biggest industrial plant — the National Steel Corp. (NSC), which used to be the symbol of the country’s march towards industrialization.

NSC has been abandoned, looted and is now rotting in its 145-hectare industrial complex in Iligan City.

Cong. Vicente F. Belmonte Jr. of the lone legislative district of Iligan City in a phone interview with Business Bulletin blamed the national government policy for making  NSC, which used to employ as many as 4,200 Filipinos, into what it is today — a big white elephant.

“The national government they don’t give importance to the NSC. We are at the mercy of the national government because they make the policy,” Belmonte said.

Belmonte noted of the privatization thrust that put NSC to owners that did not really take seriously the business of NSC.

Under the government’s privatization policy, the NSC facilities were  turned over to the Malaysian investors in 1995.  The Indian investors subsequently took over in 2004 and the mills eventually went on total shutdown in 2009.

“We made a mistake in awarding the NSC to the Indians,” Belmonte pointed out. NSC was acquired by Pramod Mittal’s Global Steel Holdings Ltd. from creditor banks in 2004 for a total price of P13.25 billion including an upfront cash of P1 billion while the remainder was to be paid over an 8-year period. That privatization was overseen by then DTI Secretary Mar  Roxas.

At that time of privatization, NSC’s debts were placed at P16.18 billion but its assets had been assessed at P29.27 billion. The Philippine National Bank (PNB) has the largest exposure to the company of R5.64-billion. Government-owned Land Bank of the Philippines followed with P1.2 billion.

Belmonte said the Indian owners were not interested in running a sustainable plant but they only produced specific steel products to supply its mother company. Its intention was to use the NSC property as a collateral for its loan and when it failed to do so, it filed a case before Singaporean arbitration court and won.

A source said, the Philippines or the creditor banks’ defense team was said to be poorly represented in that Singapore case making it an easy win for Global Steel.

Now, Global Steel and creditors/banks are caught in an arbitration gridlock situation in Singapore.

“We have many plans for NSC, but we need the national government’s support,” he said.

According to Belmonte, he already approached Finance Secretary Cesar Purisima but the Finance chief was non-committal. He has also asked the Department of Trade and Industry, but was told the agency cannot do anything because NSC had long been privatized.

Belmonte also confirmed the looting incidents inside the huge complex. He said that when NSC was privatized it had a R1 billion worth of parts inventory. Some of these have been looted or sold.

Just last week, he said, some 61 trees inside the complex were balled off on the pretext that those grown up trees were on harms way of electric cables, but were actually sold for cash.

“There are guards, but not enough to secure the entire premises,” he said. NSC, the first government corporation to obtain an ISO-certification, is complete with staff houses and other real estate assets inside its sprawling premises.

It was also the first government corporation to be declared Employer of the Year. And also the first government corporation to be bestowed AIM’s Award for Managerial Excellence in people development.

POLICY INTERVENTION

“We need government policy intervention for the steel industry,” Belmonte said. Policy interventions that should correct some factors that led to NSC’s fate.

For instance, when NSC was sold to Global Steel, it had the advantage of a lower power cost at R3 only because Mindanao was then relying mostly on hydro power. But when the government policy  was changed on the power mix for Mindanao, NSC was caught up with a high power of R6 to R8 per kilowatt-hour.

The Indian owners closed the plant in 2009 after workers staged a strike for non-payment of wages.

Along with its closure, the Global Steel also incurred over R3 billion in unpaid electricity bills before the National Power Corp. It also failed to pay real estate taxes amounting to over R2 billion to the city government of Iligan.

Since the tide of trade liberalization can no longer be reversed, Belmonte said there are some new technologies that could possibly put NSC back on its feet. He said NSC can operate using its own generated power.

“The national government should come in now and adopt a policy for the steel industry, because even if we in Iligan are very much interested in reviving NSC, we are very limited,” he stressed.

Thus, he said, there is a need for government policy to attract new investors and revive NSC.

“The government need not take over the plant, we just need a government policy that should make the domestic steel manufacturing industry attractive to investors again,” he stressed.

While Belmonte admitted that the NSC as it is today can no longer be competitive, he said there are new technologies that could help NSC back on its feet and become competitive again.

“We can revive it, but it is no longer competitive.  We need new policy because we can no longer survive under the old strategy. We have to adapt new technology for the steel industry,” he said.

For instance, he cited a Vienna technology where a steel plant can operate using its own power.

DISCONNECT

When the NSC was privatized in 1995, it was on the premise that the new investors must further expand/upgrade and eventually integrate upstream into the iron and steel-making stage.

Due to this failed privatization, the flat steel subsector has a serious supply-chain gap today arising from the idle Hot Mill, Cold Mill and Tinplate Line; while the long products subsector has a diminished supply capacity from the shutdown Billet Shop.

During its peak, NSC supplied 62 percent of the Philippine total flat steel demand (34 percent for hot-rolled products; 75 percent for cold-rolled products; 69 percent for tinplate products). It used to directly export an average of 4,000 MT per month to China

NSC generated R12 billion in annual revenues and earned a net income of P500 million every year, after paying duties and taxes of R1 billion yearly to the government.

Upon expansion/upgrading in 1985-1995, this government steel plant had total assets of R30 billion when it was privatized in 1995.

In one of the DTI workshops for the crafting of the industry roadmaps, including the steel industry, state-run National Development Co. (NDC), which has a minority five percent stake in NSC, was urged by the private sector to take over NSC.

NSC was one of the 11 industrial projects created by NDC, the government investment arm under the DTI, during the Marcos era.

Despite all the legal encumbrances that NSC finds itself entangled into, it is so ironic that while the government seeks to revive the manufacturing sector, what used to be the crown jewel of the government’s attempt at industrialization continues to rot, looted and ransacked.

Sources: PHILSTAR and MANILA BULLETIN

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