Philippines reiterates call ASEAN members to take a decisive stand on Spratlys issue

The Philippines reiterated anew its call on the other members of the Association of Southeast Asian Nations (ASEAN) to take a united and decisive role in the resolution of the West Philippine Sea (South China Sea) disputes by supporting its proposal that a meeting be held as soon as possible among the claimant states, including China, under the guidance of ASEAN.

"The Philippines calls on all ASEAN Member States to endorse this proposed claimant states' meeting, which the Philippines is ready to host. We would also welcome other ASEAN Member States to host this meeting if they would like to unequivocally express their support for and advance a rules-based approach in the region," Department of Foreign Affairs Secretary Albert del Rosario said in his statement at the ASEAN Foreign Ministers' Meeting (AMM) Retreat held in Siem Reap, Cambodia on January 11.

"The Philippines eagerly awaits ASEAN's response to this proposed meeting of claimant states," he added. The DFA chief also reiterated that a rules-based approach is the only legitimate way in addressing disputes in the West Philippine Sea and that the dispute settlement mechanism established in the United Nations Convention on the Law of the Sea (UNCLOS) is the fundamental principle of the rules-based approach being espoused by the Philippines.

Del Rosario said the rules-based approach under UNCLOS also calls for the resolution of disputes through peaceful means, thus the Philippines proposed to ASEAN the Zone of Peace, Freedom, Friendship, and Cooperation (ZoPFF/C) as the actionable framework to clarify and segregate the disputed land features from the non-disputed waters of the West Philippine Sea, and in the process, address the issue of the 9-dash line.

The Philippines also has stated that it is considering third party adjudication, arbitration or conciliation, as appropriate, in the context of the dispute settlement mechanism of UNCLOS.

"Thus far, we are pleased that fellow ASEAN Member States support the rules-based approach, which essentially calls for:

(1) Solving the issue peacefully,

(2) In accordance with the rule of law, particularly international law and UNCLOS, and

(3) The multilateral participation of various stakeholders to account for the various perspectives and interests. These principles are the very bedrock of our international order. We have all furthermore agreed that we have to move forward with the Code of Conduct," Del Rosario said.

Del Rosario also stated that as the ASEAN is working on building the ASEAN Community, "it behooves Member States to now play a positive and meaningful role to solve the disputes peacefully in accordance with the Treaty of Amity and Cooperation (TAC) and reach a stage whereby we are able to help resolve sensitive issues decisively without letting such issues fester and adversely affect the progress of our bilateral or multilateral relations."

He further noted that all are eager to move forward on the Code of Conduct to resolve the issues in the West Philippine Sea and the Philippines is ready to accept a Code of Conduct that calls for the primacy of international law, including UNCLOS, in resolving the disputes in the West Philippine Sea.

"It is ready to accept a Code of Conduct that espouses the concrete and actionable activities to foster cooperation in the West Philippine Sea in the context of international law," Del Rosario said.

He also stressed that the Philippines is willing to commit to a Code of Conduct that addresses the very core of the issue and that is to define, clarify, and segregate the disputed areas from the non-disputed areas in the West Philippine Sea.

"I understand that these elements may require considerable focus to achieve our objective. As I have often expressed, ASEAN is at a critical juncture of playing a momentous role for the resolution of the disputes in the WPS/SCS. We must now muster the will as an ASEAN Community to face these sensitive issues with determination," he said.

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The Philippines' rising economy to Star in 2050

BANKING giant Hongkong and Shanghai Bank (HSBC) announced recently that the Philippines can be one of the world's top economies by 2050.

It is encouraging that this independent and credible financial organization sees the enormous potential our country has for economic growth, and that if this potential is nurtured, the outcomes will be concrete and tangible and will provide benefits for the nation and its people.

In the HSBC report, the Philippine economy is forecast to rise 27 places upward to 16th rank less than 40 years from now.

The Philippines was also marked as one of 26 "fast-growth" countries expected to register "an average expansion of more than 5 percent per year."

Despite a "very low level of development," the report says the Philippines is among those countries that has made "great progress in improving fundamentals. As they open themselves to the technology available elsewhere, they should enjoy many years of 'copy-and-paste' growth ahead."

The Philippines was noted as being one of the "truly remarkable hot spots in Asia…. The star performer, however, is the Philippines, where the combination of strong fundamentals and powerful demographics gives rise to an average growth rate of 7 percent for the coming 40 years."

Noted as contributing to the country's progress are the "improvements in its economic infrastructure," with the "fast-growing population…expected to increase the country's labor force, which likewise benefits from the quantity and quality of education."

HSBC projected the Philippines's average gross domestic product growth at 8.4 percent from 2010 to 2020, 7.3 percent from 2020 to 2030, and 5.8 percent from 2040 to 2050.

The report stated further the following top 5 projections:

1. China is expected to become the No.1 economy,
2. United States will follow China,
3. India
4. Japan  
5. Germany

Germany will remain  in the top five, in that order.

Many smaller economies will move up, such as:

• Peru (to improve by 20 places),
• Egypt (+15)
• Nigeria (+9)
• Malaysia (+17)
• Ukraine (+19)

Many European countries may decline, especially those in Northern Europe, because of a smaller work force and the rise of developing nations—

• Denmark (-29)
•  Norway (-22)
• Sweden (-20)
• Finland (-19).

Among the factors that contribute to long-term economic growth are demographics—the size of the working population—and the opportunities for each individual to be more productive.

In order to create a milieu conducive to promoting productivity, there must be the following significant factors: opportunities for education, democratic governments, and strong rule of law.

Factors that could derail progress are war, energy-consumption constraints, climate change, and barriers to population movement across borders.

The report comes with a caveat: "We openly admit that behind these projections we assume governments build on their recent progress and remain solely focused on increasing the living standards for their populations….Of course, this maybe an overly glossy way of viewing the world."

The Philippines under President Aquino is already putting those measures for growth in place. Economic growth showed a strong uptick in 2011, when the Philippine Stock Exchange closed with a 4.1-percent gain. This made it Asia's best-performing economy for the year.

In another report, to create a climate conducive to more growth, the Association of Southeast Asian Nations is working toward "a unified trading bloc with free-flow capital by 2015." Electronic-trading links will be set up in Asian countries to "allow more investments and raise liquidity," starting in 2012 in Malaysia, Thailand and Singapore, followed later by the Philippines.

In addition, the Aquino administration has taken larger steps toward fighting graft and corruption via the Good Governance and Anti-corruption Cluster (GGAC) Plan for 2012-2016, which was approved on January 3. It will simplify and integrate the government's anti-graft and -corruption systems.

Necessary legislations and policies will be reviewed and strengthened, while digitization and innovations in government operations will be promoted, backed by an aggressive advocacy and communication campaign. Once these measures are in place, the government expects the business and economic environment to improve further.

President Aquino said as much in his toast at the vin d'honneur at Malacañang on January 13 (the ceremony is the Palace's traditional New Year's celebration for the diplomatic corps):

"We have already made great strides in our fight against corruption and poverty, as well as in our thrust to create a progressive economic climate guided by fair and honest practices. Local and foreign groups have acknowledged our triumphs by investing in our country, by lauding our efforts in open governance, and by supporting our programs.

"At the heart of our work for the next year lies a desire to secure for our people a better standard of life, and a brighter future. And all of you present here today are crucial to achieving that goal.

"This year, we will strengthen the programs that work for our countrymen, such as those in education, health, housing, and others like our Conditional Cash Transfer Program.

"We will not relent in our quest to hold accountable those who seek to perpetuate the culture of impunity in our country.

"We will continue to ensure the safety of our nation: by upgrading our defense capabilities, and by working to achieve peace, while pursuing lawless and criminal elements.

"We will continue to sustain the growth of our economy and create opportunities for employment.

"These are not without their challenges, but I am confident that so long as we stand together and remain consistent in our service to the public, our countrymen will be behind us every step of the way, as we work toward success."

* * *

PCSO News: the PCSO will be taking care of the bills of the victims of the Pantukan, Compostela Valley, landslide who are in government hospitals, and will also be assisting the victims of the December 10 plane crash in Barangay Don Bosco, Parañaque City.

The Beechcraft nine-seater was en route to San Jose, Mindoro, when it crashed at 2:15 in the afternoon in a residential area. According to the police report, there were 13 casualties and 15 to 20 houses, including the F. Serrano Elementary School, were burned. Sixteen persons were injured.

The PCSO is also working on a quick-response disaster- management initiative and is drawing up guidelines for this in consultation with the Department of Social Welfare and Development. More PCSO branch offices will also be opened nationwide in order to better address the needs of its beneficiaries.

Atty. Rojas is the general manager of the PCSO. E-mail: jrojas@pcso.gov.ph.

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BHP Billiton & 12 Oil Firms Start Drilling oil and gas in the Philippines

Philippines — Dubbing it as "the period of upturn in upstream petroleum investments" in the country, the Department of Energy (DoE) has announced that 10 to 12 wells have been committed by service contractor-firms in their drilling programs this year.

In a statement to the media, Energy Undersecretary Jay Layug disclosed that they have cornered "10-12 firm commitments to drill exploration wells and three workover wells from our service contractors."

This includes the following:

• Blade Petroleum for the Cadlao block in Northwest Palawan;
• Galoc Production Company (GPC) in Service Contract 14C, also in Northwest Palawan;
• Philippine National Oil Company-Exploration Corporation (PNOC-EC) in Cagayan basin;
• Gas2Grid in SC 44 and China International Mining Petroleum Company Limited (CIMP) at SC 49 in Visayas basin;
• Frigstad Energy at SC 50 in NW Palawan;
• Pitkin Petroleum at SC53 in Mindoro-Cuyo prospect; and
• BHP Billiton at its two blocks in Southwest Palawan.

Layug emphasized these drilling programs are part of the work commitments submitted by the service contractors to the energy department. "These are existing work programs under their respective service contracts," the energy official said.

Exploration wells are drilled to discover oil or gas and if these can be developed at commercial quantity; while workover wells may be pursued to improve flowrates, at proven finds or existing production fields.

Service contractors are required to submit a seven-year work program with the DOE; and that could entail drilling of several wells to determine if the oil or gas finds would merit declaration of commerciality.

While the department has not given exact figure on the investment costs, it was indicated that the rule of thumb for offshore deep well drilling could range from $80 million to $100 million; while those onshore may command an investment of $30 million to $50 million per well.

"We have seen an upturn in Philippine upstream petroleum industry this year as a result of current high-oil price market condition and the efforts of the DoE to revitalize the industry," Layug has noted.

For the oil and gas investors, the equilibrium price they have been hinging their investments on has been at $80 per barrel. Obviously though, current price trends have already surpassed that immensely.

Layug specified that the energy department's intent of re-igniting interests in upstream petroleum ventures is in line with the Aquino administration's thrust "to focus on resource development as a long-term plan of action in the hopes of finding indigenous oil and gas resources to reduce our dependence on imported petroleum and mitigate effects of oil price volatility."

The department will be offering 15 new petroleum service areas in biddings scheduled until July 2012.

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