DuterteNomics Unveiled First Subway in The Philippines, Completion of 4 railways in 2022 New Airports, Seaports, Railways, Roads & Bridges

Slide presented at the "Dutertenomics" forum on Tuesday, April 18, 2017 where President Rodrigo Duterte's top officials introduced planned construction projects. DOTr/Released

DuterteNomics blueprint unveiled the build, build, and build for the “golden age of infrastructure,” in the Philippines.

• ₱227 Billion - First Subway in the Philippines for Quezon City to Taguig City a 25 kilometer underground railway system to finished year 2024
• ₱225-million PNR North Rail systems, 100-kilometer Tutuban - Clark to be completed in 2021
• ₱55.478-Billion – First Mindanao Railway (Circumferential) project, a 2,000 kilometer railway to finished 2021
• PNR South Rail that would connect Manila with Calamba and Los Baños in Laguna, and the Bicol region to be completed by the fourth quarter of 2021
• Manila International Airport – Quezon City – Clark International Airport Bullet train system interconnecting the first Subway in QC to finished before 2021
• ₱23.3 billion North Luzon Expressway-South Luzon Expressway connector road, which starts from C3 Road in Caloocan through Manila, crossing Espana towards PUP, Sta. Mesa connecting Metro Manila Skyway Stage 3.
• The completion of the SLEX-NLEX connector road, projected to take place in 2020, is expected to reduce vehicle congestion along EDSA, C5 Road and other major thoroughfares, and cut the travel time between NLEX and SLEX to 15-20 minutes from more than an hour.

First Metro subway's first phase to link Quezon City, Taguig

Transportation Secretary Arthur Tugade said at a forum on Tuesday that the subway system, pegged at an initial ₱227 million for the central section, will pass Mandaluyong City and Pasig City.

The transport system, the first subway project the country will undertake, is foreseen to accommodate around 300,000 commuters daily, Tugade said.

The proposed subway stems from an ongoing Japan International Cooperation Agency's feasibility study, which will be subject to the approval of President Rodrigo Duterte and his officials. The study is expected to be completed in July this year.

The Japanese agency's proposal aiming to ease road congestion includes an expansion of the subway to start from San Jose del Monte in Bulacan to Dasmariñas City in Cavite to be completed by 2024.

Economic, Development  Blueprint

President Rodrigo Duterte's economic managers made the announcements at an event hosted by the Department of Finance and the Presidential Communications Operations Office (PCOO) at the Conrad Hotel, Pasay City.

According to the PCOO, DuterteNomics includes the current administration's main governance and fiscal policies, comprehensive big-ticket infrastructure programs and upgraded social services targeted to accelerate growth. The economic and development blueprint also aims to transform the Philippines into a "high middle-income economy" by 2022.

Executive Secretary Salvador Medialdea said the economic and development plan is anchored on the 10-point socioeconomic agenda of the Duterte administration that focuses on "the production of a progressive tax reform package and measures designed to bring about increased competitiveness, accelerated infrastructure spending, and improved social amelioration and development programs."

Finance Secretary Carlos Dominguez, in a keynote speech, said the Philippines had trailed behind other countries with good economy, but stressed that it is about time to rebuild the country’s competitiveness by pushing for programs such as tax reform package and infrastructure projects. "An investment-led growth pattern creates job and opens more economic opportunities for our people," he said. "We must build a truly inclusive economy. To do so, our economy should be investment-led, creating new jobs and opening opportunities for all." 

Dominguez said the government is also looking forward to what has been called a "demographic sweet spot," as the populations of some of the more mature economies in Asia begin to age. He said that the administration has to invest in the Filipino youth.

Ongoing projects are being implemented by the Department of Public Works and Highways (DPWH) that are either locally funded, with Official Development Assistance (ODA), or through Public-Private Partnership (PPP) projects, the following: 

1. Mandaluyong Main Drainage Project (Phase II)
2. Central Luzon Link Expressway, Phase I,
3. Tarlac-Cabanatuan, Nueva Ecija; Integrated Disaster Risk Reduction and Climate Change Adaptation Measures in the Low Lying Areas of Pampanga Bay
4. Tarlac-Pangasinan-La Union Expressway (Binalonan-Rosario Section)
5. Flood Risk Management Project (FRIMP) in Cagayan de Oro River
6. Sen. Gil Puyat Ave.-Paseo De Roxas / Makati Ave. Vehicle Underpass Project
7. Bonifacio Global City-Ortigas Center Link Road Project
8. UP-Miriam-Ateneo Viaduct along C-5/ Katipunan
9. Metro Manila Priority Bridges Seismic Improvement Project (Guadalupe Bridge and Lambingan Bridge
10. Widening/Improvement of Gen. Luis St.-Kaybiga-Polo-Novaliches
11. Cavite-Laguna Expressway
12. NLEX-SLEX Connector Road
13. Metro Manila Interchange Construction Project VI
14. Davao City By-Pass Construction Project (South Section (Road) and Center Section (Tunnel)
15. Panguil Bay Bridge, and Phase 1 of the Metro Manila Flood Management Project

PPP awarded projects

1. Integrated Transport System (ITS) Project
2. South Terminal
3. Integrated Transport System (ITS) Project
4. Southwest Terminal
5. LRT Line 1 Cavite Extension and Operations and Maintenance
6. Contactless Automatic Fare Collection System
7. Mactan Cebu International Airport Project
8. MRT Line 7

PPP projects that are either undergoing or about to undergo bidding

1. The Development, Operations and Maintenance of Bacolod-Silay, Davao, Iloilo, Laguindingan and New Bohol (Panglao) Airports;
2. LRT Line 2 Operations and Maintenance;
3. Road Transport Information Technology Infrastructure (Phase II);
4. LRT Line 6;
5. Philippine National Railways – South Line (previously, the North-South Railway Project – South Line);
6. NAIA Development

The DOTr, through a combination of ODA and PPP, is implementing and developing a total of 23 rail projects which will greatly expand the country’s rail system from the current 77 kilometers to over 1,750 Km.

The 10 ongoing rail projects includes the following:

1. PNR North (Manila-Malolos),
2. PNR South Commuter PPP Project (Manila-Los Banos),
3. PNR South Long Haul PPP Project (Los Banos-Legaspi,Matnog,Batangas Port),
4. Line 1 Cavite Extension PPP Project (Baclaran-Niog),
5. Automated Fare Collection System PPP Project (Beep Card),
6. Line 2 O&M PPP Project,
7. Line 2 East Extension (Santolan-Masinag),
8. Line 2 West Extension (Recto-Pier 4),
9. Line 6 PPP Project (Niog-Dasmarinas),
10. Line 7 PPP Project (San Jose Del Monte-North EDSA).

Rail projects are being developed by DOTr

1. Mindanao Railway (Circumferential),
2. Cebu Railway (5 lines),
3. Panay Railway,
4. Line 4 (Taytay-Manila) PPP Project,
5. Line 5 (Pasay-Makati-Taguig) PPP Project,
6. Line 8 (Quezon City-Manila) PPP Project,
7. PNR North Phase 2 (Malolos-Clark),
8. Mega Manila Subway Project,
9. Subic-Clark Railway

DOTr 3 Bus Rapid Transit (BRT) systems:

1. Cebu Bus Rapid Transit (BRT)
2. The Quezon Avenue Bus Rapid Transit (BRT)
3. The Central Corridor (EDSA) Bus Rapid Transit (BRT).

Other DPWH projects:

1. Panay-Guimaras-Negros Link Project
2. EDSA-Taft Flyover
3. Central Luzon Link Expressway, Phase II
4. Cabanatuan-San Jose, Nueva Ecija
5. Flood Protection Works in the Marikina River including Retarding Basin
6. Dalton Pass East Alignment Alternative Road Project

FUNDING FOR THESE PROJECTS

The government is spending 5.3 percent of the country’s gross domestic product in 2017 to finance the building, Finance Secretary Carlos Dominguez said. This will be raised to 7.1 percent by 2022.

This is higher than the 2.6 percent annual average of the past six administrations in the last 50 years, he said.

“In the decades when we neglected our infrastructure, we lost out on competitiveness,” Dominguez said.

“This is the time to move decisively. Fortunately we have a leader capable of much audacity.”

Budget Secretary Benjamin Diokno said the government under Duterte would spend P8.4 trillion for infrastructure.

A government portal (www.build.gov.ph) was also launched to help the public guard the infrastructure projects against corruption.

Presidential spokesperson Ernesto Abella said the website would be regularly updated to reflect the progress of every project.

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China, Japan, Korea, Russia compete for $2 Billion Nuclear Plant, LNG Philippines Gas project

Russia Floating Nuclear Power Plant Technology. illustration: popsci.com

China, Japan compete for $2bn Philippine gas project

China and Japan are competing for a $2-billion liquefied natural gas (LNG) project in the Philippines, Energy Secretary Alfonso Cusi told the Nikkei Asian Review.

Over 20 companies from eight countries have proposed partnerships with state-owned Philippine National Oil Corp. for an LNG receiving terminal at the southern part of Luzon Island. Cusi said his team is still reviewing funding and technology options.

"We are talking to China [and] Japan," he said. "We are looking at which can offer the best in terms of funding. It's too early to say who is more advanced -- there are so many things to look into."

Countries that offer the best financing options usually pick their own domestic contractors. Cusi said Tokyo Gas, Osaka Gas, and a number of Chinese state-owned and private companies have shown interest.

Cusi is vice chairman of President Rodrigo Duterte's PDP-Laban party. He has traveled to Beijing and Tokyo this year to solicit energy investments for the Philippines, which runs into alerts and price spikes for electricity whenever the country's lone LNG facility undergoes maintenance.

Cusi said he plans to travel to South Korea and Russia, and does not favor any particular power-generating technology. He said Malampaya, the only source of natural gas in the Philippines, is expected to be exhausted by 2024. The gas field operated by a consortium led by Royal Dutch Shell provides 40-45% of Luzon island's power requirements. Luzon accounts for two-thirds of gross domestic product in the Philippines.

The proposed terminal could import LNG from other countries while alternate Philippine resources are being developed. These include gas fields in the South China Sea in dispute with China. The terminal's plant will initially generate around 200 megawatts, but can expand to 800MW. Cusi hopes to find an investor this year.

Duterte is targeting total household electrification before he leaves office in 2022. As of December, over 90% of households had access to energy. Cusi also said he is studying the possibility of activating a $2 billion nuclear power plant on the Bataan peninsula. The project, initiated under President Ferdinand Marcos in the 1970s but never activated, is located near an earthquake fault line.

Sulu Province of Southern Philippines could have the first ever operating 100 MW Nuclear Power Plant this year according to the report (see here) - Nikkei Asian Review

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Malaysia inspects North Korean coal ship for possible U.N. sanctions breach

North Korean Cargo Ship "KUM YA" (former Lucky Star 7)

By James Pearson, Rozanna Latiff and Tom AllardKUALA LUMPUR, March 29 

(Reuters) - Malaysia briefly prevented a North Korean ship carrying coal from entering its port in Penang because of a suspected breach of United Nations sanctions, a port worker and Malaysian maritime officials told Reuters on Wednesday

The KUM YA (Formerly Lucky Star 7) was carrying 6,300 metric tons of anthracite coal, according to a worker at Penang Port who spoke to Reuters on condition of anonymity. It was later allowed to dock, where an inspection team accompanied by an armed escort boarded the ship.
 
A December 2016U.N. Security Council resolution placed a cap on exports of North Korean coal, and urged member states to apply extra scrutiny on North Korean ships.

Production of coal in North Korea is state-controlled and its exports are a key source of hard currency for the isolated country's banned nuclear and ballistic missile programs.
 
Relations between North Korea and Malaysia, which have been friendly for decades, have soured following the February assassination of North Korean leader Kim Jong Un's half-brother at Kuala Lumpur International Airport.
 
The North Korean ship had been initially prevented from entering Penang Port due to a possible breach of U.N. sanctions, MMEA deputy director-general of operations Zulkifli Abu Bakar, told Reuters without offering further details.
 
It was unclear what the inspectors were checking on. The United Nations in its annual reports on how members have complied with sanctions have cited a number of instances over the past decade in which North Korean missile parts and coal connected to sanctioned entities were trans-shipped through Malaysia.
 
Malaysia is one of the few countries in the world which buys North Korean coal, with China by far the biggest importer.

LUCKY STAR
 
The KUM YA was recently re-flagged as a North Korean ship, changing its name from Lucky Star 7 in November last year, according to the Equasis shipping database.
 
 It was registered on Feb. 13 to North Korean shipping company Sonchonggang Water Transport, according to copies of the ship's registration documents, which were issued by North Korea'sMaritime Administration, and seen by Reuters.
 
The ship was carrying 20 crew members, and was scheduled to sail onto Singapore, the port worker said.
 
The ship listed its port of origin as Busan, South Korea. However, shipping data in Thomson Reuters Eikon shows the cargo was loaded at the Huaneng Shandong Power Station Weihai, a coal-fired power plant. It then sailed to Penang through the South China Sea and the Malacca Strait, the data shows.

Source: (http://tmsnrt.rs/2ofxNXe)
 
China halted all coal imports from North Korea starting on Feb. 26, amid growing tensions on the Korean Peninsula following one of a series of Pyongyang's missile tests.
 
Malaysia's foreign ministry told officials at Penang Port not to let the ship dock before an inspection team had it "declared safe," the port worker said.
 
The Malaysian Maritime Enforcement Agency (MMEA) confirmed the ship had been stopped following instructions from Malaysia's foreign ministry, which did not immediately respond to requests for comment.
 
 "Many North Korean ships call on our ports and we never had problems. Just over the recent months, there have been problems," the port worker told Reuters. "We have never received directives to stop North Korean ships before."

NOT CONFISCATED
 
The KUM YA was first stopped at sea before being allowed to dock in port where it was immediately cordoned off, the port worker said.
 
 "Minerals and Geoscience Department officials were then called to inspect the cargo on board. The department officers were told to confirm it was indeed coal on board," the port worker said.
 
The coal was being unloaded on Wednesday afternoon and has not been confiscated, the port worker said.
 
Since 2011, Malaysia has imported over 2 million metric tons of coal a year, according to government statistics, which are not broken down by country of origin.
 
The KUM YA shipment was handled by Malaysian freight forwarding company Alim Maritime Sdn Bhd, the port worker said. An Alim Maritime official reached by telephone declined to comment.
 
The KUM YA can hold up to 6,843 metric tonnes of cargo, according to Equasis, meaning it was 92 percent full when it arrived in Penang.

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