Full support for Dutertenomics

The second in a series of forums organized by Finance Secretary Sonny Dominguez, together with the Presidential Communications Operations Office, went well the other day at the Conrad Hotel in the Mall of Asia Arena complex in Pasay City. The big names in business – which include SM Investment’s Tessie Sy-Coson, Ayala Corp.’s Jaime Augusto Zobel and Double Dragon’s Injap Sia (seen in photo) – were very gung-ho and supportive of the economic infrastructure program outlined by the administration of President Rodrigo Duterte.

Members of the foreign media were also present to listen to the presentations from Cabinet members, followed by a question-and-answer session. Most likely, this will be the same format that will be presented to various audiences across the globe to elaborate on the policies and programs outlined by the government to reshape the country’s economic development into one that is investment-led.

The Philippines has one of the fastest-growing economies in Asia, but potential investors have been turned off by several factors like logistical bottlenecks and policy inconsistencies, not to mention the delays in the implementation of government infrastructure projects.

But as explained by Budget Secretary Ben Diokno, we now have the necessary conditions and the “right formula to transform the Philippines into the Asian tiger that is capable of becoming.” Political will, he stressed, is also necessary to lay the groundwork for a robust, wealth-generating and wealth-distributing economy.

The Duterte government has promised to usher in a golden age of infrastructure, and judging from the presentations, things are now moving and on track. Out of 55 public-private partnership (PPP) projects worth P612.55 billion that have been lined up, 15 are now under implementation with contracts already awarded as of March, while 40 others are in various stages of the process.

Tourists will certainly be impressed by the recently completed Runway Manila project which is a pedestrian bridge directly linking Newport City with NAIA Terminal 3.  According to Public Works Secretary Mark Villar, this air-conditioned structure is the first of its kind in the country, which will make arrivals and departures at NAIA 3 much more pleasant and comfortable as it has moving walkways and PWD-friendly features, aside from the fact that it will help reduce congestion at the airport.

Also at the forum were Executive Secretary Bingbong Medialdea, Trade Secretary Mon Lopez, Sen. Alan Cayetano, Communications Secretary Martin Andanar, Energy Secretary Al Cusi, Transportation Secretary Jun Tugade and BCDA’s Vince Dizon.

As usual, Secretary Tugade gave a very lively and energetic presentation which I’m sure managed to excite the audience as he outlined the numerous projects that are in the pipeline – from the upgrading and construction of airports to port modernization projects, down to railways and bus rapid transit systems and terminals that are geared to decongest traffic and open up economic opportunities in many areas outside of Metro Manila.

Cusi needs $55 billion in energy investments

Energy Secretary Al Cusi cut to the chase when he pointed out that “trains won’t run, rudders will not work without energy” because power is needed to support all the ambitious infrastructure projects that are being undertaken by the government. According to Cusi, the country will need about 17,000 megawatts of capacity to power growth until 2030, and an additional 26,000 megawatts from 2030 to 2040 to support the government’s long-term development vision dubbed as “Ambisyon Natin 2040” – or a total of 43,000 megawatts.

The DOE’s mandate is to create an environment that would ensure energy reliability, provide affordable electricity and protect public interest, and it definitely needs the support of the private sector via investments on energy since not enough power plants have been built to cater to the growing demand for energy. According to Cusi, some $55 billion in investments will be needed for the first 17,000 megawatts and another $70-80 billion for the additional 26,000 megawatts needed until 2040.

The Energy secretary highlighted the Visayas-Mindanao grid connectivity project which is high priority as it is “very badly needed for energy sharing and energy security.” Mindanao, which had gone though a debilitating five-year power shortage, now has sufficient energy due to the support coming from independent power suppliers such as the Alsons Power Group. However, exporting energy to Visayas and Luzon – which need additional reserves – is difficult due to the lack of connectivity.

“This has been pending for more than 10 years, and so the Duterte administration is rushing this project,” Cusi explained, adding that the government is looking at using the Malampaya funds for the connectivity project so that the cost for transmission and other charges will not be passed on to the consumers.

‘Corporate genius’ passes away

We were informed yesterday that former congressman Mario Crespo – also known as Mark Jimenez – died of a heart attack at the age of 70.

Mark was dubbed as Erap Estrada’s “corporate genius” for helping in the sale of PLDT to the group of Manny Pangilinan. We were actually surprised at the news report claiming he was a classmate of Erap – who was much older having recently celebrated his 80^th birthday.

Mark was actually a year ahead of me at the Ateneo but he hanged around our class most of the time.

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