The real score

With China Telecom and one of President Duterte’s largest election fund contributor Dennis Uy being part of the Mislatel consortium that was named the provisional third major telecommunications player in the country, it was of course easy to conclude that the President had a hand in the selection process especially after the latter has previously mentioned that he is offering China the privilege to become the third telco player.

But it is not Mislatel’s fault that its bid was the only compliant one. Two other parties that submitted their bids – Sear Telecommunications of Luis Chavit Singson and PT&T – were disqualified after submitting incomplete bid documents. Other groups who bought bid documents backed out.

Information and Communications Technology Acting Secretary Eliseo Rio also gave assurances that they did not look at personalities, only documents.

We of course would have wanted a good fight. Unfortunately, Sear Telecom and PT&T did not even put up one.

Sear’s lawyers did not even know that the issue they were raising against Mislatel and Digiphil should have been brought to regular courts. On the other hand, PT&T thought it could make the government and public believe that it has been operating for 10 years when in fact, it went under rehabilitation. Worse, its SSS dues to its employees remain unpaid.  

Senate President Vicente Sotto III has proposed that bidders, through a waiver, should be prohibited from protesting the decision of a government agency should they lose the bidding to avoid delays in government’s procurement of goods and services.

The bottom line is that the entry of a new player will mean more choices for consumers. Thus, the privilege to be the one should be given to the best there is.

Financial muscle

Business mogul Enrique “Ricky” Razon sees his latest foray into the electricity distribution business in Iloilo City as part of a strategic business development program that will make the region’s economy boom and benefit the region’s residents.

His company More Electric and Power Corp. (MEPC) recently secured approval by the House of Representatives for a 25-year franchise to distribute and sell electricity to Iloilo City’s 60,000 residential and business consumers, replacing Panay Electric Co. (PECO).

According to Iloilo City Councilor R. Leon Gerochi, what cemented More Power’s bid to take over the electricity distribution system in Iloilo City was a city council resolution that asked the national government to take over PECO’s operations, and for Congress to deny PECO’s application for a new congressional franchise to replace its existing franchise that expires on January 18, 2019.

More Power has assured Iloilo City residents that it is financially capable of modernizing the city’s electricity distribution system with a P2 billion capital infusion from its mother company Monte Oro Resources and Energy Corp. owned by Razon.

To ensure smooth operations, Razon has organized a management team led by Roel Castro, former president and CEO of Palm Concepcion Power Corp. which operates a 135-megawatt coal-fired power plant in Concepcion town in Iloilo. It also includes COO Amador Guevarra, currently general manager of Pampanga II Electric Cooperative, chief technical officer Ed Ceraspe, who was with the National Grid Corp. of the Philippines, and legal counsel Atty. Cyril del Callar, former president of the National Power Corp.

The huge capital infusion is more than enough to finance the P500-million investment in modern distribution equipment and transmission lines recommended in a study commissioned by the Iloilo Economic Development Foundation to improve the efficiency and reliability of electricity service in the city.

China-RP partnership

As far as the new regional economic play is concerned, the Philippine seems to be in a very good position.

Aside from having good relations with China, it is also part of the proposed free trade agreement called the Regional Comprehensive Economic Partnership (RCEP), whose members include the 10 ASEAN member states and six Asia-Pacific states with which ASEAN has existing free trade agreements namely Australia, China, India, Japan, South Korea, and New Zealand.

China plays a very important role in the regional trade block being the largest producer of goods and biggest buyer of goods and services in the region.
 The Philippine, being an ally of China, is starting to reap the benefits. China’s Ambassador to the Philippines Zhao Jianhua has said they will buy $9 billion more annually before the end of President Duterte’s term to balance trade with the Philippines.

Asean and China have adopted the Framework for the Code of Conduct for the South China Sea only last year but progress has been fast. China aims to complete negotiations for the Code of Conduct in three years’ time.

President Duterte has also said at the ASEAN Summit that he is committed to work with all concerned parties in the substantive negotiations and early conclusion of an effective code of conduct.

China President Xi JinPing’s upcoming state visit will be crucial, not only because it shows to the world the importance that China gives to its relations with the Philippines but also because of the billions of pesos in infrastructure projects which the latter stands to gain. Affirmation of the urgency of the Code of Conduct will also certainly be in the agenda.

Black Christmas

Last September 20, more than 70 lives perished in a landslide in Naga City, Cebu. Immediately, hundreds of volunteers, and even the company being blamed for the incident, Apo Land and Quarry Corp. provided resources necessary for retrieval, relief, evacuation and relocation operations.

Not to diminish the pain of those who lost loved ones and their homes, but focus should also be given to ALQC and APO Cement employees whose jobs are now at stake.

Apo Cement Corp. has announced its decision to temporarily lay-off up to about 30% of its employees and to reduce around 40% of its contractors.

Since the suspension of ALQC (its immediate supplier for lime), it said it was forced to source raw materials even from abroad to meet the requirements of Visayas and Mindanao, resulting in huge cost pressure to the company.

As the second largest cement plant in the country, Apo Cement supplies bulk of Visayas and Mindanao. It is feared that its paralysis will affect infrastructure programs in the two regions, eventually resulting in job and government revenue losses, and scarcity and increase in prices of cement.

It is estimated that around 400  families will have to suffer losing their livelihood, hopefully, temporarily.

Recently, hundreds of employees and contractors trooped to the City Hall to let their cries be heard. Even Senator Joel Villanueva, DOLE and the City of Naga have urged government to act swiftly so that the lay-off of these workers could be prevented.

Meanwhile, DTI and DPWH have expressed concerns that prices and supply of cement might be impacted by the current situation of APO Cement.

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