Author: user user

This piece of good news nearly fell below the radar.The Department of Energy (DOE) announced this week the signing of eight new Petroleum Service Contracts (PSCs) for oil exploration. The deals went though a transparent and competitive selection process as required by law. Altogether, the eight contracts translates into $207 million in investments over a seven-year period.

Significantly, one of the contracts sealed involves exploration and, hopefully, extraction of natural hydrogen. This is considered green fuel with many possible applications in industry and transport.

$207 million is not a staggering sum. But these contracts represent something truly consequential for the country’s energy security. Since 1989, when the Malampaya wells began producing natural gas for the country, there has been a drought of new investments for oil and gas exploration.

Somehow there was a misfit between standing policy and investor expectations. Exploration is a capital-intensive and high-risk venture. It requires mobilizing the best technologies for geological and geophysical surveys as well as extensive seismic and aeromagnetic studies.

Securing our energy future is a task that cannot be undertaken small scale. It requires inviting in the best companies in the world to take a stake in energy exploration and, ultimately, energy production.

We have vast natural resources on land and in our seas. We have been slow in exploiting these resources for national development because of many hindrances. The main deterrent for potential investors is the uncertainty and unpredictability of exploration projects due to unclear or nonexistent regulations.

The few global companies capable of undertaking exploration projects for oil and gas are not there to do charity or perform philanthropy. They expect firm assurance of profitable return for venturing in exploration.

The DOE under the leadership of Sharon Garin worked hard to clear the uncertainty. The eight deals announced this week became possible after the DOE committed to providing special allowances for the service contractors. The goal was to reinvigorate investments in our upstream energy industry.

Department Circular No. DC2025-09-0017, titled ‘Grant of Special Allowances for Petroleum Service Contractors,’ implements constitutional mandates to protect exploration investors. This served as an open invitation for all those willing to invest in uncovering our vast natural resources.

The new circular offers service contractors special allowances deductible from gross proceeds. While preserving government’s 60 percent share, operating expenses of up to 70 percent will be reimbursed. This offers not just relief but also assurance to investors that government is committed to playing its part in harnessing the country’s natural resources for development.

Additionally, government is introducing additional allowance for marginal petroleum operations when annual operating expenses surpass the 70 percent recovery allowance. To encourage production in the newly discovered petroleum fields in frontier regions, the DOE is offering a five percent allowance on gross proceeds to the initial commercial development.

The grant of the special allowances mentioned above is inspired by successful policy models adopted by Malaysia and Indonesia that offer more substantial exploration investment incentives. Our two neighbors offer a more generous package including reduced tax rates, accelerated capital allowances, investment allowances and export duty waivers.

Because of the generous fiscal incentives they offer, the economies of our two neighbors have successfully attracted investors to help grow their upstream energy sectors. This is the reason our two neighbors are well ahead of us in this regard.

The new incentives for exploration continues our government’s effort to build up our upstream energy production. Two years ago, government extended Service Contract 38 which governs the Malampaya gas field. Two new wells are being dug in the service area with $893 million in additional investments.

The two new wells are of critical importance. They will extend the availability of indigenous natural gas on which a large part of our power production relies – until new fields are developed.

We may not see full energy self-sufficiency in our lifetime. But the innovative energy policies recently adopted move us towards a robust upstream energy industry.

Overstated

The Palace was quick to react to SEC Chairman Francis Lim’s pronouncement that P1.7 trillion in market capital evaporated over the recent weeks because of uncertainty created by the raging infrastructure corruption scandal.

At first glance, that did seem to be a gross overstatement. Our equities market is small even by regional standards. Such a volume of loss would have been truly earthshaking.

It turns out the loss quoted was from an erroneous report circulating in social media. Lim was quick to acknowledge his error. The real estimate of market loss during the specified period under consideration amounts to P180 billion.

The corrected estimate is roughly just a tenth of the first figure quoted by Lim. Still, given the smallness of our capital market, a loss of P180 billion is still awesome.

The raging corruption scandal is taking a tremendous toll on our economy. We will likely end the year with GPD growth below even our most conservative estimates. Acknowledging the corrosive impact of the corruption scandal on our economic performance, the BSP and the Monetary Board surprised the market by cutting interest rates by 25 basis points.

Lowering the interest rate regime intends to spur business activity. But this will also take a toll on the peso. We have the distinction of having both the worst performing stock market and the worst performing currency in Asia.

I have long wanted to write about greener choices when it comes to tourist destinations because it’s not only a good thing to do for Mother Earth, but a smart thing to do. And I am excited to tell you about Barangay Marang Marang in Isabela City, Basilan on the Indigenous People and women side, and Banwa Private Island on the other end of the economic spectrum, being an exclusive location worthy of being in the 100 best places to visit list.

They share many commonalities except for price. Marang Marang is reachable by boat from mainland Isabela and is amongst mangroves where we were served Basilan’s pride – pure Excelsa coffee, brewed right on the rafts where the women of Marang Marang entertain visitors. We were afloat rafts with comfortable seats, plenty of tables and delicious local fare. Along with coffee we had rice cakes, sweet potatoes and bananas. The women of the community regaled us with stories of how they live catching shrimps and other seafood found in the river/mangrove areas.

I wanted to recommend the community to be part of the Slow Food movement, as they were preserving local heritage, local food culture, which is the women association’s main source of business. Their first international recognition, however, is being a Green Destination. And they surely passed the bar to be named such as I had observed when I last visited Basilan.

On another island, Palawan, we drove through clean highways from Puerto Princesa airport to Roxas, a nice, comfortable two-hour ride until we reached the north side to get our ride across to Banwa private island. A one-of-a-kind amphibian they call the Iguana brought us to this paradise on the Sulu Sea. It is a dot on the map, a mere eight hectares of unspoilt beauty where the owners decided it should be a liveable, breathable and the epitome of sustainability.

First off, they found drinking water – digging 500 feet into the ground and after several unlucky tries, they found the source of good water. They then found a company who could filter and bottle and even make a sparkling version of this wonderful much-needed resource.

Next, they managed to remove the mosquitoes, which is a tourists’ nightmare in the tropics. They invested in over 70 mosquito catchers spread all around the island, which ensures that no mosquito will bother the guests. That already spells paradise to many. Another pesky beach companion are sandflies or niknik which they also managed by gathering all the seagrass near the shore, which becomes breeding ground of these flying pests. By gathering the seagrass and putting them in sacks to be disposed off somewhere in the sea, the sandflies have nowhere to breed on the island.

Next item on the list is food, of course. Every tourist or guest would have preferences and food allergies to avoid. The chef, a young man named Gian who trained long enough in Finland and Manila, creates menus from vegetables found in their own organic farm (across the island), local seafood and an occasional steak or lamb chop, but mostly seafood.

Breakfast starts with lamayo, a local marinated fish -prepared along with eggs and garlic rice. Or you may want house baked croissants or pain au chocolat, also prepared by in-house pastry chef Christian.

Lunch is set either at the main dining or on the shore, depending on weather conditions. In the villas – and there are only six in the whole island – you may also prepare your own coffee, tea and drinks and savor house made cookies like cashew sable, chocolate barks and little fruit-infused bonbons.

Dinner could be a freshly-caught local lobster or local fish like snapper or grouper. The salads are well-made with local cheeses from Davao, Brazilian spinach from their farm and a variety of freshly-made house dressings. I was surprised that they even had fresh sambal, as one of the chefs did train in Malaysia and in Arabic kitchens.

The menu is thought of with sustainability in mind as all the ingredients are sourced locally and using these local fruits and nuts, the chef is able to prepare even ice cream with a touch of cashew (abundant in Roxas) or local Robusta and Arabica coffee beans. The chocolate bonbons either have langka (jackfruit) or ube (purple yam) and a Robusta coffee ganache.

Next on the list are their strict rules on conservation. Not only of local plants like mangroves and other island species, but of marine life. A recreation manager named Bernard can lead you on a ‘low tide’ walk where you can see stingrays, eels and sea cucumber and the whole food chain of fish as you wade noisily and actively in the shallow water. You need to make your movements felt so the creatures you may step on accidentally can get out of harm’s way. There also is a chance to snorkel and see more water inhabitants, as well as serious scuba diving for some guests (not me, unfortunately).

The owners are strict observers of conservation and founded a non-profit called Aquos Foundation to do just that – conserve what you find on the island and off it. They also make sure the communities are taught marine conservation and sustainability, lest they forget these in the pursuit of tourist dollars.

In our first example, Marang Marang, the city government of Isabela City in Basilan is the prime mover and enabler of the coastal community. In both these examples, although far from each other in price points, the idea is the same – conserve Nature and think of sustainability.

Green destinations are truly possible in this country and I can imagine 7,000 more islands doing the same. Palawan as seen in Puerto Princesa can be the shining example of political will to keep a province or city clean. Children are born into clean culture and grow up practising this ‘no littering’ concept and living it. ‘Kaya pala,’ we all said. That simply means ‘it can be done.’ Every island can indeed be a green destination.

The Anti-Money Laundering Council (AMLC) has obtained its sixth freeze order from the Court of Appeals, covering 39 bank accounts and other assets linked to alleged irregularities in government flood control projects.

In a statement Friday, October 10, the AMLC said the latest order includes four insurance policies and 59 real estate properties-residential, commercial and agricultural-some of which are connected to a former high-ranking official “suspected of playing a central role in the procurement process of the questioned contracts.”

The new order on the unnamed official’s assets brings to P4.67 billion the estimated value of suspected ill-gotten wealth frozen since the Court of Appeals issued the first order on September 16.

To date, authorities have frozen a total of 1,671 bank accounts, 58 insurance policies, 163 motor vehicles, 99 real properties and 12 e-wallet accounts believed to be linked to the alleged corruption scheme.

‘We are taking deliberate actions to preserve assets potentially linked to unlawful activity,’ AMLC Executive Director Matthew David said in a statement.

The council is coordinating with the Independent Commission for Infrastructure (ICI), the Office of the Ombudsman, the Bureau of Internal Revenue and the National Bureau of Investigation in reviewing individuals and entities flagged during recent Senate hearings.

AMLC said the coordination underscores the “government’s commitment to a thorough and impartial inquiry’ into the alleged misuse of flood control funds, which investigators have linked to ghost and substandard projects amounting to hundreds of billions of pesos.

The agency said additional freeze orders may follow as new leads are uncovered.

Two people died when their motorcycle collided with an ambulance in Meycauayan, Bulacan on Thursday afternoon.

Eduardo Tubera, 59, and his wife Narcisa, 64, were rushed to the Marymount Hospital where they died while being treated.

Reports said the Tuberas were traveling in Barangay Bahay Pare when their motorcycle crashed into the ambulance.

The ambulance, driven by Ruel de Castro, reportedly tried to overtake, causing it to hit the motorcycle.

The victims were thrown off the motorcycle, Brig. Gen. Ponce Rogelio Peñones Jr., Central Luzon police director, said.

Just over a week after a magnitude 6.9 earthquake devastated Cebu, an even more powerful quake struck the Davao Region yesterday morning.

The 7.4-magnitude tectonic earthquake, with its epicenter traced offshore in Davao Oriental, sent people rushing out of schools, office buildings and residential structures, and sparked tsunami warnings all the way to Indonesia.

It also elicited announcements from government officials about inspections of buildings and public works infrastructure for structural integrity. The task falls mainly on the Department of Public Works and Highways, which has the engineering manpower and resources to conduct periodic inspections and retrofitting of DPWH-built structures.

Such assessments and engineering interventions were recommended two decades ago, in a study focusing on the ‘Big One’ in Metro Manila. The study was conducted by the Japan International Cooperation Agency together with the Philippine Institute of Volcanology and Seismology and the Metropolitan Manila Development Authority.

In the past two decades, how many such assessments and retrofitting were actually carried out by the DPWH? Brice Hernandez, recently sacked as DPWH assistant district engineer for Bulacan’s first district, had told the Senate that all flood control projects in that area were substandard.

Authorities are still trying to determine how many other DPWH projects, including schools, farm-to-market and other roads as well as hospitals, are substandard. Yesterday, all road reblocking projects for minor repairs were suspended by DPWH Secretary Vince Dizon on suspicion that these were unnecessary projects meant merely for kickbacks.

The same cloud of doubt now hangs over DPWH infrastructure retrofitting. Even if such projects were approved and listed as completed, a new round may be needed, in the light of the collapse of two concrete-and-steel bridges, one of them brand-new, this year alone in Northern Luzon.

There wasn’t even an earthquake when a portion of the Cabagan-Santa Maria Bridge in Isabela collapsed on Feb. 27, less than a month after its retrofitting was supposedly completed. The P1.2-billion bridge had to be retrofitted due to flaws detected in 2023. This cost an additional P274.8 million, with the contract awarded to the same company that built the bridge.

Last Monday, the Piggatan Bridge in Cagayan also collapsed, even without an earthquake. Both incidents have been blamed on overloaded trucks. The 45-year-old Piggatan Bridge was retrofitted only once, in 2016, at a cost of P11.7 million. With that modest amount, there are questions on whether any actual retrofitting was done.

With powerful earthquakes in recent weeks, the specter of death and destruction from badly maintained infrastructure is haunting the country. Once again there is talk of retrofitting. Those in charge must be reminded that they are supposed to reinforce public infrastructure and not their personal bank accounts.

Business tycoon and sports patron Manny V. Pangilinan will receive his own MVP plaque in the 31st PBA Press Corps Awards Night on Monday, October 13, at the Novotel Manila Araneta City.

The managing director and CEO of Hong Kong-based First Pacific Company is set to be honored with the Danny Floro Executive of the Year award following a season to remember for the TNT Tropang 5G – the flagship team under the MVP umbrella.

The Tropang 5G claimed the first two championships of Season 49 (Governors’ Cup and Commissioner’s Cup) and was aiming for a rare grand slam that just fell short after the team lost to San Miguel in the Finals of the Philippine Cup.

Nonetheless, it was a fitting campaign for the MVP Group of Companies, which came in the heels of Meralco winning its first-ever PBA championship just a season ago.

Pangilinan, who also chairs PLDT and the Metro Pacific Investments Corp., will be receiving his third Executive Award from the group of men and women who cover the PBA beat, led by its president Vladi Eduarte of the Abante Group of Publications.

He is just the third executive to win the honor thrice after the late RFM team manager Elmer Yanga (1993-95) and SMC Sports Director Alfrancis Chua (2017, 2021 and 2024).

Pangilinan, a cum laude alumnus of Ateneo De Manila with a Bachelor of Arts degree in Economics, previously won in 2003 and 2011, the same season when TNT came close to completing a grand slam.

The Press Corps named the prestigious award in honor of Valeriano ‘Danny’ Floro, the amiable late team owner of the fabled Crispa Redmanizers, the only franchise in PBA history to win two grand slams (1976 and 1986).

Bones Floro, secretary general of the National Golf Association of the Philippines and grandson of the legendary Crispa team owner, will personally hand out the award to Pangilinan.

The 79-year-old Pangilinan shares the limelight with the winner of the Baby Dalupan Coach of the Year Award being contested by TNT’s Chot Reyes and San Miguel’s Leo Austria.

Aboitiz-owned Davao Light and Power Co. Inc. is setting aside at least P1 billion to acquire Northern Davao Electric Cooperative Inc.’s (Nordeco) electricity distribution assets.

In a media briefing, Davao Light president and COO Enriczar Tia said the company has extended an initial offer to Nordeco for its assets in Davao del Norte and Davao de Oro.

‘But that’s subject to the negotiation with Nordeco. Right now, we still need to get all the data of their assets,’ he said.

This comes after Republic Act 12144 lapsed into law on April 6, effectively expanding Davao Light’s franchise to include Tagum City, Samal Island and several areas in Davao del Norte and Davao de Oro.

As part of the transition period, the law allows Nordeco to operate in those areas for up to two years to ensure an uninterrupted supply of electricity to consumers.

Tia, however, said the power cooperative was ‘resistive’ and even pursued legal actions to challenge the constitutionality of the franchise expansion.

He said the takeover’s impact has yet to reach consumers, as Davao Light has not formally started operations in the newly covered areas.

‘One thing I can say is that several things will happen once we take over. First, since this is a Davao Light franchise expansion, they (consumers) will automatically benefit from lower (power) rates,’ Tia said.

In July, Davao Light charged consumers just P9.20 per kilowatt-hour, which, according to Tia, was way lower than Nordeco’s average rate of around P12 to P13 per kWh.

Beyond lower rates, Tia said Davao Light could also deliver a more reliable power supply and swift response to consumer needs.

‘In Davao Light, in one year, imagine you’ll just experience an average of three (power) interruptions, although I cannot guarantee that it will happen overnight because to do that, you need to have a reliable power system,’ Tia said.

Over the next five years, the company is expected to allocate resources to upgrade and recondition the assets to be acquired from Nordeco, he said.

Davao Light, the country’s third-largest power utility after Pangilinan-led Manila Electric Co. and another Aboitiz firm, Visayan Electric Co., currently serves over 500,000 customers.

Four alleged members of terrorist group Dawlah Islamiyah surrendered to the military in Radjah Buayan, Maguindanao del Norte on Thursday.

The surrendereess turned over four rifles to the Army’s 601st Infantry Brigade in Barangay Zapakan, according to Lt. Col. Venjie Pendon, spokesman for the Western Mindanao Command.

The turnover was witnessed by 601st IB chief Brig. Gen. Edgar Catu and representatives from the municipal governments of Shariff Aguak and Radjah Buayan as well as the Ministry of Public Order and Safety of the Bangsamoro region.

The surrenderees said the relentless security campaign of the military and other law enforcement operations compelled them to return to the fold of the law.

Air traffic in the Philippines is projected to hit 66 million by 2028, driven by government efforts to put up new airports and industry push to expand flight coverage, according to the International Air Transport Association (IATA).

IATA country manager Samuel David said the Philippine aviation industry is on track for higher growth toward the close of the decade due to airport buildup and airline expansion.

Citing a forecast from IATA, David said the country’s air passenger volume is expected to grow by an average of 3.6 percent every year, until it climbs to 66 million by 2028.

David attributed the optimism to the bets made by low-cost carriers in the growth potential of the Philippines. Budget carrier Cebu Pacific, for instance, placed a $24-billion order for the addition of up to 152 jets from aerospace giant Airbus.

Similarly, David said the Department of Transportation (DOTr) is busy building new airports and upgrading existing ones. This is driving confidence among carriers to widen their flight network locally and globally.

‘DOTr has been spearheading initiatives to upgrade airports and aviation infrastructure with the aim of creating world-class facilities that can accommodate the increasing demands of domestic and international air travel,’ David said.

Further, main gateway Ninoy Aquino International Airport (NAIA) is seeing improvements in its facilities and services in line with its P170.6-billion upgrade led by the New NAIA Infrastructure Corp.

Soon, NAIA will be equipped with facial recognition, powered by Collins Aerospace, that would allow travelers to check in their bags, clear security and board flights using their face.

As of 2024, David said the aviation industry is contributing $20.3 billion yearly to the economy, measured as gross domestic product. This translates to 4.6 percent of the GDP, and IATA anticipates this to become bigger.

Likewise, the industry is providing direct and indirect livelihoods to at least 1.9 million Filipinos. To date, the Philippines is also one of the most connected countries in Asia and the Pacific, as it sends off 184 outbound international flights every day.

However, David warned that geopolitical factors and regulatory limits could hinder growth, as he also flagged issues on human capital and red tape.

Based on data from the Civil Aeronautics Board, the Philippines grew its air passenger traffic by 11 percent to 59.91 million in 2024, with Cebu Pacific making up the largest market share of 38 percent.

A pack of cocaine valued at P56 million has been found floating in the waters off Puerto Princesa City in Palawan, according to the Philippine Drug Enforcement Agency.

The PDEA said the contraband was found by fishermen in the coastal waters off Barangay Bagong Bayan on Monday.

The illegal substance was wrapped in a plastic bag marked EB Bugatti, the PDEA said.

Five days earlier, another group of fishermen found dried marijuana leaves valued at P20 million in the West Philippine Sea.

The marijuana, stashed in 34 plastic packs, was placed inside a bag that the fishermen spotted floating near the coast of Barangay Bagong Sikat in Puerto Princesa City.

The PDEA has yet to determine the origin of the contraband and identify people behind the dumping of the marijuana and cocaine in the country’s maritime territory.