IMO Release 288

VIEW FROM THE PALACE

By Ignacio R. Bunye

May 4, 2008

Last Tuesday, I had the pleasure of joining President Arroyo and my colleagues in the cabinet for the inauguration of the newest component of the Strong Republic Nautical Highway (SRNH): the Central Nautical Highway, which connects Sorsogon, Masbate, Cebu, Bohol, Camiguin and Misamis Oriental.

Back in 2002, the President presented to the Cabinet eight work programs, one of which was a program to reduce transport costs from the food basket of Mindanao to the large consuming market of Luzon. Secretary of Transportation Larry Mendoza, then Secretary of Agriculture Cito Lorenzo, and then PPA head Al Cusi had started the spadework on decreasing handling and wharfage costs, while DBP had been instructed by the President to take the lead for other measures like financing logistics, storage and port facilities in Mindanao.

Against this backdrop, the group pulled out from the DBP files an obscure master plan of a Sustainable Logistics Development Plan initiated by their Senior Vice President Marietto Enecio, made up of 48 Road and Roll-on/Roll-off (RORO) ferry routes. The idea was to link our islands through highways of the sea using the ROROs as “moving bridges”. The rest, you could say, is history.

At the inauguration of the Central Nautical Highway last Tuesday, the President made special mention of Marietto Enecio, who has since retired from DBP, for his important and lasting contribution to the conceptualization and beginnings of the Strong Republic Nautical Highway.

While on board the RORO, (from Jagna, Bohol to Balbagon, Mambajao, Camiguin) the President and the cabinet listened to the various stakeholders how the Strong Republic Nautical Highway has impacted on economic growth and development in the countryside.

The participants, (among whom was Camiguin Governor JJ Romualdo, our host for the evening) discussed the development of the Western Nautical Highway which connects Batangas City, Calapan, Roxas, Caticlan, Dumangas, Bacolod, Dumaguete and Dapitan. It will be recalled that the Western route was inaugurated by the President in 2003 and we also had the good fortune to join its inaugural run.

The RORO stakeholders were unanimous in their assessment. In only five years, the Western Nautical Highway has delivered much of its promised benefits. The benefits include reduced transport cost, increased regional trade, enhanced tourism and agricultural productivity, growth in investments and development of the countryside as well as poverty reduction.

The RORO system slashed travel time from Mindanao to Luzon from 36 hours to 24 hours.

The transport costs have likewise been reduced as a result of service efficiency as multiple loading and unloading of goods is eliminated. Aside from no cargo handling, the RORO is also exempt from wharfage.

Freight and passenger cost was reduced as follows: fresh fish from Capiz to Manila (by 31 per cent), electronics from Manila to Cebu (by 46%), motorcycle, from Manila to Dumaguete ( by 47 %) , passengers from Batangas to Calapan (by 32 %).

Nestle Philippines claims that the transport cost savings have enabled the company to peg their price of milk inspite of the fact that the cost of imported raw materials has practically quadrupled in the world market. We learned that by shifting to RORO, Universal Robina Corporation, another food manufacturing company, is now making 12 trips a day compared to their once a week shipment via liner shipping.

Likewise, fish traders are all praises for the RORO because of its multi-trip schedule, compared to the limited daily schedules of traditional liners. Thus, fish traders can schedule their shipment properly.

The Western Nautical Highway, it was pointed out, has opened new markets for farmers. San Jose, Occidental Mindoro onion growers used to sell exclusively to Manila. Fruit growers in Davao have also found new markets for their mangoosteen and durian in Iloilo and Bacolod.

Tourism in the RORO routes also experienced a dramatic surge. Compared to 2003 (when the Western Nautical Highway was inaugurated) tourists bound for Boracay grew more than 50 per cent, Iloilo by 30 per cent, Bacolod by 15 per cent and Dapitan by 200 per cent!

What’s next? With the Western Nautical Highway and the Central Nautical Highway firmly in place, President Arroyo now wants to complete the Eastern Nautical Highway which will begin in Pilar, Sorsogon, and which will run through Masbate to Naval in Biliran to Leyte Island and on to Surigao del Sur.

Indeed, the RO-RO is a tangible achievement of one of the points in President Arroyo’s ten-point program that she announced in 2004 - that of linking the whole country by a transportation and digital infrastructure.

IMO Release 289

Policy Statements on PGMA’s SPEECH DURING THE GENERAL ASSEMBLY AND

INDUCTION OF OFFICERS OF THE FEDERATION OF PHILIPPINE INDUSTRIES AND

LAUNCHING OF THE FPI-FFCCCII ADVOCACY “BUY PINOY - BUY LOCAL”

Grand Ballroom, Hotel Intercontinental Manila, Makati City

May 02, 2008

Speech at http://www.op.gov.ph/speeches.asp

Services

“The challenge here is to reconcile the legitimate interests of our local businessmen, on the one hand, with the obligation to make available the best goods and services for our taxpayers at the lowest cost from a truly open and competitive market.”

“We will continue to support “Buy Pinoy - Buy Local.”

Graft and Corruption

“We share the challenge of fighting smuggling. I have made tough and politically unpopular decisions to raise revenues and crack down on smugglers so that we could invest in our infrastructure and our people.

There is no room in the development of our country to tolerate smuggling and the corruption that goes with it when so much remains to be done to invest in the nation.”

“We have a lot of room to increase our tax and customs collections through strengthening investments in technology and innovation, bolstering our compliance and anti-corruption efforts, and regulatory and

legislative reforms. We will deliver on the necessary revenue to balance the budget and make the vital investments that have been neglected for a generation.”

“I have put a lot of pressure on our Customs Bureau. But I have also taken an interest in making sure that this area gets the support it needs for me to deliver positive results.”

“From the day I took office, we have been focused not only on protecting our industries from the unfair competition of smuggling but also on modernizing every aspect of the underpinnings of global competitiveness, so that you will be at par even with the fair competition.”

Agriculture

“On food, we have been working on agricultural modernization, from the development of new hybrids -- which we have been working with the IRRI, for instance. I just came from there today - to see how their new innovations can be rolled out. To unprecedented investments in irrigation-1.4 million hectares, never seen before in history. And to dramatic increases in loans, four-fold as a matter of fact, to help our farmers purchase better equipment.”

“If we’re to go into the market again it’s for buffer stocks so that’s why it’s a “take it or leave it” situation as far as NFA is concerned. In other words, we can take it or we can leave it, depending on how the prices are. We are managing the issue the best way possible through our three-step program to contain price and prevent a crisis. FAO named 36 countries in a rice crisis. Certainly, the Philippines is not one of them. FAO has said that too.”

“One of the three phases is to ensure supply, which as I just mentioned earlier, we have essentially done for the foreseeable future. Two, guarantee distribution, particularly to those most in need, and we are

doing that through our own distribution to schools when classes start, as well as through the church and religious network. Third, we are ensuring enforcement of consumer protection by a fierce effort to crack-down on rice bandits especially those who divert NFA rice and tag it as commercial rice so they can get a higher price for it.”

Electricity

“Congress is in the process of amending the Electric Power Industry Reform Act to remove the requirement of 70 percent power privatization for open access because open access will give industrial consumers like you to enjoy the power of choice which will also mitigate the cost of electricity.”

Investments

“This year, investment, public investment will be about 200 billion pesos from the national government, the government corporations and the local government for among other things 9,000 kilometers of roads

together with other investments in education, healthcare and training along with new bridges and ports to upgrade our competitiveness among others.”

“Investing in the vital infrastructure also includes building up our environment as a reflection to our commitment to the quality of life. People need to breathe clean air and swim in clean water while also building manufacturing and bridges to span our waters.”

“Boosting spending on infrastructure, we are also building a firewall against any global economic volatility and we are creating a springboard for further growth to ensure we are able to sustain our economic momentum.”

Education

“On knowledge, as part of the billions we are spending in education and training, we are investing three billion pesos in Science and Engineering Research and Technology Development, including scholarships for masters and doctoral degrees in Engineering in seven universities. Upgrade know-how and learning, and Filipino talent is unbeatable.”

IMO Release

Nothing to worry over RP's failed tender for 675,000 tons of Viet rice

Malacanang said today there’s no cause for worry over the Philippines failed tender for 675,000 tons of rice from Vietnam’s state-owned Vinafood II, saying the country’s requirements for the staple food is

already “filled up.”

Press Secretary and Presidential Spokesperson Ignacio R. Bunye told reporters covering Malacanang that the 670,000 tons of rice from Vietnam were intended to serve as buffer stock.

“Base sa naunang pahayag ni Secretary Art Yap, itong pag bili ngayon ay para sa buffer stock. Ibig sabihin, yung ating pangunahing pangangailangan ay napuno na,” Bunye said.

“I don’t think this (failed tender) will really affect our rice supply dahil yung ating basic na pangangailangan ay nabili na natin,” he added.

He pointed out that the country is well on its way to being rice-sufficient with the recent signing of a Memorandum of Agreement between the DA and the International Rice Research Institute (IRRI), which will lead to “improved rice production” in the country.

Under the agreement, the DA and IRRI will undertake joint efforts to increase rice production in the Philippines starting this rainy season by planting new high-yielding varieties and hybrids.

The two agencies will also jointly assess and increase the output of the current rice growing areas, as well develop new areas using geographic information system, remote sensing, crop and climate modeling and other modern farming techniques.

Aside from the MoA, Bunye said the government will also implement President Arroyo’s intensified food production program aimed at strengthening the country's ability to provide food for its citizens through a series of efficient and budget-friendly food production modules.

Dubbed F.I.E.L.D.S. for fertilizer, irrigation and infrastructure, extension and education, loans, dryers and other post-harvest and post-production facilities, and seeds and other genetic materials), the six assistance packages form the centerpiece of the government's food security efforts.

“Ito yung pinapatupad ng ating Pangulo para masiguro at ating produksyon sa mga dadating na planting season ay maging mas mataas at unti-unti nating ma-attain yung ating self sufficiency in rice,” Bunye said.

IMO Release 291

POLICY STATEMENTS from PRESIDENT GLORIA MACAPAGAL ARROYO’S SPEECH

DURING THE OAS TOWN FIESTA CELEBRATION

Oas, Albay

May 6, 2008

Speech at http://www.op.gov.ph/speeches.asp

Food Supply

"Malaki ang naitutulong ng inyong sobrang palay hindi lamang sa Albay kundi na rin sa buong bansa. Lalong nagiging importante ang pagpapalago ng ani ngayon because there are global clouds on the horizon that are driving up the price of oil and food, particularly rice. Thankfully, we are now in a vastly improved position to weather this storm than at anytime in recent memory."

"Tungkol sa isyu ng pagmaneho ng bigas, ito ay problemang pangmundo na nakita na natin matagal na, kaya matagal ng tinatrabaho natin na makaraos pagdating ng panahong ito. Yung sagot natin sa pangmundong pagkukulang ay para sumagot sa tatlong saligang pangangailangan."

"Number one, siguraduhin ang supply. At tayo ay namuhunan ng mabigat sa mga production efficiency at saka sa bagong mga binhi."

"Second response, to make sure that the distribution of rice gets to the people who need it most -- efficiently and cost-effectively. Kaya para maganap ito, we have moved to utilize distribution through churches.

Pati na rin sa eskuwelahan pag simula na ang mga klase. Pati na rin yung sariling distribution network ng pamahalaan."

"Pangatlo, kailangan magmatyag tayo para yung mga unscrupulous traders ay hindi magsamantala sa sitwasyon. Sinisigurado natin na kung sinuman ang mahuling nagnanakaw ng NFA rice sa taong bayan ay paparusahan at kasama dito yung mga opisyal ng NFA na nahuling nakipagsabwatan sa mga unscrupulous traders."

Social Services

"At bahagi rin sa ating programa, magkaroon ng tubig sa bawat bayan, at kuryente sa bawat barangay."

Tourism

"Sa pagpapaunlad ng turismo, ang papel ng pamahalaan ay access - kalsada at paliparan."

Governance

"Kagaya nong panahon niya, sa panahon natin muli ngayon, magtulungan tayo para yung mga programang binanggit natin at yung programang iba pa, meron tayong mga grocery packs para sa mahihirap, meron tayong gamot na kalahating presyo na ibebenta sa mga botika, lahat itong mga programang ito ay magdadala ng higit pang pagpalakas ng ating kaunlaran, sa Oas, sa Albay, sa Bicol, sa buong bansang Pilipinas."

IMO Release 292

PGMA orders sending of medical team to Myanmar

The Philippines will be sending a 15-man medical mission to typhoon-hit Myanmar where some 22,000 people have died and some 41,000 others have gone missing in one of the worst natural disasters to hit the Asian continent.

This was revealed by Executive Secretary Eduardo Ermita who said President Gloria Macapagal-Arroyo has directed the Department of Foreign Affairs (DFA) and the Department of Health (DOH) to send a medical contingent to the cyclone-ravaged old Burma.

“I got (information) from the DOH that a 15-man team of doctors andassistants are being prepared and they are awaiting the arrival of (Health) Secretary Duque,” revealed Ermita in his regular Wednesday press briefing with the Malacanang Press Corps.

Ermita said the DOH team has already sent an initial query with Myanmar’s government as to the type of medicines that are more needed to be brought (to Myanmar to alleviate the) catastrophe that they face.”