PIA Dispatch - Thursday, August 27, 2009

PGMA urges public to support breastfeeding in RP

President Gloria Macapagal-Arroyo today enjoined Filipinos to support the breastfeeding movement, citing the benefits of mothers’ milk to the health and well-being of infants in the country.

The President said mothers’ milk “is the best source of nutrition for infants and the most economical way to nourish Filipino babies.”

Breastfeeding is part of the global strategy on infant and young child feeding of the Millennium Development Goals to which the Philippines adheres.

Breastfeeding has been cited as one of the two factors that bring down infant mortality rates in the country. The other factor is vaccination coverage.

The Department of Health cited breastfeeding as a strategy to save more than 16,000 children’s lives annually.

Because of her commitment to deliver the most basic health and nutrition services to the most vulnerable sectors of the country, particularly mothers and children, the President extended her support to government agencies, non-government organizations, and private individuals who were staunch supporters of breastfeeding during the celebration of World Breastfeeding Awareness Month at Heroes Hall in Malacañang.

Education Secretary Jesli Lapus, one of the allies of breastfeeding in the Philippines, formally opened the Synchronized Breastfeeding Worldwide during the program which is now on its third year.

He also encouraged teachers to breastfeed to create a strong message among school children that women can work and breastfeed at the same time.


RP on its way to achieve ’09 growth target -– economic managers

Economic managers are positive that the government will be able to achieve its 0.8-1.8 growth target this year as the second quarter figure surpassed expectations after it reached 1.5 percent.
The government reported today the domestic economy’s output, as measured by gross domestic product (GDP), which is higher than the –0.1 to 0.9 percent forecast of the National Economic and Development Authority (NEDA).

The latest growth figure is, however, lower than year- ago’s actual growth of 4.2 percent.

Finance Secretary Margarito Teves, in a statement, said the growth in the second quarter this year is “indeed (a) welcome news and attests to the resilience of the Philippine economy.’

“The combination of fiscal and monetary stimulus programs enabled us to achieve growth amidst an extremely challenging economic environment,” he said.

The finance chief said they “remain focused on attaining our goal of sustaining economic growth this year by ensuring that the government has the resources to fund its programs and projects.”

“We need the continued support of our citizenry to be able to achieve this,” he added.

Also, Budget and Management Secretary Rolando Andaya Jr. said the second quarter output “confirms that the Philippines is one of few countries across the globe that has escaped recession.”

He noted that “the positive second quarter growth shows that our fiscal stimulus program is indeed working.”

He was referring to the P330 billion economic resiliency program (ERP) of the government implemented to thwart the impact of the global downturn in hurting growth of the domestic economy.

He stressed that they “will work even harder with various implementing agencies for the smooth implementation of quick gestating projects to support economic growth in the second half.”

“With early signs of recovery in the world’s major economies, we are now more confident that our 2009 GDP growth projection of 0.8 to 1.8 percent is within reach,” he added.

Relatively, Agriculture Secretary Arthur Yap said resiliency of the country’s agriculture sector also proved itself in the second quarter this year “despite the changing vagaries of the weather brought upon by climate change.”

Yap said this transpired due to “focused spending in infrastructure.’

“Economic and fiscal reforms implemented prior to the crisis are bearing fruits, making growth in production and increases in rural incomes possible,” he said.

Yap added that they will continue to implement the Fertilizer, Irrigation and other rural infrastructure, Extension work, Loans, Dryers and other post-harvest facilities, and Seeds (FIELDS) program “to ensure continued growth for the sector and the economy in the remaining quarters of the year.”

The said DA program is the government’s measure to increase rice production in the country.

Also, Trade and Industry Secretary Peter Favila said the country “remains as one (of) the few Asian economies that continues to evade recession.”

He attributed this “respectable performance” to the “sound macroeconomic management under very trying times.”

“With this positive news, we are confident that the target GDP growth of a least 0.8 percent is within reach,” he added.

NEDA and the National Statistics Coordination Board (NSCB) said drivers of growth from May to June this year are the construction and mining and quarrying sectors.

The agencies said remittances from Overseas Filipinos (OFs) also helped boost the growth.

Relatively, gross national product (GNP), or the total value of all final goods and services produced in a nation in a given time, also went up to 4.4 percent in the same period from 3.1 percent in the previous quarter but lower than year-ago’s 5.3 percent.


PGMA receives Credentials of UK, Austria envoys

Envoys from the United Kingdom and the Republic of Austria called on President Gloria Macapagal-Arroyo this morning at Malacañang to formally submit their Letters of Credentials.

Both Ambassadors were separately accorded military honors prior to the event at the Malacañang’s Reception Hall.

First to arrive was Ambassador Extraordinary and Plenipotentiary of the United Kingdom to the Philippines His Excellency Stephen Lillie. He was accompanied by his wife Madame Denise Lillie, Charge D’Affaires and Deputy Head of Mission Colin Crorkin, and First Secretary Joanne Finnamore-Crorkin.

Next was Ambassador Extraordinary and Plenipotentiary of the Republic of Austria to the Philippines His Excellency Wilhelm Donko. He was accompanied by his wife Madame Yan Donko, Third Secretary and Vice Consul Froilan Brandi and Commercial Counsellor Walter Holfe.

Both Ambassador vowed to work towards strengthening and improving the economic, political and cultural ties between their countries and the Philippines.

The President was joined by Foreign Affairs Undersecretary Rafael Seguis and Assistant Secretary Victoria Bataclan.


RP avoids recession; economy grows 1.5% in Q2

The Philippine economy in the second quarter expanded by 1.5 percent boosted by the government's stimulus package, according to the National Statistical Coordination Board (NSCB).
In a briefing, Romulo A. Virola, NSCB secretary general said the modest economic growth benefited from the reinvigorated construction and mining and quarrying sectors and the big push by government services.

The economy, as measured by gross domestic product (GDP), in the second quarter last grew 4.23 percent.

The first quarter GDP was revised to 0.59 percent from the earlier 0.4 percent growth.

The economy's growth was supported by services, 3.1 percent and agriculture, 0.3 percent.

The industry sector was still in contraction with 0.3 percent mainly due to manufacturing.

Virola said the seasonally adjusted estimate of the GDP grew by 2.4 percent "effectively avoiding the recession" that had threatened when the economy declined quarter on quarter by a revised 2.1 percent in the first quarter.

The gross national product, which includes net factor income from abroad (NFIA), also rose by three percent in the second quarter.

From January to June, the economy grew one percent from 4 percent last year.
Augusto Santos, acting socioeconomic planning secretary, said the 1.5 percent GDP growth is above the official forecast of negative 0.1 percent to 0.9 percent growth.

"The development occurred amidst signals that the global economic recovery was underway, with some industrialized countries already existing their recessions, like France and Germany," he said.

Santos said the Philippines remains as one of the few economies enjoying positive GDP growth rates in the second quarter.

The economy of China grew 7.1 percent; Vietnam, 4.5 percent; and Indonesia, 4 percent. The rest still contracted like Taiwan, -7.5 percent; Japan, -6.4 percent; Thailand, -4.9 percent; Malaysia, -3.9 percent; Hong Kong, -3.8 percent; Singapore, -3.5 percent and South Korea, -2.5 percent.

He added that despite earlier setbacks this year, employment growth was broad-based as employment grew strongly by 4.3 percent.

Santos said employment generation reached 1.5 million, and the unemployment rate improved to 7.5 percent from eight percent a year ago.

"Government and private sector hiring programs, flexible working arrangements, and the frontloading of infrastructure projects under the Economic Resiliency Plan, all helped cushion the economy's growth and unemployment from the global recession," he said.

Dennis Arroyo, head of the NEDA's National Planning and Policy Staff, said the 0.8 percent to 1.8 percent GDP growth target is "easy to breach."

"To breach the 1.8 percent, you have to grow 2.6 percent in the next semester, which seems easy," Arroyo said.

Santos said the key growth drivers for 2009 are trade, business process outsourcing, construction, mining and quarrying, private and government services.

"Positive prospects are seen in new markets for agricultural products, in medical tourism, in election spending during the next quarters, in the green industries, in renewable energy and in the growing profit opportunities from measures concerning climate change adaption and mitigation," Santos added.


Good benefits derived from VFA highlight LOCVFA hearing

The good benefits that the country has obtained ten years after the implementation of the Visiting Forces Agreement (VFA) between the Philippines and the United States have been highlighted during the Legislative Oversight Committee on the VFA hearing held on Thursday at the Senate building in Pasay City.

Executive Secretary Eduardo Ermita cited the broadened RP-US security cooperation not only in defense issues but on the emerging global challenges such as terrorism, pandemics, natural disasters, piracy and transnational crimes.

”Terrorism remains an imminent threat to our peace and security. Our defense cooperation with the US, including the training exercises we undertake as facilitated by the VFA, assists us greatly in this respect,” Ermita told the panel.

Ermita also noted the support of the RP-US partnership in promoting the human rights and in broader objective of achieving lasting peace and development in Mindanao.

”Many obtained advanced training on human rights and humanitarian law concepts and practices, thanks to US programs, such as the Gobal Peacekeeping Operations Initiative,” he said.

”We can say that our partnership with the US is making a difference in winning the hearts and minds of people and drawing them away from the empty promises of those who would use terrorism and lawlessness to destroy and promote their evil ends,” he added.

For his part, VFA Commission (VFACOM) undersecretary Edilberto Adan revealed that since the implementation of the VFA in 1999, the Philippine military has received a total of US$ 249.99 million for the acquisition of firepower, engineering, mobility and communication equipment.

”If the VFA will be abrogated, it would mean a loss of US$ 30 to 40 million in military assistance from the US every year,” Adan said.

Adan also said that since 2001, there were 25,078 Filipinos and 27,186 Americans who participated in the exercises that were conducted in various parts of the country.

”For the past ten years, US assistance to the Philippines in terms of military capability upgrade, support to AFP operations, and civic and humanitarian missions highlight the importance of US-Philippine relations in addressing common security concerns. The VFA continues to serve the national interest,” Adan said.

Contrary to reports, Department of Justice (DOJ) secretary Agnes Devanadera said there was only one reported incident of violation when US soldier Daniel Smith has been convicted for raping a Filipino. Smith was eventually acquitted.

LOCVFA chairperson Sen. Miriam Santiago said she plans to recommend to the Senate the abrogation of the RP-US VFA, although she admitted the upper chamber of congress has no power to terminate any treaty.

”Our only power is to concur with the ratification of a treaty, but we can pass a “Sense of the Senate” resolution and I hope we should be heard as the Constitution provides share power for both the Senate and the President for it,” Santiago explained.

Controversial Navy Lt. Sr. Grade Nancy Gadian testified in the hearing but admitted that she has no personal knowledge that the US troops have been engaged in combat against Abu Sayyaf in Mindanao.

”Nancy Gadian was not testifying from her own personal knowledge but even if you call her testimony hearsay, it is still part of the vital information the Senate needs to know in order that we can act properly on the issue,” Santiago said.

The LOCVFA is co-chaired by Rep. Antonio Cuenco, House committee on foreign affairs, who said he is in favor of the renegotiation of the VFA.

Senator Rodolfo Biazon, chairman of the Senate committee on national defense and security, also attended the public hearing along with former Senate president Jovito Salonga.


San Miguel bags Limay power plant

The Power Sector Assets and Liabilities Management (PSALM) Corporation today (26 August 2009) successfully conducted the negotiated sale of the 620-megawatt (MW) Limay Combined Cycle Power Plant, with San Miguel Energy Corporation (SMEC) having exceeded the government’s reserve price for the plant.

SMEC offered USD13.5 million (USD13,502,000.00) for the Bataan-based plant.

PSALM will declare SMEC, the energy investment arm of food and beverage conglomerate San Miguel Corporation, as the winning bidder as soon as the accuracy, authenticity, and completeness of all the submitted bid documents are checked and verified by the PSALM Board.

The successful negotiated sale was the fourth attempt of PSALM to privatize the Limay plant. The power facility remained unsold after public bidding in July 2008 and January 2009 and negotiations held in March 2009, primarily due to lack of interest from investors.

Commissioned in 1993, the Limay power plant comprises two 310-MW modules, Blocks A and B, which consist of three 70-MW gas turbines and a 100-MW steam turbine, respectively. Located in Limay, Bataan in Central Luzon, or approximately 145 kilometers west of Manila, the plant is designed to meet the base-load demand of the Luzon grid.

Although it has breached the 70% targeted privatization level for generating assets in the Luzon and Visayas grids ― one of the preconditions to the declaration of open access and retail competition (OARC) ― with the sale of the 600-MW Batangas (or Calaca) Coal-Fired Thermal Power Plant last July, PSALM continues to earnestly pursue the government’s power asset sale program, which is its primary mandate as specified in the Electric Power Industry Reform Act.

PSALM also hopes to accelerate fulfilling the remaining precondition to the OARC declaration — the sale of at least 70% of the total contracted capacities of the National Power Corporation in the Luzon and Visayas grids to independent power producer administrators — starting with the rebidding of the 1,000-MW contracted capacity of the Sual power plant in Pangasinan, and the 700-MW contracted capacity of the Pagbilao plant in Quezon Province on Friday, 28 August 2009.