Industry – Infrawatch PH

Has Aboitiz captured the power sector?

Nov 17, 2022

Last week, the Aboitiz Group came out with what it says is its massive transformative purpose: transforming energy for a better world.

It was a grand launch that promised an unrealistic conceit: a future where energy is abundant, poverty does not exist, and environmental sustainability is given utmost priority.

The conglomerate has also vowed to transition to a 50:50 balance of ‘cleanergy’ and thermal capacities by 2030”.

But a closer look at the conglomerate’s activities, including the recent expansion of its already coal-heavy power portfolio, shows its aspirations are far from the truth.

Regulatory capture

Apart from Aboitiz Equity Venture President and CEO Sabin Aboitiz’s appointment as the lead of the President’s Private Sector Advisory Council, his former colleagues and subordinates at AboitizPower now control the government’s highest offices in the power industry.

These appointments include former AboitizPower director Raphael M. Lotilla as Department of Energy (DoE) secretary, former AboitizPower first vice president for regulatory affairs Dennis Edward Dela Serna as president of the Power Sector Assets and Liabilities Management Corp. (PSALM), and former AboitizPower compliance officer Monalisa Dimalanta as chairperson of the Energy Regulatory Commission (ERC).

The appointment of former corporate executives to the highest posts in the power sector is classical regulatory capture, as the heads of government and regulatory agencies relating to the power sector are now dominated by persons previously connected to a single conglomerate.

This is a situation that does not bode well for the public interest and the regulatory requirement to always ensure the least cost to consumers.

Coal-fueled future

On the other hand, the conglomerate’s commitment to a sustainable future is in apparent contradiction to its current activities.

Aboitiz Power Corp. has undertaken a takeover of a significant stake in the local subsidiary of German company, STEAG GmbH, through its acquisition of an additional 35.4-percent ownership of the company for $36.1 million (about P2.1 billion), “plus locked box interest at 4 percent per annum”.

STEAG State Power Inc. (SPI) runs a 210-megawatt coal-fired power plant in Mindanao.

With its purchase of an additional of 167,648,480 shares from the German power firm, AboitizPower’s stake in the coal power facility has increased to 69.4 percent.

This keeps Aboitiz’s use of coal at 63 percent of its 5,322 total net sellable capacity.

The remainder of its power assets constitute a mix of 13 percent oil, 17 percent hydro, six percent geothermal, and one percent solar.

In no uncertain terms, the conglomerate’s current power mix is not sustainable commitment the public seeks from the power sector.

Regulatory nexus

And now the concern: With the conglomerate’s former executives now leading the highest posts in regulating the power sector, will they be able to take Aboitiz to task for its continuing expansion into coal technology despite a commitment to cleaner technologies?

More importantly, with the conglomerate operating both power generation and distribution businesses, will they be able to spot conflicts of interest and anti-competitive behavior?

In fact, under the new government, the push for cleaner technologies should be the priority of government for upcoming power projects.

But whether this will be more than lip service remains to be seen, for as long as a singular corporate interest is able to hobnob at the corridors of power and afforded high-level appointments to offices regulating their sector.

Next President should shut down PH US-funded biolabs

Apr 12, 2022

With the Russia-Ukraine conflict showing no signs of a peace agreement anytime soon, the world is watching on how Ukraine will respond to the proposal of the World Health Organization to destroy high-threat pathogens housed in the country’s public health laboratories to prevent “any potential spills” that would spread disease among the population.

While biological laboratories such as these are used to mitigate the threats of dangerous diseases affecting both animals and humans, Moscow has always insisted that these biolabs do more than legitimate research.

Recently, Russia called the meeting of the 15-member U.N. Security Council to reassert through its envoy Vassily Nebenzia that Ukraine ran biological weapons laboratories with U.S. Defense Department support.

Mr. Nebenzia said that Russia had discovered “truly shocking facts” related to what he said were at least 30 Ukrainian laboratories working on diseases including anthrax, cholera and “the plague,” with funding and oversight by the U.S. military.

He said the “reckless” activity included research related to diseases born by birds, lice and fleas. “We call on you to think about a very real biological danger to the people in European countries which can result from an uncontrolled spread of bio-agents from Ukraine,” he said.

While his claim has been strongly denied by the United States, claiming that Moscow is merely using this as a pretext to use biological weapons in what it calls a ‘special military operation’, what has not been denied is the fact that Ukraine has five biological research centers that are focused on disease prevention and treatment.

Additionally, several of these biolabs had received support from the United States, European Union and the WHO, and the US Defense Threat Reduction Agency (US DTRA) has been undertaking containment and destruction of pathogens and biochemical agents in former Soviet republics.

While the world can merely dismiss all of these claims as Russian propaganda in prosecuting its conflict in Ukraine, what gives us pause is the involvement of the US DTRA in all of these supposedly civilian research activities.

PH biolabs

In the Philippines, the DTRA funded a $643,000 animal disease diagnostic laboratory in Tarlac City and turned over to the Department of Agriculture (DA), with the aim of supposedly boosting the country’s biosecurity efforts against transboundary animal diseases.

This project would certainly be a welcome development to reverse the dampening bilateral relations between Washington and Manila, had it not been for the fact that it was funded by the DTRA, which is an agency within the United States Department of Defense (DoD) and is the official Combat Support Agency for countering weapons of mass destruction (WMD; chemical, biological, radiological, nuclear, and high explosives).

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In other words, a civilian laboratory was constructed on the dime of a foreign military agency, which has the responsibility of managing and integrating the US DoD chemical and biological defense science and technology programs.

This is concerning, because the task of civilian cooperation on bilateral agricultural concerns lies with the US Department of Agriculture, not with agencies within the US DoD, and allowing US DoD agencies to influence civilian agricultural initiatives gives rise to reasonable suspicions on the true objectives of these projects in the Philippines.

As a military agency, DTRA certainly has specific but undisclosed military objectives related to its biochemicals mandate.

It should be noted that DTRA has participated in Syrian civil war, by developing the Field Deployable Hydrolysis System, which was used to destroy alleged Syrian chemical weapons.

Further, DTRA has been involved in the Iraqi occupation, identifying, collecting and securing radiological material, including almost two tons of low enriched uranium (LEU), several hundred tons of yellowcake (a type of uranium powder), and other radioactive sources.

In other words, the funding agency for the PH DA agricultural labs have clear overt and covert military objectives in the Philippines which may not necessarily align with the civilian, even military objectives of Manila.

Shutdown US-funded biolabs

Given the fresh allegations on biolabs at the level of the UN Security Council, the next President should look at these foreign activities in Philippine soil with greater scrutiny than before, as there exist international partners in the civilian sector which can competently provide the same services to our agricultural sector but without the accompanying military risks.

It should be noted that the USDA, through its Animal and Plant Health Inspection Service, undertakes similar international cooperation by collaborating with foreign partners to control pests and diseases before they can harm the US, ensuring the effective and efficient management of internationally-based programs, and investing in international capacity-building with foreign counterparts to build technical and regulatory skills that prevent the spread of damaging pests and diseases.

With the 2022 elections around the corner, this is a core foreign policy issue which should the determine the fate of the bilateral relations with Washington under a new President.

The country should certainly not be used as a platform for covert biolabs objectives by foreign powers.

Rethinking sanctions

Mar 1, 2022

One of the most controversial international measures being undertaken by great powers such as the United States has been the imposition of economic sanctions against states, corporations, groups, and individuals in order to force various political, military and economic outcomes.

Recently, the United States and the European Union have led the imposition of economic sanctions on Russia as a result of the ongoing conflict in Ukraine. The measures include non-access to the SWIFT international payment system, restrictions on semiconductors, telecommunication, encryption security, lasers, sensors, navigation, avionics and maritime technologies, a freeze on assets of Russian President Vladimir Putin and Foreign Minister Sergei Lavrov, flight restrictions, and the suspension of the certification of the Nord Stream 2 pipeline project between Russia and Germany.

At face value, these sanctions appear to achieve its intended objective to severely cripple the economy of target nations, there are unintended consequences to these measures that impact other states, enterprises and populations.

As an example, while economic sanctions collapsed the Russian ruble and ushered a financial crisis in 2015, this also caused economic damage to several EU countries, with total losses estimated at €100 billion.

In an independent Austrian study at that time, it was stated that Germany risked 465,000 jobs, while Poland had 335,000 jobs at risk. With Italy, Spain, France and the UK included, it would have totaled at least a million jobs in Europe at risk.

In fact, world petroleum leader Exxon Mobil loset around $1 billion due to the economic sanctions against Russia.

Further, no less than the United Nations published a report on the impact of economic sanctions, stating that the EU was losing around $3.2 billion a month due to these measures.

In the ongoing conflict in Ukraine, Germany stands to lose access to valuable Russian natural gas with the suspension of the certification of Nord Stream 2, which is a joint venture between Russia’s Gazprom and German, Dutch and French partners.

In fact, E.ON, Europe’s largest operator of energy networks, rejected demands to shut down the Nord Stream 1 gas pipeline.

Prices for international flights are also expected to rise as a result of economic sanctions, as airlines are forced to take unsustainable routes towards various destinations instead of flying through Russian airspace.

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Petroleum prices are also now starting to rise due to ongoing tensions in Ukraine, with expected consequences at the lowest levels of economic activity in every country.

By and large, economic sanctions do not have surgical impact on targeted nations, enterprises and individuals but reverberate through the international business community and affecting vulnerable groups within and without target nations.

The international community has every reason to reassess whether these types of aggressive action towards independent states should continue or be put to a stop for its unintended impact on innocent parties.

Beyond sanctions

Worse, the United States and its European allies have undertaken the establishment of various multilateral alliances which purport themselves as independent groupings but with clear covert objectives of containing adversaries in the international community.

In ASEAN and the Indo-Pacific, the US has been aggressively pushing for the legitimization of the Quadrilateral Security Dialogue (Quad) as one of the multilateral security mechanisms that can secure the peace in Asia.

However, it needs to be stated that conspicuously absent from these mechanisms are states with varied geopolitical interests from Quad members, such as China. It is our position that no multilateral arrangements can have positive outcomes without including all interested parties in particular geographic areas.

For the purposes of peace and security in the ASEAN area, there is already an established ASEAN mechanism for peace and security, which is led by all states within Southeast Asia.

It is this security mechanism that should be paramount and most decisive in resolving all geopolitical and diplomatic concerns within ASEAN, not some other security mechanism such as the Quad.

The Philippine should make a stand, and insist that already-established mechanisms should be the primary decision-making entity within Southeast Asia.

Presidentiables urged: Scrap US F-16 deal

Feb 1, 2022

In June 2021, the U.S. State Department approved the potential sale of F-16 fighter jets, as well as Sidewinder and Harpoon missiles, to the Philippines in three separate deals.

This came on the heels of Washington’s charm offensive to convince Manila to retain the Visiting Forces Agreement and continue their partnership as treaty allies.

However, no less than Defense Secretary Delfin Lorenzana said in September 2021 that the Philippines is unlikely to proceed with the purchase of the F-16s due to budget concerns.

The defense chief also said that the government is looking for alternative sources of fighter jets, such as Swedish-made Gripen fighter jets, due to lower costs.

With these developments, the decision on the fate of the $2.5 billion sale of F-16 fighter jets and other equipment from the United States should be left to the new administration.

In fact, the new President should scrap the F-16 deal entirely, as government funding might be better spent somewhere else, especially since the coronavirus pandemic continues to ravage the world.

It is worth noting that the defense department has annual budget of around P200 billion (US$4.3 billion) per year. Acquiring the F-16s already represents more than of the agency’s annual budget.

On the other hand, the proposed price for the F-16s already represents one-fifth of the five-year budget for AFP modernization. It is foolish to rely on a handful of aircraft for our national defense, and at this level of costs.

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With limited funding, Washington is practically egging Manila to undertake loans to finance its F-16 procurement.

It therefore makes sense to look for other vendors for fighter jets who can provide more units at the same price.

More important, Washington considers this deal as important in nurturing its relations with Manila. But it needs to be stated that treaty allies should treat each other under conditions of mutual benefit.

If the prices of their fighter jets cannot compete with the prices of other suppliers, Manila should certainly reconsider its status as a US ally.

More than anything, what matters to the Philippines today is to preserve sufficient funding for its coronavirus response.

For context, the proposed price for the F-16s is already sufficient to provide booster shots to all Filipinos. It is also sufficient to build at least 24 world-class tertiary hospitals to augment existing hospitals responding to the coronavirus pandemic.

But most important, the new President will have to decide the fate of US-PH relations during their term. Will it continue the Duterte policy of independent foreign policy and balancing between Beijing and Washington? Will it return to the fold of Washington as its reliable allly in the Indo-Pacific?

With the concerns raised on the F-16 proposal, the new President should seriously rethink whether Washington truly considers the Philippines as its close friend, partner and ally.

DITO technical audit questioned

Sep 10, 2021

A public policy thinktank is calling on the National Telecommunications Commission to disclose the actual results and methodology of Dito Telecommunity’s second technical audit, stating that the audit results do not appear to reflect actual customer experiences.

“Instead of Dito, it is the NTC that should explain to the public the actual methodology and results of the second technical audit, because nothing in the audit hews closely to real-world results tested by actual users. We’d like to know which parallel universe these speed tests were taken.”

This was the statement of Terry Ridon, Infrawatch PH convenor, and former House Information and Communications Technology member.

Disclose audit methodology

Ridon said NTC’s disclosure of its technical audit methodology is critical to determine whether it has given Dito a fair or favorable shake during the audit.

“With a P25 billion performance bond on the line, Dito has too much at stake to fail in any audit. But certainly, the public would like to know whether the audit parameters had been crafted in a manner that accurately reflects real world performance. Because if not, the audit not only misleads the public, but it also misleads government.”

Consider real-world results

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Ridon said the findings of third parties relating to Dito’s real-world performance should be taken into account.

“It is unacceptable for Dito executives to state that third party speed and reliable surveys might be based on tests ‘beyond the far points’ because the public expects fast and reliable speeds over a wide swath of service areas, and not just within the vicinities of specific towers. This kind of defense essentially compromises the accuracy of the technical audit.”

Ridon said based on a third-party report by OpenSignal, Dito’s download, upload and video experiences have declined over the course of several months, while other operators yielded fairly consistent results.

“NTC and Dito should clarify why the technical audit reported very reassuring results while third party reports show otherwise.”

Limited infrastructure

Ridon said while declining speed and reliability results may reflect a widening customer base, it also reflects the limits of Dito’s current infrastructure to cater to more users in both the short and medium term.

“With a widening customer base and currently limited infrastructure, the public can certainly expect a poorer user experience than before. In fact, the question should be asked whether Dito’s current capacity is mostly organic, or merely piggybacked on the capacity of other operators. If it is the latter, it poses a risk not only to maintaining current capacity and reliability but also to Dito’s overall business.”

Thinktank: DICT officials liable for graft for P170M in gadgets from construction firm

Aug 17, 2021

An infrastructure-oriented thinktank is calling on Ombudsman Samuel Martirez to exercise motu proprio powers to determine whether graft is present in the purchase by the Department of Information and Communications Technology of P170 million worth of gadgets from a construction firm.

“This transaction is not merely a whiff of corruption, but a god awful stench of corruption, clearly contradicting the commitment of President Rodrigo Duterte to stamp out corruption in his government. The Commission on Audit (CoA) report has damning evidence enough to warrant the preventive suspension of all involved DICT officials.”

This was the statement of Terry Ridon, Infrawatch PH convenor and former House ICT committee member.

Preventive suspension

RIdon said the CoA annual audit found that the DICT purchased 1,000 laptops, 26,500 tablets, and 1,001 pocket wifi dongles from a firm which the Bureau of Internal Revenue (BIR) said was engaged in “general construction.”

“Worse, it cornered a contract worth more than four times its December 2019 assets at P44 million, even if it did not have the expertise nor experience to provide IT supplies. This alone warrants the immediate preventive suspension of all involved DICT officials.

Emergency not an excuse

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Ridon, who previously chaired the Presidential Commission for the Urban Poor, said these actions are strictly prohibited in various procurement laws and regulations.

“Procurement rules are not suspended despite the existence of an emergency, even during a global pandemic. This means the rules on contractor track record, such as evidence of one’s single largest completed contract continue to subsist. The DICT should show whether its contractor had already been able to deliver an IT supply project costing at least fifty percent of the P170 million project cost. If not, naku, may kulong yan, mga kaibigan. (If not, there will be jail time for that, my friends.)”

RIdon said the Ombudsman had already prosecuted past cases in which it found that no emergency situation necessitated relaxing procurement rules.

“The case on the MRT-3 maintenance contract is a reminder that government officials cannot casually use emergency situations as a reason to skirt procurement rules and favor friendly contractors. These cases are now in the Sandiganbayan. The DICT should show in this case how urgent or life-saving the rapid procurement of gadgets in order to justify the flouting of procurement laws.”

Undue favor

Ridon, a lawyer, said all of these facts point to violations of the R.A. No. 3019 or the Anti-Graft and Corrupt Practices Act.

“All told, all of these things show that DICT officials knowingly awarded the IT supply contract to its contractor even if it is not qualified nor legally entitled to be awarded such contract. Actual delivery nor fair prices are no excuses for granting such award in the first place. Be warned: may kalalagyan po tayo diyan pag hindi naipaliwanag nang tama ito.”

Time to reconsider nuclear

Aug 3, 2021

Despite possible supply shortages that could result in rotational blackouts during the 20-day Malampaya shutdown this October and in the May 2022 elections, the Department of Energy appears determined to reject the proposal of Manila Electric Company (Meralco) for emergency supply procurement of an additional 220MW supply.

Meralco is seeking an exemption from the competitive selection process (CSP) given the urgency on its need for additional supply; especially since the contracted price will cheaper than the previously approved rates by the Energy Regulatory Commission. However, the energy department is not inclined to approve this proposal as the agency views it as a circumvention of the CSP, which seeks to protect consumers.

This is the supply and policy backdrop in the energy sector, which gives rise to renewed calls to revisit all available technologies for electricity generation, including nuclear energy.

A high-level commitment on the country’s nuclear policy has been unfortunately delayed, with President Rodrigo Duterte issuing Executive Order No. 116 only in July 2020. The issuance mandates a government study to determine and develop the national position for a nuclear power program in the country.

While Energy Secretary Alfonso Cusi has already submitted the required study to Mr. Duterte last December 2020, there has been no relevant developments on the matter to date, particularly on whether the President has already approved the inter-agency proposal on the country’s national position on nuclear energy and the other steps forward to expedite the use of nuclear energy as one of the technologies for power generation.

This significant delay is concerning, given that the current administration is already in its final months in office, and the head of the energy department has been busy engaging in political activities despite tight power supply and the coronavirus pandemic.

In fact, as early 2017, the Philippines through the Department of Science and Technology and the Department of Energy, has entered into a several agreements with the Russian Federation, through the State Atomic Energy Corporation (ROSATOM) to enhance cooperation between the two countries on the use of nuclear energy for peaceful purposes.

Gains

Among the gains from this cooperation has been capacity-building programs conducted by Russian nuclear scientists on the various uses of nuclear energy.

More tangible gains would have been achieved had there been no substantial delay in the development of the country’s nuclear policy, especially since the 1987 Constitution makes no prohibition on the peaceful use of nuclear energy. What the Constitution expressly prohibits are nuclear weapons, and not nuclear energy per se, such that there should be no legal impediment for government to proceed in the development of its nuclear technology.

In fact, nuclear energy constitutes more than nuclear weapons and power plants, as it includes irradiation technology relevant to the country’s agricultural export market of fruits and vegetables.

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With Moscow’s experience in nuclear energy, the country can implement competitive, cost-effective nuclear power to address the country’s tightening power supply, and serve as an alternative to emissions-emitting baseload power plants.

As an archipelago with large island populations, the country can also be one of the leading areas in the use of modular floating nuclear reactors, a technology which is being developed separately by the world’ leading powers, Russia, China and the United States.

With unprecedented electricity supply generated by floating reactors, economic growth can be stimulated in previously untapped areas, with a real potential to develop tourism, infrastructure and industry.

Independent foreign policy

With President Duterte revoking the abrogation of the Visiting Forces Agreement, it is imperative for the country to maintain its commitment to an independent foreign policy, and energy security is an area in which government should look to its other international partners.

South Korea’s dependence on US nuclear technology should serve as warning on the limits of depending on a single superpower for the development of nuclear energy.

US allies and partners entering into nuclear cooperation agreements are mandated to comply with what are known as Section 123 agreements, which include conditionalities that may impinge on the sovereignty of states, such as requiring prior US approval for the production or obtainment of highly-enriched uranium and plutonium, and the enrichment or processing of nuclear material.

These mandates essentially limit state policies establishing an independent foreign policy, as it institutes exclusive nuclear relations with a single superpower. Entering into these types of cooperation agreements will exclude cooperation with other nations possessing competing or complementary technologies.

The country’s energy security should not be a bargaining chip in the laundry list of geopolitical objectives of competing superpowers.

Our partners in ensuring the country’s energy security should be engaged on the basis of their track record, experience, safety and security.

Ridon: Free socialized housing feasible

Jun 29, 2021

President Rodrigo Duterte’s former urban poor chief pushed back at the President’s assertion that free socialized housing for the poorest households is unfeasible due to lack of funds.

“The President himself ordered the free distribution of socialized housing units for Yolanda victims and Metro Manila estero relocatees in Bulacan. How can he now say that free socialized housing cannot be undertaken due to lack of funding? Mr. President, wag po natin lokohin ang mga tao.”

This was the statement of Terry Ridon, Infrawatch PH convenor and Mr. Duterte’s former urban poor chief.

Duterte underfunded socialized housing

Ridon said free socialized housing for the country’s households is a feasible policy platform.

“In order to distribute free socialized housing to the country’s 4.4 million poorest families, the government only needs to spend an annual budget of P158.5 Billion for the next six years to construct the cheapest National Housing Authority (NHA) housing unit. For context, this is only 22-percent of the DPWH’s current budget of 695.7-Billion.”

Ridon said Mr. Duterte even slashed funding for the housing sector this year.

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“The executive only allocated a measly budget of P3.6-Billion for the housing sector this year, slashing the previous year’s funding by more than fifty percent. It is thus clear that we are not building more housing for the poor because the President refuses to spend on it, not because of lack of funds.”

Ridon said the current funding for housing is equivalent to only a mere two percent of the funding needed to provide free housing to the country’s poor.

Free housing can slash poverty incidence

“It should be noted that providing free housing to the country’s poorest families means that income spent on their shelter may now be used for other necessities such as food and education. In fact it may be used for new livelihood activities unimaginable due to shelter costs. Free socialized housing will certainly uplift the lives of our country’s poorest households.”

A bit rich

Ridon also said that it is a bit rich for the President to complain about supposedly unfounded criticisms of his leadership in the last five years.

“The President should remind himself that it was him who reneged on his word to jetski to disputed islands to defend our sovereign rights in the West Philippine Sea. He had also reneged on his commitment to end the illegal drug trade in his first six months. It is thus a bit rich for the President to call his critics liars, when he had broken so many promises in the past. Mr. President, kumita na yan. Tutok na lang po tayo sa Covid-19 response, marami pa po tayong kailangang gawin.”

Duterte urged: Cancel biolabs funded by US Department of Defense

Jun 19, 2021

Last September 2020, a $643,000 US-funded animal disease diagnostic laboratory has been constructed in Tarlac City and turned over to the Department of Agriculture (DA), with the aim of supposedly boosting the country’s biosecurity efforts against transboundary animal diseases.

According to the DA, the new Regional Animal Disease Diagnostic Laboratory (RADDL) in Paraiso, Tarlac City would provide “advanced service through modern technologies to ensure a healthy and resilient animal sector” in Central Luzon.

This project would certainly be a welcome development to reverse the dampening bilateral relations between Washington and Manila, had it not been for the fact that it was funded by the United States Defense Threat Reduction Agency (US DTRA), which is an agency within the United States Department of Defense (DoD) and is the official Combat Support Agency for countering weapons of mass destruction (WMD; chemical, biological, radiological, nuclear, and high explosives).

While it is true that the DTRA contributed in the international effort to confront Ebola by spending approximately $300 million on scientific R&D efforts since 2003 developing vaccines and therapeutic treatments, it should be noted that it has also participated in Syrian civil war, by developing the Field Deployable Hydrolysis System, which was used to destroy alleged Syrian chemical weapons.

Further, the DTRA has been involved in the Iraqi occupation, identifying, collecting and securing radiological material, including almost two tons of low enriched uranium (LEU), several hundred tons of yellowcake (a type of uranium powder), and other radioactive sources.

In fact, the funding of these laboratories is in line with DTRA strategic goals and objectives.

In its strategic plan for 2018-2022, the DTRA intends to strengthen alliances and attract new international partners, including nontraditional partners, within industry, universities, thinktanks, among others.

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Certainly, the partnership with the PH DA fits within DTRA’s strategic objectives.

The DA said the RADDL will provide services and tests for trade, disease surveillance, and animal health, regulatory and research, including functioning as a training facility for veterinary clinicians, students and professionals in the region.

With the involvement of DTRA in these laboratories, the US military agency should disclose whether there are unspecified military objectives in funding the laboratory, and other labs in the future, particularly relating to the development of bioweapons.

It should also disclose the extent of its continuing involvement in these labs, on whether they are able to mutually determine policies, objectives, programs and activities with its PH counterparts, or whether its work terminates after turnover to PH authorities.

These questions are critical to determine whether the US have covert objectives in undertaking these projects in the Philippines, especially since the Tarlac biolab is just the first in a series of integrated laboratories planned by the DTRA.

In behalf of DTRA, Major Brian Smith said the Tarlac-based RADDL is part of an integrated network of laboratories that aim to identify diseases, or pathogens, prior to them spreading throughout the region, identify them early, and help mitigate the risk before it spreads.

In fact, since 2016, DTRA’s Biological Threat Reduction Program (BTRP) has spent approximately $25,000,000 in the Philippines, to fund the construction of new laboratories across the nation, support trainings, and provide biorisk management subject matter expertise.

Certainly, PH authorities, no less than the President, should look at these foreign activities with greater scrutiny than before, as there exist international partners in the civilian sector which can competently provide the same services to our agricultural sector but without the accompanying military risks.

With the President still in the process of determining the future of its military alliance with Washington, these activities should serve as warning signs that despite the President’s fiery rhetoric against the US, Washington continues with its objectives in the Philippines and the Pacific.

PH govt crafts lopsided water deal, no public consultations

Apr 5, 2021

In shutting the public out of negotiations for the revised water concession involving the MWSS, Manila Water and Maynilad, President Rodrigo Duterte’s government has crafted a lopsided water concession agreement that strengthens government control but not necessarily serving the public interest nor result in improved services.

First, the it needs to be stated that the new deal was undertaken without involving the public, when it had been the public itself that had raised the same issues on the concession agreements in the first instance.

Second, while the revised concession agreement raises the public character of the concession to the level of public utilities, it has drafted the revised concession agreement on unprecedented yet very onerous terms: favoring government, limiting private sector discretion but not necessarily benefiting the public, which should be the core interest in all of these negotiations.

One unprecedented feature is the requirement that all debt and expenditures be reviewed and approved by the Regulatory Office.

The provision destroys the nature of the concession as a PPP, effectively reducing the concessionaires into mere suppliers or vendors of government.

This contradicts private sector independence in investment and operations initiatives, which is a main feature in PPPs.

Effectively, government does not only exercise regulatory power over tariff, but also operational control.

Third, the immediate transfer to government of fully recovered assets prior to the expiration of the concession agreement absolutely makes no sense.

By undertaking an immediate transfer of assets, is government now taking on the burden of maintaining these assets while the concession agreement subsists?

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Who will exercise control over these assets while the concession agreement subsists: will it be government or the concessionaire?

Certainly, the private sector will not agree that assets are transferred to government while undertaking the obligation of maintaining and repairing the same assets while the concession subsists.

With the Covid crisis constituting a strain on a great percentage of public funds, we cannot undertake new obligations on the upkeep of water assets while the concession subsists.

Fourth, the removal of FCDA, while beneficial to the public as it transfers foreign currency risk to the concessionaires, runs the risk of being challenged as a violation of equal protection, as the FCDA remains standing policy in other public utilities.

Government should first make a general policy statement that FCDA is now prohibited in all public utilities in order to surmount a possible constitutional challenge.

Government had a golden opportunity to correct lingering concerns on the existing water concession agreements yet it seems it has squandered it over its attempts at exercising greater control over water utilities.

At its core, government needs to answer what is truly more important: government control or public interest?

Because with this revised concession agreement, it has succeeded only in the former, not necessarily the latter.