DEFENSE & SECURITY

Government eyes private sector help on military modernization Business Mirror, July 12, 2010
PRESIDENT Aquino said on Monday the government is planning to “actively solicit” private-sector help in speeding up the modernization of the Armed Forces. He said that the details are being threshed out to carry out the plan.“He said based on the reports he received that morning, only 10 percent of what was promised to the Armed Forces in terms of modernization has been delivered, so far. President Aquino also said he would consult the Department of Budget and Management (DBM) and the Presidential Management Staff (PMS) on money it owes the families of those killed in action, provided under the President’s Social Fund.

More than $2-billion foreign aid seen for Mindanao peace The Philippine Star, July 12, 2010
DAVAO CITY, Philippines – At least more than $2 billion in foreign aid is expected to be poured into Mindanao in the next few months to reduce poverty and attain peace in the strife-torn south, Social Welfare Secretary Corazon “Dinky” Soliman said.Soliman announced the foreign funding assistance would come in the form of grants and soft loans with the US and Japan as the biggest donors. Soliman said the Department of Social Welfare and Development is working in close coordination with the Office of the Presidential Assistant on the Peace Process (OPAPP) in implementing the proposed programs and projects aimed at reducing poverty in the south. “

ECONOMY

Asia must brace for possible economic shocks Business World, July 12, 2010
DAEJEON, SOUTH KOREA -- Asian financial policy makers must brace for possible further shocks given risks to the global economy such as the euro zone turmoil, the International Monetary Fund (IMF) chief yesterday said. "Policy makers need to remain attuned to negative shocks," said IMF managing director Dominique Strauss-Kahn, citing a potential spill-over from Europe’s debt crisis, the sharp rebound in capital inflows into Asia and the risks of overheating.But Mr. Strauss-Kahn said he did not foresee a global double-dip recession and the economic recovery is on track. "I don’t believe there will be a another dip. Our baseline is that there will be a recovery," he said in a speech to a conference in the central city of Daejeon in South korea.

Editorial - A bigger Deficit Manila Standard Today, July 12, 2010
The Aquino administration, by opting to incur a bigger budget deficit this year, has made it plain clear that it will not be gun-shy in borrowing more to pump-prime the economy. Keeping the budget gap to its original level would have meant a cut in the spending plan, and likely reduced the country’s chances of achieving a more robust economic growth. Aquino lifted the deficit ceiling by P31.8 billion to P325 billion from the original gap of P293.2 billion, after the previous administration overshot the budget cap in the first six months of the year.

NG debt up 4.2% to P4.436 trillion in April Manila Bulletin, July 12, 2010
The National Governments (NG) outstanding loans increased by 4.2 percent year-on-year or up by P177.4 billion to P4.436 trillion as of end April. The government and the Bangko Sentral ng Pilipinas (BSP) tap the dollar reserves to pay for maturing loans. Based on Bureau of Treasury data, the Philippine national debt in April was however lower by 0.5 percent compared to March with stronger peso helping lower debt levels. Foreign debt decreased to P1.888 trillion while domestic debt was higher at P2.548 trillion.

New perks, stricter rules for qualified auto firms BusinessWorld, July 12, 2010
CAR ASSEMBLERS and parts manufacturers will be eligible for incentives such as lower power rates and even a moratorium on strikes under draft implementing rules for the new Motor Vehicle Development Program (MVDP). The added perks, however, come with new paperwork/fees for manufacturers and even local content thresholds for certain vehicle types. The proposed rules were circulated last Friday at an industry consultation staged by the Board of Investments (BoI). Executive Order 877-A issued last month requires that the implementing rules be ready by August.

ENERGY

Thomas cites RP’s renewable energy July 12, 2010,Manila Bulletin
US Ambassador Harry K. Thomas Jr. has highlighted the potential of the Philippines for tremendous growth in the renewable energy market. According to Thomas, less red tape and less corruption will help attract investment from the United States in renewable energy and other sectors "which is good for business, good for the economy, and good for Mother Earth."Thomas' declaration came on the heels of President Benigno "Noynoy" Aquino III's announcement that Philippines is set to send a delegation for geothermal research and study in Brazil.

DOE to focus on lowering price of electricity (The Philippine Star) July 12, 2010
MANILA, Philippines - The Aquino administration will zero in on lowering the price of electricity as part of its platform and policy pronouncements on energy. In a policy declaration on energy, President Aquino mandated the Department of Energy to put in much effort to “work to make energy available and affordable for consumers and to put in place consumer protection programs. Other policy directions in the energy sector would include the drafting of a National Energy Development Plan that will encompass energy self-sufficiency and the extensive use of clean and sustainable sources of energy such as wind, water, and others.The Aquino administration would also want to ensure that bio-fuel production in the country will not undermine food production.To accomplish this, Mr. Aquino’s leadership would want to have a thorough review of all projects in the DOE and its attached agencies in view of a zero-based budgeting system where their budget allocations are shaped by their performance and their compliance with COA reports..

Petron allots $1.6B to expand refinery, petrochem facility - Woos foreign investors for funding Philippine Daily Inquirer 07/12/2010
PETRON CORP., the country’s biggest oil refiner and retailer, plans to invest $1.6 billion to upgrade its 180,000-barrel-a-day refinery and petrochemical business in Bataan, a move seen to provide additional revenue streams to the oil company.Petron is already in talks with foreign investors to put some $1 billion (roughly P46 billion) in the oil company. He said Petron was willing to offer a 40-percent stake to these investors through the issuance of new shares.

Aquino wary of BNPP, but open to nuke plant in Mindanao Malaya, July 12, 2010
PRESIDENT Aquino is not inclined to rehabilitate the Bataan Nuclear Power Plant, which was mothballed by his mother President Corazon Aquino in 1986, because of the expense. Aquino said he is awaiting the report and recommendations of Energy Secretary Jose Rene Almendras. He said these would include Almendras’ recommendations on the offer from a consortium led by the Korea Peninsula Energy Development Organization (KEDO) to put up two nuclear plants. The reactors, to be owned and operate by Korea Electric Power Corp., would help the Philippines realize its plans of increasing generation capacity by 3,000 megawatts by 2012.

INFORMATION & COMMUNICATIONS TECHNOLOGY

New administration set to face old ICT concerns Business World, July 13, 2010
When it comes to his pick for the country’s next information technology honcho, President Aquino said that there is still a debate whether to transform the Commissoin on Information and Communications Technology (CICT) into a Department . In a briefing held at the Malacañang last week, CICT chairman Ray Anthony Roxas-Chua III said most of the employees of the agency would continue to work while awaiting for new directives from Mr. Aquino. With even the CICT at a standstill, the industry can only wait to see whether the Aquino administration puts a conclusion on one of the local technology sector’s longest-running sagas.

INFRASTRUCTURE

DOTC to review Northrail project (The Philippine Star) Updated July 12, 2010
MANILA, Philippines - The Department of Transportation and Communications (DOTC) would review the status of the $503-million Northrail project that remains unfinished. Sen. Franklin Drilon alleged that $299 million was added as a “cost overrun” to the $503-million original contract price of the project.

POLITICS

'Pork' use to be published (The Philippine Star) Updated July 13, 2010
MANILA, Philippines - The Aquino administration will continue to provide lawmakers with Priority Development Assistance Fund (PDAF) or pork barrel funds, but how the allocations are utilized will be meticulously recorded and published, according to Budget Secretary Florencio Abad.“ Abad said the disbursement of the funds would have to be disclosed to the public, including details like the amount of cement, steel or other materials used for infrastructure projects

Standoff seen in race for Senate President Manila Standard Today July 12, 2010
SENATORS are likely to designate a “temporary” Senate President in case the two known aspirants for the Senate presidency—Liberal Party Sen. Francis Pangilinan and Nacionalista Party Sen. Manuel Villar—fail to muster the required 13 votes when the 15th Congress convenes its first session late this month. If neither Pangilinan nor Villar get the majority votes by July 26, “then the Senate will designate a temporary, acting Senate President just to preside over the session.

PET orders Binay to answer Mar Roxas protest in 10 days The Philippine Star Updated July 13, 2010
MANILA, Philippines - The Presidential Electoral Tribunal (PET) yesterday ordered Vice President Jejomar Binay to answer the electoral protest of his closest rival, former Sen. Manuel Roxas II.Binay was required to submit his comment on the protest seeking to nullify his proclamation and instead declare Roxas winner in the election by ordering a recount that would include some three million votes nullified by the Commission on Elections (Comelec), according to Supreme Court spokesman Midas Marquez.

Robredo: We will begin transparency at DILG (The Philippine Star) July 12, 2010
MANILA, Philippines - Newly designated Interior and Local Government Secretary Jesse Robredo vowed yesterday to take concrete steps to promote transparency and accountability in his department and its attached agencies. Robredo said transparency would begin in his department by publishing the budget, procurement processes, and project biddings on its website which the public could access.“Bukas ang tanggapan ng DILG para sa publiko (The DILG office is open to the public),” he said.

END MEMO

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