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DO WE NEED TO AMEND THE ECONOMIC PROVISIONS OF OUR CONSTITUTION?
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DO WE NEED TO AMEND THE ECONOMIC PROVISIONS OF OUR CONSTITUTION? Eto po bagong FB natin para sa videos: https://www.facebook.com/BATASnatin-107860591437195 https://www.facebook.com/Atty-Ranny-Randolf-B-Libayan-154012243457531 Alternate YT channel po for livestreams: https://www.youtube.com/channel/UCskZGSV52krMvXgb8OXXx1g WEBSITE: https://batasnatin.com/ LAW FIRM: https://firm.batasnatin.com/ FACEBOOK PAGE: https://www.facebook.com/BATASnatin/ INSTAGRAM: https://www.instagram.com/batasnatin/ YOUTUBE CHANNEL: https://youtube.com/BATASnatinLive TWITTER: https://twitter.com/BATASnatin LAWYERS: Atty. Kristina Louise Magalong Atty. Ranny Randolf B. Libayan FIRM ADDRESS: #31 Gen. Luna St., Tuktukan, Taguig City, NCR (Across Taguig City Hall) Email: BATASnatin@gmail.com Telephone nos: +63915-954-6080 (+632)359-4203 We are a full-service Law Firm We handle and are experienced in litigating many kinds of cases. Please do not hesitate to contact us. We will be
Atty. Ranny Randolf B. Libayan
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00:00.0
We echo what the USEC FITA has presented and stated
00:05.2
and of course what our Secretary has declared.
00:09.7
Essentially, Mr. Chair, we are proposing as well
00:12.2
for the amendment of the economic provisions of the Constitution
00:16.2
and the approach, Mr. Chairman, is similar to what was proposed
00:20.9
under the resolution of both houses,
00:25.1
entitled Resolution of Both Houses Proposing Amendments
00:28.1
to Certain Economic Provisions
00:29.9
of the 1987 Constitution thereby.
00:34.3
This would not be a self-executing provision
00:37.8
but will require another enabling law
00:40.8
for purposes of the opening up of the sector, Mr. Chairman.
00:47.8
That would be all for now, Mr. Chair,
00:49.7
and for the official position of the DTI,
00:52.1
we'll just respectfully submit it, Chair. Thank you.
00:55.6
Thank you very much, Governor Samaniego.
00:59.3
For PESA,
00:59.9
OIC Deputy Director General Jenny June Romero.
01:03.7
Good afternoon. Thank you for waiting.
01:05.6
Good afternoon, Mr. Chair,
01:07.4
and to all the honorable members of this committee,
01:09.5
and we thank you for inviting PESA to this committee hearing.
01:15.9
Your Honors,
01:18.0
as an investment promotion agency,
01:21.3
we are open, we are open,
01:23.9
and we support initiatives
01:25.8
aimed at making our country,
01:29.8
the premier investment destination,
01:33.2
and improving our rank
01:36.3
in investment attraction of foreign direct investments.
01:41.2
And we also share the positions of DTI and BOI
01:46.4
as being part of the DTI family.
01:48.5
And we agree, Your Honors,
01:50.3
that these initiatives must be well-studied,
01:55.6
well-researched, not rushed,
01:57.5
and also,
01:59.8
this has to be targeted
02:01.9
so that they will just provide solutions
02:04.6
to critical problems that is ailing our ability
02:07.6
to attract foreign investments.
02:09.6
We at PESA,
02:10.8
Your Honors, we are allowed to register corporations
02:13.8
which are 100% owned by foreigners
02:17.0
for as long as the activity
02:19.8
that they will be engaging in
02:21.5
are registered in the SIPP.
02:23.5
And of course, it will be subject to the laws
02:27.8
on
02:29.0
nationalized activities under the Constitution
02:31.9
and similar laws, Your Honors.
02:35.1
We'll be submitting our comments in the next few days.
02:38.1
Thank you very much, DDG Romero.
02:41.7
We'd like to acknowledge the presence of
02:42.8
Senator Bato de la Rosa,
02:43.7
the Senate Chair of Committee on Public Order.
02:46.5
Good afternoon, sir.
02:49.1
So now we have DICT, ASEC Paraíso.
02:54.5
Good afternoon, Mr. Chair.
02:56.0
First and foremost, in behalf of our Secretary,
02:58.9
Secretary Ivan Uy,
03:00.5
we would like to thank this honorable committee
03:03.6
for inviting the ICT.
03:04.9
We are honored to be here.
03:06.4
We support the call of the President
03:07.9
to revisit the possible amendments
03:11.9
to the economic provisions of the government.
03:14.1
To illustrate, sir,
03:15.9
we note that there are several innovations
03:18.4
that have been legislated already,
03:20.4
particularly the Public Service Act,
03:22.9
which now considers ICT
03:26.9
as not part of a public union.
03:28.3
Thus, opening it up to 100% foreign investments.
03:33.3
The passage of EO number 32,
03:36.3
which streamlines the telecom industry towers,
03:39.3
which addresses one of the points raised by Mr. Francisco earlier,
03:43.3
that there is a problem or a low-lying fruit
03:47.3
that we can address is the problem of bureaucratic efficiency.
03:55.3
Now, but with these passages,
03:57.3
with these particular legislation,
03:59.3
it also poses several challenges.
04:00.8
For example, in the PSA,
04:02.3
it does not solve the problem of the very restrictive need
04:08.3
for congressional franchises
04:09.8
when it comes to the telecoms industry.
04:14.3
There is a pending bill before the Senate
04:16.8
with regards to the Open Access Act.
04:18.8
I know this is a very, very contentious requirement,
04:24.3
and, you know,
04:25.3
which can be,
04:26.3
which would probably aid in our deliberations
04:30.3
when it comes to constitutional amendments, sir.
04:34.3
Also, when it comes to,
04:36.3
while government needs vital infrastructures
04:39.3
to improve connectivity and digitalization,
04:43.3
there's also a need to liberalize
04:45.3
or revisit the provisions of the Public Procurement Law
04:48.3
because it's very restrictive when it comes to the ICT industry.
04:53.3
A very good point raised by Chairman Ramos.
04:56.3
Chairman Aguinaldo earlier was,
04:58.3
results can only,
04:59.3
would be best,
05:00.3
the best indications of a law,
05:03.3
whether a law is effective or not,
05:04.3
would be the results.
05:05.3
But since the PSA and EO number 32
05:09.3
are very, very new laws,
05:11.3
it is, you know,
05:12.3
it is very inefficient
05:14.3
or it's not right to judge the law's efficiency
05:17.3
at this point in time.
05:19.3
But I guess it's an improvement
05:21.3
since based on the latest reports of the BOI,
05:25.3
the ICT industry is probably top two
05:28.3
in the FDIs that have come into the country.
05:33.3
If the goal is for investments,
05:36.3
we guess that the law is efficient,
05:39.3
it's probably working,
05:40.3
but if the goal is to improve the lives of the Filipinos,
05:44.3
it remains to be seen,
05:45.3
Mr. Chair and members of the committee.
05:48.3
But for sure,
05:50.3
this one thing is for sure,
05:52.3
we can do better.
05:53.3
So,
05:54.3
at least on the part of the ICT industry.
05:56.3
So, with that, Mr. Chair,
05:57.3
we thank you, sir.
05:58.3
I want to clarify.
05:59.3
You're saying
06:00.3
the improved,
06:01.3
changing the constitution,
06:03.3
the positive effects remain to be seen
06:05.3
for the Filipino people?
06:07.3
No, sir.
06:08.3
With regards to the…
06:09.3
I just want to clarify that.
06:11.3
Yes, sir.
06:12.3
The passage of the legislation,
06:13.3
particularly the PSA,
06:15.3
because it's a fairly new law, sir.
06:17.3
Again…
06:19.3
Let's be intense first.
06:20.3
It's not definite
06:22.3
if it will result in benefits
06:23.3
is what you should know.
06:24.3
That's your point.
06:25.3
Yes, Mr. Chair.
06:26.3
Thank you, Mr. Chair.
06:27.3
Got it.
06:28.3
Thank you.
06:29.3
Thank you.
06:30.3
Thank you, Asek Pareizo.
06:31.3
Can we hear from
06:32.3
Atty. Gerardo Del Rosario
06:33.3
from the SEC or Securities Exchange Commission?
06:34.3
A pleasant good afternoon,
06:35.3
Mr. Chair
06:36.3
and the members of the committee.
06:37.3
First of all,
06:38.3
I would like to say thank you
06:40.3
for inviting the SEC
06:42.3
to join this conference
06:43.3
and this meeting.
06:44.3
From the viewpoint
06:45.3
of company registration,
06:46.3
Mr. Chair,
06:47.3
the amendments
06:49.3
to the Foreign Investment Act,
06:51.3
the amendments
06:53.3
to the Negative Lease
06:55.3
as well as the amendment
06:56.3
to the Public Service Act
06:57.3
is a welcome development
06:58.3
for the SEC.
06:59.3
We will be implementing the laws
07:03.3
that will be passed
07:04.3
by the Congress.
07:05.3
We're open to the…
07:07.3
We're happy that our economy
07:09.3
is being opened
07:10.3
because we're giving opportunity
07:12.3
to the foreigners
07:13.3
to provide investment
07:14.3
in the Philippines
07:15.3
and it's equivalent
07:16.3
to employment opportunity
07:18.3
with our Kababayans.
07:19.3
And, Mr. Chair,
07:21.3
I would like to emphasize
07:22.3
what Mr. Francisco
07:25.3
said a while ago
07:26.3
that there's a need
07:27.3
for a lot of signature.
07:28.3
In the SEC,
07:29.3
our registration
07:30.3
bears no more signature.
07:32.3
93% of our registration
07:35.3
bears no signature
07:36.3
by the director.
07:37.3
The only remaining
07:38.3
with signature
07:39.3
which is only one signature
07:40.3
is the signature
07:41.3
for the approval
07:42.3
of partnership
07:43.3
and branch offices.
07:46.3
Thank you, Mr. Chair.
07:48.3
It's commendable
07:49.3
on the part of the SEC.
07:51.3
But you still need
07:53.3
the signatures
07:54.3
to file
07:55.3
the compliance requirements,
07:57.3
right?
07:58.3
Yes, sir.
07:59.3
In fact,
08:00.3
we will be launching
08:01.3
a project which is
08:02.3
a so-called
08:03.3
credentialing.
08:04.3
So, how fast
08:05.3
can you form
08:06.3
a juridical body
08:08.3
or a corporation nowadays?
08:09.3
Sir, we have
08:10.3
a so-called
08:11.3
one SEC,
08:12.3
one day.
08:13.3
One day.
08:14.3
Okay.
08:15.3
That's because
08:16.3
of the new corporation code,
08:17.3
right?
08:18.3
Yes, sir.
08:19.3
But, of course,
08:20.3
there are restrictions.
08:21.3
There are no restrictions,
08:22.3
but we can only
08:23.3
cater to 100% Filipino company.
08:25.3
Right.
08:26.3
The basic corporations,
08:28.3
holdings,
08:29.3
manufacturing.
08:30.3
Okay.
08:31.3
What are your requirements
08:32.3
for 6040?
08:33.3
If there is foreign ownership,
08:34.3
what is the compliance
08:35.3
or regulatory requirement there?
08:36.3
Nothing, sir.
08:37.3
Nothing?
08:38.3
Just the filing
08:39.3
of the articles
08:40.3
of incorporation?
08:41.3
Yes, sir.
08:42.3
Okay.
08:43.3
All right.
08:44.3
That's good.
08:45.3
Thank you.
08:46.3
Thank you.
08:47.3
That's it
08:48.3
for our resource persons.
08:49.3
We will continue
08:50.3
to answer questions
08:51.3
patiently.
08:52.3
You have 10 minutes
08:53.3
then, Senator Batok,
08:54.3
afterwards,
08:55.3
if you wish us.
08:56.3
Go ahead, ma'am.
08:57.3
Thank you,
08:58.3
Mr. Chair.
08:59.3
I think some of our resource persons
09:00.3
took the health break
09:01.3
as a permanent break.
09:02.3
Speaking of which,
09:03.3
actually,
09:04.3
Mr. President,
09:05.3
my first question.
09:06.3
Well, we still have
09:07.3
very good resource persons
09:08.3
here in the person
09:09.3
of our economic agencies.
09:10.3
Go ahead, ma'am.
09:11.3
Definitely.
09:12.3
Thank you so much,
09:13.3
Mr. Chair.
09:14.3
Actually,
09:15.3
my first question
09:16.3
to Justice Carpio,
09:17.3
but maybe
09:18.3
for the next hearing,
09:19.3
if he will be with us.
09:21.3
You can send him
09:22.3
your questions, ma'am,
09:23.3
if you wish,
09:24.3
if you wish.
09:25.3
Salamat, Chair.
09:26.3
Siguro,
09:27.3
on the legitimacy
09:29.3
of the need
09:30.3
for RBH-6,
09:31.3
I was going to ask this
09:33.3
to Sec. Balisakan,
09:35.3
but after hearing
09:36.3
the presentation
09:37.3
of Dr. Angeles,
09:38.3
if I could ask
09:39.3
this question of you.
09:40.3
In 2019,
09:42.3
a deputy ombudsman
09:44.3
said that,
09:45.3
estimated that
09:47.3
we lose
09:48.3
700 billion pesos
09:50.3
or 20%
09:51.3
of government's budget
09:53.3
to what are stolen
09:56.3
from the coffers
09:57.3
of government
09:58.3
of the country
09:59.3
due to corruption.
10:00.3
And based on the
10:01.3
Corruption Perceptions Index,
10:04.3
we're still in the top third,
10:06.3
the Philippines,
10:07.3
of the most corrupt countries
10:09.3
in the world.
10:10.3
And in many other studies
10:12.3
on corruption,
10:14.3
that corruption
10:15.3
is still
10:17.3
a big deterrent
10:18.3
on foreign direct investment.
10:20.3
So,
10:21.3
is it not more important
10:22.3
for this to lead
10:23.3
the attention
10:24.3
of combating
10:25.3
corruption,
10:26.3
even more than
10:28.3
amending
10:29.3
the Constitution?
10:33.3
Thank you for that question, ma'am.
10:35.3
I perhaps,
10:37.3
perhaps one
10:38.3
can take note
10:39.3
of the studies
10:40.3
that
10:42.3
Usec Edelion
10:43.3
and I think
10:44.3
also
10:45.3
Professor
10:46.3
Fabelia
10:47.3
and
10:48.3
their colleagues
10:49.3
drafted.
10:51.3
I suppose one way
10:52.3
of thinking of it is
10:54.3
we need not,
10:56.3
we can
10:57.3
walk and chew gum
10:58.3
at the same time.
10:59.3
We can address both
11:00.3
at the same time.
11:03.3
And
11:04.3
I believe
11:05.3
the studies also show
11:06.3
that
11:07.3
removing
11:08.3
these restrictions
11:10.3
is also beneficial.
11:13.3
Certainly addressing
11:14.3
the corruption
11:15.3
red tape
11:16.3
and so on
11:17.3
are also going
11:18.3
to be beneficial.
11:20.3
Thank you,
11:21.3
Dr. Angela.
11:22.3
Thank you.
11:23.3
Thank you.
11:24.3
Mr. Chair,
11:25.3
moving on to,
11:26.3
if I may,
11:27.3
although it's
11:29.3
it's
11:30.3
not the
11:31.3
specific subject
11:32.3
of RBH6,
11:33.3
not one of the,
11:34.3
but I think
11:35.3
there are lessons
11:36.3
we can learn from
11:37.3
just
11:39.3
a few questions about
11:40.3
energy generation
11:41.3
and distribution.
11:42.3
So,
11:45.3
since
11:48.3
USEC Rosemarie
11:49.3
is here with us,
11:50.3
ma'am, if you could
11:51.3
field these questions
11:53.3
or refer to one of
11:54.3
your colleagues from NEDA
11:56.3
for these.
11:57.3
In the energy transmission
11:59.3
and distribution sector
12:00.3
for electricity,
12:02.3
40% is owned by
12:03.3
the State Grid Corporation
12:04.3
of China.
12:05.3
And our
12:06.3
Senate Committee on Energy
12:08.3
learned that
12:11.3
they have a veto power
12:12.3
because of this 40% ownership.
12:14.3
So,
12:15.3
in the NGCP,
12:17.3
same goes for
12:18.3
Meralco,
12:19.3
43%
12:21.3
is owned
12:22.3
by foreign interests.
12:23.3
So,
12:24.3
and we know that
12:26.3
Meralco and NGCP
12:27.3
are not lacking
12:28.3
for profits
12:29.3
and
12:30.3
these profits
12:31.3
can be
12:32.3
invested
12:33.3
so that
12:34.3
we don't anymore
12:35.3
suffer
12:36.3
the blackouts
12:37.3
also mentioned by
12:38.3
resource persons
12:39.3
recently on
12:40.3
Panay Island,
12:41.3
on Guimaras Island
12:42.3
as well,
12:43.3
before that
12:44.3
on Douro Island.
12:47.3
And so that
12:48.3
we can modernize
12:49.3
our grid
12:50.3
and
12:51.3
make it even more
12:52.3
ready and capable
12:53.3
for the entry of
12:54.3
renewable energy
12:55.3
supplies
12:56.3
in the coming years.
12:58.3
So,
12:59.3
will the
13:00.3
price of electricity
13:01.3
drop faster?
13:02.3
Will we be more
13:03.3
hopeful
13:04.3
about
13:05.3
the
13:06.3
no-blackout
13:07.3
renewable energy
13:08.3
ready
13:09.3
grid
13:10.3
and
13:11.3
distribution
13:12.3
system
13:13.3
and
13:14.3
will we be more
13:15.3
resilient
13:16.3
against
13:17.3
cyber threats
13:18.3
if more
13:19.3
capital
13:20.3
will enter
13:21.3
or if China,
13:22.3
the state grid corporation
13:23.3
itself
13:24.3
and the
13:25.3
solid group
13:26.3
will be the
13:27.3
controlling
13:28.3
shareholders
13:29.3
of those
13:30.3
two companies,
13:31.3
NGCP
13:32.3
and
13:33.3
Meralco.
13:36.3
Madam Chair,
13:37.3
I'm not an engineer
13:38.3
so,
13:40.3
just to say.
13:41.3
If the NEDA has any thoughts
13:42.3
about these questions,
13:44.3
not on the technical level
13:45.3
but more on the policy level.
13:46.3
More on the policy level,
13:48.3
I think,
13:49.3
as with any reform,
13:51.3
it really needs to be complete.
13:53.3
So, with respect to the reform
13:55.3
in the power sector,
13:57.3
what we have been
13:59.3
pushing for as well is
14:01.3
improve the capacity
14:03.3
of the ERC,
14:04.3
the Energy Regulatory Commission,
14:06.3
because they should be
14:07.3
safeguarding
14:08.3
our interests.
14:11.3
At the same time,
14:12.3
for the ICT,
14:15.3
it's your NTC.
14:17.3
And this is also why
14:18.3
we also mentioned that
14:20.3
as we're going digital,
14:22.3
we really need to beef up
14:24.3
our capacity
14:25.3
to do cybersecurity.
14:26.3
And a big part of that
14:28.3
is really our human resource.
14:31.3
So, we need to produce
14:33.3
more than
14:34.3
almost 200,000
14:36.3
licensed
14:37.3
cybersecurity
14:38.3
of which we only have
14:39.3
less than 200,
14:40.3
I believe.
14:42.3
So,
14:43.3
it doesn't have to be
14:46.3
just one bullet
14:48.3
addressing all the problems.
14:50.3
We should have a lot
14:52.3
because there are
14:54.3
different problems.
14:55.3
So, just to say that
14:57.3
we really need to
15:00.3
beef up the capacity
15:01.3
of the regulators themselves.
15:03.3
As to the other points,
15:06.3
Madam Chair,
15:07.3
I will just relay it to
15:09.3
my colleagues.
15:10.3
Thank you.
15:11.3
Thank you,
15:12.3
Yusek Rosemarie.
15:14.3
Before I continue with
15:15.3
my questions for Neda,
15:16.3
dahil nabanggit na rin po
15:17.3
yung cybersecurity,
15:18.3
if Mr. Cheque could ask
15:19.3
the representative from
15:21.3
the DICT,
15:23.3
I think,
15:24.3
ASIC-Pareizo.
15:25.3
Yes, sir.
15:26.3
Ngayon pa lang po,
15:28.3
so many vulnerabilities
15:29.3
are emerging
15:31.3
as to our cybersecurity.
15:33.3
Witness the recent
15:34.3
cyber attacks.
15:36.3
Hindi po ba nangangamba
15:38.3
yung department
15:39.3
na yung pagbukas
15:40.3
sa dayuhan ng
15:41.3
public utilities,
15:42.3
pati posibleng,
15:43.3
critical infrastructure,
15:45.3
and I have other questions
15:46.3
about this for other
15:47.3
resource persons,
15:48.3
hindi kaya nakakapangamba na
15:50.3
magdadala ng dagdag na panganib
15:52.3
sa national security natin?
15:55.3
Thank you, Mr. Chair.
15:56.3
Mr. Chair, there's always
15:57.3
that possibility.
15:58.3
There's always that fear.
15:59.3
But with the passage,
16:00.3
the passage and approval
16:02.3
of the President of the
16:03.3
National Cybersecurity Plan,
16:04.3
comes with it
16:05.3
the improvement
16:07.3
and the plan
16:08.3
to beef up
16:09.3
as our colleagues
16:10.3
were saying,
16:11.3
the cybersecurity capacity
16:13.3
and posturing
16:14.3
of our nation.
16:15.3
At the heart of it,
16:16.3
as mentioned,
16:17.3
is the upskilling
16:18.3
and training
16:19.3
of various cybersecurity
16:20.3
and IT professionals
16:21.3
in government.
16:23.3
Hopefully,
16:24.3
we can also
16:25.3
address the need
16:27.3
to meet
16:30.3
the disparity
16:32.3
of wages
16:33.3
in government employees
16:36.3
working as cybersecurity
16:37.3
professionals in IT professionals.
16:38.3
But to answer
16:39.3
the question,
16:40.3
there's always
16:41.3
that possibility.
16:42.3
But again,
16:43.3
the DICT,
16:44.3
in particular,
16:45.3
is not lacking
16:46.3
in foresight
16:47.3
when it comes
16:48.3
to,
16:49.3
you know,
16:50.3
addressing,
16:51.3
knowing the problem
16:52.3
and trying to address it.
16:53.3
Thank you, Mr. Chair.
16:54.3
And then,
16:55.3
filling up
16:56.3
the plantilla
16:57.3
that Yusek Rosemarie
16:58.3
mentioned,
16:59.3
2,000,
17:00.3
sorry,
17:01.3
200,000
17:02.3
workers
17:03.3
who are
17:04.3
working
17:05.3
in the
17:06.3
government
17:07.3
of our
17:08.3
personnel
17:09.3
for our cybersecurity.
17:11.3
Wouldn't it be
17:12.3
the better part
17:13.3
of wisdom
17:14.3
na
17:15.3
the ownership
17:16.3
remains
17:17.3
in Filipino hands?
17:20.3
We would like to,
17:24.3
we can only address
17:25.3
the problem of
17:26.3
the lack of cybersecurity professionals,
17:27.3
Your Honors,
17:28.3
Mr. Chair.
17:29.3
But the wisdom
17:30.3
of whether
17:31.3
those industries
17:32.3
should belong
17:33.3
in Filipino hands,
17:35.3
even if it would
17:36.3
create
17:37.3
or it would
17:38.3
create the possibility
17:39.3
of cybersecurity threats,
17:41.3
we leave it up
17:42.3
to the legislature
17:43.3
and other
17:44.3
agencies
17:45.3
in government
17:46.3
whether
17:47.3
that possibility
17:48.3
or that risk
17:49.3
is greater
17:50.3
than the investments
17:51.3
and the benefits
17:52.3
it would bring
17:53.3
to the Filipino people.
17:54.3
Thank you,
17:55.3
Mr. Chair.
17:56.3
Salamat.
17:57.3
Of course,
17:58.3
Congress always appreciates
17:59.3
that kind of respect
18:00.3
for the institution,
18:01.3
pero kaya rin po
18:02.3
kayo iniimbita
18:03.3
bilang resource persons
18:04.3
because
18:05.3
we also value
18:06.3
the input
18:07.3
you give us.
18:08.3
And I'm sure
18:09.3
and I hope
18:10.3
that the good Secretary
18:11.3
is also advising
18:12.3
the President
18:13.3
about this.
18:14.3
Dahil ngayon pa lang
18:15.3
na kapapasalang pala nga
18:16.3
ng National Cyber Security Plan,
18:18.3
namumroblema na nga tayo
18:20.3
sa mga cyber attacks
18:21.3
na iyan.
18:22.3
So all the more,
18:23.3
moving forward,
18:24.3
we want to
18:25.3
not just address
18:27.3
reactively
18:28.3
but even
18:29.3
anticipate
18:30.3
or preempt
18:31.3
additional threats
18:33.3
in the future,
18:34.3
Mr. Chair.
18:36.3
Thank you,
18:37.3
Mr. Chair.
18:38.3
Rest assured,
18:39.3
Mr. Chair,
18:40.3
you have a
18:41.3
very progressive,
18:42.3
very forward-looking
18:43.3
head of the DICT
18:44.3
advising the President
18:45.3
on matters
18:46.3
of cybersecurity,
18:47.3
the problem
18:48.3
it poses
18:50.3
and the solutions
18:51.3
that we can adopt
18:52.3
to address
18:53.3
those problems.
18:54.3
Thank you,
18:55.3
Mr. Chair.
18:56.3
Thank you,
18:57.3
Mr. Chair.
18:58.3
Going back now
18:59.3
to NEDA,
19:00.3
it's been,
19:01.3
as some of our
19:02.3
resource persons
19:03.3
have mentioned,
19:04.3
it's been more than
19:05.3
a decade
19:06.3
that our power
19:07.3
generation sector
19:08.3
in the country
19:09.3
has been open
19:10.3
for 100%
19:11.3
foreign ownership.
19:12.3
So ano po kaya
19:13.3
yung pumipigil pa
19:14.3
sa dayawang
19:15.3
kapital
19:16.3
na magpundar
19:17.3
ng mas maraming
19:18.3
kapital
19:19.3
sa power
19:20.3
generation sector
19:21.3
natin
19:22.3
nitong nakaraang
19:23.3
dalawang dekada?
19:25.3
If
19:26.3
Usec
19:27.3
Rosemarie
19:28.3
or one of
19:29.3
her colleagues
19:30.3
would care to
19:31.3
address the question.
19:33.3
Chair,
19:34.3
if I may,
19:35.3
I think
19:36.3
the most
19:37.3
common reason
19:38.3
is the,
19:39.3
again,
19:40.3
stated by
19:41.3
our representatives
19:42.3
from the
19:43.3
Joint Chambers
19:44.3
of Commerce,
19:45.3
the permitting
19:46.3
process,
19:47.3
it takes
19:48.3
a really,
19:49.3
really long
19:50.3
time
19:51.3
to get the permits
19:52.3
off the ground.
19:53.3
In fact,
19:54.3
there was an effort
19:55.3
on the part
19:56.3
of the Department
19:57.3
of Energy
19:58.3
to establish
19:59.3
an energy
20:00.3
virtual
20:01.3
one-stop shop
20:02.3
so that
20:03.3
all permits
20:04.3
will be there.
20:05.3
So,
20:06.3
I think
20:07.3
that's
20:08.3
the most
20:09.3
effective order
20:10.3
to that effect.
20:11.3
Despite that,
20:12.3
it still takes
20:13.3
a long time,
20:14.3
Madam Chair.
20:15.3
Thank you,
20:16.3
sir,
20:17.3
for reiterating
20:18.3
a factor
20:19.3
also mentioned
20:20.3
earlier
20:21.3
in our hearing.
20:22.3
And I think
20:23.3
it will
20:24.3
also
20:25.3
aid us
20:26.3
when we
20:27.3
finally
20:28.3
assess
20:29.3
and possibly
20:30.3
update
20:31.3
the APIRA
20:32.3
or
20:33.3
our
20:34.3
various laws
20:35.3
regulating
20:36.3
the energy
20:37.3
sector.
20:38.3
My next question,
20:39.3
Mr. Chair,
20:40.3
it's originally
20:41.3
addressed
20:42.3
to,
20:43.3
originally prepared
20:44.3
to address it
20:45.3
to NEDAP,
20:46.3
but pwede ko rin po
20:47.3
sanang itanong
20:48.3
sa BOI.
20:49.3
I believe
20:50.3
we have
20:51.3
a resource
20:52.3
person from
20:53.3
BOI here
20:54.3
with us today
20:55.3
or also
20:56.3
USEC FITA.
20:57.3
Tama po ba
20:58.3
na kahit
20:59.3
nag-register
21:00.3
na ang
21:01.3
napakaraming
21:02.3
renewable
21:03.3
energy proponents
21:04.3
sa BOI
21:05.3
nitong,
21:06.3
well,
21:07.3
nung nakaraang
21:08.3
2023
21:09.3
ay maaaring
21:10.3
hindi pa rin
21:11.3
matuloy
21:12.3
ang investments
21:13.3
na iyan.
21:14.3
It's too bad
21:15.3
Mr. Francisco
21:16.3
is no longer here.
21:17.3
Pero,
21:18.3
tinanong ko po ito
21:19.3
dahil binanggit nila
21:20.3
kanina
21:21.3
ni Mr. Francisco
21:22.3
ng BDO Capital,
21:23.3
presidente
21:24.3
ng BDO Capital,
21:25.3
na mahihirapan
21:26.3
silang magpautang
21:27.3
pala
21:28.3
sa mga
21:29.3
RE companies
21:30.3
kung tulad ngayon
21:31.3
wala silang
21:32.3
long-term
21:33.3
power purchase
21:34.3
agreements
21:35.3
sa mga
21:36.3
distribution utilities
21:37.3
gaya ng
21:39.3
Meralco.
21:40.3
So,
21:41.3
how would
21:42.3
BOI
21:43.3
or
21:44.3
USEC FITA
21:45.3
advise
21:46.3
that we
21:47.3
approach
21:48.3
and begin
21:49.3
to solve
21:50.3
this problem
21:51.3
and meet
21:52.3
the banking
21:53.3
sector
21:54.3
halfway
21:55.3
and give
21:56.3
the support
21:57.3
to our
21:58.3
RE proponents
21:59.3
that they deserve
22:00.3
and that we
22:03.3
can
22:11.6
make a difference
22:16.3
in the future.
22:18.3
So,
22:19.3
I think
22:20.3
that's
22:21.3
what we have
22:22.3
to do.
22:23.3
So,
22:24.3
I think
22:25.3
that's
22:26.3
what we have
22:27.3
to do.
22:28.3
I think
22:29.3
that's
22:30.3
what we have
22:31.3
to do.
22:32.3
But,
22:33.3
if the
22:34.3
banks
22:35.3
won't be
22:36.3
encouraged
22:37.3
to
22:38.3
provide
22:39.3
them
22:40.3
financing,
22:41.3
how
22:42.3
do we
22:42.8
not
22:43.3
miss
22:44.3
this
22:45.3
opportunity?
22:46.3
Mr.
22:47.3
Chair?
22:48.3
Yes,
22:49.3
Mr.
22:50.3
Cross?
22:51.3
Not
22:52.3
addressing
22:54.3
this one.
22:57.3
Just
22:58.3
to say
22:59.3
just to
23:00.3
add
23:01.3
permitting process, it's also related
23:03.6
to the capacity of the
23:05.6
ERC. Kasi isa sila sa bottleneck
23:07.7
talaga yung pag-approve ng mga
23:09.7
proposals for this
23:11.1
power plant projects.
23:14.0
So, it really has,
23:15.3
especially, you know, as the economy
23:17.8
grows, badami
23:19.8
ng dadami itong mga ganitong proposals
23:21.6
and so we really need to beef up
23:23.8
the capacity of ERC. Yan lang po,
23:25.8
Mr. Chair. Thank you. Sorry with
23:27.3
your indulgence, Ms. Riza.
23:29.1
Pero wala ba sa Philippine Development
23:31.4
Plan yung streamlining of
23:33.2
procedures and
23:35.3
processes? Is that there?
23:36.9
Yes, yes. I think it's to do with
23:39.4
the number of
23:41.2
mga, I don't know, skilled
23:43.3
personnel. I may be...
23:45.2
And also sa PISAC sana, sa
23:46.8
Private Sector Advisory Council. Kasi
23:49.1
I know they meet directly with the
23:51.1
President and then a lot of their
23:52.9
recommendations have been already implemented or
23:55.0
in the process of implementation like
23:56.9
NAIA, etc. So,
23:58.7
yung mga yun, very urgent
24:01.1
yung mga ano yun. Very
24:02.1
makakatulong talaga
24:04.8
sa pag-akit ng mga investor.
24:07.0
So, why don't we put it there
24:08.9
sana? Aside from the Development Plan,
24:10.8
pati sa PISAC agenda.
24:13.1
That's my suggestion. Thank you,
24:14.9
Sandra Riza. Salamat, Mr. Chair.
24:17.1
I'm wondering if BOI
24:18.9
Governor Ramos Samaniego would
24:20.8
like to just share some
24:22.9
thoughts about my question. Sayang kasi
24:24.8
mami, diba? Dami nang pumapasok
24:27.0
na RE
24:28.7
investors, RE companies.
24:30.9
Sila nga yung majority ng mga bagong
24:32.4
investments natin recently. Sa inyo po, sa
24:34.4
Board of Investments. But
24:36.8
the banks have started
24:38.8
to tell us some of their difficulties.
24:40.8
So, how do we, kumbaga, put
24:42.6
the synopsis in this
24:44.5
subset of the brain
24:48.7
together?
24:50.8
Thank you, Sen. Riza.
24:52.8
Essentially, it's a bilateral
24:54.4
long-term supply contract. So,
24:56.4
it's more of a grid,
24:58.7
grid issue, Senator
25:00.6
Riza. But what the BOI is
25:02.6
doing is, if they're registered
25:04.8
with the BOI, what we do is
25:06.7
we suspend their commercial
25:08.3
operation. And
25:10.1
as I'm saying
25:12.5
this, Mr. Chair,
25:15.0
we actually are,
25:16.7
we have this Executive Order No.
25:18.7
18 where we facilitate
25:20.0
all of the
25:21.6
permits and licenses
25:23.8
for projects that are
25:26.3
categorized as strategic industries.
25:28.7
And it's true,
25:30.7
last year, Mr. Chairman, we
25:32.6
have like 937
25:35.0
billion worth
25:36.7
of investment from RE.
25:38.9
And as we're speaking right now,
25:40.7
we are actually working out all of
25:42.5
this. Dollars, ma'am.
25:44.5
Dollars po yan, Governor.
25:45.7
937. No, pesos.
25:49.6
But that was
25:50.7
just like from June to
25:52.7
February.
25:55.0
So, it's really, we really
25:56.7
have, when we opened the RE,
25:58.7
through the IRR
26:01.1
actually, that was the time that there was
26:03.1
this onslaught of
26:04.3
all of these RE projects.
26:06.7
And within that period, we have
26:08.5
that much
26:09.7
investments in RE, which include as well
26:12.7
FDIs. But
26:14.6
on this, ma'am, what we are doing
26:16.6
is, through the
26:18.7
EO18, we're looking at each and every
26:20.9
permit, and we're looking at
26:22.7
all of these
26:23.5
areas of
26:26.7
concern, para e-address,
26:28.7
normally, ma'am, if, but this
26:30.5
long-term power supply agreement is
26:32.5
bilateral in nature.
26:34.7
So, what we could do is, we can just
26:36.7
encourage the parties on
26:38.6
how we can unbundle
26:40.7
this issue, Madam
26:42.7
Senator. It's more of a
26:44.6
grid issue. Right now, we have also
26:46.6
in our recent meeting,
26:48.3
also with the EVOS, that's the one
26:50.5
that there's this energy
26:52.2
online one-stop
26:54.7
shop as well. We also met with
26:56.6
NGCP, where we're
26:58.7
we are now made aware that
27:00.4
all the queues on this, all of
27:02.7
this queuing would now be
27:04.5
done by sometime April.
27:07.2
So, all of this, ma'am,
27:08.4
tinitignan na po namin isa-isa through the
27:10.6
EO18, all of these
27:12.6
issues and concerns on how
27:14.5
or on how we can
27:16.5
facilitate the operation
27:18.8
actually, not just permitting, but
27:20.7
eventually the
27:22.7
commercial operation of the
27:24.6
projects, Mr. Chairman.
27:26.7
Thank you.
27:28.7
Salamat din, Governor
27:31.0
Ramos Samaniego.
27:33.0
And of course, Mr. Chair, I also
27:34.8
listened to what
27:36.1
Yusek Rosemarie has repeatedly said
27:38.9
na importante din yung papel ng
27:40.8
ERC at yung
27:42.2
upgrade ng capacity niya.
27:45.2
Also to facilitate
27:46.4
these essential connections like the
27:49.0
long-term power purchase agreements.
27:50.9
Mr. Chair, I think Yusek Rosemarie is raising
27:52.9
her hand to interject.
27:53.6
Yes, Yusek Rosemarie.
27:55.1
Before you answer, Yusek Rosemarie, I might forget
27:57.3
that I wanted to ask this.
27:58.7
Ano yung ako pa gustong hingin?
28:00.6
Kasi nag-release ng
28:01.8
PR ang PCOO
28:04.6
kapon na 12 billion
28:06.8
dollars or pesos
28:08.8
of the
28:10.8
pledges have materialized.
28:12.9
So could I get details on that, please?
28:15.3
Because that's a very impressive number.
28:18.0
We'd like to know
28:18.9
the details. What industries,
28:21.4
what corporations,
28:23.4
etc. and so forth.
28:24.9
So since we'll take advantage
28:26.9
of your presence to request that, please.
28:29.1
Before the next hearing. Thank you.
28:30.9
The next hearing is next week. Thank you.
28:32.9
Thank you, Sen. Riza.
28:34.2
Thank you, Mr. Chair.
28:36.4
But anyway,
28:38.3
just to say for the record as well na,
28:40.9
as per
28:42.2
press release din ng
28:44.3
ERC, they only have 272
28:46.9
plantelia positions
28:48.4
and they're supposed to do the processing
28:50.8
of all these applications in addition
28:52.6
to monitoring the performance
28:54.6
then. So
28:55.4
we really need to
28:57.7
address the
28:59.2
I also know that they
29:02.2
had a large cut in their budget
29:04.2
yata. So
29:05.2
it has to be, like I said, a system
29:08.2
wide approach for
29:10.1
this one. Thank you, Mr. Chair.
29:12.0
Mr. Chair, the chair happens
29:14.2
to be also the chair of our
29:15.9
committee that
29:18.1
passes the budget
29:19.8
bill every year. But I don't handle ERC
29:22.1
Sen. Gachaliano.
29:24.1
That's true, Mr. Chair.
29:25.3
Nung sinabi yun, nag-walk out yung staff.
29:27.7
Nung sinabi yung staff ni Sen. Gachaliano.
29:29.1
Joke lang, joke lang.
29:30.9
Baka pinatawag ko.
29:32.4
In fact, I remember, Mr. Chair, that
29:34.7
the committee as led by
29:37.7
the Vice Chair,
29:39.7
Sen. Sherwin, and this representation,
29:42.1
we restored
29:42.9
the budget of the ERC.
29:45.8
So what Yusef Cruzmane has been
29:47.6
saying, we'll find support,
29:49.7
we'll continue to find support here
29:51.2
in the Senate for the capacity.
29:54.4
Traditionally, Sen. Gachaliano,
29:55.5
who's been handling the subcommittee of the
29:57.7
Committee on Finance, handling the energy
29:59.7
agencies, he just
30:01.8
juggles it. In fact, he adds to it.
30:04.2
But he
30:05.0
realigns the budget
30:07.8
where he sees fit.
30:08.9
If he thinks, he doesn't
30:11.7
take it out of the DOE family is what I'm trying to say.
30:14.3
Just in his defense.
30:15.8
Kasi wala po siya dito.
30:17.4
And I confirm that, Mr. Chair.
30:20.0
So just a last question
30:21.9
for Neda
30:23.5
on the
30:25.8
energy generation and
30:27.7
distribution.
30:29.5
So, kasi nga napakaseryosong
30:31.4
usapin po itong supply ng kuryente
30:33.8
kung wala ito. Of course, wala
30:35.7
ang manufacturing sector na inaasahang
30:38.0
magbibigay ng empleyo
30:40.0
sa mga mawawala ng trabaho
30:41.7
sa sektor ng agrikultura
30:43.3
na patuloy na gumagamit na ng mga
30:45.7
makina. Alam na ng mga
30:47.8
bansang gaya ng Vietnam, which we've been talking
30:49.8
about a lot, na ang susi
30:51.9
para pumasok ang foreign investors
30:53.6
sa manufacturing sector
30:55.3
ay ang supply ng mura,
30:57.7
sapat at maasahang kuryente.
30:59.8
So, given these
31:01.2
so far,
31:03.6
Yusef Rosemary, hindi kaya ang pag-amienda
31:05.7
sa epiralo
31:06.5
ang dapat natin inaatupag sa halip na
31:09.6
ang chacha?
31:12.4
Any thought on that,
31:14.0
ma'am?
31:16.4
Yeah, Madam Chair,
31:17.6
I have to beg your
31:19.7
indulgence and we'll just
31:21.6
get back to you.
31:23.7
I'll ask my colleague to
31:25.6
give his comment on that.
31:27.7
Thank you.
31:29.3
Your colleague, ma'am, meaning
31:30.7
Director General Balisakan?
31:33.2
Yeah, and Yusef Dokoy.
31:36.4
Yusef Kapuno.
31:38.4
Sen. Risa, what was the question?
31:39.7
We missed the question.
31:41.9
I was just wrapping up that
31:43.2
napaka-importante yung mga usaping kuryente
31:45.7
so hindi kaya
31:47.0
amyandahan na lang natin yung epira
31:49.2
sa halip na amyandahan ng konstitusyon.
31:52.1
Maybe the Philippine Development
31:53.5
Plan even had some points
31:55.5
about that.
31:57.7
Comments there from the resource persons?
32:01.0
She said that
32:01.7
the good Yusef said she would ask
32:03.7
Director General Balisakan.
32:05.3
Anything on the development plan regarding
32:07.5
epira?
32:09.2
Or you take that also as an initial
32:11.7
condition?
32:16.0
Yeah, please speak in the mic, Yusef.
32:17.6
It's in the legislative agenda.
32:19.5
Meron ho doon? To amend epira?
32:22.7
Okay.
32:23.1
So we'll just ask for details
32:25.2
maybe, Sen. Risa?
32:26.8
Thank you, Chair.
32:27.7
Good to know that it's on the LEDAC
32:29.0
priority legislative agenda
32:30.6
at least probably two years before
32:33.2
this whole idea of amending the
32:34.9
constitution came up.
32:36.9
Chair, I think Yusef Fita is also
32:39.0
raising her hand. Yes, yes, of course.
32:40.6
Yusef Fita and anyone for that matter
32:42.6
after her could offer a response.
32:45.1
Go ahead, ma'am. Thank you, Mr. Chair
32:47.1
and Sen. Risa.
32:49.1
Actually, I was raising
32:51.1
my hand to go back to the
32:52.8
PPA question that was
32:54.3
raised by Sen. Risa a while ago.
32:56.7
But I believe,
32:57.7
as well, that we need to review
32:59.1
the epira.
33:02.1
There's so many things,
33:03.6
so many developments that have transpired
33:05.7
since the time it was passed.
33:07.5
And hence, there have been
33:09.7
certain issues
33:11.1
that would merit
33:12.8
amendments to
33:15.2
the epira. But
33:16.9
Sen. Risa, Mr. Chair,
33:19.8
on the PPAs,
33:21.5
of course, these are crucial for us
33:23.5
to secure the financial viability
33:25.8
of energy projects.
33:27.7
They guarantee a market for the electricity
33:29.7
generated and providing
33:31.8
a steady revenue stream for
33:33.6
investors. However, there have
33:35.9
been a lot of challenges
33:37.5
as earlier pointed
33:39.6
out. And
33:40.9
there are certain
33:42.8
measures that we need
33:45.7
to focus our efforts on,
33:48.2
particularly in terms of strengthening
33:50.0
our policy and regulatory
33:51.5
frameworks. We need more
33:53.5
clear regulatory
33:55.2
guidelines and
33:57.7
incentives for RE would
33:59.7
also be,
34:01.6
we need to continue
34:02.9
because there are already
34:05.0
incentives in place, tax breaks,
34:08.1
feed-in tariffs, subsidies,
34:10.3
and
34:10.5
we hope to be able
34:13.8
to sustain
34:14.8
these incentives for RE
34:17.7
and enhancing the financial
34:19.7
models in order for
34:21.7
us to address the
34:23.7
risks. Some risk mitigation
34:26.0
instruments would
34:27.7
need to be developed
34:30.0
along with some certain
34:32.5
flexible pricing structures
34:34.2
that could be put in place
34:36.3
or for now probably they need to be studied
34:38.4
in order for us to
34:40.6
see how this could be
34:42.8
implemented given our
34:44.8
current context
34:46.6
and promoting
34:48.9
more public-private
34:50.2
partnerships, fostering
34:52.4
collaboration between the public and private
34:54.5
sectors to share risks
34:56.4
and benefits.
34:57.7
Capacity building, enhancing the capacity of our
35:01.4
LGUs and utilities
35:04.1
to negotiate and manage
35:05.8
PPAs, ensuring they are
35:08.2
structured to attract
35:09.6
investors while serving public
35:11.8
interests, and improving
35:14.0
market access and infrastructure
35:15.9
by way of
35:16.9
developing or establishing
35:19.6
grid infrastructure investments
35:22.2
that would ensure that
35:24.1
the generated power can be
35:26.3
effectively distributed
35:27.6
and sold, and hence
35:29.7
enhancing the attractiveness
35:31.7
of PPAs and then
35:33.8
also open access
35:35.7
policies and encouraging
35:37.7
innovation and technology
35:39.5
adoption. For instance,
35:41.7
the support for emerging technologies
35:44.1
and digital platforms
35:45.8
for PPA transactions.
35:48.6
And we have some startups
35:49.7
by the way who are
35:51.4
already creating
35:53.6
these digital platforms
35:55.8
for electricity.
35:57.6
Madam Chair.
35:59.1
Thank you so much, Yusek Fita.
36:01.4
Very much appreciated
36:02.7
the several concrete input
36:04.9
that will guide
36:06.1
us not only in this hearing
36:09.8
but also dun sa gagawin namin
36:11.6
hopefully proseso ng
36:13.1
pagbabaliktingin
36:15.4
sa EPIRA moving forward.
36:18.4
So right now,
36:19.7
Mr. Chair, claro there are maybe
36:21.5
a million things we can do
36:23.1
now. Halimbawa, ayusin yung
36:25.5
permitting process.
36:27.6
Identifying deterrents for
36:29.6
industries that are already liberalized
36:31.7
ng hindi
36:33.4
kailangan ang chacha.
36:35.6
Do I still have time in this round for another topic,
36:37.6
Mr. Chair?
36:38.1
You stopped 11 minutes.
36:41.1
I'll ask
36:41.9
Senator Bato if he wishes to ask
36:44.1
a question.
36:46.0
I think usually
36:48.2
Senator Bato is very fast so we can go back to you.
36:50.0
Thank you, Mr. Chair.
36:50.9
Senator Bato, with your permission, Senator Issa.
36:53.6
I just only have one question, Mr. Chair.
36:56.3
Thank you, thank you.
36:57.6
One question lang.
36:59.8
Sorry for I am late.
37:02.0
Hindi ko narinig lahat ng mga
37:03.7
session ng mga
37:05.2
ahinsya nandito.
37:07.5
I just would like to
37:09.2
get the
37:11.2
recapitulation
37:12.8
of their positions. Can I
37:15.2
request, Mr. Chair,
37:16.7
we still have 1, 2, 3,
37:19.5
4, 5, 6, 7, 8, 9, 10
37:21.7
resource persons around.
37:23.9
Can I see a raising of hands?
37:26.2
Who among you, based?
37:27.6
Based on your agency's
37:29.4
position, who among you
37:31.3
are in favor of
37:32.4
amending the restrictive provisions
37:35.3
of our economic provisions of our
37:37.3
constitution? Can I
37:39.1
see a raising of hands?
37:42.9
1, 2,
37:43.9
3, 4, 5, 6.
37:45.7
No one on the private side, just the government
37:47.6
side? Government side, 6.
37:49.4
Are you asking also the, just to clarify,
37:51.4
Senator Bato, kasama ba yung, are they also
37:53.5
they're also part of the
37:55.4
survey?
37:56.4
Okay.
37:57.6
So, you have the option to abstain
38:00.1
if you wish.
38:00.9
Yeah, yeah. Gusto ko lang malaman.
38:02.8
Can we ask for the raising of hands again, sir?
38:06.6
1, 2, 3, 4,
38:08.4
5, 6, 7, 8.
38:10.7
So, Mr. Chairman,
38:12.8
I abstain. I think for a foreigner,
38:14.5
this would be a very difficult thing to do.
38:16.3
Thank you. I understand. I understand.
38:17.9
You've made your position clear, Mr. Payne. Thank you.
38:20.3
Thank you. So, 8,
38:21.9
2.
38:23.9
Ayun lang, Mr. Chair. Maraming salamat.
38:26.8
Thank you.
38:27.6
Ang galing nung tanong mo, Senator Bato.
38:29.8
Mr. Chair.
38:30.6
Ang galing.
38:30.9
Lengta ko dumating.
38:32.4
Apat na oras kami nakaraupo dito, eh.
38:35.2
Ikaw, in a few minutes na tanong mo kaga.
38:37.8
That's the purpose of our hearing, di ba?
38:39.9
Thank you. Thank you. Salamat.
38:41.5
Thank you, sir. Thank you, sir.
38:42.4
Mr. Chair.
38:43.7
Mr. Chair.
38:44.3
Ang galing. Ang galing.
38:45.1
Back to Senator Rees.
38:46.8
Mr. Chair.
38:47.5
Sorry, sorry.
38:48.2
Senator Rees, I've been informed by my staff, si
38:50.1
Dr. Doy Santos has been raising his hand for quite some time.
38:53.2
With your permission, we'll just ask him if he wants to contribute.
38:56.3
Might be on the...
38:57.6
Subject matter at hand.
38:58.7
Go ahead, Dr. Santos.
39:02.0
Thank you, Mr. Chair, Senators.
39:06.2
In response to...
39:07.0
We can't hear you, sir. Could you speak a little louder?
39:09.5
Sorry.
39:13.3
How's that, Mr. Chair?
39:15.3
Can you hear me now?
39:15.7
I understand you've been raising your hand.
39:17.1
You wanted to contribute to this.
39:18.3
Yes, I have. Yes, sir.
39:19.8
Go ahead, sir.
39:20.5
Can you hear me?
39:22.2
Can you hear me?
39:23.1
Much better now. Much better.
39:24.3
Okay.
39:25.2
So, in response to the Honorable...
39:27.6
Madam Senator's question,
39:30.4
emerging...
39:32.5
I would like to share the emerging practices now.
39:37.2
From my state, where I'm based now in South Australia,
39:41.1
where the power prices used to be the most expensive in the nation,
39:45.5
it has now gone to the cheapest.
39:47.8
And a lot of that has gotten to do with the fact that we made a transition into renewables earlier.
39:54.4
And at one point, there was even a major...
39:57.6
There was a major blackout because the grid connection to Victoria was cut during a power out during a storm.
40:04.3
And then Elon Musk came in and there was an agreement to build batteries.
40:10.1
So 100 megawatts.
40:12.0
That's what he did in 90 days.
40:15.5
And so one of the things that came out of that was that battery storage is not only power generation,
40:23.0
but it helped to stabilize the grid by providing ancillary services.
40:27.6
And in fact, helped lower the cost because when you have variable generation and it varies during the day,
40:37.4
the task of the grid is to maintain parity between supply and demand.
40:43.0
So the battery storage was thought to help in providing prevent blackouts by supplying energy.
40:49.9
The utility derived from that 100 million investment was that it helped...
40:57.6
to stabilize the grid because you're talking here about microseconds rather than minutes
41:03.7
to balance the influx and it has resulted in that lower power.
41:10.5
And then the other thing is that microgrids.
41:13.3
So earlier it was highlighted that a lot of the investments are off the grid.
41:19.5
So in fact, as I mentioned earlier in my statement that most of these projects are remote from the grid,
41:28.2
but are actually closer to the consumer.
41:31.6
So it can provide to households in the locality.
41:37.3
But then if you're going to set up a microgrid, then you're no longer engaged in power generation.
41:42.8
You are now engaged in power distribution.
41:46.2
So these are the emerging and then there are these platforms, as was mentioned earlier by the USEC.
41:52.3
And then lastly, there's the ASEAN grid.
41:55.8
Where...
41:57.6
Actually, Australia, in my home state, they're producing solar commercials at the commercial scale to feed into Singapore.
42:05.9
Under through undersea cables via Indonesia.
42:10.2
And so there is a plan by the ASEAN group of countries to connect ASEAN.
42:16.3
So in fact,
42:18.4
if you're talking about foreign power, that means that the power,
42:22.2
when there is a deficit in the Philippines and the cheaper power elsewhere,
42:26.4
it could help meet
42:27.7
our demand.
42:29.2
But then you're talking that the power generators are completely foreign, right?
42:34.7
But then, of course, there needs to be a connection.
42:37.5
There needs to be a grid connection.
42:39.5
And all this renewable, we are aiming for 50% renewable by 2035.
42:44.8
If we have to wait for all those permitting and things like that, the 200 signatures or so that are needed,
42:51.7
are we going to meet that target?
42:53.4
Are we going to do it in a stable manner?
42:56.7
Because flexibility,
42:57.8
stability is needed, but also stability.
43:00.2
And so I submit, Mr. Chair, that the technical know-how, the capabilities,
43:06.2
the innovation,
43:08.0
for that to be diffused,
43:09.5
it's all happening in the major centers of powerhouses of the world.
43:15.3
For that to diffuse to the Philippines, we need to be more open.
43:19.0
And so if we were to just simply amend the PSA Act and include grid distribution and transmission,
43:26.3
how thin are we going to slice that provision?
43:30.7
Because sooner or later, EVs will come into the picture.
43:34.1
So then are you going to include public utility vehicles?
43:38.2
How thin are you going to keep slicing that ham until there's no longer any ham left?
43:43.7
So it might be better, Mr. Chair, that we consider the proposal at hand that you have laid before the table through the RPH6.
43:54.4
Thank you, Your Honors.
43:55.5
Thank you.
43:55.8
Thank you.
43:56.6
That's very useful information.
43:58.7
And in a way, it makes us sad because Australia is going to connect to Singapore,
44:03.0
but tayo, yung connection lang sa grid, di natin magawa-gawa.
44:07.8
Connection of Visayas and Mindanao to the grid, di natin magawa-gawa for so many years already.
44:12.4
That's really sad, actually.
44:13.9
I wish the government could really push on that connection because that's leaving a lot of power,
44:22.7
what's the word, stranded?
44:24.8
Or...
44:25.3
Yeah.
44:25.8
Not available to those who need it.
44:28.7
St. Teresa?
44:29.7
Yeah.
44:30.7
Thank you, Mr. Chair.
44:31.9
Yes, I also appreciate the inputs of Dr. Ocampo.
44:38.6
And not just sad, pero provocative.
44:43.0
Like this ASEAN grid, mali ba natin kaya natin humabol dyan?
44:47.6
And again, not solely through the CHA-CHA route.
44:51.2
For example, I'm just thinking aloud here, if we were to amend existing...
44:55.8
including the EPIRA and acting together, they could create those connections that are needed.
45:02.0
So, just something to think about as we move forward conducting these hearings, of course, also in aid of legislation.
45:10.5
So, maraming salamat para dyan, sir.
45:16.9
Sige, on the Public Service Act naman, if USEC Rosemarie will bear with me, I'd like to pose these questions.
45:25.7
So, under the Public Service Act, NEDA can recommend the classification of a public service as a critical infrastructure.
45:35.6
So, ano-ano po yung mga public services na ngayon kinukonsider na critical infrastructures?
45:49.4
Yeah, Madam Chair.
45:51.0
Right now, we're just looking at the...
45:55.7
Yeah, it's the telecoms industry that is still identified in the law and in the IRR.
46:02.9
We are actually requesting for a TA on this because we are supposed to come up also with a baseline survey.
46:14.5
And so, we are requesting for a TA from World Bank on which to base, actually.
46:19.6
Yung pag-define ng aling yung gagawin ng public utilities. Thank you.
46:25.7
So, sa ngayon, prior the baseline survey, meron na ba kayong inire-rekomenda, I mean, ang NEDA, na iba pang public services for classification as critical infrastructures?
46:37.6
None yet, Madam Chair.
46:39.9
Mr. Chair, please.
46:41.3
Alright. Salamat, ma'am.
46:43.6
I'm asking this also because kasama po ni dating senator at ngayon secretary Ralph Recto at ni dating senador Kiko Pangilinan,
46:53.9
actually, kumontra po ako.
46:55.7
Public Services Act Amendments.
46:57.7
Dahil sa tingin ko, yung telecommunications, airports, at mga tren at riles, dapat manatiling public utilities na hindi mapapasailalim sa kontrol ng dayuhan.
47:10.5
Pero sa huli, ipinasa ang RA 11659 para palawakin ang public services na pwedeng pasukin ng dayuhan.
47:20.7
Pero pagkatapos ng maraming debate, nilinaw ng batas yung kakainan.
47:25.7
Ibang pag... kakaibang pagtrato sa critical infrastructure na sa tingin ko po nararapat lang.
47:31.7
So dito, bawal magmay-ari ang anumang entity na kontrolado o kumikilos para sa dayuhang gobyerno o foreign state-owned enterprise.
47:42.5
And I remember that our good chair himself, Sen Sonny, even interpolated the sponsor on this specific point.
47:51.8
And if I remember correctly, and please correct me if I'm wrong, his concern then was...
47:55.7
He was on the law effectively allowing China to own and take control of DITO Telecom.
48:01.1
But according to our good chair of that bill, now law, may additional safeguards sa telecoms industry dahil tinuturing nga itong critical infrastructure.
48:12.1
So that.
48:13.6
Ngayon, ang lehislatura, so parehong sa Senado at sa House of Representatives, kinilala yung pangangailangang protektahan ang critical infrastructure.
48:22.0
So sa RBH 6.
48:25.7
So sa tingin ng NEDA, tama po ba na wala nang ganitong distinction, wala nang ganitong proteksyon sa critical infrastructure?
48:36.4
Actually, no.
48:38.5
We, you know, national security is really an issue that we should be, we should really take very seriously.
48:47.8
And so, kaya nandun pa rin talaga yung mga, kumbaga yung protection na yun.
48:53.8
Really looking at...
48:55.7
The security review.
48:58.6
So that's part of it.
48:59.8
Meron na actually guidelines para doon.
49:02.8
And, yeah, all those other, all those other safeguards with respect to information, kukuha sila ng, yung parang ISO na certification and all that.
49:13.9
Thank you, Mr. Chair.
49:16.6
At ngayong lumalalim yung hidwaan sa pagitan ng mga bansa, mas nagiging konkreto yung mga banta sa cybersecurity natin.
49:25.3
Diba, mas mahalaga pa nga na-protectahan yung national security natin?
49:32.5
Yes, of course.
49:33.7
But, like I said, actually, yung issue of cybersecurity, nandyan talaga siya, regardless of, of course, like you said, with the geopolitical tension, mas siguro, mas prominent siya.
49:49.4
But just the same, we really need to...
49:53.4
We really need to beef up our capacity to guard against cyber attacks.
50:03.0
Salamat, Yusek.
50:04.3
So I think one thing that's affirmed to me dito sa recent exchange natin, kailangan explicit, even for those who support RBH6, na meron pa rin pagkakaiba yung mga ituturing na critical infrastructure.
50:20.6
Hindi sila kapareho lang ng...
50:23.4
Diba, na pwede lang buksan sa 100% foreign ownership dahil nga critical infrastructure sila.
50:30.0
So, isang halimbawa lang before I leave this topic.
50:34.0
Napabalita na meron ng tatlong prospective winning bidders yung P170.6 billion na IA privatization.
50:43.2
Sa pagkakaalam ko, all of the three bidders have foreign partners based on existing cap on foreign equity ownership.
50:51.5
Pero sa amended public...
50:53.4
Public Service Act natin ay iniwan sa discretion ng Pangulo ng Pilipinas kung alin sa natitira pang public services ang itatalaga nito na critical infrastructure.
51:06.8
So, sa RBH6 po ba, nakikita nyo ba na may plano na nating ito dubukas sa foreign ownership ang lahat at alisin na ang naiwang discretion sa Pangulo sa bagay na ito?
51:23.4
I think the issue of security, national security for that matter, is, you know, it's really parang overarching consideration naman ito.
51:38.8
Parang, regardless of whether we go by the RBH6 or not, nandyan lagi yung consideration for national security.
51:51.9
So, again, dapat...
51:53.4
I think, Madam Chair, if the language of the law is, yung ilalagay lang yung unless otherwise provided for by law.
52:14.4
And our current legal framework is the amended Foreign Investment Act.
52:21.5
And then the amendment, Public Service Act.
52:23.4
Nakalagay naman yun doon.
52:25.9
Thank you.
52:27.4
Thank you, Ma'am.
52:29.1
Binabalikan ko lang po itong issue, Mr. Chair, kasi maalala natin, nung nagkaroon ng shutdown sa airport, nung nakaraang New Year, saka Labor Day,
52:39.1
sinabi ko na hindi silver bullet yung solution na privatization.
52:44.3
Dahil ang nakita kong mas problema dito ay kapabayaan, hindi lack of funds or opportunities para sa modernization.
52:51.8
Na IA actually generates an annual operating income of at least 15 billion pesos.
52:58.3
This was pre-pandemic, of course, 2019.
53:00.9
At nakakabawi rin ito ngayon.
53:03.9
Unfortunately, very little is left with MIAA for operations, as 50% or more of its net income is remitted to the National Treasury,
53:13.2
on top of the 20% national government share in the authority's operating income based on actual collections.
53:21.8
Kaya hirap ang MIAA sa sariling upgrading at modernization.
53:26.8
And according to the Workers' Union, Mr. Chair,
53:30.1
the samahan ng mga manggagawa sa paliparan ng Pilipinas or SMPP, 5 to 7% na lang ang budget para sa maintenance every year.
53:40.5
Hindi parang kahawig halos ito ng transko na kumikita naman ng 20 billion pesos kada taon,
53:47.4
pero ipinamigay natin sa lokal at dayuhang konsorsyum ng NGC.
53:51.8
para patakbuhin at pagkitaan.
53:55.5
So sana we, does NEDA have any thought about that?
53:58.8
What we did to transko in this whole privatization process?
54:06.4
Baka si Yusek mag-inig.
54:08.4
No, just to say that in the amended Foreign Investment, sorry, Public Service Act,
54:15.5
there actually is a provision for the performance requirement monitoring,
54:21.8
by the regulator.
54:23.4
So merong mga performance parameters.
54:27.8
And parang on this basis, merong ano yan eh,
54:31.0
I believe may sanction na nandun.
54:33.7
I just forgot kung ano yung nilagay doon na sanction.
54:37.5
Pero kasama yun sa safeguard.
54:39.2
With respect to transko, I'm not ready to do that info unless si Yusek Agabi.
54:47.3
Would Yusek Agabi care to comment on this, Mr. Chair?
54:51.8
I'm sorry, we didn't catch the question, Mr. Chair.
54:54.2
I was wondering about how transko was handled.
55:00.7
Speaking of performance requirements, kung in terms of its financial performance,
55:04.8
it was profiting 20 billion pesos every year,
55:09.0
but we turned it over to the NGCP consortium.
55:13.5
And in terms of performance requirements, I don't know how well the NGCP is acting.
55:21.5
As a system operator.
55:25.9
I think there are some sectors, or there are some people who believe,
55:33.0
based on hindsight, that maybe the National League should not have been privatized.
55:40.6
But then there's also views which says that privatization actually worked
55:46.0
because they were able to put in the needed capital
55:51.1
to improve the system.
55:51.5
To improve the grid itself.
55:53.1
So it's mixed, Madam Chair.
55:56.9
Fair enough, Mr. Chair.
55:58.7
Your permissions.
55:59.8
Yes, Mr. Chair.
56:00.3
But we're still paying the debts from NAPOCOR.
56:02.6
Bayad na ba yun from the time of NAPOCOR
56:06.3
when the whole power sector was in public hands?
56:10.5
We incurred massive debts, di ba?
56:12.3
Yes, sir.
56:12.9
And have we paid those debts already?
56:15.2
We are still paying for some.
56:16.4
We're still paying those debts, correct.
56:17.4
If you look at your bill, you will see the universal charges.
56:21.5
UCSD, Universal Charged Stranded Debt,
56:26.1
and SCC, Stranded Contract Costs.
56:28.8
Those are the amounts we're still paying for, Mr. Chair.
56:32.6
A reminder kasi we often hear, not from Sen. Rizzo,
56:35.4
but from other sectors, dapat gobyerno nag-ahandle niyan eh.
56:38.6
Dati nga gobyerno nag-ahandle, tingnan niyo nangyari.
56:41.2
Go ahead, Sen.
56:42.5
Thank you, Mr. Chair.
56:43.7
And fair enough, USEC, it is a mixed record of privatization.
56:47.7
Pero I'm glad na may openness of mind tayo na
56:51.1
sometimes privatization is not the best mode,
56:55.0
sector by sector or industry by industry sa ating ekonomiya.
56:59.5
Kaya exciting din tignan kung paano mangyayari yung review
57:04.2
at saka amendment or updating ng IPIRA.
57:08.1
Yung huling tanong ko, Mr. Chair, tamang-tama,
57:10.6
USEC Agabin is on board.
57:11.9
It's for the DOF.
57:13.7
Ito naman, itatanong ko sana kay Sec. Ralph,
57:17.7
pero just in case you've had a conversation on this subject,
57:21.1
with him,
57:22.8
mula nung deliberation sa Public Service Act,
57:26.6
yung concerns niyo ba, concerns ni Sec. Ralph ha,
57:29.4
on the protection of critical infrastructure,
57:31.7
nagbago ba ito?
57:33.1
Kasi maalala ko rin,
57:35.5
my colleagues will correct me if I'm wrong,
57:37.1
nung deliberation sa PSA bill,
57:40.1
may sinasabi si Sec. Ralph noon, Sen noon,
57:42.9
masyadong loose yung definition ng public utilities
57:45.9
to the point na kontra sa at least sense at spirit
57:50.9
ng deliberations ng CONCOM of 1986.
57:54.4
Naalala ko, napansin ni Sec. Ralph noon, Sen Ralph,
57:58.8
na sa bill, yung seaport, critical infra,
58:02.7
pero airport, hindi.
58:05.1
So, would the good USEC have knowledge
58:07.7
kung mula nun nagbago yung concerns ni Sec. Ralph
58:11.5
dun sa usaping yan?
58:13.2
Interestingly, Mr. Chair, Madam Senator,
58:16.4
when we were discussing it,
58:18.3
Sec. Ralph did mention that,
58:20.3
he voted against it.
58:22.7
Those were his same concerns,
58:24.3
and he actually said that,
58:25.9
you know, I'm actually open to it
58:28.2
when it comes to toll roads.
58:32.2
So, and he didn't say that his view has changed.
58:36.3
He did mention his perspective
58:39.6
when you were crafting the amendment to the PSA, Madam Chair.
58:46.0
Marami salamat.
58:47.0
It's, I think, for us legislators,
58:48.8
as interesting to,
58:50.3
to look at or be reminded of the deliberations on bills
58:53.2
as it is for us all now to
58:54.8
be reminded of the deliberations on the Constitution.
58:58.6
So, marami salamat, USEC Agabit.
59:00.6
Marami salamat, Mr. Chair.
59:02.6
Those are my questions for today.
59:03.9
Thank you very much, Senator Risa.
59:05.4
Senator Bato, anything else before we...
59:07.7
Thank you.
59:08.7
Any last words from the resource persons?
59:11.0
I'm sure we're all somewhat exhausted from,
59:14.8
but from a very stimulating discussion.
59:16.5
And allow me to thank our resource persons,
59:19.4
especially those who stayed.
59:20.3
And our colleagues, especially.
59:22.1
And Risa Senbato.
59:23.4
And those who came earlier.
59:24.2
Any last words before we suspend the hearing?
59:27.0
Of course, we'll continue.
59:28.9
The subcommittee will continue to have hearings next week.
59:31.4
Mr. Chair.
59:32.4
Mr. Chair.
59:33.2
Yes.
59:33.8
Who is that?
59:34.6
Dr. Santos here.
59:36.2
Dr. Santos, yes.
59:37.2
Dr. Santos, go ahead.
59:38.0
Yes, my last statement actually is
59:41.7
in relation also to the question of the Honorable Madam Senator Risa
59:46.5
earlier about corruption.
59:48.5
If we go back in time,
59:50.1
to our history,
59:51.7
it was actually when we tried to be more preferential
59:57.3
to domestic ownership in the 60s,
60:01.9
that growth slowed and corruption thrived.
60:06.2
And in fact, that's what created the first boom-bust cycle.
60:10.3
And similarly, in the 70s,
60:14.1
when we tried state ownership, state intervention,
60:16.7
as I pointed out in my statement earlier,
60:20.1
it became unsustainable and then FDI fell.
60:23.7
So, I know that some have spoken about,
60:28.4
well, Dr. Carlos said,
60:32.0
where's the empirical data?
60:36.3
We don't just need to rely on charts and those statistics,
60:40.3
but also our history.
60:42.8
And collectively, our memories are very short.
60:46.7
Very few really go back to 1902 and our history.
60:49.7
So,
60:50.1
I don't actually talk about where these economic restrictions arose.
60:55.6
Why are we the only country out of the 18 that your honor surveyed,
61:01.8
your people surveyed?
61:03.5
Why are we the only country with these?
61:05.5
And it was, as I pointed out, a strange quirk in our history,
61:09.1
in the origins of our country,
61:11.6
which eventually you heard of path dependence.
61:14.3
Sorry, Professor Fabella, my professor will scold me for not mentioning this.
61:19.0
We ended up,
61:20.1
following that ever since and, in fact, expanding it.
61:23.2
So, my last statement is,
61:25.2
if we want to truly enter a new phase, a new era,
61:29.2
a new or bagong Pilipinas,
61:31.2
the best way to signal it is to start to unwind
61:35.2
the centuries-old pattern of being close to the world
61:40.2
and restricting.
61:42.2
Thank you, your honors.
61:44.2
Thank you very much for your time.
61:45.7
Appreciate it.
61:46.7
Mr. Chair.
61:47.7
Thank you, Dr. Santos.
61:48.7
San Teresa, then back to Mr. Pena.
61:50.1
Thank you so much, Dr. Santos.
61:51.1
And I apologize, Mr. Chair.
61:52.1
I was addressing you earlier because I saw the nameplate of Attorney Ocampo across me.
61:53.1
I actually called you Dr. Ocampo earlier.
61:54.1
I apologize for that.
61:55.1
And thank you so much for your inputs.
61:56.1
Thanks for being called Dr. Ocampo.
61:57.1
Salamat.
61:58.1
Mr. Pena.
61:59.1
Thank you, Mr. Chairman.
62:00.1
I guess the only thing I would say is the world is changing very, very rapidly.
62:01.1
The competition is increasing.
62:02.1
And if we want to keep up with it, we're going to have to, whatever we do, whether it's
62:03.1
the government or the government itself, we're going to have to keep up with it.
62:04.1
And if we want to keep up with it, we're going to have to, whatever we do, whether it's
62:05.1
the bureaucracy, whether it's the legislature, whether it's the Constitution, we're going
62:06.1
to have to move nimbly and quick.
62:07.1
Well said.
62:08.1
Thank you.
62:09.1
Thank you, everyone from our place.
62:10.1
This has been a very lively very engaging talk.
62:11.1
Thank you.
62:12.1
I'm going to give it up for Mr. Ocampo.
62:13.1
And thank you for watching today.
62:14.1
I hope you have a very, very pleasant day.
62:15.1
Thank you.
62:16.1
Have a good weekend.
62:17.1
Have a great weekend, everyone.
62:18.1
Thank you.
62:19.1
Have a great weekend.
62:20.1
Have a wonderful weekend.
62:21.1
I'm sure you will share.
62:22.1
Thank you.
62:23.1
Thank you.
62:24.1
Thank you all very much.
62:25.1
I'm going to go for my interview.
62:30.1
Thank you.
62:31.1
Thank you.
62:32.1
Thank you.
62:33.1
Thank you.
62:34.1
Thank you.
62:35.1
useful exercise
62:37.5
and hopefully
62:39.7
you've convinced some of our colleagues
62:41.6
but we'll continue nonetheless.
62:43.7
Thank you very much, Your Honors, and
62:45.3
we appreciate your presence here this morning.
62:47.6
We will suspend the hearing.