The joint activity is a model-setting approach on the South China Sea issue and on forging partnerships on energy security.

The Philippine supports cooperative endeavors in accordance the Asean-China Declaration of Conduct of Parties (DOC) in the South China Sea and will continue to pursue the vision of the DOC on the establishment of a code of conduct.

President Gloria Macapagal-Arroyo today cited the central role played by the energy sector in her program for the country’s economic development, as she noted that her administration is not just looking at tax measures to raise revenues.

In a keynote speech at the awarding of outstanding electric cooperatives in Malacanang, the President stressed that the privatization of the generation assets of the National Power Corp. (Napocor) will not only help reduce the consolidated public sector deficit and the public sector debt, but will also help raise funds for other projects.

"Our revenue generation priorities don’t stop at tax measures," the President said, adding that other key reforms would be undertaken by her administration to meet the goal she set under her 10-point program aimed at reducing poverty incidence in the country.

The national government has projected this year’s consolidated public sector deficit would be reduced to P203.865 billion from P263.217 billion in 2004, as a result of the privatization program as well as the additional revenues to be raised from new tax measures.

"The privatization of Napocor through the sale of its generation assets… will not only reduce a drain on public sector revenues, but will also produce revenues that can be used to invest in the infrastructure that will grow the economy and increase jobs," the President said.

The President said "the first 12 to 18 months of my current term constitute the first phase of the six-year 10-point program."

The first phase focuses on balancing the budget before 2010, which involves fiscal reforms aimed at passing revenue measures, plugging corruption leakages and rationalizing the power sector.

The President said the privatization of Napocor is only one of the strategies her administration is implementing to make energy affordable and sustainable and to promote investments in the power sector.

"The objective of our power sector reforms is to reduce the cost of electricity and to make it competitive with the rest of Southeast Asian region," the President said.

She assured that her administration is "committed to continuing to push through the reforms. As we grow our energy sector, so too will we grow our commitment to clean energy production and a clean environment."

"The health and safety of our citizens is as important as stable, affordable and sustainable energy production," she said.

The President handed awards to electric cooperatives and a number of government officials for distinguished government service.

Among the awardees are the Central Negros Electric Cooperative, Inc. Union for best union; Regions VII and XII, for their most outstanding performance; Wilfred Billena, Carlos Itable, Loreto Marcelino, Edecio Satina and Jesus dela Victoria, most outstanding general managers; Cebu I Electric Cooperative Inc., Cebu III Electric Cooperative, Inc., Bohol 1 Electric Cooperative, Inc., and Davao del Sur Electric Cooperative, Inc., most outstanding electric cooperatives; and Aklan Electric Cooperative, Inc., and Bohol II Electric Cooperative, Inc., for unprecedented excellent performance.

TANZA, Cavite – President Gloria Macapagal-Arroyo today distributed housing units to employees of the Office of the President (OP) as part of her administration’s efforts to provide affordable shelter to the public.

Dubbed Bahay Katuparan, the project is part of the Socialized Housing Program (Pabahay 2000) which began in April 1993 with the signing of a Joint Venture Agreement (JVA) between the government and Filinvest Development Corporation (FDC).

Under the agreement, FDC committed to build 21,000 housing units on a 244-hectare property in Muntinlupa City and Cavite City.

Katuparan Ville, where the housing units distributed by the President are located, forms part of this 21,000-unit housing program.

Out of the 6,019 units that comprise Katuparan Ville, 3,713 have been turned over to the National Housing Authority for estate management.

The balance of 2,306 units have been allocated and disposed to the Department of Environment and Natural Resources, 2,257 units; Armed Forces of the Philippines, 27; Public Estates Authority, 10; and Philippine Ports Authority, 3.

Of the NHA-managed 3,713 housing units, 120 units have been converted into classrooms while 26 have been dedicated for community facility use.

Housing units have also been allocated for the local government units of Tanza and Dasmarinas towns, Coastal Road Extension Project, Philippine National Oil Company (PNOC), Office of the Governor (of Cavite) and Office of the President.

After the awarding rites, several homeowners were given the chance to raise questions on issues that concern their community.

The homeowners, who have been residents of Katuparan Ville for almost four years, said they still have to experience the convenience of having potable running water and electricity in their homes.

Manila Electric Company (Meralco) assistant vice president Carl Aquino said Meralco is working to provide electricity to the 433 applicants in the area within one month.

A representative of the Metropolitan Waterworks and Sewerage System, meanwhile, said they will ask FDC to turn its water distribution duties over to the Tanza Local Water District (LWD) for it to begin serving the residents of Katuparan Ville.

On the peace and order situation, Tanza Mayor Raymundo del Rosario said he has ordered the construction of four police outposts in Katuparan Ville to help deter the incidence of thievery and destruction of property that have become rampant in his area.

The President, meanwhile, ordered the allocation of additional housing units for OP employees who may be interested in purchasing units in Cavite in the future.

"There will be additional allocations of housing units for the Office of the President personnel in six months," the President said.

The Philippine National Oil Company (PNOC), China National Offshore Oil Corporation (CNOOC) and Vietnam Oil and Gas Corporation (Petro-Vietnam) signed today an agreement on a joint seismic research in the South China Sea, a tri-nation cooperative venture that is expected to cool simmering tensions in the disputed Spratly group of islands.

President Gloria Macapagal-Arroyo witnessed what she called a "historic signing" of the agreement in Malacanang this afternoon.

The tri-nation agreement covers 142,886 square kilometers and will run for three years. The accord stems from the Tripartite Agreement for the Joint Marine Seismic Undertaking in the Agreement Area in the South China Sea forged by China, Vietnam and the Philippines.

The accord on the joint marine seismic undertaking signifies the commitment of the three countries to "pursue efforts to transform the South China Sea into an area of peace, stability, cooperation, and development."

Fu Chengyu, CNOOC president, signed for CNOOC; Tran Ngoc Canh, Petro Vietnam president and Chief Executive Office (CEO), signed for his company, while Eduardo Manalac, president and CEO of the Philippine National Oil Corporation (PNOC), signed for PNOC.

The President said the signing of the accord was "a breakthrough in implementing the provisions of the Code of Conduct in the South China Sea among ASEAN and China."

Aside from the diplomatic breakthrough between China, Vietnam and the Philippines, the agreement will also boost the energy independence program of the Arroyo administration.

Part of that program is to forge strategic alliances with Philippine neighbors and allies in ensuring stable energy supply, not only in the country but in the whole region.

"Energy independence requires implementation of critical and strategic energy infrastructure projects. We will use a mix of oil and gas exploration and production, renewable energy development, alternative fuel development and strong strategic alliances such as what we have signed with China and Vietnam to ensure that we can become energy self-reliant," she said.

The three parties affirmed that the signing of the Tripartite Agreement will not undermine the basic positions held by their respective governments on the South China Sea issue and will contribute to the transformation of the South China Sea into an area of peace, stability, cooperation, and development in accordance with the 1982 United Nations Convention on the Law of the Sea and the 2002 ASEAN-China Declaration on the Conduct of Parties in the South China Sea.

Maņalac told reporters that the three oil companies undertake to share equally the expenses to be incurred in the seismic research.

President Gloria Macapagal-Arroyo today thanked outgoing Energy Secretary Vince Perez for his "personal sacrifice" throughout the four years that he served the government.

Speaking at the DoE awarding ceremonies for the outstanding electric cooperatives, the President also thanked Perez for his passion for rural electrification and composure for dealing with difficult energy issues.

"Thank you too that we have not had a blackout in Luzon for a long time now," she said of the outgoing Energy secretary.

Perez had requested President Arroyo that he be allowed to relinquish his Cabinet post and return to the private sector. He will be replaced by Power Sector Assets and Liabilities Management (PSALM) president and chief executive officer Raphael Lotilla.

In her speech, the President congratulated Perez and the presidents of the oil companies of China and Vietnam for the historic signing of the agreement between the three countries on the joint seismic research in the South China Sea.

"This is a historic event because it is a breakthrough in implementing the provisions of the code of conduct in the South China Sea among Asean and China to turn the South China Sea into an area of cooperation, rather than an area of conflict, " she said.