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| 08 FEBRUARY 2008 | . | |
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| 08 FEBRUARY 2008 | . | |
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| MSMEs can contribute greatly to sustaining economic growth - Remonde |
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Given adequate support and incentives, Micro, Small and Medium Enterprises (MSMEs),
already considered as the backbone of economic activities in the
countryside, can contribute greatly to sustaining the Philippines’ economic
growth amid the slowing down of the United States economy. Presidential Management Staff (PMS) Director-General Cerge Remonde, who is also the oversight official for MSMEs, stressed this as he noted that 99.6 percent of all registered companies in the country are MSMEs and account for 70 percent of employment nationwide. “The MSMEs contributed significantly to the country’s economic resurgence, especially to the 7.3 percent growth in the Gross Domestic Product (GDP) in 2007, which is the fastest in 31 years,” Remonde said during a press briefing yesterday in Malacañang on the Arroyo administration’s Microfinance Program. Citing the need to develop MSMEs to their full potential, Remonde said that President Gloria Macapagal-Arroyo has ordered his office to study the possibility of lowering further the interest rates on loans to micro enterprises. He said that from 2004 to 2007, a total of P203.61 billion was released to 3.65 million active microfinance clients and SME accounts, generating 2.1 million new jobs or almost 70 percent of the targeted three million new jobs from the MSMEs sector by 2010. “The value-added contribution of the MSMEs to the economy now is estimated at 30 percent as compared to 40 percent target by 2010,” Remonde said. He said that among the commitments of the President to strengthen the microfinance program as embodied in her 10-Point Legacy Program and in the Medium-Term Philippine Development Plan (MTPDP) are the increase in the loan facility for MSMEs; creation of at least three million jobs for the sector; raising SMEs gross value-added (GVA) contribution from 32 percent to 40 percent; and expanding SMEs contribution to export growth by 15 percent. |
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| PGMA flies to Misamis Oriental to inspect ongoing infrastructure projects |
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GINGOOG CITY – Pushing her “surge in infrastructure spending” policy,
President Gloria Macapagal-Arroyo arrived today in Misamis Oriental, the
first stop of her inspection of ongoing infrastructure projects in Mindanao. Looking relaxed and in a buoyant mood, the President arrived at Barangay Binakalan here at 10 a.m. where she led the groundbreaking of the Gingoog-Claveria-Villanueva Road concreting project. Wearing a sky blue blouse and pants, the President lowered the time capsule signaling the start of the P824.45-million road improvement and concreting project. The President has ordered a “surge in infrastructure spending as a firewall against the United States recession.” The massive funding going into infrastructure facilities all over the country is expected to sustain brisk economic activities, thus softening the impact of the US recession on the Philippines. Assisting her in the groundbreaking rites were Public Works Secretary Hermogenes Ebdane Jr., Misamis Oriental Governor Oscar Moreno, Misamis Oriental Congressmen Danilo Lagbas, (1st Dist.), and Vicente Emano Jr., (2nd Dist.), Gingoog City Mayor Ruth Guingona and Vice Mayor Vicente Emano Sr. Also present were Mindanao Super Region chief and Presidential Adviser on the Peace Process Jesus Dureza and other local officials. During the program, the President ordered Ebdane to provide an additional P15 million to augment the initial P35 million allocation for the widening, rock excavation, improvement of existing alignment, lowering of grade and concreting of the 47.10 kilometers stretch of the project. “We need to have a surge in infrastructure spending in order to speed up the transportation of agricultural produce to the market and improve the lives of the farmers,” the President said in her brief remarks. The road project links Gingoog City and the municipalities of Claveria and Villanueva and serve as alternate route of the Iligan-Cagayan de Oro-Butuan Road and shorten the travel distance between the two points by 25.30 kilometers. The objective of the project is to provide better access to the vast agricultural and agri-industrial areas in Misamis Oriental and Bukidnon as well as pave the way for the development of far-flung upland barangays. The project will also lead to the upgrading of the land value, dispersal of economic development and increased business and agricultural activities in the area. From Misamis Oriental, the President will proceed to Davao del Norte to attend the Local Peace and Security Assembly (LPSA) at the Provincial Capitol in Tagum City. |
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| PGMA leads groundbreaking ceremony of P1.5-b road project in Davao Norte |
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KAPALONG, Davao del Norte - President Gloria Macapagal-Arroyo led today the
groundbreaking ceremony of the P1.5-billion Kapalong-Talaingod-Valencia
City-Bukidnon road, a major component of the government’s “infrastructure
surge” program this year. Under the “infrastructure surge” program, 3,000 kilometers of roads will be constructed all over the country this year alone under a P200-billion spending program. The 58-kilometer road project here merited a special mention by the President in her State-of-the-Nation Address (SONA) last July as an important component of her administration’s overall efforts to develop Mindanao, reduce poverty and hunger and attract investments into the region. The project entails the improvement and concreting of the 58-kilometer road section stretching from Kapalong and Talaingod in this province to the Davao del Norte-Bukidnon boundary in Valencia, Bukidnon. Included in the project is the construction of six bridges. The President pointed out that the project is part of the 3,000 kilometers of vital road networks the national government is constructing this year. "And this P1.5 billion (road project) is a part of the P200 billion we are allocating for infrastructure," she said. The road project also forms part of the inter-regional link connecting two of the country's major arterial roads - the Pan-Philippine Highway (Davao-Agusan Road) in Region XI and Sayre Highway in Bukidnon (Region X). The new route will also serve as an alternate road to the Davao-Calinan-Bukidnon Road and Agusan Road (Daang Maharlika) and would cut travel time between the two points by three hours. The President arrived at 12:30 p.m. and was welcomed in Barangay Tiborcia here by some 300 residents and local officials led by Kapalong Mayor Edgardo Timbol, Talaingod Mayor Pilar Libayao, Department of Public Works and Highways (DPWH) Region XI Director Jerome dela Rosa, and DPWH Undersecretary Rafael Yabut. Accompanying the President were DPWH Secretary Hermogenes Ebdane and Office of the Presidential Adviser on the Peace Process Secretary Jesus Dureza, Davao del Norte Governor Rodolfo del Rosario, Davao del Norte 1st District Rep. Ariel Olano, and 2nd District Rep. Antonio Lagdameo. The President led the capsule laying ceremonies and struck the "agong" as a signal to members of the Mandaya and Ata-Manobo tribes to perform the thanksgiving ritual for the construction of the road and bridge projects. |
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| PGMA orders AFP to create Investment Defense Force |
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TAGUM CITY, Davao del Norte—President Gloria Macapagal-Arroyo said today she
had instructed the Armed Forces of the Philippines (AFP) to create an
Investment Defense Force (IDF) to protect vital infrastructures and projects
from terrorists, including the New People's Army (NPA) and other rebel
groups who stand in the way of development particularly in the rural areas. The President made the announcement in her speech before some 400 multisectoral participants of the two-day Local Peace and Security Assembly (LPSA) for Region XI which culminated this afternoon at the provincial capitol compound here. Region XI comprises the provinces of Davao del Norte, Davao del Sur, Davao Oriental and Compostela Valley which are known to be infested by NPA rebels. "I have instructed the Armed Forces to form an Investment Defense Force. The function of the Investment Defense Force is for the military to give a protective shield to power assets, other infrastructures and minerals development projects," the President said. She said there is an existing task force in the Department of Environment and Natural Resources (DENR) tasked to protect the environment and other government assets. On the other hand, the military would guard vital infrastructures and projects to be identified by the IDF and the local Peace and Order Councils (POCs) to entice the entry of more investments, particularly in Mindanao. The President said the government victory against the NPAs is snowballing, thus necessitating the extension of the term of AFP Chief Gen. Hermogenes Esperon to enable the AFP to continue the momentum and finally wipe out the rebels’ wide range of abuses, including on human rights, even before 2010. The President congratulated the military and the police in winning the fight against the terrorists, the NPAs and other rebels to finally wipe out all menaces to peace and bring development in Mindanao. |
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| DOTC officials refute Lozada allegations |
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Top officials of the Department of Transportation and Communications (DOTC)
strongly denied today allegations by Rodolfo Noel Lozada Jr. of overpricing
in the aborted national broadband network (NBN) deal between the government
and ZTE Corp. of China. In a press conference at the New Executive Building (NEB) in Malacanang this afternoon, the DOTC officials led by Secretary Leandro Mendoza refuted point-by-point Lozada’s allegations. President Gloria Macapagal-Arroyo has cancelled the ZTE deal in the wake of the controversy over the project. Yesterday, she ordered an investigation to pinpoint the personalities who could be held liable for possible violation of the Anti-Graft and Procurement Laws. The NEB press conference was held as Lozada, the resigned president and chief executive officer (CEO) of the Philippine Forest Corp. (PFC), an agency under the Department of Environment and Natural Resources (DENR), was testifying before the Senate Blue Ribbon Committee on the NBN-ZTE project. Mendoza explained that a major consideration in DOTC’s choice of the Chinese firm to undertake the NBN project under a government-to-government arrangement was to ensure the security of the Philippine government’s data. He said that awarding the project and its operation to a private firm would render government data vulnerable to unauthorized personnel. DOTC Assistant Secretary Lorenzo Formoso III explained that the original price of the project of $262 million was raised to $329 million because under the proposed $262-million contract price, only one-third of the country would be covered. On the other hand, under the $329-million proposal, the entire country would be covered by the project including fifth and sixth class municipalities. The NBN project is a component of the Medium-Term Philippine Development Plan (MTPDP). Mendoza said he arranged for the press conference to “shed light on old and maybe new issues” that continue to hound the already-cancelled ZTE contract. He explained that at present, the DOTC still has “bicycle allowance” for its people who deliver government mail and other communications in the countryside where “telegraphic transfers” remain the fastest communication system. The DOTC official also stressed that the country would benefit more from a government-to-government NBN in terms of economy. He pointed out that the government spends P4 billion annually for telecoms services as against P1 billion a year in interest if the project is funded by foreign loan. Aside from Formoso, former chairman Ramon Sales of the Commission on Information and Communications Technology (CICT) of the transportation department, was also attended the press conference. Formoso defended DOTC’s recommendation for a government-to-government contract instead of the build-operate-transfer (BOT) proposal of Amsterdam Holdings Inc. (AHI), saying that “from a theoretical point of view, BOT is more expensive.” “At the end of the day, we will still pay (for the BOT project),” Formoso said, adding that the BOT proponent would have to make money for its shareholders, aside from paying for the loans that it will contract to finance its proposed project. Formoso described AHI as “a shell company” with a capitalization of only P5 million when it submitted an unsolicited proposal to undertake the NBN project. He added that AHI lacked at least two key considerations in the award of the multi-million-dollar project like the NBN – adequate capitalization and congressional franchise. “Walang pera, walang franchise,” Formoso said, adding: “It (AHI) says it will give government a 25-percent discount? Impossible.” In terms of security, the DOTC said a BOT by AHI or any private company would allow the private firm to have access to government communications. An NBN funded by a foreign loan, on the other hand, would be owned and operated by the government itself even as its infrastructure maybe built by a private company – local or foreign, the DOTC officials said. |
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| President cites ‘great progress’ in gov’t-MILF peace talks |
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TAGUM CITY, Davao del Norte—President Gloria Macapagal-Arroyo said today the
government is close to having a final peace agreement with the Moro Islamic
Liberation Front (MILF) as the government negotiating team is preparing a
new draft paper on creating a homeland for Muslims, the most contentious
issue derailing the ongoing peace talks in Mindanao. Speaking at the culmination of the two-day Local Peace and Security Assembly (LPSA) for Region XI here, the President said the government has made great progress in the peace talks with the MILF with the support of Malaysia, Libya, Brunei, Japan and other allied countries. The President said that Presidential Adviser on the Peace Process Secretary Jesus Dureza informed her this morning that the GRP-MILF is close to having a final peace agreement "with the government negotiating team creating a new draft paper on creating a homeland for Muslims in southern Philippines." "We are hopeful that this will help the newly restarted talks with the MILF, and we are equally hopeful that it will result in a definitive peace agreement," she added. The President noted that the peace situation has vastly improved in Mindanao and congratulated the Armed Forces of the Philippines (AFP) and the police in winning the fight against terrorists, including the New People’s Army (NPA) and other rebels to finally bring peace and development in Mindanao. The Chief Executive said a sustained and lasting peace in Mindanao would eventually bring in development with the inflow of peace building packages promised by other countries. Before her speech, the President was presented with the consolidated output of the multisectoral LPSA workshops calling for strengthened local government units (LGUs) and national government collaboration to end senseless violence and conflict and spur development in Region XI. |
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| DOTC officials puzzled over Lozada’s actual role in aborted NBN-ZTE project |
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Officials of the Department of Transportation and Communications (DOTC)
expressed puzzlement today over the actual role of Rodolfo Noel Lozada Jr.
in the aborted national broadband network (NBN)-ZTE project. In a press conference at the New Executive Building (NEB) in the Malacanang complex this afternoon, DOTC Assistant Secretary Lorenzo Formoso III said Lozada never participated in the various assessments and studies on the NBN-ZTE project. Lozada was the chairman and chief executive officer (CEO) of the Philippine Forest Corp. ((PFC), an agency under the Department of Environment and Natural Resources (DENR), but he resigned his post last Wednesday. Formoso and former Chairman Ramon Sales of the Commission on Information and Communications Technology (CICT) said they never saw even the “shadow” of Lozada while the $329-million NBN-ZTE project was being evaluated by the DOTC. In his testimony before the Senate Blue Ribbon Committee today, Lozada said he was an unpaid consultant of the National Economic and Development Authority (NEDA). For his efforts, he would be treated to snacks and lunch by his friend, then NEDA Director General Romulo Neri, Lozada said. Transportation Secretary Leandro Mendoza also questioned certain acts of Lozada on the ZTE-NBN deal since he had no direct participation in the said broadband project. “Iyong sinasabi ni Lozada, kung consultant siya ng NEDA bakit siya dumidiretso ng pakikipag-usap sa mga opisyales ng China’s ZTE Corp. Ang NEDA dapat nag e-evaluate iyan eh. Ang dapat makipag-usap sa contracting parties iyong nag-iimplement ng projects which is CICT and DOTC. As Asec Formoso and chairman Sales said ni anino ni Mr. Jun Lozada hindi namin nakita ito, wala naman siyang signature doon sa mga papeles na umikot dito sa proyekto na ito,” Mendoza said. Mendoza said that the DOTC has an institutional committee, the technical working group which is composed of experts on legal, financial and even technical topics. “In the case of Mr. Lozada walang participation iyan whatsoever on any technical working group in many instances of consultations. I have never met him. So. I am sorry I cannot speak for NEDA or Mr. Lozada but insofar as DOTC and CICT are concerned, mayroon kaming sariling experts. Walang nakialam sa akin. Walang normally nakipag-usap sa akin,” he said. Formoso added that NEDA also has its own group that evaluates projects and it has a complete team where there is an infrastructure group that evaluates proposals submitted to it. Formoso stressed that he had not met Lozada in any of the NEDA meetings particularly on the ZTE-NBN project. “I have never met Mr. Lozada. I have never seen him sa NEDA because may mga meetings kami sa NEDA in preparations for some presentations for example. I have never met him nor seen him during those meetings,” Formoso said. He added that normally those who review project proposals are those with official capacities because this is a governmental function. “So, normally, you have to have a government authority in order to be part of the review process. So, iyon lang ang hindi ko alam kung where he comes in, whether he is an official NEDA consultant or saan siya associated with,” he said. He said that in the case of DOTC, they know the responsibility of the organic personnel of their department and its important accountable officers undertake the review of contracts. “Dapat ang gumawa noon ay iyong mga accountable officers.” “NEDA has its own structural group like technical, financial, so I would have thought that he (Lozada) had gone to that process so I would leave my answer because I don’t’ know where he came from. As a personal consultant of Secretary Neri, because that is the way he is appearing now, then I leave to Secretary Neri to clarify kung ano ang role ni Mr. Lozada,” Formoso added. |
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| FG never contacted us regarding cancelled ZTE contract – DOTC officials |
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First Gentleman Jose Miguel Arroyo never contacted the Department of
Transportation and Communications (DOTC) about the now-cancelled ZTE
proposal to build the country’s National Broadband Network (NBN). This was stressed by top DOTC officials in a press conference today to shed light on old and new issues that they said continue to “hound” the ZTE project which President Gloria Macapagal-Arroyo had cancelled last year. “Detached ho siya (Atty. Arroyo) sa amin,” said Ramon Sales, former chairman of the Commission on Information and Communications Technology (CICT) that evaluates communications project proposals. The First Gentleman never communicated with them, Sales added. Transportation Secretary Leandro Mendoza stressed that, “Sa project na ito (NBN), walang nakialam sa amin… I have an independent mind…” As for the claim of former Philippine Forest Corporation (PFC) president Rodolfo Noel Lozada that the government’s procurement system is “tailor-fit” for sponsors, DOTC Assistant Secretary Lorenzo Formoso said Lozada should address his complaint to the Senate because it was Congress which approved the country’s procurement system or Republic Act (RA) No. 9184. Formoso added that if Lozada had any reservations about the ZTE proposal, “the NEDA-ICC (Investment and Coordinating Council) would have been the proper venue to ventilate it” because the project went through the NEDA-ICC before going to the NEDA Board and thence to the DOTC for further evaluation. The three DOTC officials also said they welcome the case filed against them with the Ombudsman last year in connection with the NBN deal. “May tuldok,” said Mendoza of the Ombudsman case, stressing that “we are entitled to our day in court,” unlike in Senate investigations “na walang pupuntahan.” “Lahat ng documents, binigay na namin sa Senado, pati Bill of Quantities” which state in detail where the specific amounts would be spent, Mendoza said. “One hundred percent compliance kami,” said Mendoza about the ZTE/NBN documents being requested by the Senate. “Panahon na para tuldukan na (end),” Mendoza said, referring to the continuing Senate investigation of the cancelled contract. |
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