Mindanao worries allayed

Business World Online

Posted on August 08, 2013 11:40:04 PM

DAVAO CITY -- President Benigno S. C. Aquino III addressed Mindanao’s major issues during the opening of the three-day Mindanao Business Conference at this city’s SMX Convention Center yesterday.

Delivering his keynote address to over 1,000 businessmen and government officials, Mr. Aquino immediately went over the concerns confronting the island’s leaders: peace and security as well as the power problem.

“We gather today at a turning point in the history of Mindanao where this region’s complete transformation from the ‘Land of Promise’ to the ‘Land of Promises Fulfilled’ is close at hand,” Mr. Aquino said.

However, he enumerated three reasons the fulfillment has remained elusive: injustice as a result of greed over land, which has led to “the cycle of violence”; lack of foresight, which led particularly to the power problem; and adherence to old solutions, which led to the “vicious cycle of impunity and corruption.”

While he listed his administration’s milestones regarding peace and security in Mindanao, including the Framework Agreement on the Bangsamoro and the signing of the second annex of the agreement last month, Mr. Aquino also acknowledged remaining challenges to the island’s stability.

Citing the recent bombings on the island, he said, “This is a desperate act by a small sector dead set against the attainment of peace in Mindanao.”

The government, Mr. Aquino added, has been working for a long time to neutralize these elements and has had some successes.

“To those willing to partner with us for peace, we welcome you as brothers; but to those who want to challenge the authority of the State, you will feel the full brunt, depth, and might of the State’s response,” he continued.

As for Mindanao’s power problems, Mr. Aquino blamed them on “a combination of complacency and short-sightedness.”

He said that some local leaders kept the price of power from government-owned plants “artificially low... leading to a pricing structure that did not encourage any investor in the energy sector to bet significantly on Mindanao.”

“And let us not forget, these are power plants that one could liken to cows deserving to be put out to pasture, but are still milked long past their useful life,” Mr. Aquino added, citing the Agus 6 complex that was designed to work for 30 years but has been operating for 60.

According to the President, at the onset of his term, the administration worked to establish structural changes to attract investors in energy.

“Right now, we are on track to end the energy deficit by 2015, during which we foresee Mindanao to already have a surplus,” he said.

While Mr. Aquino acknowledged how some parts of Mindanao were experiencing eight-hour brownouts a few months ago, he said the government did everything, from rehabilitating existing power plants to setting up a loan facility for electric cooperatives to purchase or rent generator sets, to tide Mindanao over until 2015.

He then chided those who oppose the genset scheme now that it is the rainy season, as the gensets were said to be too expensive or harmful to the environment.

“Come the dry season, will we expect the litany of complaints about brownouts to resume?” Mr. Aquino asked.

“We invite all the stakeholders to work with us to find realistic solutions to these issues, and we are ready to listen to all reasonable suggestions,” he added.

As for further developing Mindanao, Mr. Aquino said that the government’s priorities were the same for the island as for Luzon and Visayas.

“This region has just as much, if not more, potential in agriculture, infrastructure, and tourism,” he said.

For agriculture, Mr. Aquino said the government was taking on a large-scale program to support coconut farmers in particular, promising “necessary resources” in exchange for the farmers’ “commitment to intercropping,” as the practice is expected to multiply annual gross income per hectare from P20,000 to P172,400.

Mr. Aquino also said the government has focused on improving transport infrastructure in Mindanao and noted that the administration is proposing to Congress that the Public Works department allocate P34.29 billion for projects in the region.

The amount, he noted, is more than half the amount allocated for transport infrastructure in Mindanao in the past three years.

Mr. Aquino then urged Mindanao business leaders to work with the administration by encouraging Congress to pass the Bangsamoro Basic Law by 2014, by “sharing a calm, logical voice” in the pursuit of a solution to the energy situation, by helping small and medium enterprises, and by increasing engagement in corporate social responsibility programs in education, health, and other social services.

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Sebastian L. Angliongto, Davao City Chamber of Commerce and Industry chairman, said he is very confident that all the peace and security problems will be addressed in due time.

However, Mr. Angliongto said, Mindanao has many concerns, including power, which should be addressed by the Aquino administration in preparation for the Association of Southeast Asian Nations economic integration.

Former Mindanao Business Council Chairwoman Joji Ilagan Bian said Mr. Aquino’s presence at MinBizCon is a boost to the confidence of Mindanao’s business sector.

“The President addressed Mindanao’s economy, infrastructure problems and logistics and these are very important issues for business people in Mindanao,” Ms. Bian said.

“I wish he also mentioned the aquaculture and marine industries since we are very rich with these,” she said.

By being here today, Ms. Bian said, the President managed to tell Mindanaoans that “Mindanao is on top of the list.” -- C.A. Carillo   source