Aquino seeks businessmen's help to improve power sector

Sunstar Network
Friday, October 24, 2014

PRESIDENT Benigno Aquino III urged Friday businessmen to support the government's efforts to further reform the power sector in the country amid the projected power shortage next year.

Speaking before the 40th Philippine Business Conference (PBC) and Expo, Aquino said that efforts to reform the power industry, as embodied in the Electric Power Industry Reform Act (Epira), were still a work in progress.

He said this is understandable as he cited the uniqueness of the country's power industry.

"For instance, even before groundbreaking, plants have typically sold all of their output. I know of no other business or industry that has already sold its goods, that have yet to be produced in a facility that has yet to be constructed. That, of course, is not an ideal situation," he said.

He noted that "just-in-time" energy supplies do not attract more investment, hence the need to change the business model, which he said is also a work in progress.

"The work will infinitely be faster and more efficient with the cooperation of the business sector," he said.

"There are around three major entities in power today who are investing in the sector, even without long-term power purchase agreements or power supply contracts," he said, as he expressed hope that more investors would follow suit and would seek ways and means to encourage more to follow their track.

The Department of Energy has been projecting a thin or shortage of power supply during summer next year.

With the possible energy problem in 2015, Aquino sought for emergency powers from Congress to address this. But the request is still pending in Congress.

The issue on energy and power in the country was part of the list of resolutions that PBC submitted to the President.

The business group also asked Aquino to address congestion in the Port of Manila.

The Chief Executive said government agencies led by Cabinet Secretary Rene Almendras have been working with the private sector to address the problem.

He cited Executive Order 172, which designates the ports of Subic and Batangas as temporary extensions of the Port of Manila in times of congestion and other predicaments.

"Costs were lowered, to incentivize importers to shift to those ports. I understand a 90 percent discount has been given in terms of port charges so that these two ports are more attractive to shippers," he said.

He said the use of the Batangas Port has already increased to 94 percent this month from 20 percent to 25 percent previously.

Diverting the traffic to Subic and Batangas is just a short-term solution, President Aquino said, adding that the two ports might encounter the same problems met by the Port of Manila.

The solution to the congestion issue is to continue operations during weekends, he noted, assuring that the Bureau of Customs and port operators would be available on Saturdays and Sundays to facilitate cargo movement.

Apart from this, the Philippine National Police has intensified operations against hijackers to ensure the safe delivery of cargoes, he said.

"We are doing all these because we want those present today, and the many other businesses across the country, to succeed," the President said.

"Your growth redounds to increased livelihood opportunities for our people, which in turn redound to an empowered consumer base and a productive citizenry able to take part in spurring the growth of our economy and of our region," he said.

Aquino invited the country's business community to join the government in building on their already strong partnership and in redoubling their efforts to surpass the challenges they continue to face. (SDR/Sunnex) source