March 12, 2010 01:01:00
Philippine Daily Inquirer
MANILA, Philippines — Here’s good news and bad news.
President Gloria Macapagal-Arroyo has declared a state of calamity in Mindanao, a move that will allow cities, towns and provinces on the island to release 5 percent of their budgets so they can quickly procure generators to address the acute power shortage.
The total amount can easily run into billions of pesos, a possible source of kickbacks for officials running in the May elections, especially because the procurement process is exempted from bidding.
In Cagayan de Oro City, Mayor Constantino Jaraula said “although there is a chance for abuse,” people should “assume good faith” in the President.
The government was banking on Ms Arroyo to declare a state of calamity to help solve the worsening power problem on the island, which has been hit daily by rotating brownouts lasting 8-10 hours.
Secretary Ricardo Saludo, presidential spokesperson, Thursday said by phone that Ms Arroyo “has declared” a state of calamity in Mindanao.
Press Secretary Crispulo Icban Jr. said Ms Arroyo signed the declaration on Wednesday.
Mindanao’s internal revenue allotment (IRA) amounted to P68.9 billion in 2009. The IRA is an LGU share of the national government’s tax revenues and one of its sources of income.
P5.5B for generators
Gary Olivar, deputy presidential spokesperson, said the calamity funds would be used to purchase generating sets that were initially estimated to cost P5.5 billion.
“The importation of gensets, maybe even power barges, which have much higher mega wattage will require calamity funds that will be mobilized by the declaration of a state of calamity,” Olivar said.
The House committee on energy, chaired by Pampanga Rep. Juan Miguel Arroyo, a son of the President, has placed the national government’s calamity fund at P10 billion.
At a public hearing at the Apo View Hotel in Davao City, the committee Thursday came up with a resolution urging Ms Arroyo to allocate P5.5 billion to address the power deficiency in Mindanao and to use the remaining P4.5 billion for the agriculture sector.
The fund will come from the budget of the Office of the President and from the calamity fund that will be available upon the declaration of a state of calamity by the President.
Trip to Tawi-Tawi
The resolution was passed before Ms Arroyo declared a state of calamity.
Ms Arroyo flew to Tawi-Tawi to inspect the construction of three bridges, inauguration of a water supply improvement project, and then to Zamboanga del Norte to inspect a road project.
She was accompanied by Defense Secretary Norberto Gonzales and Secretary Jesus Dureza of the Mindanao Development Authority, who confirmed to reporters by text that she had approved the recommendation to declare a state of calamity on the island.
The government had backtracked on a move to declare an emergency in Mindanao and call for a special session after Congress leaders said it would be difficult to muster a quorum in the heat of the campaign season.
Declaring an emergency would have allowed state-owned National Power Corp. to purchase or lease generating sets needed to produce 160 megawatts (MW) in additional capacity for Mindanao.
Energy Secretary Angelo T. Reyes said it would take 2-4 months to purchase and set up the generating sets.
The rotating brownouts in Mindanao is a result of a huge shortfall in power supply on the island. Because of the dry spell, the generating capacity of hydroelectric power plants, Mindanao’s main sources of electricity, has dropped to less than 10 percent, according to Reyes.
Boosting LGU efforts
Sarangani Gov. Miguel Dominguez said Ms Arroyo’s declaration “will just reinforce moves of local government units to mitigate the impact of El Niño.”
“We’ve been going around town to see the actual effects on farmers, etc. We’ll declare state of calamity in the province next week after completion of the report. We can’t declare without basis,” Dominguez said.
For short-term solution, the national government should buy generators to meet Mindanao’s power demand, according to the governor.
Gabriela party-list Rep. Luz Ilagan, however, questioned the declaration.
Why not in Isabela?
“Why this declaration when there is a bigger crisis in Isabela or Tuguegarao, which are hardest hit by El Niño? Why in Mindanao when sectors are moving to solve the problem? Is she experimenting with Mindanao again, testing the waters for a nationwide declaration?” Ilagan asked.
Earlier in Davao City, Vicente Lao, chair of the Mindanao Business Council, said the Agus and Pulangi (hydroelectric) complex was in a very critical state that even the rain expected to come in June would not be able to remedy it.
No power on May 10
“With the way things are going now, the whole Agus plant will shut down and it will cause the whole of the Mindanao grid to collapse. And that will be 45 days from now. And if that happens, there will be no power during the election,” Lao said.
Lao, vice chair of the Mindanao Energy Power Alliance, belied the claim that the energy problem in Mindanao would be over once the rain comes in June.
He said the problem that Mindanao was facing was worse than what it encountered in 1990 and 1998. With reports from Amy Remo in Manila; and Judy Quiros, Aquiles Z. Zonio and JB Deveza Inquirer Mindanao
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