Devnews 2009 November 18

DevNews Wednesday; November 18, 2009 Peso-dollar rate: $1.00 = P46.700 Key national news coverage of the National Economic and Development Authority (NEDA) and other related news

There are 10 articles of note (3 positive, 1 negative, 1 neutral, 16 other) in the national press that can shape perceptions regarding NEDA and the economy.

positive news from NEDA press release ODA disbursement level for January to September up 63% Business Mirror/ Economy (link: http://www.businessmirror.com.ph/home/economy/18646-oda-disbursement-level-forjanuary-to-september-up-63.html) By Jennifer Ng THE government’s disbursement level for official development assistance (ODA) loans went up by 63 percent to $993.61 million for January to September this year, according to figures released by the National Economic and Development Authority (Neda). In a statement, Neda’s Project Monitoring Staff (PMS) director Roderick Planta said the significant hike in disbursements was largely attributed to the single tranche release of two program loans. These are the $150-million Governance in Justice Sector Reform Program Subprogram II (GJSRP), funded by Asian Development Bank (ADB); and the $200-million Global Food Crisis Response Program Development Policy Operations (GFRP-DPO), funded by World Bank (WB). SEE ALSO: Use of ODA funds sharply higher, says Neda, Inquirer / Business (link: http://business.inquirer.net/money/topstories/view/20091117-236870/Use-of-ODA-fundssharply-higher-says-Neda) ODA loans total $9 billion until September — Neda, Daily Tribune / Business (link: http://www.tribune.net.ph/business/20091119bus4.html )

negative news 1

From NEDA Press Release

ODA disbursement rate remains poor Manila Times / Business (lin k: http://www.manilatimes.net/index.php/business/6148-oda-disbursement-rate-remainspoor) By Darwin Armojelar DISBURSEMENT rates of government agencies remained poor despite the improvement in the use of foreign aid for public projects in the third quarter, the National Economic and Development Authority (NEDA) said. In a statement, Roderick Planta, NEDA Project Monitoring Staff director, said the amount of official development assistance (ODA) that was disbursed in the third quarter jumped 63 percent to $993.61 million compared with $610.67 million in the same period last year. Foreign-funded projects, which generally deal with infrastructure upgrade or improvement, require counterpart funds from beneficiary governments. Lack of counterpart funds can lead to a delay in implementation or outright cancellation of the foreign aid. Planta attributed the significant increase in disbursements to the single tranche release of two program loans, namely the $150 million Asian Development Bank-funded Governance in Justice Sector Reform Program-Subprogram II, and the $200 million for the World Bankfinanced Global Food Crisis Response Program Development Policy Operations. Factors cited for the poor disbursement performance of implementing state agencies were delayed procurement and processing of contracts, delayed release of budget, revision of targets due to cost increase and modification of design.

neutral news Govt looks to private money for infra deals Manila/ Business (link: http://www.manilatimes.net/index.php/business/6146-govt-looks-to-private-money-forinfra-deals ) By Darwin Armojelar THE government wants the private sector to fund half of the Philippines’ infrastructure needs for the next five years because of the state’s fund lack. Based on documents obtained from the National Economic and Development Authority (NEDA), the government’s Comprehensive and Integrated Infrastructure Program (CIIP) would require P3.33 trillion from 2009 to 2013. This is higher than its funding requirement of P2 trillion for the 2008 to 2010 CIIP. Of the total P3.33 trillion, the power sector would require the biggest chunk at 30.19 percent, followed by transportation, 25.32 percent; water, 15.47 percent; social service, 13.40 percent; agrarian reform, 12.33 percent; communications, 1.68 percent; and relending programs, 1.60 percent.

2

The NEDA document showed that the private sector would have to finance P1.55 trillion, as the national government plans to spend only P780.54 billion.

other news B.O.P. surplus hits $4.17B in 10 months Business Mirror / Economy (link: http://www.businessmirror.com.ph/home/top-news/18666-bop-surplus-hits-417bin-10-months-.html ) By Jun Vallecera THE country’s balance of payments (BOP) surplus of $4.17 billion in the first 10 months has already hit the low end of this year’s target, boosting the likelihood the high end of the range, or $5 billion, will be met by year-end. The Bangko Sentral ng Pilipinas (BSP) said on Tuesday the $4.17-billion level was 12 times larger than a year earlier when this stood at only $345 million. The surplus indicates an economy that generated far more foreign-exchange earnings than it spent during the period. According to BSP Governor Amando Tetanco Jr., the surplus was boosted by loan proceeds reaching $1 billion, contracted during the month by the national government (NG). This came in the form of global bonds sold to investors as part of the reconstruction of public infrastructure ruined by a series of natural calamities.

Palay output seen shrinking for the first time since ’98 BusinessWorld / Headlines By Reuters with a report from N. J. C. Morales THE COUNTRY’S RICE crop is forecast to fall by 11.3% in the fourth quarter after storms ravaged rice fields, with full-year output likely to shrink for the first time in 11 years, government data released yesterday showed. In a move likely to drive up world rice prices, the Philippines, the world’s biggest rice buyer, is holding two tenders next month to import a total 1.2 million tons to boost supplies after storms hit key rice-growing areas in Luzon. The country may import a record 2.4 million tons next year, a government official said. "After the assessment, the inter-agency committee has determined that the shortfall next year would be between 2.2 million and 2.4 million tons," the official, who is part of the panel, told Reuters. 3

Independent players take lead in hiking fuel prices Business World / Headlines By J. B. F. Santos, B. U. Allauigan, and J. A. D. Hermosa OIL FIRMS began raising fuel prices yesterday, with independent players taking the lead with increases of as much as P2 per liter, after Malacañang on Monday ended a controversial cap imposed in the wake of several devastating storms. Fernando L. Martinez, chairman of Eastern Petroleum Corp., announced via a text message that the firm would be increasing prices of diesel by P2/liter, unleaded and premium gasoline by P1.25/liter, and kerosene by P1.50/liter. The adjustment took effect 12:01 a.m. today. At the Senate, meanwhile, oil industry officials claimed in a hearing that supplies remained sufficient for as much as 55 days, despite many gasoline stations having closed or limiting motorists’ fuel purchases. Shell country chairman Edgar O. Chua said his company had a 30-day inventory, broken down into 15 days for finished products and another 15 days for crude in transit. A business group, meanwhile, called on Malacañang yesterday to put in place a "socialized pricing scheme" whereby prices for small tanks of LPG and diesel sold to mass transport groups would be capped.

Metro Manila’s affluent consumers keep spending Business World / Headlines By JADH THE WELL-OFF in Metro Manila increased spending despite the economic downturn and even surpassed their regional counterparts in terms of an increase in the number of those intending to make purchases, a survey by Synovate found. The market intelligence firm, in a statement issued yesterday, said average monthly credit card billings among 1,670 respondents rose by a fifth to $666 in the second quarter from a year earlier. Private property ownership also spiked by 58.2% during the period, faster than the 51.5% growth seen a year ago, while ownership of laptops, digital music players and still cameras increased by 7.8%, 8% and 8.7% respectively.

GMA allies buck SICPA plan Malaya / Business (link: http://www.malaya.com.ph/11182009/busi2.html ) By Wendell Vigilia President Arroyo’s allies at the House yesterday opposed the “tamper proof” strip stamps on every pack of cigarette and bottle of liquor proposed by Switzerland-based SICPA Product Security SA, saying it amounts to the imposition of additional taxes. 4

The congressmen, during a briefing of the House committee on ways and means conducted by SICPA officials, also expressed doubts over the project’s viability considering that it would cost the government close to P18 billion. Rep. Mauricio Domogan (Lakas-Kampi CMD, Baguio) said BIR would violate the Constitution if it signs the SICPA contract. “Whether you like it or not, this is a form of taxation. Adding cost to be passed on to consumers, to me, is just another form of taxation which I don’t think can be done by the mere signing of a contract,” he said.

DIS Public Information Division - andrei bauzon

5