Scrutinizing Urbanization Challenges in the Philippines through the Infrastructure Lens

Managing urban growth in countries requires that leaders plan ahead using national physical plans that, among others, safeguard land for utilities and physical infrastructure decades ahead, deliberately configures transport networks (including strategic seaports, controlled expressways and, if necessary, railway extension to suburbs) in order to induce factor mobility, and actively targets the removal of slums and urban renewal. Given this, it appears that Philippine urban development planning and implementation have overly focused on housing and neglected other types of physical infrastructure. Moreover, the urban development plans of local government units are fragmented and lack complementarity. This paper traces the roots of this state of affairs, proposes alternative ways of responding to the urbanization challenges in the Philippines, and discusses how regional cooperation among ASEAN Plus Three countries can help countries like the Philippines respond to urbanization challenges

Finding Solutions to the Mindanao Electric Power Problem

The Mindanao electric power problem, which led to a crisis situation in summer 2012, is primarily due to inadequate baseload capacity and unbalanced generation capacity mix. The crisis might stage a comeback when the days of relatively cooler weather and heavier rainfall are over and the annual system peaks, which can be expected in summer 2013, kick in once again. The short-term recommended actions are as follows: continue the rehabilitation and sustain the operations of Agus and Pulangui hydropower complexes; minimize the bureaucratic hurdles in the building up of electric cooperatives' embedded generation capacities but only up to the extent allowed by law; undertake a more aggressive information, education, and communication campaign in Mindanao regarding the power situation and power outlook; and address the risk aversion problem in baseload power contracting.In the medium to long term, the possible policy responses include the following: decide with finality the fate of the privatization of Agus and Pulangui hydropower complexes and include the concession option in the range of options; facilitate the entry of new baseload capacity commitments and if no new investments would come in, the government could also explore a concession arrangement; accelerate the development of renewable energy projects through quick action in rules setting; strengthen the capacity of the regulator to deal with complex issues in the electric power industry; and pursue the interconnection of the Visayas and Mindanao power grids

Cost Efficiency and Effectiveness of the Sitio and Household Electrification Programs

The Sitio Electrification Program (SEP) and the Household Electrification Program (HEP) are two ongoing rural electrification programs of the government. To assist the Department of Budget and Management in implementing its zero-based budgeting approach, we assessed the 2011 SEP and HEP implementation. Using benchmarking for the efficiency and effectiveness assessment of program implementation, we find that the programs were able to achieve their 2011 targets and at reasonable costs. Using an econometric regression for studying the poverty reduction impacts of rural electrification in the Philippines, we also find evidence of a positive relationship between rural electrification and poverty reduction.However, in order to meet the national electrification targets, the SEP and HEP implementation designs need to be improved. The SEP targeting system can be improved by using households as the ultimate basis for setting targets and then using the sitios as location identifiers for the household connections being targeted. Monitoring SEP and HEP accomplishments can be improved by including household dwelling units connected and households served in field reports. The social preparation component can also be strengthened by specifically identifying what constrains the households from connecting despite the presence of subsidies and then addressing the constraints in the program design. Prioritization can also be improved by giving importance to the presence of local enterprises that can raise economic activities and employment when prioritizing areas to be assisted.The Expanded Rural Electrification Team should also be re-activated, but it should have a streamlined setup and the responsibilities of members should be assigned to positions in offices rather than to specific officials (so that the performance of duties can be sustained even after the officials have left). Lastly, given that the 2012 experience in the accelerated implementation of the SEP raises red flags on the absorptive capacity of the National Electric Administration and the electric cooperatives, decisionmakers may have to downscale the annual targets to more realistic levels and extend the implementation period to a more realistic duration

The Impact of Trade Liberalization and Economic Integration on the Logistics Industry: Maritime Transport and Freight Forwarders

The ASEAN Economic Community Blueprint targets an ASEAN single market in 2015. This is an ambitious reform agenda that seeks to ensure the free flow of services, investment, and skilled labor along with the free flow of goods and the freer flow of capital in the ASEAN region. For logistics services, the target is to be achieved by 2013. Liberalization and deregulation efforts in the Philippine maritime transport industry are already heading into the direction of greater participation in ASEAN economic integration even though the AEC measures have not yet been formally sanctioned by all members.This paper examines the current status of the logistics industry in the Philippines and finds out how the opening of the economy to global markets through trade and service liberalization, and now ASEAN economic integration whose culmination is the ASEAN Economic Community in 2015, impacts on the structure, conduct, and performance of the logistics industry. The industry is responding to the changes in a positive way notwithstanding its characterization as a concentrated industry dominated by a few domestic firms. Firms have become more innovative in offering quality service to consumers such as better passenger accommodation, improved ticketing system, and availability of fast-craft ferries.Freight forwarders, at least those surveyed for this study, equip themselves with information on how to adjust to a more liberalized and integrated environment. They are aware of the changes to be brought about by the AEC measures when they are fully implemented and they also have a good idea of the challenges they will face when they decide to locate in an ASEAN member country, e.g., differences in commercial practices, legal systems, and contracting procedures. The way forward involves continuing the market-oriented reforms especially liberalization of trade in services, while ensuring a healthy balancing of domestic industry interests with the requirements of economic regional integration

Financing Infrastructure in the Philippines: Fiscal Landscape and Resources Mobilization

This study assesses the sources and levels of infrastructure financing in the Philippines for the last five years (2008-2012). The mapping of fiscal resources showed that there had been underinvestment in infrastructure. To illustrate, in 2008-2012, public infrastructure spending as a share of GDP ranged between a low of 1.40 percent to a high of 2.09 percent - a far cry from the target 5 percent of GDP over the medium term. The result of many years of infrastructure underinvestment is woefully manifested in the Philippines' place in quality-of-infrastructure ranking among ASEAN member-states; it is currently second to the bottom.Recently, there had been significant improvements in the government's fiscal position that augur well for more substantial infrastructure spending in the future. New regional sources of financing, the liquid domestic capital market, and a low interest-rate environment also present opportunities for investing in infrastructure by both the government and the private sector. However, it is not only the constrained availability of financial resources that could restrain infrastructure investments but also institutional weaknesses and, therefore, the government must firmly commit to reform policies and strengthen institutions

The Pathway to ASEAN Energy Market Integration

Global experience in regional energy market integration presents broad elements of integration, i.e., binding agreements, physical infrastructure, standardized or harmonized rules of operation, and governing or coordinating institutions. The pathway to ASEAN Energy Market Integration (AEMI) will also involve creating these elements; however, this activity must be preceded by trust-building activities among ASEAN members. Trust should be built by candidly disclosing mutual gains from, and shared costs and externalities in energy resource development, trading energy products, market adjustments, and regulatory reforms. Shared databases and assessments could allow ASEAN members to formulate the building blocks of an AEMI regional accord. ASEAN leaders could then forge a regional accord for AEMI through 2030 with actionable targets and timetables.The targets could include establishing or strengthening institutions for facilitating integration efforts, removing border and behind-the-border barriers to energy trade and investments, harmonizing rules and standards, and building the physical infrastructure for regional energy trading. Since energy market integration takes place not only at the government level but also at the private sector level, ASEAN members must base their preparedness to join AEMI on the business case for integration rather than merely on the availability of energy resources. Moreover, at the minimum, ASEAN members should have independent energy regulators and pursue harmonization of rules and standards

Philippine Priorities in Expanding APEC-Wide Connectivity through Infrastructure Development

Well-developed infrastructure systems and services are vital means of enhancing the connectivity of Asia-Pacific Economic Cooperation (APEC) member-economies. In essence, efforts by APEC to enhance connectivity through infrastructure should be considered regional public goods since these create positive spillover effects for each member of the region, or net benefits for a member that are greater than what it could achieve if it were to produce the by-products of regional cooperation on its own. To contribute to APEC efforts and at the same time help meet the infrastructure development needs of the Philippines, this study recommends that the Philippine government elevate cross-cutting topics and sector-specific concerns as priorities for discussion during its hosting of APEC 2015. The Philippines can propose regional cooperation on investing and building disaster-resilient infrastructure, as well as sharing of best practices and lessons learned in complying with infrastructure resilience requirements (e.g., plans, technologies, and logistics for humanitarian activities). The Philippines can also drive discussions related to public-private partnerships (PPPs) by expressing the need for truly dynamic capacity building and sharing of best practices on viability studies, risk sharing, and contracting (from design to management and monitoring) - which are crucial factors in ensuring that PPP projects are bankable. The Philippines can also recommend knowledge sharing and actual investments toward infrastructure quality upgrading in the transport, energy, telecommunications and information sectors

Development Finance and Aid in the Philippines: Policy, Institutional Arrangements and Flows

The Philippines' recent economic performance has been remarkable amid the lingering slowdown in the global economy and the devastation brought about by recent natural disasters. The economy grew by 7.2 percent in 2013, substantially higher than its 6.8 percent growth in 2012. With GDP growth averaging at 5.9 percent in the last three years, the Philippines is one of the better performers among the developing economies. However, the economy faces problems of high poverty incidence and income inequality. The main challenge is how to sustain rapid and inclusive growth.It is important for the government's inclusive growth strategy and development agenda to be supported by responsive development finance. This Development Finance and Aid Assessment prepared for the National Economic and Development Authority (NEDA) takes stock of current development finance in the Philippines. It provides a comprehensive survey of development finance and aid scenario in the Philippines in the next 5 to 10 years. It offers policy recommendations and proposals for enhancements on development financing in the country

Energy Market Integration and Energy Poverty in ASEAN

Based on available statistics, between 127 and 130 million people in Southeast Asia lack access to electricity. At least 228 million still rely on traditional biomass for cooking and lack access to clean and modern cooking facilities, with dire consequences for their quality of life and human development. Discussions for an integrated Association of Southeast Asian Nations (ASEAN) energy market cannot overlook this energy poverty situation in the region. In fact, the overall goal of ASEAN Energy Market Integration (AEMI) to achieve balanced and equitable economic growth and development for all countries in the region cannot be realized while people continue to suffer from energy poverty. This study maps the energy poverty situation in the region, and reviews the links between energy access and economic and human development. It also draws a connection between AEMI and the eradication of energy poverty, or attaining universal energy access, in terms of benefits and strategies, particularly with regard to mapping investment requirements and taking inventory of financing options. The study concludes with some recommendations for near-term actions

Photoactivation of trans diamine platinum complexes in aqueous solution and effect on reactivity towards nucleotides

We show that UVA irradiation (365 nm) of the Pt-IV complex trans,trans,trans-[(PtCl2)-Cl-IV(OH)(2)(dimethylamine) (isopropylamine)] (1), induces reduction to Pt-II photoproducts. For the mixed amine Pt-II complex, trans[(PtCl2)-Cl-II(isopropylamine)(methylamine)] (2), irradiation at 365 nm increases the rate and extent of hydrolysis, triggering the formation of diaqua species. Additionally, irradiation increases the extent of reaction of complex 2 with guanosine-5'-monophosphate and affords mainly the bis-adduct, while reactions with adenosine-5'-monophosphate and cytidine-5'-monophosphate give rise only to mono-nucleotide adducts. Density Functional Theory calculations have been used to obtain insights into the electronic structure of complexes 1 and 2, and their photophysical and photochemical properties. UVA-irradiation can contribute to enhanced cytotoxic effects of diamine platinum drugs with trans geometry