mindanao daily news (february 21, 2013 issue)

Editorial: e-mail: [email protected] • 72-33-44, 856-3344 Advertising: e-mail: [email protected] Contact cell nos.: 0917-7121424, 0947-8935776

Editorial: e-mail: [email protected] • 72-33-44, 856-3344 Advertising: e-mail: [email protected] Contact cell nos.: 0917-7121424, 0947-8935776

Now comes out 3x weekly!every Mondays, Wednesdays, & Fridays

BusinessWeek Mindanao is available online,what you see on print is exactly the same on line

at www.businessweekmindanao.com

Contact us: 0917-712-1424 email: [email protected]

find us on facebook @ http://www.facebook.com/BusinessWeek.Mindanao

records | page 10

NONOY LECHON SERVICES

OFFERED OUT OF TOWN

ORDER

For more details, contact Tel. No.: 309-5276

HermiliNo VillaloNVOL. 2, No. 237 Cagayan de Oro City Thursday February 21, 2013 P10.00

www.businessweekmindanao.com

J.P. RIZAL - CRUZ TAAL STS.,(NEAR SHANGHAI BAKERY)DIVISORIA, CAGAYAN DE ORO CITY

By cheng ordoñezof BusinessWeek Mindanao

THE Commission on Elections (Comelec) in the Province of Misa-mis Oriental has lauded the efforts of the Philippine Press Institute (PPI), represented by Allan Mediante, editor-in-chief of Mindanao Daily News, the BusinessWeek Mindanao Media Center, represented by Dante Sudaria,

as its chairman, and the Veterans Bank for the successful conduct of a seminar dubbed as “Covering the Elections,” Tuesday, February 19, 2013, at the BWM Media Center, along Abellanosa Street in Cagayan de Oro City.

Comelec provincial election su-pervisor Lawyer Cirilo Nala, who was invited to discuss Comelec rules and regulations, said the seminar

organized for media reporters in the region is laudable, particularly in its effort to educate and prepare report-ers covering the May 13 Automated Synchronized National, Local and ARMM Regional Elections.

Past Philippine elections have been known as confrontational and bloody, and among those directly affected are members of the

Comelec lauds PPI, BWM, Veterans Bankfor conduct of election coverage seminar

NDF says ‘leave,stop expansions’

MALAYBALAY City––About a hundred mem-bers of the New People’s Army (NPA) simultane-ously attacked the main compound of Del Monte Philippines Inc. (DMPI) in Camp Phillips, Manolo Fortich, Bukidnon and the compound of Dole Philip-pines in Impasug-ong town Tuesday, killing a security

‘Golf for a cause’ breaksPueblo attendance records

By Walter I. Balane of MindaNews.com

guard and injuring three others.

Bukidnon. Gov. Alex Calingasan confirmed the report. He said the rebels launched simultaneous at-tacks early evening Tuesday with the DMPI compound as main target.

A report from the Army’s 4th Infantry Division based

‘Break-ins’ targeting govt critics increasing

THERE is a new form of attack against groups and individuals, who are deemed by the government and the Armed Forces of the Philippines as “enemies of the state.” Members of progressive organizations and NDFP consultants have been victimized by

By ronalYn V. olea of Bulatlat.com

‘burglars’ who appear to be more interested in com-puters and USB flashdisks rather than money and other valuabies.’

On February 14, at around 2 p.m., two men forcibly entered the office of Bagong Alyansang

leaVe | page 2

semInar | page 2 crItIcs | page 7

“We wish to acknowl-edge the efforts of club members and the support of our sponsors in helping us achieve this milestone,” said PP Caloy Gorospe, project chairman. “Most of all, we wish to acknowledge the response of the par-ticipants to our invitation.

THE Rotary Club of Cagayan de Oro’s “Golf for a Cause” drew a 276 registered players over its four-day period last Feb-ruary 14-17, 2013 breaking club records for attendance of a single tournament at the Pueblo de Oro Golf and Country Club.

Your demonstration of your civic duty for the Sendong victims has encouraged us to redouble our efforts to help our unfortunate fellow Kagay-anon who suffered the fury of Sendong.”

In particular, PP Gorospe cited the efforts of some

PDG Tinnex Jaraula leads RCCDO and Nissan executives in awarding the tournament winner for Lowest Net Score Judix Nagtalon (center with trophy). Also in photo are Justine Santos-Sugay, AM for Corp Com of Nissan Universal Motors Corp; Honeymay Limjap, AVP for Sales and Marketing, Nissan UMC; Mar Paano, RCCDO president and Nissan CDO Pres & GM Jeff Rolida. (photo by mike mendoza)

NOTICE Notice is hereby given that the Spouses Joaquin T. Yrastorza Jr. and Ma. Sagrario M. Yrastorza died intestate on December 17, 2011 and that their intestate es-tate consisting of a A parcel of residential land with improvements (Lot 2047-A-3-184-C-1-D, Psd-10-000248, being a portion of Lot 2047-A-3-L-4-C-1, Psd-10-000197). Situated in the barrio of Macasandig, City of Cagayan de Oro Containing an area of Three hundred and thirty one (331) square meters and covered by transfer certificate of title no. T-44080 is the subject of an Affidavit of Self Adjudication by Sole Heir of Estate of Deceased Persons executed by sole heir, JOAQUIN M. YRASTORZA III on December 20, 2012 and acknowl-edged before notary public, Atty. Pablo B. Ajesta as document no. 454, page no. 9, book no. 4, series of 2012 of his notarial registry.

MDN: FEB. 7, 14 & 21, 2013

THURSday | FEBRUaRy 21, 20132www.mindanaodailybalita.com

Editorial department. : [email protected] department : [email protected]

Records...from page 1

club members which were crucial to the success of the project including PP Hong C. See, vice chairman; PP Joe Gonzaga, finance, PE Ferdie Bernasor and PAG Manny Aliñabon, awards & socials; PAG Dodie La-grosas , ways and means; Rtns. Dante Sudaria & Mike Baños, communications and documentations; Rtn. Mike Mendoza, official photogra-pher; PDG Tinnex Jarauala, adviser; Rtn. Joel Bernal-dez, Rules; and PAG Dick Aguilar, grounds marshal; Treasurer Vince Valencia, outdoor advertising and RCCDO Pres. Mar Paano.

Nissan Universal Mo-tors Corporation and Nis-san Cagayan de Oro were the main sponsors for the tournament, providing a Nissan Navara pick-up as a “Hole-in-One” prize in addition to logistics and financial support for the pio-neer venture. Unfortunately, not one participant won the prize including other cash prizes for Par 3’s holes from Rep. Peter M. Unabia (1st District, Misamis Oriental), Opol Bgy. Capt. Max Seno, MAA General Assurance Phils., Inc., Pioneer Insur-ance & Surety Corporation and Stronghold Insurance Co. Inc.

“The Golf for a Cause by the Rotary Club of Cagayan de Oro and Nissan Universal Motors Corporation with the help of Nissan Cagayan de Oro was a golf “swing-ing” success—exceeding not only the sponsors expecta-tions but also Club records,” Nissan Universal Motors noted in a statement. “This partnership is only the be-ginning as Nissan considers Cagayan de Oro to be a key area for growth. Through this partnership, the lives of the Sendong victims will be changed for the better and

we at Nissan are filled with joy at the opportunity to be able to be a part of this project. This partnership shows that Nissan is here to stay. Until Next Year! Cheers!”

Nissan UMC was rep-resented in the project by Honeymae A. Limjap, assistant vice president, marketing and sales and Justine Santos-Sugay, As-sistant Manager-Corporate Communications while Nis-san CDO was represented by Jefferson U. Rolida, presi-dent and genral manager.

The project organizers also recognized the fol-lowing Hole Sponsors:, Kingston Lodge, Vertical Builders, Mocha Truck-ing/Triland Management, TThS Golf Group, Kim In Su Enterprise, Hosanna Academy, Puerto Commu-nity Hospital, PDG Tinnex & PP Devin Jaraula, Suvisco Industries Inc., Barangay Nazareth, Galam Music Lounge, WMC Cold Storage, Oroport Cargo Handling Services Inc., First Gusa Caltex, Shabu-way Hot Pot Cuisine, DBP Northern Mindanao, DBP Northeast-ern Mindanao, King’s Cross Development Corp., Boysen Pacific Paints, DML Truck-ing, Maxandrea Hotel/8’s Hightime, UCPB Cogon Branch, UCPB Velez Branch, Virginia Food Inc., Cham’s, La Ilongga-Ororama, Col-gate-Palmolive Phils. Inc., Pelican Industrial Sales, PE Ferdie & Ja Bernasor, Llanil-lo - Romero Optical Clinic, Triple Jr, Fours Agritrade Inc., Alegria Hills, Claren-zon Marketing, Messrs. Ed Gulle & Benjie Calo, Engine Pro Motor Corp. & Denvi and Lito Cabrera, Sterling Savings Bank & Midway White Beach Resort/Minkay Restobar, Leonardo-Vicente Associates & Consolidated Bldg. Maintenance, Inc., Rep. Maximo B. Rodriguez, Jr., Paceman Multi-Purpose

Leave...from page 1

in neighboring Cagayan de Oro said some 50 mem-bers of the NPA’s Guerilla Front 89 under alias Bagwis, Piton, Ambo and Arche, launched the attack in DMPI.

Lt. Col. Osias, spokesper-son of the 4th ID, said the rebels on board trucks, vans and motorcycles arrived in Camp Phillips at around 6 p.m. Tuesday and immedi-ately proceeded to the Del Monte truck parking facility and burned a tractor, truck sprayer and a truck.

Simultaneously, Calin-gasan said, some 30 reb-els also attacked the Dole Philippines compound in La Fortuna, Impasug-ong town near the Atugan bridge, seizing two shot guns from the guards on duty.

Jorge Madlos, National Democratic Front (NDF) Mindanao spokesperson, owned the attack in an inter-view aired over a radio sta-tion in neighboring Cagayan de Oro Tuesday evening.

The rebels reportedly disarmed three policemen from Manolo Fortich who were on their way to respond to the incident in La For-tuna, according to a report Calingasan forwarded to MindaNews.

The report said the rebels used two forward trucks, two passenger vans, and two

Seminar...from page 1

tri-media who were given the tasks of cover-ing from campaign period to post-election days.

The bloodiest among them all is the Maguindanao massacre that caused the death of 33 media practitio-ners who joined a caravan of a politician’s wife to file her husband’s candidacy for governor of Maguindanao province. Trial against the suspects belonging to the Ampatuan clan continues up to this time.

Atty. Nala discussed sev-eral topics concerning the May polls, including Gun Ban, Philippine National Police Supervision and Con-trol, Comelec Checkpoint and the Fair Election Act, among others.

Aside from Atty. Nala, Froilan Gallarado of Min-danews was also invited to talk about “Safety and Conduct in Covering the 2013 Elections” while Richel Umel of Agance France Press shared with the participants on “Ethics and Reporting Techniques.”

Joe Felicilda, lead con-vener of MinPressDev and editor-in-chief of Mindanao Star, discussed important aspects of the topic, “How to Cover Political Cam-paigns.” He particularly coached participants on how to appear fair and balance in their reporting and not being bias in their coverage of the campaign.

The seminar is the brain-child of Mediante, program director for the PPI project. Sudaria, CEO and publisher of the four newspapers un-der the BWM Group of Publications, supported the undertaking in partnership with Veterans Bank.

Sudaria, in his message, extended his gratitude to all the participants for ac-knowledging the invitation, even as he thanked PPI for the initiative of holding the seminar with BWM Media Center and Veterans Bank.

Another venture of BWM Media Center comes to fore on March 8, 2013, when it launches the BWM NewsCon, a weekly news conference that will tackle regional issues and con-cerns affecting Kagay-anons and those in the neighbor-ing areas here in Northern Mindanao.

Cooperative, We-Fix Con-struction/Casa Isabella and San Miguel Corporation.

The organizers also ac-knowledged the assistance received from the following: Star-Ads, Ultra Craft, Seda Hotel, Redbrick, Crocs, Nature’s Spring, Parasat Cable TV and Pryce Plaza.

BusinessWeek Mind-anao, Mindanao Daily News, Mindanao Star, The Cagayan de Oro Times and BWM Magazine were the exclusive print media partners for the tournament.

motorcycles to retreat to the direction of Dahilayan and nearby areas.

Hundreds of motorists and commuters were strand-ed along a 78-kilometer stretch of the Sayre Hiway, from Puerto in Cagayan de Oro to Kalasungay in Malay-balay City. There were reports both the NPA and police set up roadblocks along the highway. Bukidnon board member Jay Albarece said there were iron bar spikes or suyak along the road from Cagayan de Oro.

Osias identified the slain security guard as Alfredo Neri and the injured as Franklin Millanes and Jo-fol Jumawan of the Kadrc Security Forces and General Services—a private security agency contracted by Del Monte.

Res ident phys ic ian Larson Taruq of the Camp Phillips Memorial Hospital said Neri succumbed to two gunshot wounds in his upper right torso.

Millanes had two gunshot wounds on his shoulder blades, Jumawan on the right thigh and a civilian bystander Mario Ayuban on the left thigh.

Stop operationsMadlos, NDF Mindanao

spokesperson, said in an interview over Magnum FM CDO on Tuesday evening that the NPA launched the at-tacks to send a message that DMPI has to stop operations, blaming the firm for the big damage wrought by Typhoon Sendong in Cagayan de Oro in December 2011.

Madlos said “pineapple plantations in Bukidnon” worsened the impact of the storm. He said DMPI and Dole Philippines. are the same multinational corpora-tions that allegedly abused laborers, amassed large plantation areas that could have been subjected to land reform, and damaged the environment. “This is our

way to search for justice for the Sendong victims,” he said.

Madlos warned of more attacks if DMPI and other agribusiness companies do not heed their call for moratorium of expansion of plantations. “If they agree not to expand their areas, we might reconsider the attacks.”

He cited the fast expan-sion of the two plantations and added Sumifru, another agribusiness firm, is also on its list. He said these firms should vacate the areas so these can be subjected to land reform.

He said the NPA’s “pu-nitive actions” appear to be the only way to stop the unabated expansion as the government is not able to stop it.

Madlos apologized to passengers who were strand-ed along the highway. He said the roadblocks were a “necessity” to prevent mili-tary reinforcement.

SimultaneousLt. Col. Osias said the

rebels on board trucks, vans and motorcycles arrived in Camp Phillips at around 6 p.m. Tuesday and immedi-ately proceeded to the Del Monte truck parking facility and set fire three a tractor, truck sprayer and a truck.

At the same time the rebels were attacking the Del Monte facility in Camp Phillips, another group of NPA rebels also staged a checkpoint on a bridge in Impasug-ong town and in Barangay Dalwangan in Ma-laybalay City, he said.

The attack caused panic among residents of Camp Phillips, a small community of Del Monte workers and officials. Many of them sent frantic text messages to their relatives informing them of the attack.

Lt. Col. Rolly Dumawa, G7 officer of the Army’ 4th Division said some relatives forwarded the text messages to the military and police.

“The text messages were so sketchy. We thought we should confirm these mes-sages first,” Dumawa said.

A police team who went to investigate got the con-firmation when they found themselves being engaged by some 50 rebels at the entrance of Camp Phillips, he said.

Osias said army soldiers began pouring into Camp Phillips an hour later but by this time, the rebels had withdrawn towards Barangay Dahilayan, also in Manolo Fortich.

He said the rebels brought a barangay leader of Da-hilayan and four habal-habal (motorcycle) drivers as they withdrew.

The attack was the most daring in Bukidnon province in years and the biggest since the rebels burned hundreds of trucks of Taganito Min-ing Corporation in Surigao del Norte on Oct. 3, 2011. (Walter I. Balane/Mind-aNews with a report from Cong Corrales and Froilan Gallardo/MindaNews)

3THURSday | FEBRUaRy 21, 2013

Editor: CRIS dIaZ Email: [email protected] : [email protected] • Advertising : [email protected]

Realty

PODC Project Implementation Manager Arnold Santos (left) and Acting Product Manager (FVH) Mierro Castrillo (right) cut the ribbon at the Twin Homes. Looking on are Fr. Harold Parilla and Product Manager Voltaire Flores.

Erika model

Jessica model

THE three model units of Forest View Homes (FVH) were blessed in simple cer-emonies on February 16, 2013. Fr. Harold Anthony Parilla, JCL led the service.

Pueblo de Oro Develop-ment Corporation (PODC) Product Manager Volt Flores also introduced Township Relations Manager Mierro Castrillo as the Acting Prod-uct Manager for Forest View Homes.

The units that were blessed were: Jessica, Erika and Twin Homes with floor areas of 60, 77 and 65 sq.m., respectively.

Jessica and Erika are two-storey single attached homes while Twin Homes is a duplex unit.

The three model houses are located in FVH Phase 3 along the village’s main road, Forest View Drive.

Set against the magnifi-cent Pueblo de Oro Urban Rainforest, Forest View Homes is a peaceful en-clave of tasteful homes amid natural beauty.

Like Pueblo de Oro’s

House Blessing at Forest View Homes

other subdivisions, Forest View Homes will include such amenities as a land-scaped entrance gate and guardhouse, multi-purpose hall, concrete tablet fence, 24/7 security, and parks and playground.

A shuttle service also plies the route between the village, SM and other areas of the Pueblo de Oro Township.

FVH is easily accessible by PN Roa Avenue (Macapa-gal Drive), which connects

Bulua and the Calaanan Valley to Masterson Avenue. With its panoramic view of the Pueblo Urban Rainfor-est, FVH offers residents a feeling of countryside living while being mere minutes away from urban

conveniences such as SM City Mall, top schools like Xavier University and Cor-pus Christi, the domestic airport, and the upcoming St. Francis Xavier Parish Church.

For more information,

please contact the PODC Sales and Marketing Depart-ment at (088) 858-8976 or (0917) 700-4993, email them at [email protected] or visit their web-site pueblodeoro.com or facebook.com/pueblodeoro.

Participants in the Mindanao-wide PBD workshop pose for a souvenir picture during the culmination of the activity in Cagayan de Oro City recently. Photo supplied

By edItha r. salVador

CAGAYAN DE ORO – A workshop on integration, complementation and programming of CARP sup-port services programs and projects in Mindanao was held on Feb. 11-13 in Cagayan de Oro.

Key DAR officials led by the Regional Directors from Regions IX, X, XI, XII and CARAGA attended the 3-day activity hosted by DAR-Region X. Upon the invitation of DAR Sec. Virgilio de los Reyes, ARMM key officials also came in full force.

Undersecretary for Support Services Jerry Pacturan led the DAR Central Office staff who facilitated and gave the inputs during the workshop discussions.

Engr. Felix Aguhob, DAR-X Regional Director and concurrent PBD coordinator for Mindanao, delivered the welcome message and hoped that the workshop would help address the issues and concerns relative to support services delivery in Mindanao.

The Program Beneficiaries Development (PBD) is one of the major components of CARP and is concerned with the delivery of support services to agrarian reform beneficiaries (ARBs).

The PBD has several models for the delivery of quality and effective support services . Through the complementation of DAR support programs and the intensification of convergence among different stakeholders, resources such as agri-technology, farm inputs, processing facilities, credit, and ac-cess to markets are mobilized.

The workshop culminated with the formulation of a work plan to closely guide and monitor the implementation of the PBD programs and projects in the different regions in Mindanao.

DAR conducts Mindanao-wide

workshop for support services

Aggie News

By Pat samonte

BUTUAN City––The De-partment of Agrarian Re-form formally turned over a completed P27.9-million concrete farm-to-market road to the local government of Remedios T. Romualdez in Agusan del Norte last February 15.

DAR-Agusan del Norte ActingInformation Offi-cer Gil Miranda said the 6.5-kilometer road proj-ect stands to benefit more than 11,000 residents of barangays Tagbongabong, Basilisa, Balangbalang, Po-blacion II and San Antonio comprising the TAGBA-BAPSA Agrarian Reform Community and hundreds of farmers in neighboring villages.

Assisted by DAR-Agusan del Norte Provincial Agrar-ian Reform Officer Andre Atega, Regional Director Faisar Mambuay and R.T.

P27.9m DAR road project to benefit 5 Agnor brgys

ROAD PROJECT TURN-OVER. DAR-Caraga Regional Direc-tor Faisar Mambuay (right) and R.T.Romualdez Mayor Nilo Soliva cut ceremonial ribbon as DAR-Agusan Norte PARO Andre Atega (center) watches. Photo by Gil Miranda.

Romualdez Mayor Nilo Soliva cut the ceremonial ribbon and unveiled the project marker.

Mambuay said the proj-ect is expected to improve the lives of agrarian reform beneficiaries and reduce poverty in the community.

Atega said the road project will contribute significantly in increasing household income and in changing the way of life of village residents. He asked

local officials to take care of the project.

Soliva praised DAR’s development interventions that dramatically increased the productivity and boosted the economic condition of his constituents.

“This road will bring rapid growth and prosperity to my constituents,” he said.

Jeanda Agao, a resident, said they can now transport their farm products to the market and bring farm in-

puts as well as daily needs to their homes with ease.

“Ang proyekto daku kaayo ang tabang kay dili na kami maglisud pagdala sa among produkto ngadto sa merkado.” Agao said in the local dialect.

Present during the ac-tivity were R.T. Romual-dez Vice-Mayor Eleuterio Enriquez, PARO I Denia Jabagat, Municipal Agrar-ian Reform Officer Virgie Batosalem, Danilo Versola of the Department of Pub-lic Works and Highways, District Engineer Salvador Montil, Jr., Barangay San Antonio Chairman Dios-dado Enriquez and village residents.

The project was jointly funded by the Government of the Philippines and Ja-pan Bank for International Cooperation (JBIC) under DAR’s Agrarian Reform In-frastructure Support Project III (DAR-ARISP III).

4 THURSday | FEBRUaRy 21, 2013Caraga Region editor: Joe del PUerto FelIcIldaasst editor: arJaY s. FelIcIlda

• Email: [email protected]

Editorial : [email protected] Advertising : [email protected]

agUsan del norte l agUsan del sUr l sUrIgao del sUr l sUrIgao del norte

BUTUAN City - The Philippine Army’s 3rd Special Forces Battalion (3SFB), Special Operations Command, which is operationally controlled by 402nd Brigade, has once again shown its persistence to go after the perpetrators of the recent burning incident in Santiago, Agusan del Norte last Febru-ary 6, 2013, where the NPA burned heavy equipment used for the repair of the national highway in said municipality.

402 Brigade relentlessly pursuing NPAs, illegal loggers

By 1st Lt. Joe Patrick A. Martinez

Last week, while pursu-ing the perpetrators, the 3rd SFBn discovered the NPA’s logistics cache with improvised explosive de-vices and gasoline used to harass government troops and to terrorise the populace in the area.

February16 and 17, op-erating troops from the said battalion discovered another two abandoned NPA camps in the hinter-lands of Bugtong Salabay, Brgy. Anticala and Sitio Patagon, Brgy Anticala all of Butuan City. Said NPA camps can accommodate 50 to 70 NPAs.

Lt. Col. Potenciano C.

Camba, commanding offi-cer of the (3SFB) observed, “these NPAs are now having a hard time pursuing their terroristic activities in the area considering that we already gained significant momentum not only in combat operations, but also in giving the right informa-tion to the people about the NPA’s evil motives.”

He continued, “people no longer believe in NPAs lies, as they are now giving information about the NPA activities and locations.”

Meanwhile, the 26th Infantry Battalion of the 402nd Brigade in Agusan del Sur, together with the

PNP and DENR, confis-cated 106 flitches of round logs of mixed dipterocarp along Agusan River in Si-tio Mabaw, Brgy Dacutan, Esperanza, Agusan del Sur which has an estimated cost of P70,000.

Said logs are now under the custody of Municipal Environment and Natural Resources Office in Espe-ranza, ADS for proper dis-position and investigation.

For his part, Col. Cres-cente Q. Maligmat, 402 Brigade OIC, said “we are one step closer in achiev-ing our goals. I urge all the stakeholders to con-tinue taking part on this

insurgency situation and illegal loggings in the area so that we can properly troubleshoot the problem and make CARAGA as the best place to live in.”

The DENR Regional Training Center is set to conduct an Orientation/

Seminar to AFP and PNP units in the region, starting today until tomorrow, Feb-ruary 21-22, to strengthen and equip on forestry laws and rules and regulations set in Executive Order No. 23 “Declaring a moratorium on the cutting and harvesting

of timber in the natural and residual forests and creating the Anti-illegal Logging Task Force. (JPAM/asf)

SAN LUIS, AGUSAN DEL SUR – Mayor Ronaldo Corvera announced that the P42-million one-way bridge in Barangay Doña Flavia here is almost com-pleted to ser ve vi l lage residents and the general public.

In an exclusive inter-view, Corvera said that aside from the one-way bridge, another bridge project under the Tulay ng Pangulo program is be-ing constructed worth P8 million with counterpart from the local government of Agusan del Sur under Governor Adolf Edward Plaza.

According to Corvera,

San Luis Mayor Corvera says P42M bridge almost finished

By Victor O. Samonte

he is scheduled to deliver his State of the Municipal-ity Address (SOMA) in time for the celebration of his town’s Caliga-on Festival on April 8-9, 2013. He said his administra-tion’s accomplishments and his town’s develop-ment, growth and progress

will highlight his 2013 State of the Municipality Address.

Corvera assured that he will continue to provide his constituents efficient and effective leadership under the principle of transparent and account-able governance.

TANDAG City - The Tago River in Surigao del Sur has overflowed, Tuesday morning, submerging the interior barangays of San Miguel and Tago towns.

According to Municipal DRRM Officer Charles Suhian of San Miguel of-ficer Charles Suhian, the river overflowed around 9 a.m. today, affecting more than five barangays in the area including Barangay

Poblacion. Meanwhile, according

to the press statement of the local DRRMC of Bislig, Tandag, Carmen, and San Miguel, classes were sus-pended from pre-school to elementary level early today after the whole prov-ince experiencing moder-ate to heavy rainfall since yesterday.

Pagasa said that the Low Pressure Area (LPA)

had developed to a tropical depression, Crising, early last night.

Roads and bridges along Tandag bound to northern and southern part bound-aries of the DPWH 1st District Engineering Office were reportedly passable as of 10:30 a.m., today, ac-cording to DPWH Informa-tion Officer Jo Moselina. (NGBT-PIA 13, Surgiao del Sur/asf )

Tago river overflows, submerges

barangaysBy Nida Grace B. Tranquilan

Press Statement on Dahilayan

In light of the negative perception caused by the recent NPA attack on the Del Monte office at Camp Phillips in Manolo Fortich, Bukidnon, Dahilayan Adventure Park operator, Engr. Elpie Paras, disclosed that the famous adventure tourism landmark of Mindanao will remain open to the public and expects visitor arrivals to return to normal over the long weekend. Tourism facilities which include Asia’s longest dual zipline, Pinegrove Mountain Lodge, Forest Park, Saddle Ridge Camp and Dahilayan Gardens are 15 km away from the scene of the incident. Based on media reports, the NPA group only passed via the Camp Phillips to Dahilayan road in their with-drawal to Brgy. Bagalangit several kilometers away. Civilians including Dahilayan Brgy. Capt. Sahonlay who were picked up on the road were immediately released unharmed as soon as the armed group reached their disembarkation point. The surprise raid on Del Monte and Dole facilities in Bukidnon was the first of its kind and considering the NPA press statements, the attack was a result of its advocacy against unrestrained large scale agri-cultural plantation development and logging which contributed to the recent flooding disaster in Cagayan de Oro and Iligan cities. Security measures for the safe ingress and egress to Camp Phillips, Dahilayan and surrounding areas, are now on highest level and tourists should not worry about their safety.

Classified adsEditorial : [email protected] • Advertising : [email protected]

For Classified Ad ates: Pls contact 088- 856-3344, (08822) 72-3344

THURSday | FEBRUaRy 21, 2013 5

CASA AZZURRIOFFICE SPACE (2nd Floor)

Contact Nos.:857 3995 / 09177009435

A. Velez St. Fronting EAStwESt BANk VElEz

MDN: JAN. 17-FEB. 17, 2013

FORRENT

Pryce Plaza HotelCarmen Hill, CDO,

Tel. No.722791 to93/858-4537E-mail:[email protected]

---------------------------------tHe Marigold Hotel

Velez cor. Luna Sts, CDOTel Nos. 856-4320, 856-2050, 726937

E-mail: [email protected]

---------------------------------cHaNaNtHoN Bed

& BreaKFaStCM Recto Avenue, Cagayan de Oro CityTel. #: 856-81-89 / 309-3095 / 231-2103Email ad : [email protected]

Room @ P800.00

---------------------------------NeW daWN PeNSioNNe

Velez-Macahambus Sts, CDOTel Nos. 8571776, 721776

email : [email protected]

KIMBERLITE PAWNSHOP MALAYBALAY BRANCH

Kimberlite Pawnshop will be having an AUCTION SALE on all items that expired on December 2012

EXPIRY DATE

AUCTION MONTH

2012

TAGUM

BRANCH 1

BRANCH 2

MALAYBALAY

November 2011 JANUARY 19 12 26 17

December 2011 FEBRUARY 21 14 28 16

January 2012 MARCH 20 13 29 15

February 2012 APRIL 19 12 26 17

March 2012 MAY 22 15 29 17

April 2012 JUNE 21 14 26 19

May 2012 JULY 24 12 26 19

June 2012 AUGUST 21 14 28 16

July 2012 SEPTEMBER 20 13 27 18

August 2012 OCTOBER 18 12 25 16

September 2012 NOVEMBER 20 15 27 20

October 2012 DECEMBER 11 18 18 13

KIMBERLITE PAWNSHOP

Kimberlite Pawnshop will be having its monthly AUCTION SALE with corresponding expiry dates. All items will be sold to public auction at KIMBERLITE PAWNSHOP on the following dates and venues.

ADDRESS TAGUM MAIN Door 1 Misa Bldg., Pioneer Ave., Misa District, Magugpo West, Tagum City PANABO BRANCH 1 Lot 8 Blk 22 Cor. Mabitad-Quirino Sts., Panabo City, Davao del Norte Tel. No. (084) 628-8165 PANABO BRANCH 2 Blk 10 Stall 7, Panabo Central Market Panabo City, Davao del Norte Tel. No. (084) 628-8529 MALAYBALAY BRANCH Estrada Bldg., Fortich-Don Carlos Sts., Malaybalay, Bukidnon

AUCTION DATE: FEBRUARY 21, 2013Estrada Bldg., Fortich-Don Carlos Sts.,

Malaybalay City, Bukidnon

The miNdaNao daily NeWS (mdN) news-paper is published daily at Door 2, Tanleh Building, Abel-lanosa St., Brgy. Consolacion, Cagayan de Oro City. It is

registered with the Department of Trade and Industry (DTI), Region 10 with Certififcate No. 01791042, and with

Business Permit No. 02275, TIN No. 209-980-927Tel. Nos: (088) 856-3344, (08822)72-33-44, Cell nos.: 0917-7121424, 0947-8935776

Website: www.businessweekmindanao.comE-mail: [email protected],

[email protected]

MINDANAO DAILY NEWSPublisher

www.mindanaodailybalita.com

ALLAN M. MEDIANTEEditor-in-Chief

CRIS DIAZAssociate Editor

SHAUN ALEJANDRAE UYSports & Lifestyle Editor

BEN ARCHERegional Editor-DAVAO

pAT SAMoNTERegional Editor-Caraga

AL JACINToRegional Editor-Zamboanga

gERRY LEE goRITPhoto Journalists

URIEL C. QUILINgUINg Editorial Consultant

RUEL V. pELoNEManaging Editor

MELANIE RIVERAAdvertising

JUN ESCUADRoRIZA o. ARES

LIEZL A. DELoSoJoE pALABAo

RENE MICHAEL BAÑoSED MAINIT

Marketing Consultants

ATTY. MARIo T. JUNIatty. roberto a. cantago jr.

Legal Counsels

MER M. SUDARIAManager

RoSE MARY D. SUDARIAFinance Manager

MARkETINg pARTNERSA VENTURE MkTg CoRp.

Marlyn Par-Telefax: (02)485-05702512 Opalo St., San Andres Bukid

Sta. Ana Manila

RURAL pRESS CoMM. REp. INC. 3055 Tolentino Cor. Balabac Sts.

Pinagkaisahan, Makati City

JUN ESCUADRo-0917-511-1724 44 Lungos, Pulilan, Bulacan

RICHARD ALMENANZA-0920-9467267Suit 701 C Dansalan Condominium

Mandaluyong City

FREDDIE pAR-0932-867-2326 C. Padilla cor. Fatima Sts., Cebu City

Mindanao Examiner/Mindanao DailyUnit 15, 3F Fair Land Bldg., Nunez Extension Zamboanga City Phone & Fax (062) 992 5480

Email: [email protected]

MDN CAgAYAN DE oRo Rene Michael BaÑos-0917-7148484

CANDy MACABALE- 09161326483JOE PALABAO - 0905-1569709

RIZA O. ARES-0915-9753277/0920-9600223LIEZL A. DELOSO-0905-2123718

MDN BUkIDNoN pRoVINCE Dahlia s. BeneMeRiTo 0926-858-2013

MilDReD ToRReJas - 0917-408-6905

MDN CARAgA REgIoNPAT SAMONTE- 0912-8091093

TanDaG -Gen canToR- 0929-5817116san FRans-DeDinG PanGaniBan-0927-7974193

MDN DAVAo REgIoNMaRlon GaYoG - 09276314995

ToM a. caBalleRo - 09105783126Ben aRche-096609327

MDN WESTMIN REgIoNSiliGan ciTY - JeFFReY oPonDa 0935-9490654

TuBoD- louie BukoD- 0948-1323348OROQUIETA CITy- PJ TREMEDAL 0919-3452375

aRMM - sonY suDaRia- 0947-4810371PaGaDian ciTY - alRoY FRancisco- 0912-8484037

ZaMBoanGa- al JacinTo-0918-9180895

MDN NoRTH CoTABATokaBacan - enGR. MeiRaDo V. loPeZ JR

kiDaPawan ciTY - ReY colinaResMIDSAyAP - NIChOLS B. DUgA

coTaBaTo-analisa esPaÑola-0916-9351714

member:Philippine Press institute

6 THURSday | FEBRUaRy 21, 2013

Editor: RUEL V. PELONE Email: [email protected]. : [email protected] • Advertising : [email protected]

Opinion

IN a no-holds-barred en-counter with some news-paper columnists in Cebu the other day at the Water-front Hotel in Lahug, Sen. Alan Peter Cayetano was all praises for President Aquino’s success in lock-ing the horn of corruption especially in the Executive branch the last three years.

This success enabled the government to fund various projects aimed at directly alleviating the economic lot of the people such as the conditional cash transfer program to the poorest of the poor.

The other thing that the administration is able to accomplish is fund vari-ous infrastructure projects that pushed the economy’s growth several notches higher.

Aquino, Cayetano told the Cebu newspaper col-umnists, is dead serious in pushing his matuwid na daan mantra so that government funds will not end up in the pockets of unscrupulous government officials.

In this regard, he added, the President should be supported by everyone.

But he cautioned the people from expecting the immediate trickling down of the benefits that a robust economy could bring.

While the robust econ-omy should redound to the benefit of the people, this takes time.

He thus dared the people to contribute their share in making the econom-ic growth the country is currently experiencing by pressuring their officials from shunning away from corrupt practices.

The people can likewise do their share by patron-izing local products to help boost the economy’s growth.

The next level

a deeper view

Jesse E.L. Bacon II

He emphasized that economic growth is not just the concern of the government.

It is the work of the government and the collec-tive effort of the citizenry. It can never be achieved without the people’s support and cooperation, Cayetano stressed.

He simplified his point by using the public market experience.

He said we can’t dream of sustaining the current economic growth if even the galunggong fish avail-able in the public market are imported from other countries, which is the irony that is going on now.

The country will also have a hard time pushing higher the economic growth or even just maintaining its current levels in the coming years unless small entrepreneurs are likewise extended government as-sistance.

Cayetano explained that in his “listening tours” to consult the various sectors of society, he discovered that small entrepreneurs, more often than not, end up victims of high interest rates slapped on them by usurers from whom they access their capital.

To address the prob-lem, he is proposing that the government set aside certain amount of money to be lent to these small entrepreneurs.

But the system in ex-

tending credit to this small time businessmen and the collection of the principal should be done the usurer way.

The amount to be ex-tended should depend on the kind of goods the en-trepreneur intends to sell or produce as the case may be.

The collection should also be done on a daily basis. The only difference is that the interest rate that should be charged should not be exorbitant but just enough to finance the management of the fund, meaning, to pay for the effective administra-tion and management of the fund such as the pay for the collectors and fund managers.

Cayetano said he real-ized that how hard it has been for our small entre-preneurs coping with their problem for capital and the

almost unaffordable inter-est rates that they pay for their capital.

This is the next level that the government should pursue if only to sustain the momentum of our growth.

The problem, according to the young senator, is that when government plans the programs it intends to pursue, the perspective or mindset has always been to come up with something that fits all.

This practice only re-sulted in the stunting of growth in the local level. He thus proposes that government programs, its planning, formulation and implementation should be done in the regional lev-els where national agency heads in the regional levels are empowered to do this process.

Cayetano said the situ-ation as it is now is that regional directors of na-tional line agencies stop to be creative because when they reach such position they simply implement what had been cooked up in the national level.

If things are done in the regional level, he continued, we would have empowered and more creative regional directors. This would serve as their incentive to do well.

The disincentive should be to allocate just a smaller budget for non-performing regional offices of national line agencies.

Cayetano invited me to join him in his trip to Cebu when told by friends among his staff that I am a Cebuano and it was my first time to listen to him. And I appreciate his grasp of the problems and their possible solutions in the local level.

---(Reactions at jelbacon@

yahoo.com)

think a minute

Jhan tiafau hurst

Decide your destinyThink a minute.

A man was cleaning his car with a special brush when a little girl who had been watching him said, “My daddy has a brush like that to clean his car too.”

“Really!” said the man. “What kind of car does your daddy have?”

The little girl answered: “Oh, he hasn’t got the car yet, but he’s got the brush to clean it.”

Well, I suppose you have to start somewhere!

The important thing is that you do get started. And to do that, we first have to decide what kind of life we want.

It’s strange how many of us want to live forever, when we can’t even decide what to do with our life now!

Like the guy who said: “I’m going to stop putting things off, starting tomor-row.”

You see, even if others have made decisions for you, you can still decide how you’ll respond and handle the life that’s been handed to you.

You still have control of your own attitudes.

Happiness is an attitude and choice, no matter what situation you’re in.

Remember, you can al-ways find someone worse off than you whom you can help.

It’s only when we stop looking at our own problems and reach out to make oth-

ers happy, that we ourselves can be truly happy.

But if you choose not to make a decision, that also is your decision you’ll live with.

There are many smart, talented people who have never enjoyed the success they could have, simply because they could not make a decision and dis-cipline themselves to follow through with it.

Remember, if your life doesn’t change, it’s going stay the same! It’s that simple.

So to move on from where you are, you must first decide where you’d rather be. If you can’t change your mind, you can’t change your life.

“The moment you’re through changing, you’re through!”

The great writer Tolstoy said: “Everyone wants to change the world, but no one wants to change himself.”

So ask yourself right now: What’s the one de-cision I need to make to change my life?

The smartest one you can make is to ask your own Maker to take control of your life every day.

Then with Jesus’ power, you can start making the best choices that will change you and give you the new life you want.

In fact, you can decide your destiny today.

Just Think a Minute.

n The disin-centive should be to allocate just a smaller budget for non-performing re-gional offices of national line agencies.

A N A L Y S I S P A S A K A Y

5-71 1 A M R E S U L T

7134 P M R E S U L T

993

L U C K Y P I C K

L U C K Y P I C K

378-678897-317671-719375-567027-674

435-546594-015

PAIRING UNLEASHED67 6869 6078 7970 8980 90

taKe 2

taKe 1

12 2713 2515 3512 3523 45

taKe 2

taKe 1

6 7 8 9 0 1 2 3 4 5


taKe 2

taKe 1

12 2413 2514 3415 3523 45

taKe 2

taKe 1

6 7 8 9 0 1 2 3 4 5


taKe 2

taKe 1

12 2413 2514 3415 3523 45

taKe 2

taKe 1

6 7 8 9 0 1 2 3 4 5

sUPertres II Unleashed: the WInnIng gUIdeLET’S PLAY LOTTO. SUPPORT PHILIPPINE CHARITY SWEEPSTAKES OFFICE!

YESTERDAY’S RESULT11am: 7-1-3

YESTERDAY’S RESULT4pm: 9-9-3

A N G L E G U I D E

MAAYO bantayan karong adlawa ang mga pairing 26, 20, ug 60. Ang atong pasakay karong mao ang 5 ug 7. Good luck sa tanan!

Supertres team

THURSday | FEBRUaRy 21, 2013 7Editorial. : [email protected] advertising : [email protected]

CROSSWORD puzzle

SUDOKUHow to play the game?Fill in completely every rows, columns and diagonals of each puzzle without repitition of the same digit.

Yesterday’sAnswer

ACROSS 1. Rear part 5. Grinding tooth 10. Wrath 12. Central point 14. Impart 16. Turner of music 17. Yoko of music 18. Think probable 20. Attempt 22. Armed conflict 23. _Mans 25. Devour 27. Furious 29. Actinium symbol 31. Born 33. Drag 35. Jet engines 38. Putrefy 40. African lily 41. Show up

43. Clan emblem 45. Passageway 46. Organic substance 47. Actual existence

DOWN 1. Edible rootstock 2. About 3. Disregard 4. Guided 6. _ My own 7. Oblique 8. Rara 9. Of the kidneys 11. Flat color 13. Stratum 15. Unprocessed 19. Male sheep 21. US inhabitants 24. Gem weight 26. Golf peg 28. Compulsion by threat

30. Phenomenon of light 32. Greek letter 34. Aims 36. Pigeon coop 37. Mineral spring 39. Woody plant 42. Baked dish 44. Musical tone

NICkELPENNYPRICEPROFITqUARTER

CIRCLE A WORDINvESTMENTLOANLOSSMORTGAGEMUTUAL FUND

MONEY MATTERS (2)

RAISESALARYSALES TAxSTOCkWAGE

Critics...from page 1

Makabayan-National Capital Region (Bayan-NCR), Karapatan-NCR, Ugat Lahi Artist Collective and Sining Bugkos in Arayat street, Cubao, Quezon City.

Five cellphones, two lap-tops, one flash disk, one Flip video camera, a tax identification number card and an adaptor for laptop were taken by the burglars. The television set, refrig-erator, radio, amplifier and other appliances were left untouched.

The progressive groups deemed it is no ordinary robbery.

Paulo Quiza, spokesman of Bayan-NCR, believes that the break-in is part of

the comprehensive attack against activists under the counterinsurgency program Oplan Bayanihan. Quiza cited the filing of murder charges against Bayan-NCR chairman Roy Velez and KMU-NCR deputy secretary general Amelita Gamara, the arrest of two organizers of Courage, a federation of government employees unions, among others.

“This is a direct attack against progressive orga-nizations that are critical of the Aquino administra-tion’s anti-people policies,” Quiza said.

The incident is not an isolated case.

On June 18, 2012, the office of party-list group Gabriela Women’s Party was broken into by unidentified

persons.The men took two desk-

top computers, monitors and a laptop but did not bother to touch other ap-pliances and valuables such as the television set, DVD player, photocopying machine, printers, among others. Gabriela believed that the men were after the organization’s files.

Attacks on NDFP con-sultants, staff

On the night of February 9, Rey Claro Casambre, one of the NDFP consultants, and his wife, arrived home to find the lock of their house door broken. His laptop computers and one old USB flash drive were stolen, together with some cash.

A similar form of ha-

rassment was experienced by lawyer Rachel Pastores, NDFP legal consultant. On September 2012, her house was broken into and her laptop computers and USB flash drives were taken.

In a statement, the NDFP deemed that the hostile actions against persons connected with the NDFP Negotiating Panel “have all the inklings of a military intelligence operation.”

“Though the appearance of robbery may be given, it lacks credibility in the stealing of USB flash drives which are of no monetary value,” Luis Jalandoni, chair-man of the NDFP panel, said in a statement sent through email.

On the same day, Rosie Tumbagahon, an inde-

pendent nominee to the NDFP Joint Secretariat (JS), boarded a jeepney bound for Divisoria along Aurora boulevard at around 8 p.m. When the jeepney reached Recto avenue in Manila, the man sitting in front of Tum-bagahon suddenly pulled a gun from his waist, and shouted “Walang gagalaw” (“Don’t anybody move!”) He pointed the gun, first at the driver, then to the other pas-sengers, and then pointed it to Tumbagahon’s forehead and declared “Ito lang ang kailangan ko” (“This is the only one I need.”).

According to the ac-count of Tumbagahon, the man slightly rose from his seat, stuck the gun to her forehead and grabbed her shoulder bag, which con-tains keys to the Office of the NDFP Nominated Sec-tion of the Joint Secretariat, cellphone, papers and USB sticks.

The JS was formed as part of the Joint Monitoring Committee for the imple-mentation of the Compre-hensive Agreement on Re-spect for Human Rights and International Humanitarian Law (CARHRIHL). Signed by both parties, CARHRIHL is the first of the four sub-stantive agenda laid down by The Hague Joint Dec-laration, which sets the framework for peace talks between the GPH and the NDFP.

Tumbagahon said the man did not get anything from the other passengers and did did not bother to get the paper bag she was holding. The victim said the man was wearing a bullcap, with slightly dark complex-ion, around 5’4” or 5’5” in height, with heavy-built, and around 32 to 35 years old.

No immunityJalandoni asserted that

all there are covered by the Joint Agreement on Safety and Immunity Guarantees (Jasig). Pastores and Casam-bre are publicly known to participate in the GPH-NDFP peace negotiations and had been to Oslo o several times for the peace talks. Tumbagahon, mean-while, has been issued a Document of Identification as a staff member of the NDFP-Nominated Section of the JS.

Jasig is a bilateral agree-ment providing immunity guarantees to all participants in the peace talks.

“The Aquino govern-ment is duty bound to see to it that JASIG protected persons are not subjected to surveillance, harassment or other punitive actions due to any involvement or participation in the peace negotiations,” Jalandoni said.

“Failure to provide pro-tection to those involved in the peace negotiations puts at risk the peace negotia-tions. Such failure indicates that the peace negotiations with the NDFP are not a priority of the Aquino gov-ernment,” he added.

At present, at least 14 NDFP consultants have been arrested and detained. The GPH has been adamant in refusing to release them. (http://bulatlat.com)

La Fortuna as a reinforcement team, were blocked and disarmed by NPA fighters along Atugan Bridge in Malaybalay City at around 6:40 p.m.

“Police Supt. Jumalon, PO1 Mandar, PO2 Neri led by Police Insp. Galagala were en route to respond to the incident in Camp Phillips where the main target of the armed group was launched when they were blocked by the rebels at the Atugan Bridge. Taken from the police officers were an M14 rifle, a 9mm pis-tol, M16 rifle and a .45 caliber pistol,” Calingasan said.

Osias said their intelligence units had monitored the massing up of NPA fighters in the hinterland barangays in Bukidnon, weeks prior to the attacks.

“However, the problem with intel-ligence reports is that it is the subject who dictates the day, time and target area of the attack,” he explained.

Osias estimated that the number of NPA guerillas who launched the attacks could not have reached more than a hundred “based on their mobility after the attacks, their main assault force that razed trucks and heavy equipment inside the motor pool compound in Manolo Fortich and burned the fertilizer warehouse in Sumilao. An additional 20 combatants deployed in Atugan Bridge and Impasug-ong to serve as blocking force against reinforcement.”

Combat pursuit operationsOsias said that the NPA combatants

withdrew towards Barangay Dahilayan on board two forward trucks and three passenger vans.

“They (took) Dahilayan barangay chair Winny Sumooy and four ‘habal-habal (motorcycle) drivers as their human shields,” he said.

“I thought they respect and adhere to the CARHRIHL (Comprehensive Agree-ment on the Respect of Human Rights and International Humanitarian Law),” Osias asked.

He added that the combined troops of 403rd Infantry Brigade, based in Malaybalay City, under Colonel James Jacob and 8th Infantry Battalion, based in Maramag town, Bukidnon, under Lieutenant Colonel Jose Ma. Cuerpo, were deployed late Tuesday night to pursue the retreating guerillas. (Cong Corrales/MindaNews)

Army...from page 7

5 8 2 6 7

2896

4507

7314

8628

9035

Editorial. : [email protected] advertising : [email protected]

THURSday | FEBRUaRy 21, 20138

REPUBLIC OF THE PHILIPPINESENERGY REGULATORY COMMISSION

SAN MIGUEL AVENUE, PASIG CITY

IN THE MATTER OF THE APPLICATION FOR AP-PROVAL OF THE POWER SALES AGREEMENT (PSA) BETWEEN AGUSAN DEL NORTE ELECTRIC COOP-ERATIVE, INC. (ANECO) AND SARANGANI ENERGY CORPORATION (SEC)

ERC CASE NO. 2013-010 RC

AGUSAN DEL NORTE ELEC-TIC COOPERATIVE, INC. (ANECO) AND SARANGANI ENERGY CORPORATION (SEC), Applicants.x - - - - - - - - - - - -- - - - - - - - - x

NOTICE OF PUBLIC HEARING

TO ALL INTERESTED PARTIES:

Notice is hereby given that on January 21, 2013, Agusan del Norte Electric Cooperative, Inc. (ANECO) and Sarangani Energy Corporation (SEC) filed their joint application for the approval of their Power Sales Agreement (PSA).

In the said joint application, ANECO and SEC alleged, among others, the following:

THE APPLICANTS

1. ANECO is a non-stock, non-profit electric cooperative organized and existing under and by virtue of Republic Act No. 6038, as amended, with office address at K.M. 2, J.C. Aquino Avenue, Butuan City, Agusan del Norte. It has a franchise to distribute electricity in the City of Butuan and the Municipalities of Buenavista, Cabadbaran, Carmen, Jabonga, Kitcharao, Las Nieves, Magallanes, Nasipit, R. T. Romualdez, Santiago and Tubay, all in the Province of Agusan del Norte (Franchise Area).

A copy of its Certificate of Franchise is attached to the

joint application as Annex “A”; 2. SEC is a generation company duly authorized and ex-

isting under and by virtue of the laws of the Republic of the Philippines, with principal address at 4th Floor, Alphaland Southgate Tower, 2258 Chino Roces Avenue corner EDSA, Makati City.

Copies of its Certificate of Incorporation and Certificate of Filing of Amended Articles of Incorporation issued by the Securities and Exchange Commission, Amended Articles of Incorporation and By-Laws, latest General Information Sheet (GIS) and latest Audited Financial Statements (AFS) are attached to the joint application as Annexes “B”, “B-1”, “B-2”, “B-3”, “B-4” and “B-5”, respectively;

NATURE OF THE APPLICATION

3. Pursuant to Rule 20 (B) of the ERC Rules of Practice and Procedure, approved by the Commission on June 22, 2006 in Resolution No. 38, Series of 2006, the instant application is submitted to the Commission for its review

and approval of their PSA dated March 17, 2012;

A copy of the PSA is attached to the joint application as Annex “C”;

COMPLIANCE WITH PRE-FILING REQUIREMENTS

4. In compliance with Rule 6 of the ERC Rules of Practice and Procedure, they furnished the legislative bodies of each of the Local Government Units (LGUs) where they principally operate a copy of the joint application with all its annexes and accompanying documents.

Proofs of receipt by the legislative bodies of the said LGUs are attached to the joint application as Annexes “D” to “D-12,” respectively. Proof of receipt by the Sangguniang Panlungsod of Makati City, where the principal office of SEC is located, is attached to the joint application as Annex “D-13”;

5. They caused the publication of the joint application in its entirety, excluding its annexes, in a newspaper of general circulation within ANECO’s Franchise Area.

Copies of the newspaper and the corresponding Affidavit of Publication are attached to the joint application as Annexes “E” and “E-1,” respectively;

STATEMENT OF FACTS

6. Shortage of Power Supply in the Mindanao Grid. The Mindanao Grid is currently facing a deficit in its power supply, which is certain to worsen over time;

7. According to the Department of Energy’s (DOE) Power Development Plan (PDP) (2009-2030)1 , the generating capacity in the Mindanao Grid is no longer sufficient to meet the required capacity, which is the peak demand plus the reserve margin mandated by the Commission. By 2015, the generating capacity will no longer be able to meet the grid peak demand despite the commis-sioning of generating capacities already committed by private investors;

8. As a result, Mindanao, including the Franchise Area of ANECO, has experienced and is at risk of suffering power outages adversely affecting local businesses and the daily lives of all electricity consumers. The lack of sufficient and reliable power supply has long been a barrier to much needed capital investment that would spur the local economy not only in the franchise area of ANECO but in greater Mindanao as well;

9. The Mindanao Grid is heavily dependent on hydroelectric power. In fact, according to the DOE, fifty-three percent (53%) of the total dependable capacity in the Mindanao Grid as of 2009 consists of hydroelectric generating capacity. As a consequence, available power supply in the Grid is drastically reduced in the summer months;

10. Insufficiency of ANECO’s power supply. ANECO’s total power supply is insufficient to meet its power require-ments;

11. The bulk of ANECO’s power requirements is currently

supplied by the National Power Corporation (NPC) under a Contract for the Supply of Electric Energy (CSEE) ef-fective August 2011, which was assigned to the Power Sector Assets and Liabilities Management Corporation (PSALM);

11.1. PSALM has sold Power Barges (PBs) 117 and 118 to Therma Marine, Inc. (TMI) and turned over the Iligan Diesel Power Plant to the Iligan City Government. As a result, NPC is no longer able to supply the full requirements of ANECO’s customers. In fact, NPC has reduced its firm

aPPlIcatIon | page 91 http://www.doe.gov.ph/ep/Devp.htm


supply to all the Distribution Utilities (DUs) in the Mind-anao region, including ANECO, by thirty percent (30%). NPC is expected to reduce further its firm supply by 2016 when its Energy Conversion Agreements (ECAs) with Western Mindanao Power Corporation (WMPC) and Southern Philippines Power Corporation (SPPC) expire;

11.2. Aside from NPC, TMI also supplies 15 MW of power to ANECO under an Energy Supply Agree-ment (ESA) with a contract term effective until July 2013, subject to renewal by the parties;

11.3. ANECO also has entered into a twenty-five (25) -year supply contract with Agusan Power Cor-poration (APC) for the supply of power from its proposed 25 MW hydroelectric power plant. However, even with supply from APC, ANECO’s power supply will still be insufficient to meet its total requirements;

11.4. NPC Certification. In a Certification dated July 3, 2012, NPC confirmed that it cannot commit to supply the levels of capacity that it has con-tracted to provide ANECO in their CSEE due to generation constraint and due to the present power supply situation in Mindanao.

A copy of the said Certification is attached to the joint application as Annex “F”;

11.5. ANECO’s Increasing Power Requirements. The shortage of power supply is expected to worsen due to the steady increase in ANECO’s power demand, especially with the entry of new big loads, such as the Robinson’s Mall; and

11.6. The insufficiency of supply in Mindanao, including ANECO’s Franchise Area, is expected to worsen due to the increase in demand, which the DOE estimates to grow at around four percent (4%) annually;

12. Consequently, ANECO will experience outages due to the shortage of supply and to the steady increase in its power demand to the detriment of its customers and local businesses;

13. Procurement of Power Supply by ANECO. As mandated under DOE Circular No. 2003-12-011, it is the obligation of a DU to forecast, assure and contract for the supply of power for its Franchise Area;

14. As the electricity requirements of ANECO’s customers continue to increase, its current power supply will be insufficient to meet its increasing demand. Hence, there is a need for additional capacity, particularly, baseload capacity;

15. In a letter dated October 7, 2011, SEC offered to supply 10 MW of baseload capacity to ANECO. At that time, no other power provider made a firm offer to supply baseload to it;

A copy of the said letter is attached to the joint applica-tion as Annex “G”;

15.1. SEC was the only power supplier with the nec-essary permits to commence construction of a baseload power plant in Mindanao. It is currently at an advanced stage in its project financing ar-rangements, providing ANECO with a high degree of certainty that it will indeed install additional capacity to supply to ANECO;

15.2. It takes several years before a power plant can

be operational as it requires considerably signifi-cant undertakings, such as construction, testing and commissioning and securing the needed financing. Hence, the exigency of concluding a supply agreement with a power provider at the soonest possible time;

16. In consideration of the urgent need for adequate power supply and of SEC’s ability to supply ANECO’s power requirements in a timely manner, they executed a PSA, subject of the instant joint application. With the said PSA, SEC shall provide ANECO 10 MW of adequate, reliable, and economic baseload power supply over the long-term;

ABSTRACT OF THE POWER SALES AGREEMENTAND RELATED INFORMATION

17. The Generation Facilities. To supply power under the PSA, SEC shall construct, own, operate, manage and maintain a 120 MW Circulating Fluidized Bed Combus-tor Boiler Coal-Fired power plant in the Municipality of Maasim, Sarangani (SEC Power Plant). It consists of one (1) generating unit with an installed capacity of 120 MW and a net dependable capacity of 105 MW.

A copy of the Certification on the SEC Power Plant’s Heat Rate is attached to the joint application as Annex “H”;

17.1. Expected Commercial Operations. The SEC Power Plant shall commence commercial operations within thirty-six (36) months from the effective-ness of the PSA;

18. Salient Features of the PSA are as follows:

18.1. Baseload. Under the PSA, SEC shall supply or cause to supply to ANECO its baseload electric power requirements up to the Contracted Capacity of ten (10) MW and the Dispatchable Energy as indicated in and subject to the terms and condi-tions of the PSA;

18.2. Term. The term of supply and purchase under

the PSA shall be for twenty five (25) years com-mencing on the date the SEC Power Plant is ready to commence commercial operations as designated by the Parties; and

18.3. Effectiveness. The PSA shall become effective upon the occurrence of the following conditions: (a) its final approval by the Commission; (b) the effectiveness of SEC’s Equipment, Procure-ment and Construction (EPC) Contract; and (c) the attainment or waiver of the closing of SEC’s financing for the project;

19. Stages of Supply. SEC shall supply power to ANECO during the commissioning of the SEC Power Plant and thereafter, during its full commercial operations. ANECO shall pay a lower rate during commissioning;

20. Purchased Power Rate. The rate to be paid by ANECO to SEC depends on whether the power is delivered dur-ing commissioning or during commercial operations of the SEC Power Plant;

20.1. For electricity delivered during commissioning, ANECO shall pay the adjusted Fuel Cost and the portion of Basic Capacity and Energy Charges and Adjustments that cover Fixed and Variable Operation and Maintenance (O&M) Costs, plus any Value-Added Tax (VAT) and any other ap-plicable taxes, fees and charges;

Application...from page 8

aPPlIcatIon | page 10


THURSday | FEBRUaRy 21, 201310dispatch order, Force Majeure of SEC Power Plant, and allowable start-up time due to period of non-generation due to a Buyer dispatch order or an Allowed Outage, and any other hours as a consequence of Buyer’s failure to perform any of its obligations

F = 1 if the foregoing formula results in F being greater than 1

1.1.2 During the Second Contract Year

Where:

CRF2 = Capital Recovery Fee for the second Contract Year

FCRF2 = $25.31 per kW per month which shall be converted to Philippine Pesos on the Commercial Operation Date at the weighted average US Dollar to Philip-pine Peso exchange rate provided in Schedule “J” (Power Plant Foreign Capital Recovery Fee Conversion)

DCRF2 = PhP525.04 per kW per month

CC = Contracted Capacity (10 MW)

F =

Where:

ED = Electricity delivered during the billing period in kWh

TMED = Theoretical Maximum Energy Deliv-ered being the Contracted Capacity multiplied by the hours in the relevant month, less any adjustments made for Allowed Outage, limitation due to dispatch order, Force Majeure of SEC Power Plant, and allowable start-up time due to period of non-generation due to a Buyer dispatch order or an Allowed Outage, and any other hours as a consequence of Buyer’s failure to perform any of its obligations


1.1.3 During the Third Contract Year

Where:

CRF3 = Capital Recovery Fee for the third Contract Year

FCRF3 = $30.51 per kW per month which shall be converted to Philippine Pesos on the Commercial Operation Date at the weighted average US Dollar to Philip-pine Peso exchange rate provided in Schedule (Power Plant Foreign Capital Recovery Fee Conversion)



20.2. For electricity delivered during commercial op-erations, ANECO shall pay the Basic Capacity and Energy Charges and Adjustments, plus any VAT and any other applicable taxes, fees and charges. The said charges and adjustments shall be computed based on the following formulae:

1. Monthly Payments

1.1. The Monthly Payments shall be paid to the Seller on a monthly basis in accordance with the following formula:

Where:

CRF = Capital Recovery Fees

FOMF = Fixed Operation and Maintenance Fee

VOMF = Variable Operation and Maintenance Fee

AFC = Actual Fuel Cost

SC = Start-up Costs

RCEC = Replacement Capacity and Energy Costs

BCEC = Backup Capacity and Energy Costs

Taxes = Value-Added Tax and other applicable taxes, if any

CRF shall be computed as follows:

1.1.1 During the First Contract Year

Where:

CRF1 = Capital Recovery Fee for the first Con-tract Year

FCRF1 = $22.05 per kW per month which shall be converted to Philippine Pesos on the Commercial Operation Date at the weighted average US Dollar to Phil-ippine Peso exchange rate provided in Schedule “J” (Power Plant Foreign Capital Recovery Fee Conversion)



F =

Where:

ED = Electricity Delivered during the billing period in kWh

TMED = Theoretical Maximum Energy De-livered being the Contracted Capacity multiplied by the hours in the relevant month, less any adjustments made for Allowed Outage, limitation due to aPPlIcatIon | page 11



Where:

FOMF = Fixed Operation & Maintenance Fee in Phil-ippine Pesos

OMR = PhP333.23 per kW per month


F = Where:


TMED = Theoretical Maximum Energy Delivered be-ing the Contracted Capacity multiplied by the hours in the relevant month, less any adjustments made for Allowed Outage, limi-tation due to dispatch order, Force Majeure of SEC Power Plant, and allowable start-up time due to period of non-generation due to a Buyer dispatch order or an Allowed Outage, and any other hours as a conse-quence of Buyer’s failure to perform any of its obligations


FCPn = The arithmetic average of the values of the United States Consumer Price Index for all Items, as last published on or before the last day of such billing month by the Inter-national Monetary Fund; provided that if the International Monetary Fund ceases to publish such indices, the relevant indices as published by the U.S. Department of Labor Bureau of Labor Statistics shall apply

FCP0 = The arithmetic average of the values as of the date of this Agreement of the United States Consumer Price Index for all Items; as published by the International Monetary Fund, provided that if the International Mon-etary Fund ceases to publish such indices, the relevant indices as published by the U.S. Department of Labor Bureau of Labor Statistics shall apply

LCPn = The arithmetic average of the values of the Consumer Price Index in the Philippines for all items and General Wholesale Price Index in Metro Manila for mineral fuels, lubricants and related materials, both as last published on or before the last day of such Billing Month by the National Statistics Office

LCP0 = The arithmetic average of the values as of the date of this Agreement of the Consumer Price Index in the Philippines for all items and General Wholesale Price Index in Metro Manila for mineral fuels, lubricants and re-lated materials, both as published by the National Statistics Office

Fxn = Actual Philippine Peso to US Dollar exchange rate on the meter reading date as published by the Bangko Sentral ng Pilipinas, www.bsp.gov.ph

Fx0 = Actual Philippine Peso to US Dollar exchange rate on the date of this Agreement as pub

F = Where:




1.1.4 From the fourth Contract Year up to the end of the Term

Where:

CRF = Capital Recovery Fee for the fourth Contract Year up to the end of the Term

FCRF = $30.51 per kW per month which shall be converted to Philippine Pesos on Commercial Operation Date at the weighted average US Dollar to Phil-ippine Peso exchange rate provided in Schedule J (Power Plant Foreign Capital Recovery Fee Conversion)

DCRF = PhP632.83 per kW per month


F =

Where:




1.2 Fixed Operation and Maintenance (O&M) Fee

The Fixed O&M Fee covers the operating and maintenance costs of the SEC Power Plant. It shall be computed ac-cording to the following formula:





lished by the Bangko Sentral ng Pilipinas, www.bsp.gov.ph

1.3 Variable Operation and Maintenance Fee

The Variable Operation and Maintenance Fee covers the cost of the use of, among other items, chemicals, lubricants, spare parts, that are directly related to the generation of the SEC Power Plant. It shall be computed according to the following formula:

Where:

VOMF = Variable Operation & Maintenance Fee in Pesos

VOMR = PhP0.3170 per kWh


PPPn = The arithmetic average of the values of the

United States Producers’ Price Index for in-dustrial goods; as last published on or before the last day of such billing month by the International Monetary Fund; provided that if the International Monetary Fund ceases to publish such indices, the relevant indices as published by the U.S. Department of Labor Bureau of Labor Statistics shall apply

PPP0 = The arithmetic average of the values as of the date of this Agreement of the United States Producers’ Price Index for industrial goods; as published by the International Monetary Fund, provided that if the Interna-tional Monetary Fund ceases to publish such indices, the relevant indices as published by the U.S. Department of Labor Bureau of Labor Statistics shall apply

LCPn = The arithmetic average of the values of the Consumer Price Index in the Philippines for all items and General Wholesale Price Index in Metro Manila for mineral fuels, lubricants and related materials, both as last published on or before the last day of such Billing Month by the National Statistics Office

LCP0 = The arithmetic average of the values as of the date of this Agreement of the Consumer Price Index in the Philippines for all items and General Wholesale Price Index in Metro Manila for mineral fuels, lubricants and re-lated materials, both as published by the National Statistics Office

Fxn = Actual Philippine Peso to US Dollar exchange rate on the meter reading date as published by the Bangko Sentral ng Pilipinas, www.bsp.gov.ph

Fx0 = Actual Philippine Peso to US Dollar exchange rate on the date of this Agreement as pub-lished by the Bangko Sentral ng Pilipinas, www.bsp.gov.ph

1.4 Actual Fuel Cost

The Actual Fuel Cost is the fee paid to the Seller as pay-ment for the procurement and delivery of the coal used in the operation of the SEC Power Plant. The Actual Fuel Cost shall be computed as follows:

Where:

Where:

FOB Base Price = The price expressed in US Dollars applicable for all Shipments for which the Bill of Lading Date falls within the period from and including the date of this Agreement until and including the last day of the Quarter in which the date of this Agreement occurs (the “FOB Base Price”), shall be equal to the globalCOAL Newcastle Index (which is the coal price per ton, FOB Newcastle, stated in USD, as published by globalCOAL on www.globalcoal.com under the heading “Weekly Index; NEWC Index” (or under such other replacement heading under which such prices are published by globalCOAL) with calorific value basis of 6,000 kcal/kg net as received) for the week immediately preceding the week in which the date of signing of this Agreement occurs. The FOB Base Price shall be reset every Quarter following the Quarter in which the date of this Agreement occurs, and such FOB Base Price applicable for all Shipments for which the B/L Date falls within and including the first day and the last day of such Quarter shall be equal to the arithmetic average of the globalCOAL Newcastle Index for the immediately preceding Quarter

Calorific Valuen = Average calorific value of the coal

used in the billing period

F = Discount or premium applied to the coal used during the billing period

TC = Actual t ransport cost, including transshipment cost of the coal used during the billing period in USD per metric ton

Other Charges = Actual insurance cost and port charges (all charges incurred by a vessel at a loading port and discharge port including towage, pi lotage, l ight dues, moor or unmoor, berthing and deberthing, assist tugs, wharfage, tonnage dues and sundries, includ-ing agent’s fees, communications charges and other miscellaneous expenses customarily regarded as port charges) and applicable customs duties and import taxes of the coal used during the billing period

Consumption Rate= 0.7kg/kWh, escalated at 0.5% an-nually

Forex = Actual Philippine Peso to US Dollar exchange rate on the date the Seller makes payment to the fuel supplier




ED = Electricity delivered during the bill-ing period in kWh

Note: In the event that the Seller procures coal from multiple suppliers, the weighted average of the relevant values above shall be used.

1.5 Start-Up Costs

The Buyer shall pay the Seller Start-Up Costs for the cost of starting up the SEC Power Plant after a period of shutdown due to any reason attributable to the Buyer. The Start-Up Costs shall be paid in accordance with the following schedule:

Cost per Event Type of Synchronization (PhP) Cold Start-up to Synchronization 743,324 Warm Start-up to Synchronization 468,406 Hot Start-up to Synchronization 346,701

1.6 Replacement Capacity and Energy Cost; Backup Capac-ity and Energy Cost

The Buyer shall pay the Seller Replacement Capacity and Energy Cost in accordance with the invoice provided by the supplier of Replacement Capacity and Energy. The Buyer shall pay the Seller Backup Capacity and Energy Cost equivalent to the Monthly Payment had there been no Forced Outage.

2. Commissioning Output Charge

The Buyer shall pay the Seller the Commissioning Output Charge for electricity supplied prior to the Commercial Op-eration Date. The Commissioning Output Charge shall be computed as follows:

Where:

COC = Commissioning Output Charge

FOMF = Fixed Operation & Maintenance Fee computed in accordance with Item 1.2 of Schedule “B” of the PSA

VOMF = Variable Operation & Maintenance Fee computed in accordance with Item 1.3 of Schedule “B” of the PSA

ACF = Actual Cost of Fuel computed in accordance with Item 1.4 of Schedule “B” of the PSA

3. Interconnection Capital Recovery Fee

The Buyer shall pay the Seller the Interconnection Capital Recovery Fee as payment for the Interconnection Facilities in accordance with the following formula:

Where:

FIFCRF = Foreign Interconnection Capital Recovery Fee

of $2.85 per kW per month which shall be con-verted to Philippine Pesos on the Commercial Operation Date at the weighted average US Dol-lar to Philippine Peso exchange rate provided in Schedule “K” (Foreign Interconnection Capital Recovery Fee Conversion)

DIFCRF = Domestic Interconnection Capital Recovery Fee of PhP122.55/kW/month


Taxes = Value-Added Tax and other applicable taxes, if any

20.3.Price components and breakdowns. The components of the Basic Capacity and En-ergy Charges are:

a) The Capital Recovery Fee, which repre-sents SEC’s recovery of its capital at a reasonable rate of return;

b) The Fixed Operation and Maintenance Fee, which covers the operating and maintenance costs of the power structures and equipment, and plant management and supervision costs;

c) The Variable Operation and Maintenance Fee, which covers the use of chemicals, lubricants, spare parts, and other materials that are directly related to the generation of electricity; and

d) The Actual Fuel Cost, which represents a pass-on of the actual cost incurred by SEC for fuel;

Relevant computations supporting the above formulae are contained in Annex “I” of the joint application. A sample computation of the rate is attached thereto as Annex “J”;

20.4.Basis for indexation. As indicated in the formulae above, the monthly fees to be paid by ANECO are subject to adjustments based on various indices or factors in order to properly reflect the fluctuation of SEC’s costs in producing electricity;

20.5.The Foreign Capital Recovery Fee com-ponent is fixed and is subject only to a one-time conversion to Philippine Pesos on Commercial Operation Date at the weighted average exchange rate as computed in ac-cordance with the PSA. This will ensure that ANECO does not carry a long-term foreign exchange exposure on the Capital Recovery Fee component; and

20.6.The components of the Operation and Maintenance Fees representing dollar-denominated costs are adjusted based on the foreign exchange rate and the US Consumer Price and Producer Price indices; those representing local costs are adjusted based on the local Consumer Price Index. The Actual Fuel Costs vary based on actual costs as well as the foreign exchange rate and on the Global Coal Newcastle index;

21. Regulatory Approval of Similar Contract. On July 30, 2012, the Commission approved with modification the PSA, as amended, between SEC and South Cotabato II Electric Cooperative,







projected operating expenses, including expenses for the power plant and general and administrative expenses, is attached to the joint application as Annex “N”;

23.2.Offtake Arrangement. Under the PSA, SEC

shall make available, reserve, guarantee and deliver to ANECO the Contracted Capac-ity and ANECO shall pay for such quantity of electric power. SEC shall utilize such Contracted Capacity to generate energy for ANECO;

23.3.There is no minimum energy offtake under the PSA. As SEC will dedicate 10 MW of capacity to ANECO, the Capital Recovery and the Fixed Operations and Maintenance Fees are computed based on the proportion of actual energy delivered to the energy that could have been delivered.

24. Fuel procurement. An international public tender for the supply of coal was conducted for purpose of procuring fuel for the SEC Power Plant. The conduct of the tender and the fuel procurement process is summarized in Annex “O”;

25. The conduct of international public tender as-sures ANECO of the best available cost of fuel supply. It must be stressed that SEC derives no revenue whatsoever from the fuel supply;

26. Environmental Compliance Certificate. The De-partment of Environment and Natural Resources (DENR) has issued Environmental Compliance Certificate (ECC) Ref. No. 0901-001-4021 for the SEC Power Plant;

Copies of the relevant documents from the DENR are attached to the joint application as Annexes “P”, “P-1” and “P-2”;

27. DOE Certification. On October 8, 2012, the DOE issued Certificate of Endorsement No. 2012-09-002 certifying that the SEC Power Plant is consistent with the Philippine Development Plan (PDP);

A copy of the said Certificate is attached to the joint application as Annex “Q”;

28. Certificate of Compliance. As the SEC Power Plant is still to be constructed, it is not yet cov-ered by a Certificate of Compliance (COC). In accordance with ERC Resolution No. 9, Series of 2010, SEC shall file the necessary application for a COC no later than three (3) months before the commencement of commercial operations;

29. ANECO’s load forecast projections. A copy of ANECO’s Distribution Development Plan (DDP) showing its load forecast projections is attached to the joint application as Annex “R”;

RATE IMPLICATIONS OF THE POWER SALES AGREEMENT

30. In order to determine the impact of the imple-mentation of the PSA on ANECO’s generation costs, an analysis was conducted taking into consideration the reduction of NPC’s firm supply commitments to ANECO, ANECO’s contracted suppliers and the available alternative sources of power in Mindanao;

A copy of the said analysis is attached to the

joint application as Annex “S”. The results of

Inc. (SOCOTECO II) for the supply of 70 MW of ca-pacity. The terms and conditions of the said agreement are generally identical to those of the PSA subject of the instant joint application;

22. Sources of Funds/Financial Plans. The project will be funded through loans and equity. The indicative debt-equity ratio for the project is 70:30;

22.1.Project Cost. The generation rate under the

PSA is based on the previously estimated project cost of US$280.197 Million. How-ever, the actual project cost for the PSA has increased to US$288.587 million. However, the generation rate remains the same;

22.2.The main components of the actual project cost are as follows:

USD 000s

EPC 207,508 71.9% Plant EPC 203,193 70.4% Spare Parts and Lab 245 0.1% EPC Contingency 4,069 1.4% Non-EPC 49,806 17.3% Construction Period Insurances 2,864 1.0% Pre-Operating Expenses 15,007 5.2% Development Fee 5,894 2.0% Social and Environmental 5,621 1.9% Land 4,706 1.6% Capitalised O&M 8,858 3.1% Commissioning 6,118 2.1% Contingency 719 0.2% VAT 0 0.0% Other Taxes 18 0.0% Financing Costs and DSRA 31,274 10.8% DSRA 0 0.0% Financing Costs 31,274 10.8%

TOTAL 288,587 100.0%

The breakdowns of the components of the above-mentioned project costs are attached to the joint application as Annexes “K” and “K-1”;

22.3.Annual Interest. SEC and its lenders have already finalized the terms and conditions of the project financing. It undertakes to provide the necessary documentation once the same is available;

22.4.For purposes of determining the Basic Ca-pacity and Energy Charges, SEC applied an estimated interest rate of 9.5% per annum as indicated by the prospective lenders; and

22.5.Computation of Project Internal Rate of Return (PIRR)/Weighted Average Cost of Capital (WACC). The PIRR and nominal pre-tax WACC are 12.8% and 14.80%, re-spectively;

Computations of the PIRR and WACC are shown in Annexes “L” and “M,” respectively;

23. Cash Flow

23.1.Breakdown of Operating and Maintenance Expenses. A detailed breakdown of the



38. In view of the foregoing, they move for the pro-visional approval of the instant joint application pursuant to Rule 14 of the Commission’s Rules of Practice and Procedure;

39. They pray that the Commission:

a. Immediately issue an Order provisionally approving the PSA dated March 17, 2012 subject of the instant joint application as well as the generation rate and adjustment mechanism indicated therein; and

b. after due hearing, render judgment making such provisional approval permanent.

The Commission has set the instant joint application for jurisdictional hearing, expository presentation, pre-trial confer-ence and evidentiary hearing on March 14, 2013 (Thursday) at nine o’ clock in the morning (9:00 A.M.) at ANECO’s Main Office, K.M. 2, J.C. Aquino Avenue, Butuan City, Agusan Del Norte.

All persons who have an interest in the subject matter of the proceeding may become a party by filing, at least five (5) days prior to the initial hearing and subject to the requirements in the ERC’s Rules of Practice and Procedure, a verified petition with the Commission giving the docket number and title of the proceeding and stating: (1) the petitioner’s name and address; (2) the nature of petitioner’s interest in the subject matter of the proceeding, and the way and manner in which such inter-est is affected by the issues involved in the proceeding; and (3) a statement of the relief desired.

All other persons who may want their views known to the Commission with respect to the subject matter of the proceed-ing may file their opposition to the joint application or comment thereon at any stage of the proceeding before the applicants conclude the presentation of their evidence. No particular form of opposition or comment is required, but the document, letter or writing should contain the name and address of such person and a concise statement of the opposition or comment and the grounds relied upon.

All such persons who may wish to have a copy of the joint application may request the applicants, prior to the date of the initial hearing, that they be furnished with a copy of the joint application. The applicant is hereby directed to furnish all those making such request with a copy of the joint application and its attachments, subject to reimbursement of reasonable photocopying costs. Likewise, any such person may examine the joint application and other pertinent records filed with the Commission during the usual office hours.

WITNESS, the Honorable Chairperson, ZENAIDA G. CRUZ-DUCUT, and the Honorable Commissioners, MARIA TERESA A.R. CASTAÑEDA, JOSE C. REYES, ALFREDO J. NON, and GLORIA VICTORIA C. YAP-TARUC, Energy Regulatory Com-mission, this 4th day of February, 2013 at Pasig City.

ATTY. FRANCIS SATURNINO C. JUAN Executive Director III

MVA/NJS

analysis are summarized in the table below;

31. As shown by the analysis, the implementation of the PSA will result in significant long term cost savings in ANECO’s blended generation rates;

Blended Generation Rate (PhP/kWh) YEAR Without SEC With SEC Difference 2014 5.20 5.20 - 2015 5.21 5.06 0.15 2016 5.81 5.33 0.48 2017 6.08 5.55 0.53 2018 6.30 5.78 0.52 2019 6.43 5.94 0.49 2020 6.55 6.17 0.39 2021-2025 6.91 6.50 0.41 (average) (average) (average) 2026-2030 7.46 7.14 0.32 (average) (average) (average) 2031-2035 7.91 7.65 0.26 (average) (average) (average) 2036-2039 8.25 8.03 0.22 (average) (average) (average)

32. In the analysis, it was assumed that APC com-mences supplying power in 2015 in accordance with its PPA. Considering that the existing avail-able alternative suppliers are diesel/bunker C-fueled plants, it is also assumed that the power requirements which cannot be supplied by NPC, SEC or APC will be taken from such alternative suppliers, specifically, TMI or other diesel/bun-ker C plants at rates equivalent to TMI’s. It was also assumed that there would be no increase in the cost of fuel and other costs as it is not possible to predict future costs;

33. It is clear that the implementation of the PSA results in significant long term savings for AN-ECO and its customers;

ALLEGATIONS IN SUPPORT OF THE MOTION FOR PROVISIONAL AUTHORITY

34. NPC and TMI cannot supply ANECO’s current total power requirements. In fact, NPC has re-duced its power supply commitment to ANECO. NPC is, likewise, prohibited from investing in power generating facilities. Further, NPC’s ECAs with WMPC and SPPC are set to expire in 2016. Moreover, even with supply from APC, ANECO’s power supply will still be insufficient to meet its total power requirements;

35. ANECO’s power demand is steadily increasing;

36. Given the reduction in its power supply and its steadily increasing power requirements, it is imperative that ANECO contracts for additional power. Otherwise, it would not have sufficient power supply to the detriment, not only of its customers, but to local businesses as well;

37. This scenario renders the provisional approval

of the instant joint application warranted. As this Commission is aware, it takes years to un-dertake the financing, construction, installation and operation of a power plant. Hence, the pro-visional approval of the instant joint application will ensure that SEC’s Power Plant is operational and can supply ANECO’s power requirements at the soonest possible time;

MDN: Feb. 21, 2013

16Editor: CRIS dIaZ Email: [email protected]

Editorial. : [email protected] • Advertising : [email protected]

News In Focus THURSday | FEBRUaRy 21, 2013

By cong corrales of MindaNews.com

CAGAYAN de Oro City––The simultaneous attacks of the New People’s Army (NPA) in three areas in Bukidnon Tuesday night was a “desper-ate projection of a position of strength” and should not have targeted civilians, Lt. Col. Eu-genio Osias, the 4th Infantry Division spokesperson, said here Wednesday.

A security guard was killed while two other security guards and one bystander hit by M-14 rifles, were seriously injured

Alfredo Neri, the security guard on duty at the vehicle gate of Del Monte Philippines

Inc.’s (DMPI) main entrance in Camp Phillips, Manolo Fortich town in Bukidnon, succumbed to two gunshot wounds on his upper right torso, as the rebels entered the compound.

Osias said the series of at-tacks on Tuesday evening was the communist guerillas’ “des-perate projection of a position of strength.”

“These attacks were not propaganda anymore since they (NPAs) have continuously targeted civilians. Dili unta apil ang mga sibilyan just to project strength” (they shouldn’t have included civilians just to project strength), said Osias.

He said the attacks showed that the government’s aware-

ness-raising in the countryside is effective.

He said the NPA “hit those who could not fight back so that the attacks would be suc-cessful and they can project their control over these areas. But the fact is, their collec-tion of funds from ‘permits to campaign,’ ‘permits to win’ and their ‘so-called taxes’ are dwindling,” he said.

Hours after the attacks, Jorge Madlos, spokesperson for the National Democratic Front-Mindanao (NDF) confirmed that NPA guerrillas belonging to the North Central Mindanao Regional Command launched the attacks.

“The attacks were meant

to be punitive action against the expansion of operations of Del Monte and Dole—to send a strong message to put a stop to land-use conversion and retribution for the victims of tropical storm Sendong,” Madlos said in a text message.

Madlos said the attacks were neither connected with the upcoming midterm elec-tions in May nor collection of revolutionary taxes. “It is not about money. Ila na na kung gusto nila (It’s theirs if they want it). This is about exacting justice.” “The objective was to demoralize the despotic secu-rity forces — Kadre Security Forces — of Del Monte

NPA shouldn’t have targeted civilians, Army spokesperson saysthrough a surprise attack. Your genuine

army (referring to the NPA) is well-trained and well-disciplined that is why they were successful in executing the planned as-sault,” he said.

Waning supportOsias said the NPA fighters belonged to

NPA’s Guerrilla Front 89 under Kumander Bagwis, Piton, Ambo and Archie. He added that this guerrilla front mainly operates in Bukidnon province.

“We received complaints from civilians who passed by the NPA’s chokepoint in La Fortuna that the rebels divested them of their laptops and cellphones. One student told me that one rebel asked for his wallet to check if he was a military asset. But his wallet was never returned to him,” he said.

“That’s why the complaints received by the police is that there was an ongo-ing armed robbery because the NPA took cellphones and wallets from the civilians they stopped,” said Osias.

He claimed the NPA wasn’t able to inflict much damage since police troopers from the 1st Platoon of the Bukidnon Provincial Public Safety Company, based in Barangay Ala-e, this city responded quickly.

Osias said the burning of heavy equip-ment was interrupted so there was not much damage to the properties in the compound.

“Armed robbery”In an interview Tuesday night, SPO2

Jayson Sabac of the 1st Platoon of the Bukidnon Provincial Public Safety Com-pany said their unit responded to a report of a “supposed armed robbery” at a Caltex Station, in Manolo Fortich, Bukidnon at about 6:20 pm, Tuesday.

“As we were nearing the gasoline station, we saw what appeared to be a checkpoint and we thought it was manned by other government troops, like the Army. Our commander shouted to ask what unit they belonged to. When one of the groups at the checkpoint answered back ‘NPA,’ we immediately engaged them in a firefight,” said Sabac. He added that they were at least “20 to 50 meters from the rebels and the firefight lasted around 20 minutes.”

He added that while they were engaged in the firefight, he could hear the heavy equipment inside a motor pool garage in front of the Caltex gas station and that there were some explosions.

Sabac said they were the first to respond because their detachment is in Barangay Ala-e, Cagayan de Oro City which was only “about 10 to 11 kilometers away from the gas station.”

A Kadre security guard who asked not to be named since he is not authorized to speak on the matter, said the communist rebels “may have confiscated two M16 rifles, four .38 caliber pistols, six VHF hand-held radios and two cellphones when they as-saulted the Office of the Chief Security of Del Monte and a shotgun from the guard at the motor pool garage in front of the Caltex gas station.”

“The NPAs burned one canter truck, one grader, two motorcycles and one boom sprayer truck inside the motor pool garage,” the Kadre security guard said.

Daring raidRoughly a hundred NPA guerillas

launched simultaneous attacks on three different sites in Bukidnon at around 6 p.m.

According to an initial report of the 4th Civil-Military Operations Battalion, the rebels razed Del Monte’s fertilizer ware-house and logistics office in Vista Villa, Sumilao, an administration office of Dole-Philippines in La Fortuna, Impasug-ong town and burned a canter truck, a grader, two motorcycles and one boom sprayer truck inside a motor pool garage in front of Caltex Gas Station in Manolo Fortich.

In a text message, Bukidnon Governor Alex Calingasan on Tuesday evening said officers of the Manolo Fortich Municipal Police Station, who were on their way to

armY | page 7

mindanao daily news (february 21, 2013 issue)

Documents

elections comelec

seminar page

critics page

dmpi compound

main compound

comelec rules

contact cell

comelec lauds ppi