Transparency needed for Malampaya royalty use

Actually, charging high royalty for Malampaya’s natural gas as well as for geothermal steam runs counter to the more urgent need of reducing power rates. Thailand, for examples does not tax nor does it charge royalty for the domestic use of its vast offshore natural gas resources. That’s why they are able to keep domestic power rates competitive. Malaysia and Indonesia also do not tax nor charge royalty for the domestic use of energy resources including oil. On the contrary, they subsidize domestic energy use.

But inasmuch as our government refuses to see the light in this regard, we might as well demand a more transparent use of Malampaya’s royalty. The announcement early this month that part of the government’s royalty proceeds from the Malampaya natural gas project in Palawan has been channeled to the rice self-sufficiency program under the Department of Agriculture is more than a little disturbing.

Two things come to mind: one, government cannot be trusted to use large amounts of windfall money with utmost transparency and wisdom. Look what happened to billions of pesos supposed to be used to modernize the armed forces. Years after government took in all that cash, our armed forces are still pathetically ill-equipped.

The second concern has to do with the Department of Agriculture. I have the highest respect for Art Yap as head of DA but his department does not have the best record in handling a lot of money either. The JocJoc Bolante fertilizer scam is one big reason why the DA’s bureaucracy cannot be trusted. As it happened, even if DA had a respectable head at that time in the person of Cito Lorenzo, his underlings under JocJoc Bolante apparently succeeded in running circles around him.

This is why we have reason to be concerned that some P2 billion of the Malampaya royalty fund has been transferred to the Agricultural Guarantee Fund Pool (AGFP), a fund pool designed to extend guarantee cover to unsecured loans of small rural borrowers (sounds like political dole out). This P2-billion outlay is actually part of the Malampaya royalty that Ate Glue had ordered to be remitted to the rice self-sufficiency program under Administrative Order No. 244.

There is also an interim agreement reached by the national and provincial governments on the share of Palawan from the Malampaya royalties. As it now stands, Palawan will collect P2.6 billion representing its 40-percent share in the revenues from Malampaya. A case is still pending in the Supreme Court on how Malampaya royalty is supposed to be dispensed.

It is however disturbing that under Executive Order No. 386 issued by Ate Glue, half of Palawan’s share (which is now being disputed in the Supreme Court by the National Government and local officials), is being dispensed under a pork barrel arrangement. While projects identified for funding may seem worthwhile, the problem usually has to do with the usual pork barrel overprice that effectively limits the good the projects should deliver to the public.

On the surface, the planned expenditures of the royalty money appear to be what the province needs. From the total, about P960 million has been allocated by for intermodal transport and P590 million for the provincial government’s infrastructure program that includes concreting of several provincial roads in 10 municipalities both in northern and southern parts of the province.

The other projects are the installation of solar home systems under the Barangay Electrification Program in about 4,000 households in 36 barangays in 11 municipalities amounting to P116 million; improvement of South Palawan Provincial Hospital facilities and equipment; construction of Northern Palawan Provincial Hospital under the Health Care and Services Program in the amount of P80 million; construction of more than 80 classrooms in different municipalities at a cost of P110 million; and an Educational Enhancement Program  worth P150 million.

Also included in the Malampaya-funded projects are 33 day care centers under the Early Childhood Care and Development Program for construction in different municipalities at a cost of P30 million. The Department of Energy has been tasked to oversee the implementation of the said projects.

It would be ideal if Palawan’s religious and civic leaders form a monitoring group that will closely scrutinize the use of the Malampaya funds and not depend on another National Government agency to do a good job of it. Even half of the P5 billion Palawan expects from the Malampaya royalty is a lot of money that the province can use to upgrade its infrastructure which in turn will enable its citizens to improve their livelihood opportunities.

The worse thing is for national and local officials to dissipate the billions of pesos that could improve the lives of Palawan residents into corruption ridden projects like sub-standard roads and overpriced school and health facilities. Palawan must have something worthwhile to show for all that money.

Palawenos had been hoodwinked before by politicians and carpetbaggers who exploited the province’s vast natural resources and left little or nothing for the common people except a ruined environment. Then again, if Palawenos allow themselves to be taken advantage of again, they will have no one to blame but themselves.

Reaction from Palawan

I got this e-mail from Avelino Dequilla on a column I wrote last week.

I am an avid reader of your column. I am an MD working in a Japanese Company based here in Palawan. I have been here for almost two years and I love Palawan very much that I am willing to stay here for good. The place really is very nice with lots of potential as a major tourist draw.

I am just saddened that the government (I mean the National Government) seems not to be too keen on putting up decent infrastructure facility in this paradise. You were right to say that the airport is very cramped and that it was not well thought, just putting up a very small terminal facility in the ongoing construction.

I just can’t believe that the terminal that is being built here pales in comparison on what we have in Western Visayas – both in Iloilo and Negros Occidental – where I came from. Both of these terminals are world class, ultramodern in design and with a budget of billions in pesos. Even the airport being built in Cagayan has a bigger budget than what we will have in Palawan. I don’t know what the government was thinking?

Same is also happening in Boracay, the airport is mediocre. Why is it that the government has a knack for mediocrity when it comes to infrastructure most especially where tourism is very vibrant? The places having the biggest tourism draw should be provided with the best amenities – airport, seaport and passenger terminals for land transport.

The other thing that I also noted here are the very bad roads going south from Puerto and north from Taytay to El Nido – both are also attracting many foreign tourists. I believe that there is already a budget for these roads, the problem is that the construction is at snail pace and only becomes on full blast as election nears.

It should have been a different story if the government bid out this road project as a single project wherein one winning bidder will accomplish it. As of now each town has its own contractor for the road project which is not doing very good. Again, Western Visayas and other regions in the Visayas have much better concreted road built by reputable construction companies than here.

Lastly, the tourism arm of the local government should make sure the bundled tours being offered by tour operators will not backfire on Palawan. The City Tourism Office must maintain the integrity of Puerto Princesa as a tourism powerhouse. Take the Butterfly Garden… my friends went a tour there lately and were so dismayed at the place. It lacks decency. The comfort room is appalling and it stinks. My friends and I agreed to never to promote this place because it is such a disgrace. 

I think that Puerto officials must walk the extra mile in making sure that there is class and cleanliness in the tourist areas being promoted so that the tourists will not be turned off.

Pinoy joke

At a bat cave in the Underground River.

bobo1: Pare, alam mo ba tawag sa paniki na mababa ang lipad?

bobo2: hindi eh! ano ba pare?

bobo1: Lowbat pare! Lowbat!

Boo Chanco’s e-mail address is [email protected]