Unsolved

“Windows” for number-coded vehicles are now closed in nearly all the major thoroughfares in the metro area. Three municipalities have closed all their roads altogether, completely grounding about a fifth of vehicles each day.

Expect the surging sales of private vehicles to spike even further, and the congestion to be even more severe. The number-coding scheme (officially the Vehicle Volume Reduction Program) was implemented over a quarter of a century ago as a temporary measure to reduce congestion while mass transit systems were being built.

Not enough was built. The number-coding scheme became a permanent feature of our lives. People simply bought second and third vehicles to deal with their mobility problems. Those extra vehicles are parked wherever, further clogging the secondary roads.

Now they have closed the “windows” for barred vehicles to take to the road outside the rush hour periods. Motorists feel persecuted. Traffic management in this country seems a cruel joke played on motorists and commuters.

There is no relief in sight. None that DOTr Secretary Art Tugade or any of his boys could offer. As things stand, the traffic problem is unsolved.

The emergency powers sought under some Traffic Crisis Act is quickly turning into an opiate of the people. They are meant to keep us hoping when no real solution is forthcoming.

After pinning so much hope on the emergency powers bill, DOTr Undersecretary Raoul Creencia was forced, during the last Senate hearing, to admit that his department does not yet have a plan. What a letdown.

The DOTr was asking for emergency powers and yet had no idea at all what it will be used for.

When Sen. Ralph Recto pressed on the hapless (but honest) undersecretary what specific areas will be under Tugade’s supervision as the country’s chief traffic officer, Creencia admitted his agency has yet to come up with a list. “We will pinpoint, your honor,” the bureaucrat muttered sheepishly.

Recto, cruelly pointed out the obvious: “You want a single authority, in effect a traffic crisis manager for the entire Philippines. Your are asking for vast powers, and it is alarming that you do not have any plan until now.”  

DOTr Undersecretary for Finance Gerry de Guzman compounded the predicament his department was facing. He asked for a “special power budget” for projects the agency will undertake. The listed projects would cost P1.27 trillion.

This merited a long lecture from Sen. Recto, basically saying the emergency powers bill is not a supplemental budget bill. If it wanted to undertake projects, the way to do it was to build in the costs in the General Appropriations Act for 2017 now being considered by Congress. The DOTr did not do that, of course.

No budget, no project. So far, the DOTr has submitted only the titles of projects, including the expensive 14-kilometer subway to run along Edsa. There are no engineering details provided.

How, in Heaven’s name, does the DOTr expect to be granted emergency powers when it has failed to do its homework?

Energy mix

Digest this: electricity price in Thailand is nearly half of ours; Indonesians pay only a fifth of what Filipinos pay.

Admittedly, power costs in Thailand, Indonesia, Korea and Taiwan are lower than ours in part because of state subsidies. These subsidies are intended to help foster industrialization. They have so far achieved that goal.

We have subsidies as well, but only for renewable energy (RE) through the feed-in tariff (FIT) scheme. All consumers, not government, pay through their noses to ensure the billionaires who invest in RE ventures are spared from business risks and assured fat profits.

The net result of RE is to ensure our power costs are high. High power costs has taken its toll on our manufacturing base. They continue to be deterrents to direct foreign investments in industry. If electricity costs only a fifth in Indonesia, why come to the Philippines?

Right now, there is talk of adopting an “Energy Mix Policy” which could be counter-productive. It could serve as a straitjacket that will further aggravate our predicament with high energy costs. It keeps power rates high and our manufacturing sector woefully small and in need of protectionism.

Without an aggressive policy to industrialize, there will be no jobs for our people. An aggressive policy to industrialize in turn requires an aggressive policy to bring down power costs.

There is really no need for an “Energy Mix Policy” or even for FIT. We do not even have to promote variable renewable energy. As new technologies become cheaper, they should be able to compete in the marketplace without asking consumers to pay more.

In his earlier statements, President Duterte indicated a strong commitment to industrialization as well as his recognition that coal was an essential part of the strategy. Coal is cheap. It will bring down power costs.

We can afford to do so. The Philippines is by no means a carbon offender. Even if we are the 12th in terms of population, the Philippines contributes only 0.24 percent of global carbon emissions. New coal plant technologies will not palpably increase our country’s carbon footprint. They are much cleaner than the first generation plants.

Until 2020, our energy demand will rise by 5.7 percent annually. Growth in generating capacity lags behind at 5.3 percent.

There is no room for fluffy visions here about RE. We need a hard-nosed strategy that prioritizes energy sufficiency and lower power costs. Otherwise, industrialization will never happen. Our people will remain poor.