Chronic shortages: Been here and done nothing?
Unavoidably, as we try to keep ourselves posted on what’s obtaining currently, we shall surely bump into a lot of unpalatable discourses and developments. Among others, as election period is fast approaching, we will always hear a lot of mudslinging and character assassination. So normal in third world countries’ brand of politics. A kind of politics that gives more weight on popularity than issues.
Thus, taking the cue, our traditional politicians focus more on activities that touch wrongly the hearts of the poor and illiterate like having a well-publicized boodle fight with the masses and perpetual dole outs.
Consequently, as these undertakings demand a lot of money, corruption has been the option for fund sourcing. So that, today, despite PNoy’s honest-to-goodness “Daang Matuwid” initiative, we are still awash with malpractices and are short of the needed infrastructures, staple food and utilities.
For instance, the Philippines Statistics Authority -Bureau of Agricultural Statistics reported that our agricultural sector “barely grew in the nine months to September” of last year (there are no available data in 2015). This was primarily brought about “by the contraction of poultry and fisheries production.”
Likewise, they reported that “unmilled rice or palay – which accounts for about 17.47% of total agricultural production, the biggest single contribution among key farm items – fell short of target last year.” Thus, as has always been the norm, expect that this shortage or supply and demand gap shall be bridged through rice importation. Well, the usual temporary solution.
Apart from food production shortages, among the serious shortfalls we face today is power supply. Most of us may not know it but this problem has been here for a generation. To recall, in the latter part of the late Pres. Cory Aquino’s term, power shortages were already felt and withstood by us. Thus, as then Pres. Fidel V. Ramos assumed office in 1992 that was the first challenge he faced.
To recall, former Pres. Ramos requested then that “congress enact a law that would create an Energy Department to plan and manage the Philippines' energy sector.” Actually, he did not only get what he requested, he was also given special emergency powers to resolve the very serious power crisis. So that, he issued licenses to several independent power producers to construct additional power plants.
To encourage investors, he even went to the extent of signing supply agreements that guaranteed that the government would buy whatever power the IPPs shall produce under the contract. Not only that, to further encourage foreign IPPs, the supply contracts were denominated in US dollars.
Thus, when the 1997 Asian Financial Crisis came about, our peso devalued and power cost became unbearable. Consequently, since then and until today, our cost of electricity became Asia’s second highest, just next to the world’s third largest economy, Japan.
Then, in 2010, Mindanao was badly hit. It was reported that “Mindanao’s generation deficit posted its biggest single day rise to 358 megawatts on February 23, 2010”. Same report added that they were headed to a “serious power crisis in three to five years if it fails to put up a 600-megawatt power plant”.
Then, just last month or five years later, I had the opportunity to visit my clients in the provinces of South Cotabato, Lanao del Norte and Misamis Occidental. Sadly, in all these places, the residents are still experiencing power interruption. Then, as I prepared this column, at exactly 12:35 P.M. (Sunday), we have our own power interruption in Catarman, Liloan.
Again, we haven’t done much about this and our potential shortages. To recall, last year, it was the private sector that concocted, another temporary solution, the interruptible load program (ILP). ILP is a mode by which private companies with existing generating capacity (with mostly diesel or bunker fueled generator sets) shall utilize them.
Moreover, water shortages are, likewise, experienced in a good number of cities or urban centers in the country today. Metro Cebu is one of them. Despite, the supply augmentation coming from the town of Carmen, water pressure is still anemic in some parts of the metropolis. Certainly, if nothing is done onwards, the situation can go worse. The reason is obvious. Look around us, the construction boom is significant. While this construction boom has become a saving grace as it directly generated thousands of employment, once completed, these will require both power and water.
Furthermore, we may ask, is it not a fact that our population is perpetually increasing? To recall, in 1990, we were just a little over 60 million. Today, we are 101 million. With 41 million more inhabitants in 25 years and with more appliances to use, it is a no brainer that we shall, first and foremost, bridge the existing gap and prepare for the surging population. In fact, doubling our capacity in 1990, in both power and water, could even fall short of our needs today.
Indeed, be it in food, water or power, we have chronic shortages. These are famous words every tongue speaks. These crises are prevalent, felt and withstood till near submission by most citizens. Quite frankly, unless we become masochists, we will never get the feeling of contentment from the consequences of these menaces.
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