LGU Requests for MB Opinion Decelerated in S1 2022

​The Bangko Sentral ng Pilipinas (BSP), in its continued commitment to transparency and good governance, releases information on the issuance of Monetary Board opinion (MBO) to local government units (LGUs) on their proposed domestic borrowings.  This set of information provides the amount and intended purpose of the proposed loans by LGUs.​

 

In the first semester (S1) of 2022, the BSP received a total of 107 requests for MBO on LGUs’ proposed domestic borrowings amounting to P20.2 billion. The total number of LGU requests and total amount were lower by 44.6 percent and 63.7 percent, respectively, compared to the 193 requests received amounting to P55.7 billion in S2 2021. The requests for MB opinion came from six (6) provinces (P2.4 billion), 12 cities (P8.7.billion), 84 municipalities (P9.1 billion), and five (5) barangays (P41.1.million).

 

During the semester in review, the MB rendered its opinion on 120 LGU proposed borrowings totaling P25.8 billion. The said MB issuances were for 98 requests received in S1 2022 and 22 requests received in S2 2021.

 

Of the total proposed LGU loans issued with MBO, 66 percent were allocated for infrastructure projects involving mostly the construction and/or improvement of public markets, farm-to-market/access roads and bridges, multi-purpose buildings/ business/ commercial centers, water system and septage treatment, government administrative buildings, health care facilities or hospitals, school buildings, public plaza/parks/ gymnasium/covered courts, and public transport terminals, among others. There were also proposed loans for the acquisition of heavy equipment and procurement of rescue and/or service vehicles which accounted for 23.6 percent of the total LGU loans. Other proposed LGU loans, comprising 9.7 percent of the total, were allocated for the acquisition of lots and site development; 0.3 percent was intended for loan take out or refinancing; and 0.3 percent of the total proposed LGU loans were allocated for the construction of isolation facilities in support of the country’s COVID-19 pandemic response.​​

 

The need for issuance of prior opinion of the MB on the proposed borrowings of government entities, including LGUs, is mandated by law under Section 123 of Republic Act (R.A.) No. 7653, otherwise known as the New Central Bank Act of 1993, as amended by R.A. No. 11211. The said provision requires the government, its political subdivisions or instrumentalities, to request the MB to render its opinion on the monetary and external sector implications of their proposed loans prior to undertaking any credit operation. This provision of the law stems from the BSP’s role as the government’s advisor on official credit operations. It enables the BSP to monitor trends in public sector debt and assess its impact on the monetary sector and external payments position of the economy.

 

Further information on this matter, particularly the BSP guidelines in the processing of requests for MBO, can be accessed on the BSP website. https://www.bsp.gov.ph/Pages/Regulations/GuidelinesOnTheEstablishmentOfBanks/RequestForMonetaryBoardOpinionOnDomesticGovernmentBorrowings.aspx

 

 

Source: Bangko Sentral ng Pilipinas (BSP)

China Begins to Revive Arctic Scientific Ground Projects After Setbacks

Beijing is taking its first steps toward recovering from years of setbacks to its scientific, land-based projects in the Arctic, sending personnel to two outposts that have been vital to its policy of establishing China as a “near-Arctic” state.

China’s Arctic policy document, published in 2018, said scientific research to “explore and understand” the Arctic is the “priority and focus” of Chinese participation in Arctic affairs.

Over a 14-year period since 2004, China launched scientific projects in Arctic regions of four Western European nations — Norway, Iceland, Sweden and Finland — and sought to do the same in a fifth, Denmark’s autonomous island of Greenland.

The Biden administration, which published its own “National Strategy for the Arctic Region” in October, said those scientific projects have helped China to increase its influence in the Arctic and “exacerbated” strategic competition in a region where the U.S. has long been a major power.

The U.S. strategy document said China has “used these scientific engagements to conduct dual-use research with intelligence or military applications in the Arctic,” requiring the U.S. to respond by positioning itself to “effectively compete and manage tensions” in the region.

China’s state-run Global Times newspaper quickly responded to the U.S. strategy with an article citing Chinese analysts as saying Washington has been “politicizing” China’s activities in the Arctic. It said the analysts see the U.S. “using ‘increased competition’ as an excuse in trying to control the region after seeing its increasingly prominent economic and military value.”

As it snipes publicly at the U.S., Beijing has been less vocal about setbacks to its land-based Arctic scientific projects in recent years and its nascent moves to revive some of them.

Arctic researchers have told VOA that China recently has sent and announced plans to imminently send several people to its two most important scientific outposts in Norway and Iceland after lengthy absences of Chinese scientists from both sites. But there have been no signs of China trying to renew two other scientific projects in Sweden and Finland where national organizations told VOA that Chinese activity is set to end or has ended.

The Polar Research Institute of China (PRIC) recently registered three projects in the scientific community of Ny-Alesund in Norway’s Svalbard archipelago, where it has rented and operated a Norwegian-owned building since 2004 called Yellow River Station, its first Arctic ground facility. PRIC registered the projects on Norway’s Research in Svalbard Portal.

Scientist Geir Gotaas, leader of the Ny-Alesund Program at the Norwegian Polar Institute, said Chinese personnel have been mostly absent from Yellow River Station since the start of the pandemic because of travel restrictions. He said the last Chinese researcher departed in March after a solo three-month stay at the building, which has a capacity of 37 staff and accommodated the largest foreign contingent of scientists in Ny-Alesund before the pandemic.

Gotaas said four Chinese scientists will arrive in the Norwegian mainland this week before flying to Svalbard, with three staying for a few weeks in Longyearbyen and Ny-Alesund and the fourth remaining at Yellow River Station until March to maintain instruments over winter.

“The Chinese researchers are making a first step towards a return to regular operations in Ny-Alesund,” Gotaas said.

In northern Iceland’s Karholl, six Chinese personnel, including four scientists, arrived at the China Iceland Arctic Research Observatory (CIAO) late last month after a three-year Chinese absence from the complex, according to its spokesperson, Halldor Johannsson, director of the Arctic Portal.org news organization.

Johannsson said pandemic travel restrictions had kept the Chinese personnel away from CIAO, which opened in 2018 and is jointly operated by China’s PRIC and the Icelandic Center for Research (Rannis). The recently arrived Chinese contingent has met with local scientists and community leaders and was to depart in early December, he added.

CIAO consists of a new research building and several farmhouses for accommodation and other uses. China fully funded the building’s construction but does not own anything at the site and rents the property from Icelandic nonprofit group Aurora Observatory, Johannsson said.

In northern Sweden’s Esrange Space Center, contracts enabling three Chinese scientific agencies to use four satellite dish antennas built from 2008 to 2016 will not be renewed, according to Philip Ohlsson, Swedish Space Corporation (SSC) head of communications.

SSC controls all data received from and sent to satellites by the antennas, three of which are SSC-owned while the fourth is Chinese-owned, Ohlsson wrote in a series of emails. He said Chinese personnel have visited Esrange from time to time but never have been stationed there.

“In 2018, SSC took the decision not to enter into any new contracts with Chinese customers, given the limited size of our company in relation to the complexity of the Chinese market,” Ohlsson said.

He declined to reveal when the existing contracts will end, “out of respect for our customers and the confidentiality of these contracts.”

In northern Finland’s Sodankyla Space Campus, a joint research project launched by the Finnish Meteorological Institute (FMI) and Chinese Academy of Sciences (CAS) in 2018, ended last year when a three-year agreement expired, said Jouni Pulliainen, FMI Space and Earth Observation Center director.

CAS announced in 2018 that a joint research center for Arctic space observation and data sharing would be “constructed” in Sodankyla. But Pulliainen wrote in an email that there was no new construction at the space campus and the project mainly involved temporary visits by five Chinese researchers to Sodankyla’s existing facilities before the start of the pandemic.

Pulliainen said the outcome of the project was “not as impressive” as the Chinese side had originally expressed through state media.

“Due to changes in the world’s political situation, we were not any more so interested in deepening the cooperation activities, and we were not contacted from CAS about the renewal of the agreement,” he added.

China also never realized its 2017 proposal to build a satellite dish antenna ground station for remote sensing in the Greenlandic capital of Nuuk.

Beijing Normal University Dean Cheng Xiao held a “launch” ceremony in the Greenlandic town of Kangerlussuaq for the proposed Nuuk ground station on May 30, 2017. A group of more than 100 Chinese visitors attended the event along with two representatives of Greenlandic NGOs, but the project never won approval from the Greenlandic and Danish governments and did not proceed.

China’s foreign ministry did not respond to a VOA email asking why Beijing did not send personnel to the Norwegian and Icelandic project sites for lengthy periods, why it did not reach agreements to extend the Swedish and Finnish projects and why the Greenlandic project never got off the ground.

Marc Lanteigne, a social studies professor at the Arctic University of Norway, said China ran into local opposition for some of its projects.

“I’m thinking primarily of China’s plan to set up a research base in Greenland that was announced to great fanfare and then ran smack into Danish opposition,” Lanteigne said. Denmark, a NATO member, has been “very touchy about anything that might look like a Chinese strategic beachhead” in Greenland, he added.

Lanteigne said China’s diplomatic disputes with some European Arctic nations have undermined the progress of its other scientific projects.

“China’s relations with Sweden really have begun to sour over the past few years due to human rights issues, and that has affected the ability of Chinese researchers to set up any kind of a base in Sweden itself,” he said.

Nengye Liu, a law professor at Singapore Management University, said he expects Beijing to focus on developing its more established Arctic projects in Norway and Iceland rather than on smaller projects that ran into obstacles in other nations.

As Arctic ice melts because of climate change, China sees new opportunities for shipping, fisheries and oil and gas development in the region, Liu said.

“So all these scientific activities are meant to ensure that a major economic power like China won’t be left behind. That is why China describes itself as a ‘near-Arctic’ state,” Liu said.

VOA emailed the White House to request a National Security Council comment on what the U.S. is doing to manage tensions arising from China’s scientific projects in the Arctic but did not receive a response.

In an October forum at Washington’s Wilson Center, Devon Brennan, NSC director for maritime and Arctic security, said the U.S. is concerned that China’s exploitation of Arctic resources, such as fisheries and hydrocarbons, may diverge from what he called the rules-based international order.

But Brennan also said the U.S. recognizes that China has a “vested interest” in the region.

“While first and foremost, we will want to work with our like-minded partners and allies in the Arctic, there is room to cooperate with other non-Arctic nations for the betterment of the region,” he said.

 

Source: Voice of America

PM ANWAR CHAIRS SPECIAL CABINET MEETING

PUTRAJAYA, Dec 5 (Bernama)  —  Prime Minister Datuk Seri Anwar Ibrahim today chaired a special Cabinet meeting of the Unity Government at Perdana Putra here.

 

The meeting, which is the first and attended by all the Cabinet ministers, started at 10 am.

 

The Cabinet line-up, consisting of 28 ministers and two deputy prime ministers, was announced by the prime minister, who also takes the portfolio of Finance Minister, last Dec 2.

 

Anwar was sworn in as prime minister on Nov 24.

 

Most of the cabinet ministers clocked into their respective officers today before attending the meeting.

 

 

Source: Prime Minister’s Office of Malaysia

MINISTERS AGREE TO TAKE 20 PER CENT PAY CUT – PM ANWAR

PUTRAJAYA, Dec 5 (Bernama) — The new Cabinet has agreed to cut the monthly salary of ministers by 20 per cent, said Prime Minister Datuk Seri Anwar Ibrahim.

He said this decision reflected the Cabinet members’ concern for the problems faced by the people now.

Anwar said the salary cut would remain in effect until the country’s economy had recovered.

“If the economy recovers in three years’ time, we will review … this salary cut is appropriate, but I would like to thank them (ministers) for their willingness to make a bit of sacrifice.

“Some people say Anwar is willing to forgo the Prime Minister’s salary because he is getting the Finance Minister’s pay. That is not correct … there is only one salary,” he said in a press conference after chairing the first special Cabinet meeting of the Unity Government here today.

Also present at the press conference were Deputy Prime Ministers Datuk Seri Dr Ahmad Zahid Hamidi and Datuk Seri Fadillah Yusof.

On criticism by certain quarters on his Cabinet line-up, Anwar said he believes and trusts that his Cabinet team is determined to ensure they follow strict rules and the principle of good governance.

“We are determined; I made it very clear and the ministers are very clear. On the issue of good governance and anti-corruption drive, there is no compromise,” he said.

He said it was interesting that those who had been harping on the kleptocracy issue were themselves very much compromised in big dealings which benefited their sons, children and in-laws.

“I must remind them that if you really want to get to the bottom of it, you must be prepared to be truly transparent and be truly investigated. Investigations cannot be selective and that is our position,” said Anwar, who is also the Finance Minister.

Anwar said good policies which were implemented by the previous government would be continued by the Unity Government.

“Good agreements, contracts, no problem, we will follow … this government will continue with the existing system. It’s just that we will be firmer in making changes.

“If it is clear that tenders worth tens of billions did not follow procurement (procedure) or if projects costing tens or hundreds of billions were approved without following process, we definitely have to review. This is not my money; it is the people’s money,” he said.

On bills which were already tabled but could not be passed before Parliament was dissolved, Anwar said they would be reviewed by Minister of Law and Institutional Reform Datuk Seri Azalina Othman Said. The deferred bills include the Control of Tobacco Product and Smoking Bill 2022.

“She would bring the matter to the Cabinet and a decision would have to be made by the ministers. But if the proposed laws are good, including from the Barisan Nasional or Perikatan Nasional government, we will continue,” he said.

Anwar said he also explained to the Cabinet the chronology of events on the formation of the new government to refute allegations and to clarify the facts.

“I think it is time to accept the fact and stop disputing the power, authority and wisdom of the Yang di-Pertuan Agong. However, this does not prevent other efforts which are in line with parliamentary practice and democracy to reject and the like. But it is not appropriate to dispute its legitimacy,” he added.

On the appointment of Ahmad Zahid, Anwar said people have the right to question but his appointment was made based on various factors.

“He has been charged but not convicted yet, and we have to respect the process. Incidentally, he is the UMNO president and Barisan Nasional chairman and in this unity government I need to consider all these factors.

“I simply find it hard to understand. Those harping on the issue of corruption must be clean. They should not speak out against corruption but then take projects worth hundreds of millions,” he said.

 

Source: Prime Minister’s Office of Malaysia

ADB Approves $250 Million Loan to Boost the Performance of PNG’s SOEs

MANILA, PHILPPINES — The Asian Development Bank (ADB) has approved a $250 million policy-based loan to help Papua New Guinea’s (PNG) state-owned enterprises (SOEs) deliver high-quality, affordable services through Subprogram 3 of the ADB-supported SOE Reform Program.

 

Subprogram 3 supports PNG’s efforts to improve the operational performance and financial sustainability of SOEs and strengthen service delivery. The final subprogram has helped further improve performance and created space for the private sector in critical services such as telecommunications.

 

“This policy-based program has helped PNG strengthen its legislative and policy frameworks for SOEs, enhanced governance and transparency, and improved the financial position of SOEs in key sectors such as energy, water supply, and aviation,” said ADB Financial Management Specialist for the Pacific Matthew Rees. “We are very happy to see the program delivering results. Supported by recent reforms, SOE Kumul Consolidated Holdings paid the government a dividend of 80 million PNG kina ($22.9 million) this year for the first time since 2015.”

 

The program is being delivered in close coordination with the Australian and New Zealand governments.

 

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

 

 

Source: Asian Development Bank

Post-COVID-19 Recovery an Opportunity to Build Resilient Financial Systems in Asia and the Pacific

MANILA, PHILIPPINES — Developing countries in Asia and the Pacific should take the opportunity to build resilient financial systems as they recover from the COVID-19 pandemic, says an Independent Evaluation report released by the Asian Development Bank (ADB).

 

“The post-COVID-19 recovery period is an opportunity to move toward more resilient domestic financial markets, stronger financial regional cooperation, and robust reforms and programs for mobilizing local savings and private sector finance,” said Independent Evaluation Department (IED) Director General Emmanuel Jimenez.

 

ADB’s developing member countries need financing for infrastructure projects and support for vulnerable groups, including micro, small, and medium-sized enterprises. Their commitments under the 2015 Paris Agreement have put additional pressure on the finance sector to engage more in green and climate change financing.

 

“ADB, in addition to providing financing, policy, and technical support to help economies with their immediate challenges, can also enhance the chances for a more financially sustainable recovery through long-term capital market development,” Mr. Jimenez added.

 

The report states that financial institutions are important conduits in an economic recovery as their actions have cross-cutting impact across all sectors, industries, and economic activities.

 

The report underscores that a well-run and diverse finance sector is central to financial stability, economic growth, and the efficient allocation of capital resources. “With increasing inequality and difficulties with access to finance, digital finance and financial technology will play an important role in improving finance sector services,” said the evaluation team leader Paolo Obias.

 

“ADB is well-placed to offer support to the finance sector through regulatory guidance, institutional capacity building, standard setting, technical assistance, as well as debt and equity investments,” said the evaluation co-team leader Alexander Wellsteed.

 

This evaluation comes at a time when ADB is finalizing its finance sector directional guide, which provides ADB strategic direction in delivering coherent, relevant, efficient, and effective finance sector investments.

 

About Independent Evaluation at ADB

 

ADB’s Independent Evaluation, reporting to the Board of Directors through the Development Effectiveness Committee, contributes to development effectiveness by providing feedback on ADB’s policies, strategies, operations, and special concerns in Asia and the Pacific.

 

 

 

Source: Asian Development Bank