REPUBLIC OF THE

IONNO. 17 wcdnesday, August 30,2006 SESSION NO. 17 Wednesday, Auj::ist 30,2006

CALL TO ORDER loved. If he were alive today, I am certain he would question the twin scourges of the At 3:26 p.m., the Senate President, Hon. Manny Garcillano and Bolante cover-ups, the nursing exams scandal, the unresolved and forgottcii Villar, called the session to order. issue, the military unrest, the appointment of unfit civil servants, the extra- PRAYER judicial killings of activists and mediamen, and the ugly bickerings of pro- and anti-charter The Body observed a mini& of silent prayer. changc advocates. It is not difficult to draw a conclusion as to the root of all these problems DEFERMENT OF THE ROLL CALL - grart and corruption. The Philippines is undoubtedly in the throes Upon motion of Senator Pail hian, there being of a crisis in government ethics. Graft and no objection, the Body deferret’ the’ roll call to a corruption is everywhere we care to look. The later hour. media echoes these realiti, .s and more, on a daily basis, and we find that most offenders are people DEFERMENT OF THE in power and authority. Can anything be done to APPROVAL OF THE JOURNAL arrest the spread of this vile disease that weakens our moral fabric? Upon motion of Senator Pangilinan, there being In a survey conducted by the Social no objection, the Body deferred the consideration Weather Stations between November 23 and and approval of the Journal of Session No. 16 to a December 2, 2004, perceptions of public sector later hoiir. corruption remain high. The study reveals a rising trend from September 1998 to December DEFERMENT OF 2004, with the highest upsurge registering THE REFERENCE OF BUSINESS between September and November 1998 - from 38% shooting to 52% of those surveyed, citing Upon motion of Senator Pangilinan, tlicre being a great deal of corruption in the public sector. However, there was a bi!: decrease recorded in no objection, the Body deferred the Reference of the extent of corruption in the period between Business later hour. to a June and September 2000, from 51% to 36%, and a slight dip - from 49% to 44% between March PRIVILEGE SPEECH and September 2001. The subsequent quarters OF SENATOR MAGSAYSA~ followed a general uptrend, reaching the hight percentage of 53% in December 2004. Availing himself of the privilege hour, Senator Every year since the release of the Global Magsaysay delivered the following speecli: Corruption Rcport in 2001 by the international ARE WE ASKING TOO MUCH? NGO, TranJparency International, our country continues to Care poorly as far as the Corruption Today is the eve of my father’s 99th birth Perception Index (CPI) is conci:rncd. Last year, anniversary, and 1 fed much obliged fo stand in the Philippiiicr ranked 124th out (if 159 countries this august Chamber to lament the sorry state of in the CPI. ‘l’he Philippinas rec. ked a measly governance that has caused ,much misery and score of 2.5 within the range .;f IO (“highly hopelessness to the Filipind people whom he clean”) and 0 (“hi!!lily currupt”).,$r b 234 WEDNESDAY, AUGUST 30,2006

In 2004, the Philippines ranked 104th out of the “Sunshine Law” in some of the states in the 146 countries in the CPI, with a score of 2.6. Iti United States of America. 2003, the Philippines ranked 97th out of 133 nations, with a score again of 2.6 among the The Bill of Rights provided “the right of bottom dwellers as to transparency and corruption. the people to information on matters of public Transparency International Chairman Peter concern.” In Article XI, the fundamental law Eigen stressed, “Corruption is a major cause of states that, “Public office is a public trust. Public poverty as well as a barrier to overcoming it. The officers and employees must at all times be two scourges feed off each other, locking their accountable to the people.” populations in a cycle of misery and poverty.” These provisions are all geared towards The studies of the Social Weather Stations making the bureaucracy work for the people. and Transparency International are even confirmed They guarantee the citizens a responsible by the Political and Economic Risk Consultancy government. Thus, when seek the (PERC) which placed the Philippines as the second resolve of the leadership for genuine most corrupt country in the Asia-Pacific last year transparency and honesty, we ask ourselves, in 2005. “Do we ask too much from government?’ The World Bank estimates that losses due Wala sa aking pagkalao ang magsalita ng to graft and corruption can be placed at 20% of inasama sa aking kapwa at pumuna sa mga the country’s national budget. Iflthis estimate is bagay na aking nakikita. Pipiliin ko pang used, financial losses would cbnstitute about magmasid. mag-isip at tzrmulong na lamang. 3.8% of our Gross National Product (GNP). Ngunit di ko maiwasang magtanong at mag- alala sa nangyayari: Ang pamahalaan bang But while the government, specifically the aking kinabibilangan ay protektor ng kasa- Executive department, acknowlqdges that graft maan? Ang gobyerno bang ita ay kunsintidor and corruption is a complex and depply ingrained ng kahalayan sa bayan? Ang gobyerno bang problem, it does not lift a finger in addressing the it0 ay kaibigan ng buktot na pagmamaltrato sa malady. In fact, it adopts a suspiciously silent mamamayan? stance on many issues - the fertilizer fund scam, the squander of OWWA funds, the Venable Corruption is a form of injustice and tyranny. contract, the Northrail project and the nursing It saps the wealth of the country and deprives exams leakage, among many others. the people of basic services due them. It shuns potei~tial investors that generate employment. The people demand answers and explanations. It tarnishes national pride, promotes disrespect They want access to information on matters of for authority and government and weakens or public concern. They want to be afforded docu- paralyzes positive programs, obstructs progress, ments and papers that honor transparency and incites strife, and causes social and political accountability, The Filipinos deserve to know instability. But the moral degeneration caused by the truth. corruption far outweighs the social damage it Are they asking too much? inflicts. Are we overly demanding from our The government has been weighed by our government? people and has been found wanting. MENE MENE TEKEL PARSIN. Are the Filipinos not only asking for the guarantee of their rights? I ask our colleagues, honest men and women in government, and the entire bureaucracy to The hallmark of the 1987 Philippine exercise vigilance in the fight against the twin Constitution is the generosity of provisions that menace of graft and corruption. An important recognize the right of the citizens to information element in this formula is an informed citizenry, and their right to take positive steps and including selfless individuals whose efforts in effective measures against graft and corruption. the fight have been relentless and admirable. Let In the State Policies are the deharations in us be reminded of the selfless commitment of which the State is mandated to “maintain honcsty Sister Eva Fidela Maamo and Antonio Meloto of and integrity in public service’’ (Article 11, , of the quest for truth of Section 27) and the adoption and implementation journalist , of “a policy of full public disclosure of all its and Eugenia Duran Apostol, and of the honesty of and inteeritv of . mavor NaeaI transactions involving public inLerest” (Article -. I ., 11, Section 28). This is all part df what they call City, and the late . WEDNESPAY, AUGUST 3o,?no6 235 --__;_ - ___ - - .~ ,_.~

The wisdom of my father is etched in my Eldwin Alibutan, Richard Ranbuyong, and Crc zncio memory in these words, "Ang paglilingkod sa Jose; and 12 mayors of the n.iinicipa1ities of I$, gobyerno ay hindi binibilang sa dami ng taon Alicia. Imelda, Kabasalan. Mabuhy, Malangas, N,,, a, kung hindi sa iyong nagawa para sa bayan, sa Oluta:iga, Payao, Roseller T. Lim, Siay and Titay. mga inaliliit ...kung ang iyoii:,: iisipin ay ang pagpapasasa at pagpapayanian ay madaling maglingkod. Ngirnit kung mga naghihirap na APPROVAL OF THE JOURNAL Pilipino ang iyong isrisapuso, lilimiitin ma ang iyong sarili para sa .: nnila. " Upon motion of Senator Pangilinan, there being no objection, the Body dispensed with the reading of SUSPENSION OF SI*;.:;ION the Journal of Session No. 16 and considered it approved. Upon motion of Senator Pangilinan, the session was suspended. REFERENCE OF BUSINE.,S

It was 3:38 p.m The Acting Secretary of the Senate read Proposed Senate Resolution No. 554, which the Chair referred RESUMPTION OF SES'$lON to the Committee on Agriculture and Food:

At 3:38 p.m., the session was resumed. RESOLUTION URGING THE SENATE COMMITTEE ON AGRICULTURE ROLL CALL AND FOOD TO CONDUCT AN INQUIRY, IN AID OF LEGISLATION, Upon direction of the Chair, the Acting Secretary ON THE REPORT' D EXCESSIVE of the Senate, Emma Lirio-Reyes, called the roll, to ISSUANCE OF IM! ORT PERMITS which the following senators responded: BY THE DEPARTMENT OF AGRI- CULTURE-BUREAU OF PLANT Atigara, E. J. Lacson, P. M. INDUSTRIES RESULTING TO THE Arroyo, J. P. Lapid, M. L. M. MASSIVE FLOODING OF IMPOR- Cayetano, C. P. S. Lim, A. S. TED ONIONS IN THE MARKET TO Defensor Santiago, M. Magsaysay Jr., R. B. THE DETRIMENT OF FILIPINO , Drilon, F. M. Osmeiia 111, S. R. ONION GROWERS AND TRADERS Ejercito Estrada, J. Pangilinan, F. N. WITH THE END IN VIEW OF Ejercito Estrada, L. L. P. Pimentel Jr., A. Q. FORMULATING NEW POLICIES TO Enrile, J. P. Roxas, M. IMPROVE THE INDUSTRY Flavier, J. M. Villar. M. Introduced by Senator Magsaysay With 18 senators present, the Chair declared the presence of a quorum. COMMITTEE REPORT NO.' 59 ON SENATE BILL NO. 2232 Senators Biazon, Gordon, Madrigal and Recto (Continuation) arrived after the roll call. ._ Upon motion of Senator Pangilinan, there being Senator Revilla was absent no objection, the Body resuhed consideration, on Second Reading, of Senate Bill No. 2232 (Committee ACKNOWLEDGMENT OF THE Report No. 59), entitled PRESENCE OF GUESTS AN ACT REVISING REPUBLIC ACT At this juncture, Senator Pangilinaii acknowldged NO. 9136 ENTITLED AN ACT the pi-csence of 40 students from IATEC Computcr ORDAINING REFORMS IN THE ' Colle!;e in Pinamalayan, Oriental ; 40 studem ELECTRIC POWER INDUSTRY, from Mapna Institute of Technology; Represent;itive AMENDING FOR THE PURPOSE Belina Cabilao arid local officials of Zamboangn CERTAIN LAWS AND FOR OTHER Sibugay: Vice-Governor Eric Cabmios, Board Members PURPOSES. 236 WEDNESDAY, AUGUST 30,2006

Senator Pangilinaii stated that the parliamentary RESUMPTION OF SESSION status was still the period of interpellations. At 4:02 p.m., the session was resumed with SUSPENSION OF SESSION Senate President Pro Tempore Flavier presiding.

Upon motion of Senator Pangillinan, the session In reply to a query, Senator Enrile stated that the was suspended. current NPC grid rate is P4.91 per kilowatt- hour, but once power cost recovery is made, the Ii was 3:42 p.m. GRAM and ICERA charges would he removed from RESUMPTION OF SESSION the price to be imposed on buyers and users of electricity. He said that in , there is a At 3:45 p.m., the session was resumed. P0.0155 refund for ICERA due to over-recovery of power cost. Upon resumption, the Chair recognized Senator Enrile, Sponsor of the measure, and Senator Osmeiia Senator Osmefia pointed out that as long as for the coiitinuation of his interpellation. the exchange rate remains steady, ICERA charges would not be removed. He said that the accompany- SUSPENSION OF SESSION ing costs of NPC coal-powered plants would go up if there is a corresponding inCrease in the exchange Upon motion of Senator Pangilinan, the session rate because coal is being imported. Io reaction, was suspended. Senator Enrile clarified that the ICERA will not It was 3:46 pm always be an added cost, but in the meantime, the ICERA and GRAM are beingtcollected as these are RESUMPTION OF SESSION recovery charges contingent doitlie costs of supply. He noted that the ICERA will be lowered once At 3:47 p.m., the session was resumed. variables of the basic rate change - for instance, dollar remittances increase or the price of crude INTERPELLATION OF SENATOR OSMERA goes down. (Continuation) Adverting to the table of NPC-approved rates At the outset, Senator Enrile informed the Body for July 26 to August 25, 2006, Senator Osmeiia that the National Power Corporation's (NPC) won-dered when the ICERA of Luzon, currently approved rates effective July 26, 2006 to August 25, pegged at P0.5719, was zero. Senator Enrile said 2006 are as follows: that the current ICERA is a recovery cost as a result of the fluctuation of the exchange rate from April to October of 2005; and the ICERA could be removkd when the exchange rate improves.

Upon further queries, Senator Enrile said that LUZON P, 8966 P04llO c>sm rami pimi the base period of the P0.417 GRAM for Luzon VISAVAS rimig Pnl2IU Plil7"d PilQlll PlilOll was April to October of 2005 and it could increase

MINMNAO PZ IOIO iXI5I11 P(O"ll>I P"OlS2 P26201 as tlie prices of oil and coal have not gone down. He confirmed that the GRAM, which is a result of the increase in tlie prices of energy sources such as oil, coal, bunker, diesel, and iinported natural gas, would affect not only tlie NPC but also the Meralco-IPPs.

On the difference between the GRAM and tlie ICERA, Senator Enrile explained that the GRAM stands for Generation Rate Adjustment Mechanism while the ICERA stands for Incremental Currency Exchange Rate Adjustment. Ai;/ b WEDNESDAY, AUGUST 30,2006 237 .. i ~~.~ __jrdL_---

At this juncture, Senator Roxas posited that apples-and-apples comparison of the rates and asked the rate being decided by the ERC is made up of that the data be made available to the Members in three componetits: 1) return on rate base (RORB) the next few days. Senator Enrile stated that he has which is the return on the physical plant and usable no objection to getting the data from ERC. assets of the NPC; 2) GRAM which reflects the changes in the cost of the raw malc:riaIs such as Asked if the P4.91 NPC rate for Luzon is bunker oil, fuel or coal that are uscd to provide produced not by one but by all plants including power; and 3) ICERA which reflects forcign currency bunker, diesel, coal-fired, hydro and geothermal plants, fluctuations. Relative thereto, he said that GRAM Senator Enrile replied in the affirmative. would no longer be needed if all tlie power plants were fueled by solar, hydro or geothermal power On whether the rates also reflect NPC costs and rather than with fossil fuels. Senator Enrile agreed. the 12% ROW that would have enabled NPC to break even or make a profit, Senator Enrile answered Senator Roxas observed that the differences in that he was not certain whether this was the case as the GRAM and ICERA for Limon, Visayas and the law prohibits the NPC from charging more than Mindanao were due to the different generation mixes 12% RORB. He said that the NPC's ROW ranges for each island but he asked why the GRAM for between 0% and 12% but it is only getting a Mindanao was higher when it has more hydro- recovery of not more than 8% on its total use and I8 powered plants than Luzon and Visayas. Senator useful assets. , Enrile acknowledged that while Mindanao has hydro- generated electricity from Maria Cristina, Agos and Senator Osmeiia asked for more information on Polangui power plants, the amount of rainfall the matter. determines the volume of power that can be generated I, by the plants so that in times of drought, tlie plants To the obseivation that NPC does not pay have to run on coal or fuel. But he pointed out that excise tax on imports and income tax, Senator Enrile the Mindanao grid has the lowest ICERA. stated that theoretically, all NPC earniugs are supposed to be paid to the government bat in the Upon further queries, Senator Enrile confirmed case of Meralco, all its esmings are paid to its that the differences in the ICERA reflect the foreign stockholders. He clarified that NPC does not have exchange exposure of the plants in the grid; and that any pending GRAM before the ERC. the NPC loan obligations were apportioned among the grids. On whether the P4.91 could be compared with the P6.20 to P9.00 paid to Duracom; the P5.26 paid Further, Senator Enrile provided the following to Sta. Rita; the P4.91 paid to San Lorenzo; and the iiiformation on the Meralco-IPP rates from January P5.16 paid to Quezon Power, Senator Enrile replied to July of 2006: in the affirmative, on the assumption'that the figures given to the Committee pertaining to Meralco reflected NPC RATE YS. MERALCO lPPs RATES for. 2006 equally the basic rate, GRAM and ICERA.

At this juncture, Senator Recto wondered whether there was an apples-and-oranges comparison of >!,.~!,,., the ktes because apparently, the NPC rate is ,,,'\,GAS "%i 47,116 4611" rx5,i-vv-hsiib ,vi\-,,*~ S/,,,I lliil"ll cheaper than the rates of the Meralco-IPPs.

Q,,,,O,~"\\C, 48U* 151113 ~ IOIO, 4557, 41,111 "1,111, >I6* ,Wt,4 He asked whether the NPC and Meralco have the I.,,,,,'YIC" same tax obligations. Senator Enrile replied that Meralco-IPPs are not franchise grantees but ordinary corporations, heni,e, they are subject to ordinary taxes. Senator Recto asserted that since-NPC power plants do not have.to pay taxes and the other^ power plants have to pay'taxes, naturally, tlie latter would have to charge higher rates for their products. Senator Enrile agreed, saying that the IPPs would have to pass 011 the coits to their consumers.~V P 238 WEDNESDAY. AUGUST 30.2006

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Given the fact that the national governmeill in their service areas. Seniitor Recto comiiiented that subsidizes the NPC and its IPPs and has also the ERC, in effvct, is tolei xting more indliciency on absorbed their obligations. Senator Recto posited that tlie piii-t of the clectric Cooperatives to the detriment NPC c:~offc.- lower rat..s. of their consumers.

Senator Enrile explained that undcr the EPIRA, Senator Enrile observed that in a community with Congress obligated tlie jrovernment to assume at less popul.tion density, the amount of electricity lost lust P200 billion of tlie stranded costs of NPC and through friction is higher considering that barangays PSALM. and houscs are far apart.

That being the case, Senator Recto said that it 5upposing an electric cooperative was purchased would be difficult to compare the NPC rates to tlie by a private entity, asked by Senator Recto what ’ Meralco-IPP rates because, in effect, a government systems loss charges would be allowed by the ERC, entity is competing with the private sector in the Senator Enrile posited that the rate base of some of same industry and, therefore, prices for NPC products the generating companies of Meralco could be could be set artificially. somewhat overpriced because in the case of the 38-kilometer transmission line of First Gas from Senator Enrile stated that as a general rule, the Sta. Rita to Calaca, where there was an $mate of IPPs are required to pay taxes but they were given $1 million per kilometer, the contracted,price was tax holidays under the law which, moreover, prohibits almost $2 million per kilometer or $70 million For Meralco and NPC from passing on their tax obliga- 38 kilometers. He assumed that tlie price went into tions to the consumers. With respect to the Supreme the rate base of tlie generation company that was Court ruling on the Meralco refund, he recalled that passed on to Meralco and which, in turn,’ Meralco Meralco was authorized by tlie ERC to pass on its passed on to its consumers. i income tax obligation to its consumers, using tlie formula for determining tlie return on capital To Senator Osmefia’s contention that only the inve:;tment, and it got inore than 12% RORB. NPC has a rate base because it is the dominant Following that ruling, he said that Meralco was able player in the industry, Senator Enrile said that the to recover what it had refunded. price of the product of distribution companies is not dictated by a regulatory body; but in the price Pointing out that the tax holiday given to Meralco- computation, tliay have to take into account their IPPs is good For six years only, Senator Recto asked investments in their capital assets. whether there is a prescribed period for NPC-IPPs. Senator Enrile replied that he was not aware of the As regards tlie alleged overpricing of the matter. First Gas Power-Sta. Ana contract by $32 million, I Senator Osmelia pointed out that the total capital On the issue of recovery of losses, Senator expended for the project was $1.5 billion. Senator Enrile recounted that Meralco was allowed a systems Enrile said that tlie contract can be analyzed by loss recovery of not more than 9.5% but the ERC reputable firms to determine whether it is an arm’s allowed it a systems loss recovery of 10.5%. He length transaction or not. believed that Meralco does not use all of tlie 10.5% OF its total volume of sales recovered from the public Senator Osinelia inquired into tlie systems losses and whatever is unused eventually goes into its profit allowed by tlie ERC. and loss statement. Senator Recto opined that it SUSPENSION OF SESSION would be best to compare tlie Meralco systems loss to the systems loss of other distribution utilities like Upon motion of Senator Enrile, the session was electric cooperatives. suspended. 1

Askcd whether the ERC allows electric It was 4:47 p.m. cooperatives a s)stems loss recovery of 10.5% or more, Senator En,-ilereplied that electric cooperatives RESUMPTION OF SESSION are given a Iiiglicr systems loss considering the density in population and the dismice between houses At 4:48 p.m,, the session was resuided. # P WEDNESDAY, AUGUST 30,2006 239 -_. _,__-I -__. -__ -

Senator Enrile smted that under RA 7832 SUSPENSION OF CONSIDERATION (Anti-Pilferage Law), rural or electric cooperatives OF SENATE BILL NO. 2232 are allowed a systems loss of up to 14.5%, while private utilities like Meralco and those opetating in Upon motion of Senator Paiigilinan, there being highly urbanized and highly populated areas arc piven no objection, the Body suspended consideration of a cap of 9.5% systems loss, the bill.

Senator OsmeAa said that a 9.5% system loss is SPECIAL ORDER not enough for Meralco because it also includes Transco’s systems loss. He pointed out that there Upon motion of Senator Pangilinan, there being could be line losses through power transmission and no objection, the Body approved the transfer of other costs because Meralco does not charge fire Committee Report No. 83 on House Bill No. 1299 to stations, city and municipal halls, and some the Calendar for Special Orders. schoolhouses for the electricity it supplies. The most efficient transmission grid in the U.S., he said, is COMMITTEE REPORT NO. 83 allowed a systems loss of 7%. ON HOUSE BILL NO. 1299

Senator Enrile spid that the way he understood Upon motion of Senator Paiigilinan, there being the system is that Mqralco’s contracted offtake from no objection, the Body considered, on Second Reading, a power plant is included in the unbundled rate for House Bill No. 1299 (Committee Report No. 83), generation. He added that the systems loss hiven to entitled Meralco is inclusive of its inefficiency within its own franchise system, us:i’g its own wires; it does not AN ACT CREATING ANOTHER CONGRESSIONAL DISTRICT IN cover whatever is 10s1. in the transmission because the same is charged on goneration. THE PROVINCE OF , AMENDING FOR Senator Osinena maintained that when it buys THE PURPOSE REPUBLIC ACT NUMBERED EIGHTY-NINE HUNDRED power from a plant, Meralco is charged for the power that is generated at the gate of the plant and AND SEVENTY-THREE, OTHERWISE KNOWN AS THE CHARTER OF not for the volume of power that arrives in its franchise area. THE PROVINCE OF ZAMBOANGA SIBUGAY.

Asked who would be absorbing the line losses, Pursuant to Section 67, Rule XXIII of the Rules Senator Enrile replied that the loss is part of the of the Senate, with the permission of the Body, upon power cost. I motion of Senator Pangilinan, only the title of the bill was read without prejudice to the insertion of its full Senator Osmefia pointed out that in one of the text into the Record of the Senate. hearings, he was told that a plant located in and supplying power to Manila would be losing 3% Thereupon, the Chair recognized Senator Lim, to 4% in the process. for the sponsorship.

SUSPENSION OF FESSION ACKNOWLEDGEMENT OF THE PRESENCE OF GUEfATS Upon motion of Senator Osmefia, the session was suspended. At this juncture, Senator Lim acknowledged I the presence of Rep. Belma A. Cabilao of the First District of Zamboanga Sibugay, and the other local It was 4.58 p.m. officials of the province, natnely, Vice-Governor Eric A. Cabarios; Provincial Woard Members Eldwin RESUMPTION OF SESSION Calibutan and Richard Kamboyong; Mayor Ray Andre Olegario of Ipil; Mayor Remherto G. Sotto At 459 p.m., thB session was resumed of Alicia; Mayor Expeciito B. Gonzales of Imelda; #” 240 WEDNLSDAY, AUGUST 30,2006

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Mayor Freddie I. Chu of Kabasalan; Mayor Restittito Representatives even at the time it was created 0. Calonge of Mabuhay; Mayor Cecille L. Tura of six years ago because its population based on Malangas; Mayor Ryan C. Tan of Naw; Mayor the 2000 census alrendy stood at around 500,000 Joel G. Capotulm of Olutanga; Mayor Joepher H. inhabitants - 497,239 to be exact. However, the immediate concern at that time was for the Mendoza of Payao; Mayor Dado J. Piodena of creation of the province rather than getting an Roseller T. Lim; Mayor Arthur W. Luspo of Siay; additional district. and Mayor Gil D. Rillera of Titay; Vice Mayor George G. Cain:.:let of Kabasalan; Vice Mayor In terms of territory, the map clearly shows Jaime A. Balawag of Alicia; Provincial Board Member ,that the proposed division of the province into Crisencio Jore; and Provincial Attorney Josefino two congressional districts is consistent with Bael, representing Governor Hofer. territorial contiguity, compactness and adjacency as required by the Constitution. In fact, the proposed division corresponds to the two SPONSORSHIP SPEECH OF SENATOR LIM districts for the election of regular members of the Sangguniang Panlalawigan of Zamboanga In sponsoring House Bill No. 1299, Senator Lim Sibugay as defined by the Commission on delivered the following speech: Elections. I have the pleasure of sponsoring Committee The Constitution guarantees equitable and Report No. 83 of the Committee on Lbcal proportional representation in the Bigger House. Government on House Bill No. 1299 principblly Consistent with the basic sovereign right of the authored by Congresswoman Belma Cabilao of people to be heard, a province or a city, as long the lone district of the province of Zamboanga as it meets the requiremeiits. deserves its rightful Sibugay. share of seat or seats in the House. I believe that I, this principle shall be the single most important This measure seeks to create an additiodal reason in considerine this appeal Com our people. congressional district in the province of Zamboanga Sibugay. Moreover, I strongly believe that granting Zamboanga Sibugay another congressional Zamboanga Sibugay i, relatively a new district would allow the province to continue its province having been established barely six onward progress. Not only will the province years ago. Its charter was steered into law in continue to become a leading exponent of the Illh Congress by our esteemed colleague development in Western Mindanao, it also has Sen. Aquilino Q. Pimentel Jr. as then Chairman of the great potential to become an agro-aqua the Committee on Local Government in consider- industrial hub in the country as well as in the ation of the two bills filed by Sen. Franklin M. Southeast Asian region. Drilon and Sen. Sergio Osmeiia 111. It has to be noted that Zamboanga Sibugay Under the dynamic leadership of Congress- ,has a rubber plantation known to be the biggest woman Cabilao and its first elected governor in Asia, and its hectarage of fishponds produce Dr. George T. Hofer. Zamboanga Sibugay has prawns and bungus that supply both the domestic emerged from a laid-back area to a fast progress- and export markets. Its rich mineral resources ing third-class province. It has already equaled or include some of the best coal-producing mines in overtaken 20 other provinces which were created the Philippines located in the component towns much earlier in terms of income classification. of Malangas, Diplahan and Imelda. The proposed creation of another congres- The Malangas Coal Corporation, for sional district in the province satisfies the example, is currently being operated jointly constitutional and legal requirements, primarily by the Exploration Corporation of the PNOC in tvrms of population and territoty. The projected and the Overseas National Oil Company. population of the province for 2005 stood at Needless to say, the additional funding support 561,520 inhabitants. Under the proposal, Distri4t that will be derived as a result of the grant of I will have a population of 279,286, while District additional congressional district in the province I1 will have 282,234. in terms of countrywide development projects and congressional initiatives would go a long Obviously, each of the two districts has a way in terms of roads, bridgw, farm-to-market population way above the minimum threshold of access roads, school buildings, health centers, 250,000 inhabitants. In fact, the province~,was livelihood programs and other basic services that qualified to have two seats in the HouSe of are intended to improve the lot of the people. k w WEDNESDAY, AUGUST 30, 2006 24 1

Approving this measure is one great leap TERMINATION OF THE PEKIOD toward unleashing the immense potential of OF AMENDMENTS Zamboanga Sibugay, and of Mindanao in pieral, and harnesses the vast wealth of ~(‘sour~csof There beiiig no committee or itrdividual the region that largely remain untappud. lhis is amendment, upon motion of Senator Pangilinan, there the least that the national government could do being no objection, the Body closed the period of for a deserving and promising province. amendments. I hear the clamor of the people of Zamboanga Sibugay for the approval of this measure, and it APPROVAL OF HOUSE BILL NO. 1299 is my honor to join them in their pursuit for the ON SECOND READING continuing development of their province.

REMARKS OF SENATOR DRILON Submitted to a’vote, there being no objection, House Bill No. 1299 was approved on Second Senator Driloii expressed full support for the Reading. measure. He recalled that he filed in 2000 a similar measure for the creation of a new congressional SUSPENSION OF CONSIDERATION district, citing as reason that a single district is of OF HOUSE BILL NO. 1299 such extensive coverage that it is extremely difficult to take care of the concerns of the constituency Upon motion ofisenator Pniigilinan, there being represented therein; and that the land area is so large no objection, the Body suspended consideration of that it will take days, even weeks, to traverse the the bill. district from one end to the other. He informod the Body that conditions have not changed, and that, SUSPENSION OF* SESSION in fact, they have worsened in terms of population. Upon motion of Senator Pangilinan, the session COAUTHORS was suspended.

Senator Pangilinan expressed the desire to be It was 5:17 p.m identified with the measure.

Upon motion of Senator Drilon, there being no RESUMPTION OF SESSION objection, all senators present - Senators Arroyo, Drilon, Flavier, Lacson, Madrigal, Pangilinan, Pimentel At 5:20 p.m., the session was resumed. and Roxas - were made coauthors of the bill. PROPOSED SENATE RESOLUTION NO. 553 INTERPELLATION OF SENATOR ARROYO Upon motion of Senator Pangilinan, there being Noting that the Constitution provides that no objection, the Body considered Proposed Senate congressional districts should not exceed 250, Senator Resolution No. 553, entitled Arroyo asked the number of congressional districts at present. Senator Lim informed the Body that RESOLUTION CONGRATULATING there are 234 members in the Bigger House, including FILIPINO BILLIARDS DUO EFREN party-list representatives. “BATA” REYES AND FRANCISCO “DJANG0”i BUSTAMANTE FOR Upon further quely, he disclosed that no other bill WINNING THE WORLD CUP OF creating a congressional district was pendiug in his POOL HELD FROM AUGUST 22 committee. But he added that he would not hesitate TO 27, 2006 AT THE NEWPORT to sponsor another one if it is deserving of sponsorship. CENTRE IN ~ NEWPORT, SOUTH TERMINATION OF THE PERIOD WALES IN GREAT BRITAIN. OF INTERPELLATION3 With the permission of .the Body, only the title There being no other interpellation, upon motion of the resolution was read without prejudice to of Senator Pangilinan, there being no objection, the the insertion of its full text into the Record of Body closed the period of interpellations. the Senate. -4.w P 242 WEDNESDAY, AUGUS !?30,2006

ADOPTION OF PROPOSED SENATE 3USP'EI\~.;IONOF S1':;SION RESOLUTION NO. 553 Upon motioii of Senator Pangilinan, the session Upon motion of Seiiator Pangilinan, there being was suspended. no objection, Proposed Senate Resolution No. 553 was adopted by the Body. It was 5:34 p.m.

SUSPENSION OF SESSION RESUMPTION OF SESSION

Upon motion of Senator P,iiigilinan, the session At < : 11 p.m., the session was resumed. was suspended. ADJOUmMENT OF SESSION It was 5:21 pm, Upon motion of Senator Piingilinan, there being RESUMPTION OF SESSION no objection, the Chair declared the session adjourned uotil three o'clock in the afternoon of Monday, At 5:32 p.m., the session was resumed. September 4, 2006.

CHANGE OF REFERRAL It was 6:Il p.m.

Upon motion of Senator Pangilinan, there being no objection, the Chair referred the following Senate bills on education and their counterpart House bill;; from the Committee 011 Rules -to which they were I hereby certify to the correctness &f the initially referred pending transmittal of their House foregoing. versions - to the Committee on Education, Arts and Culture:

1. Senate Bill No. 498/House Bill No. 4912 2. Senate Bill No. 502/House Bill No. 5244 3. Senate Bill No. 547/House Bill No. 5217 4. Senate Bill No. 579/House Bill No. 5057 5. Senate Bill No. 580/House Bill No. 5256 6. Senate Bill No. 582/House Bill No. 5138 7., Senate Bill No. 583/House Bill No. 5058 8. Senate Bill No. 584/House Bill No. 5052 Acting S cretary 9. Senate Bill Nos. 586 & 2212/ House Bill No. 4934 fb* 10. ,Senate Bill No. 839/House Bill No. 5402 11. Senate Bill No. 1966/House Bill No. 4912 12. Senate Bill No. 2206/House Bill No. 4736 Approved on September 4, 2006