PHL No. 3 nation ‘most at risk’ to disasters, natural calamities

BY DINT OF BOTH FATE and human failure, the Philippines seems wedded to disasters and natural calamities. It is not only exposed, it is also vulnerable to disasters.

Its location in the Ring of Fire in the Pacific Ocean, opens the Philippines to frequent visits by typhoons, earthquakes, and volcanic eruptions.

But location does not by itself determines a country’s vulnerability to disasters, which may not always spell damage to life and property.

In its World Risk Report for 2012, however, the Alliance of Development Works and United Nations University-Institute for Environment and Human Security (UNU-EHS), ranks the Philippines No. 3 in a list of 137 countries that are “most at risk” to disasters. It is also the country that is most at risk to natural calamities across Asia.

“Whether an earthquake or a tsunami, a hurricane or a flood, the risk that a natural event will develop into a disaster depends only partially on the strength of the event itself,” the report said. “A substantial cause lies in the living conditions of people in the affected regions and the opportunities to quickly respond and help.”

The UNU-EHS, a research and training institute based in Bonn, Germany, is part of the academic arm of the United Nations. It focuses on problems and solutions involving the environment and their impact on human security. The Alliance of Development Work, on the other hand, is an association of German development and relief agencies.

In its report for 2012, the UNU-EHS ranked countries using exposure and vulnerability as indicators for risk.

Vanuatu and Tonga share top billing in the World Risk Report 2012, ahead of the Philippines. The other countries in the top 10 “most at risk” list include, in descending order, Guatemala, Bangladesh, Solomon Islands, Costa Rica, Cambodia, Timor-Leste, and El Salvador.

Stay informed, read the World Risk Report 2012 in Data in Detail of PCIJ’s Money Politics Online.

Yolanda: More sad, bad numbers

THE NUMBERS of the dead and the missing keep rising, yet the scale and severity of the catastrophe that super typhoon Yolanda exacted in 41 or over half of the Philippines’ 80 provinces have yet to unravel.

Official sources on ground are counting casualty figures by the tens of thousands, even as relief and rescue teams have yet to reach many villages that to this day are without power, water, and communication lines. The absolute figures — incomparably dreadful for sure — are hard to come by, and yet the disaster and emergency assistance that must be addressed posthaste is sure to be incredibly massive and difficult.

In its latest situational report as of Sunday, Nov. 10, 7 pm, the National Disaster Relief and Risk Management Council (NDRRMC) revealed more devastating numbers from the aftermath of Yolanda:

• Casualty toll, official count as of Nov. 10, 7 pm: 229 dead, 45 injured, 28 missing.

• Affected population: 2,055,630 families or 9,497,847 persons in 7,027 barangays in 41 provinces of Regions IV-A, IV-B, V, VI, VII, VIII, X, XI, and CARAGA.

• Damaged houses: A total of 19,551, including 13,191 totally damaged and 6,360 partially damaged.

• Roads and bridges: Three roads remain impassable in Regions VI and VIII.

• Cost of damage: P138,552,546.55 worth of damage to infrastructure (P13,797,500) and agriculture (P124,755,046.55)

• Power outage: The following areas are sill without electricity – Cardona, Rizal; Naujan, Calapan City, Pinamalayan, Bulalacao, Victoria, and Bansud in Oriental Mindoro; Coron, Roxas, Busuanga, Magsaysay, and Cuyo in Palawan; San Jose, Magsaysay, Rizal, and Calintaan in Occidental Mindoro; some towns of Albay and Camarines Sur; portions of Antique and Iloilo; 24 towns of northern Cebu, including San Francisco, Camotes, Tuburan and parts of Danao City; Guihuingan City and Canlaon City in Negros Oriental; and the entire provinces of Romblon, Masbate, Marinduque, Capiz, Aklan, Bohol, Biliran, Leyte, Southern Leyte, Samar, Northern Samar, Eastern Samar, Dinagat Islands, Surigao del Norte, and Surigao del Sur.

Power supply had been restored earlier in the provinces of Quezon and Camiguin, the towns of Angono and Binangonan in Rizal; Pagsanjan, Paete, Pakil, Pangil, Cavinti, Victoria, Rizal, and Mabitac in Laguna; Paluan, Sta. Cruz, Sablayan, and Abra de Ilog in Occidental Mindoro; Sibulan and Dumaguete City in Negros Oriental; and Siquijor, Siquijor.

• Communication lines: As of Sunday evening, Globe Telecom has restored its signal in Tacloban City, but also in only 20 percent of the affected sites in the Visayas, and only 30 percent of the affected sites in Luzon and Mindanao.

• Cost of assistance: A total of P21,365,510.21 worth of relief assistance has been provided to the affected families, including P10,536,477.60 from the Department of Social Welfare and development, P6,565,051.69 from local government units, and P4,262,980.92 from the Department of Health.

Yolanda’s devastating numbers: A call for all to help, volunteer

THE STRONGEST thus far in the world’s recent history, super typhoon ‘Yolanda’ exacted horrendously tragic numbers of death and destruction across 36 provinces (39 cities, 343 towns, 1,741 barangays) – or more than a third of the 80 provinces of Philippines.

The latest situational report that the National Disaster Risk Reduction and Management Council (NDRRMC) released today, Sunday, Nov. 10, 2013, is a clarion call for all Filipinos to help out, any way we can.

As of 6 am, Nov, 10, the NDRRMC reported:

• Casualty toll: 151 persons reported dead, and 5 persons reported missing. The numbers of the dead and the missing are seen to rise further still, pending receipt of more field reports.

• Affected communities: 982,252 families or 4,459,468 persons. They include 101,762 families that had been displaced and are now being assisted inside and outside 1,426 evacuation centers.

• Affected areas: 1,741 barangays in 343 municipalities and 38 cities in 36 provinces of Regions IV-A, IV-B , V, VI, VII, VIII, X, XI, and CARAGA.

• Damaged houses: 2,380, including 2,071 homes totally destroyed, and 1,409 partially damaged.

• Affected infrastructure: 18 roads and one bridge in Regions IV-A, IV-B, V, and VII.

• Stranded: 501 passengers, 3 vessels, 67 rolling cargoes, and 1 motorized banca in Regions IV-B (Puerto Princesa), V (Albay and Sorsogon), and VIII (Maasin City and Catbalogan City).

• Suspended operations: airports of Busuanga, Roxas, Kalibo, and Aklan.

• Power situation: Since Nov. 7, 2013, a number of towns and entire provinces have experienced extended blackouts. Power has been restored in Sibulan and Dumaguete City, Negros Oriental, and Siquijor, Siquijor; Pakil, Pete, and Pagsanjan in Laguna; Angono in Rizal; and the provinces of Quezon and Camiguin.

Network outage continues in Aklan, Antique, Capiz in Region VI; towns of northern Cebu and Bogo City in Region VII; Biliran, Leyte, Southern Leyte, Sanmar, Northern Samar, and Eastern Samar in Region VIII; and Surigao del Norte in Region XIII.

• Estimated cost of assistance: A total of P10,636,254 worth of relief assistance has been provided to families in Regions IV-B, V, VI, VII, X and XI.

The amount came from the Department of Social Welfare and development augmentation support, P9,648,554, and Local Government Units, P987,700.

• Cost of damage: P7,215,831.75 worth of damage to infrastructure and agriculture.

Here are useful contact/hotline numbers:

National Disaster and Risk Reduction and Management Council (NDRRMC)
(02) 911-1406, (02) 912-2665, (02) 912-5668, (02) 911-1873,
(02) 912-3046, Trunkline: 911-5061 to 64

Department of Social Welfare and Development (DSWD)
Trunkline: (632)931-81-01 to 07, local 426 or 425
(Disaster Response Unit); (02) 951-7119; Pasay Office
Hotline: 851-2681, 511-1259

Department of Public Works and Highways (DPWH)
(02) 304-3713, (02) 304-3904

Philippine National Red Cross
Hotline -143, (02) 527-0000, (02) 527-8385 to 95

Philippine National Police (PNP)
Hotline Patrol – 117 or send TXT PNP to 2920

Metro Manila Development Authority (MMDA)
Dial 136, 882-0925 (flood control)
Trunkline: (02) 882-4150-77 loc. 337 (rescue),
255 (Metrobase) Metrobase: 882-0860

DATA A DAY: Dealing with disasters

IN DISASTER and crisis situations, what are allowed, and what are prohibited, acts?

One of the following acts may cost a public official or citizen stiff penalty or jail term under Republic Act No. 10121 or the Philippine Disaster Risk Reduction and Management Act of 2010.

A. Imposition of price ceilings on basic necessities and prime commodities by the President.
B. Preventing the entry and distribution of relief goods in disaster-stricken areas.
C. Government financing institutions granting no-interest loans to the affected victims.
D. Reprogramming of funds for the repair and upgrading of public infrastructure and facilities.

Which is which?

Letters A, C, and D are remedial measures that must be undertaken immediately upon the declaration of a state of calamity by either the President or the local council or Sanggunian.

Letter B, meanwhile, is among the prohibited acts enumerated in Section 19 of RA No. 10121 or the Philippine Disaster Risk Reduction and Management Act of 2010.

Apart from preventing the entry and distribution of relief goods in disaster-stricken areas, the law also prohibits the following acts:

1. Dereliction of duty, which leads to destruction, loss of lives, critical damage of facilities and misuse of funds;

2. Buying, for consumption or resale, from disaster relief agencies any relief goods, equipment or other aid commodities intended for distribution to disaster-affected communities;

3. Buying, for consumption or resale, from the recipient disaster-affected persons any relief goods, equipment or other aid commodities;

4. Selling of relief goods, equipment or other aid commodities intended for distribution to disaster victims;

5. Forcibly seizing relief goods, equipment or other aid commodities intended for or consigned to a specific group of victims or relief agency;

6. Diverting or misdelivery of relief goods, equipment or other aid commodities to persons other than the rightful recipient or consignee;

7. Accepting, possessing, using or disposing relief goods, equipment or other aid commodities not intended for nor consigned to him/her;

8. Misrepresenting the source of relief goods, equipment or other aid commodities by:

* Either covering, replacing or defacing the labels of the containers to make it appear that the goods, equipment or other aid commodities came from another agency or persons;

* Repacking the goods, equipment or other aid commodities into containers with different markings to make it appear that the goods came from another agency or persons or were released upon the instance of a particular agency or persons;

* Making false verbal claim that the goods, equipment or other aid commodity in their untampered original containers actually came from another agency or persons or were released upon the instance of a particular agency or persons;

9. Substituting or replacing relief goods, equipment or other aid commodities with the same items that are cheaper or of inferior quality;

10. Illegal solicitation by persons or organizations representing others as defined in the standards and guidelines set by the National Disaster Risk Reduction and Management Council (NDRRMC);

11. Deliberate use of false or inflated data in support of the request for funding, relief goods, equipment or other aid commodities for emergency assistance or livelihood projects; and

12. Tampering with or stealing hazard-monitoring and disaster-preparedness equipment and paraphernalia.

Subject to the discretion of the court, violators of R.A. No. 10121 may be fined from P50,000 to P500,000; imprisoned for at least six years and one day to 12 years; or be fined and jailed at the same time.

In all cases, the objects and the instrumentalities used in committing any of the prohibited acts will be confiscated and forfeited in favor of the government.

If the offender is a public officer, he or she may also face perpetual disqualification from public office.

If the offender is a corporation, partnership or association, or other juridical entity, the penalty “shall be imposed upon the officer or officers of the corporation, partnership, association or entity responsible for the violation,” without prejudice to the cancellation or revocation of their license or accreditation from government licensing or accreditation agencies.

If the offender is a foreigner, in addition to the penalties cited above, he or she “may be deported without further proceedings after service of the sentence.”

Check out PCIJ’s MoneyPolitics Online: Stay informed, stay safe!

Price, profit, and water tariffs: Ne’er the twain shall meet?

PRICE AND PROFIT.

Or, price vs. profit?

These are the two sides of the water equation that is at the heart of ongoing “rate rebasing” talks between the Metropolitan Water and Sewerage System (MWSS) and the two private water concessionaires serving the capital region and surrounding areas.

A fortnight ago, they engaged in a noisy row over the possible disallowance of claims for income tax payments, but yet again they are locking horns.

This time, it is over the level of guaranteed returns that the water companies are entitled to get — a major factor in setting water tariffs.ntitled to get — a major factor in setting water tariffs.

How this debate ends will determine not only what price customers will have to pay for water but also how much profit the water firms could make in the next five years.

Manila Water Co., which provides water service in the eastern half of Metro Manila and surrounding areas, wants to increase rates by P5.83 per cubic meter or 21 percent to P34.12 per cubic meter.

Maynilad Water Services, Inc., which runs the water system in the west zone, is proposing to increase average basic rates by P8.58 per cubic meter or 25 percent to P42.55 per cubic meter.

PCIJ Figure 2. ASEAN Water (1)

Since MWSS was privatized in 1997, water rates have soared nine-fold in Manila Water’s east zone and more than six-fold in Maynilad’s west zone.

Apart from being allowed to recover past expenses and future costs from tariffs paid by customers, the two water companies are also allowed to earn a return on those cash outflows.

For the next five years until 2017, they want a return, also called the appropriate discount rate or ADR, of 8.99 percent, according to people privy to the discussions.

However, MWSS water regulators find the proposed discount rate of 8.99 percent too high, given that yields on long-term Philippine government bonds have plummeted, especially in the last five or six years as the country’s economic fundamentals have gotten better alongside falling U.S. interest rates.

The regulators are said to have initially set the ADR at 6.16 percent, according to people familiar with the discussions between the MWSS and water firms.

PCIJ Figure.. THE WATER FIRMS' RETURNS. QUICK TO RISE, SLOW TO FALL, july 2013 (1)

In plain terms, water rates increased faster in the early years of privatization as a result of big jumps in the ADR, because of higher interest rates and the peso’s decline.

Today, amid lower interest rates and a stronger peso, the returns of water firms are expected to also fall proportionately, thus tempering any increase in the price of water.

However, by many accounts, the water firms’ proposed ADR of 8.99 percent does not seem to reflect this changed reality.

So, what “guaranteed returns” for water service is best in the next five years?

Should it be 8.99 percent, according to the water companies?

Or, should it be 6.16 percent only, according to MWSS’s estimate?

Is there a perfect balance here between the profit that water firms should make, and the price that customers should pay for water, in the next five years?

Read our latest report, MWSS, water firms clash over ‘guaranteed returns’.

Check it out also on BusinessWorld Online and ABS-CBNnews.com.