Arroyo declares state of calamity in Mindanao

Source: Daily Inquirer
By TJ Burgonio
Philippine Daily Inquirer
First Posted 17:08:00 03/11/2010

Filed Under: Electricity Production & Distribution, Government, Politics, Weather, Disasters (general)

MANILA, Philippines – President Gloria Macapagal-Arroyo has declared a state of calamity in Mindanao, but Malacañang has ruled out any price cap on oil prices under such a declaration, officials said Thursday.

"She has declared it in Mindanao,'' Secretary Ricardo Saludo, presidential spokesman, said by phone, quoting Defense Secretary Norberto Gonzales who pushed for the declaration.

Ms Arroyo flew to Tawi-Tawi to inspect the construction of three bridges, inaugurate a water supply improvement project, and then to Zamboanga del Norte to inspect a road project.

Arroyo was accompanied on her trip by Gonzales and Secretary Jesus Dureza of the Mindanao Development Authority, who confirmed to reporters by text that she has approved the recommendation to declare a state of calamity on the island.

"We're just waiting for the signed document to be released,'' Saludo added.

In a Malacañang briefing, Gary Olivar, deputy presidential spokesman, said Ms Arroyo would sign the draft proclamation on Friday "at the latest.''

The government was banking on Ms Arroyo to declare a state of calamity to help solve the worsening power situation on the island, which has been hit by brownouts lasting eight to 10 hours a day.

This would allow the national and local governments to access calamity funds and quickly procure generators to ease the power shortage, officials said.

The government has backtracked on a move to declare an emergency and call a special session after leaders of Congress pointed to the difficulty of mustering a quorum in the heat of the campaign season.

The declaration of an emergency would have allowed the purchase or lease of modular generating sets needed to generate additional capacity of 160 megawatts for Mindanao.

Olivar said the calamity funds would be used to purchase generating sets that were initially estimated to cost P5.5 billion.

"The importation of gensets, maybe even power barges, which have much higher mega wattage will require calamity funds that will be mobilized by the declaration of a state of calamity,'' he said.

Olivar ruled out the imposition of caps on oil prices in a state of calamity in Mindanao, as happened during the declaration of a state of calamity in several provinces in the aftermath of powerful storms last year.

"I don’t know that cap on prices is something that’s relevant here,'' he said.

Energy Secretary Angelo Reyes said it would take two to four months to purchase and set up the generating sets.