Never ending inflation for the Filipinos

 I marvel at the stories of my parents and grandparents that way back on their times, the cost of one banana cue was just 5 to 10 centavos. They also said that it is very far from the prices of everything nowadays. What they said were true. The prices of everything nowadays are continually increasing. In economics, this is called inflation. In connection to this, Michelle Remo of Philippine Daily Inquirer wrote an article entitled “Private economists see higher inflation for 2011

“MANILA, Philippines—EconomistS from the private sector have raised their inflation forecast for the year, but maintained that the increase in prices of goods and services would likely remain below the government’s target.
This was according to results of the survey conducted by the Bangko Sentral ng Pilipinas on the latest inflation outlook of private-sector economists, whose outlook on price movements somehow influences inflation expectations of the general public.
Results of the survey, conducted by the BSP in the first quarter, showed that the average inflation forecast for 2011 by private-sector economists stood at 4.9 percent.
This was higher than the 2011 inflation forecast of 4.1 percent shown in the survey conducted in the fourth quarter of last year.
Nevertheless, the latest inflation forecast was a hairline below the 5-percent ceiling targeted by the government.
The economists surveyed by the BSP were from 15 commercial and universal banks and think tanks.”


Should the Philippines continue to suffer inflation? When will this inflation end? When will we experience deflation? What are the intelligent strategies that our government is doing to lighten up inflation? These questions are bouncing in my mind that I think only the government and the economists can answer.

If the inflation will continue and the standard of living of the Filipinos has not improved, I could say that this will cause hunger, death and more burdens to the Filipino people. Many people will continue to complain. The expected hope of many will be dimmed to the point that no light could be seen.  I hope the government would work more on this problem.

COAL PLANT PROJECT: AN ANSWER TO THE ELECTRICITY SHORTAGE IN MINDANAO?

   The seasons of these days have changed. Sudden storms, La Niña, El Niño, earthquakes, tsunamis, global warming and other weather changes have occurred. Davao City could not be exempted with these seasonal changes and calamities. Though our city has not been destroyed by strong storms, our city is still in great dilemma because of El niño that causes water supply shortage and rotational brown out or electricity supply shortage. In connection to this, the preceding column entitled “Aboitiz pursues 300-MW power plant in Davao” was posted by Amy R. Remo in the Philippine Inquirer site.

“MANILA, Philippines—Aboitiz Power Corp. will invest P25 billion to put up a 300-megawatt coal-fired power plant in southern Davao to help address a looming power shortage in Mindanao by 2014.

Manuel Orig, first vice president for Mindanao affairs at APC, said they expected that by 2014, the power supply shortage would be about 480 MW—enough to cut off the entire power supply to the cities of Davao, Cagayan de Oro, Gen. Santos, Zamboanga and Butuan.

“The demand for electricity in Davao and the rest of Mindanao is growing steadily but the supply, unfortunately, has been lagging behind the needed baseload capacity. Government estimates show that unless power supply generation is increased soon, Mindanao is facing a power shortage,” Orig explained.

He stressed that unless the proposed power plant was constructed soon, the energy supply situation in Mindanao would become more precarious especially during the summer season.

“Dry months usually bring down the water level in Lake Lanao, which lowers the energy-generating capacity of the Agus-Pulangi hydropower complex—the lifeblood of Mindanao’s power supply,” he said. Mindanao sources over half of its electricity requirements from hydroenergy.

Orig said APC has assured Mindanao residents that it was ready to do its part to help solve the problem through a long-term solution: investing its funds in constructing the 300-MW circulating fluidized-bed coal-fired power plant in Davao.

Through its subsidiary Therma South Inc., APC is speeding up the construction as part of its commitment to “supply the region’s power needs as its communities, industries, investments and commercial establishments grow—especially in Davao, which has the biggest power supply need in the region.”

It will be situated within a 52-hectare property straddling Barangay Binugao in Davao City and Barangay Inawayan in Sta Cruz, Davao del Sur.

“APC has been in Davao for 50 years. Throughout that time and until the present, the company considers Davao its home. As a member of the community, APC is committed to being a partner in the growth of Davao and Mindanao,” Orig said.

The proposed clean coal-fired power plant, if approved, will be one of the biggest investments in Mindanao.

No less than 1,000 people will be needed for the 40-month construction of the facility and 200 people will be employed during the regular operations of the plant.

Orig assured residents and the local government units that the proposed coal facility would be safe and not harm the environment or the communities surrounding it.

“APC has an excellent track record of human safety and environmental protection in its power-generation facilities. We guarantee that the proposed power plant will not cause harmful effects on the water supply, the health of the communities and the environment,” he said.”

           I know that Mindanao is suffering from the shortage of power supply and, personally, I had complained of these rotational brown outs. Though the city is in shortage, I still believe that it is not best to have a coal-fired power plant in Davao. These people from Aboitiz Company are just saying that their project will not cause damage to the environment because they just want to make their plans to happen according to their will. As I have searched about coal-fired power plant, I have found out that the most common externality that many industries had committed is pollution and this is one negative externality that this coal plant could cause. This is only one externality yet a very enormous future problem not only of the city but the whole country. I could not see the point of providing or supplying more energy/electric power through this coal plant just to meet the increasing demand of electric power, it is because I consider the adverse effects of it to the people. People say that they value life but then they do the contrary. People say that mother earth needed to be cared of and global warming should be prevented but then many political personnel has approved the coal-plant project. People promote the earth day campaign but it is being sabotaged by this coal plant. It would still be useless. If this plan would become to reality I could then picture out the future of our city. I am really saddened with this issue. I think the Aboitiz Company only wanted to become richer.

     

     

   This is all I can say about this issue. I hope I have expressed my thoughts clearly. Thanks.