Panel 2: Building Resilient Energy, Infrastructure, & the Blue Economy | Manila Strategy Forum 2026

All right. Thank you so much. I'd like to start our next panel. I'll be handing it over to Dr. Christella who will be our best panel. Thank you so much. >> Steab Bella and I senior adviser at CSS. I'm also head professor Jack politics of international relations at the University of Oxford in the United Kingdom. I am very pleased and honored to be moderating this panel which looks at building resilience energy infrastructure and the blue economy. So up to this point today we've been talking about the big picture in the region or even beyond. We started the conversations about the international order. We've been all around the world. The last kale offered some very interesting government perspectives on what's been happening with geopacific and I started to narrow the conversation to the Philippines. And in this case, we're really going to look at very concrete material things that are often underappreciated but are really the life blood of a Chinese society. and suing that's come up in the other panels. These are often the things that had the most impact on the lives and the livelihoods of people in places like the Philippines. Um moreover, they sit at the intersection of economics and security. So they are really subject to both the challenges and the opportunities of geopolitics that we see today. And we've seen a lot of amazing developments of energy in the Philippines right now behind things like the Luzon economic corridor pack and other things that we'll talk about panel. So I am delighted to be joined by an illustrious lineup of speakers. I will introduce them briefly and then they will share their perspectives on different portions of the themes of this panel. So to my left we have Ambassador Heather Payaba who is senior Kaiser at the Bureau of Economic Energy and Business Affairs at the US Department of State. Uh next to her we have Mike Boru who is head of advisory at RG Man and Company. Then we have Bert Dong third, energy transition advisor and the Institute for Climate and Sustainable Cities. Followed by Nigel Armad, chief party at this is right program. And last but not least, we have Aaron Murphy who is Spanish director of Asia Red Point Advisors. So I'd like to begin by turning first to inviting her t for more about the economic corridor and the vision for catalyzing it best in the north. Thank you so much, excuse me, my friends at the CSAs, Greg Polling, Ambassador Edgar Kag. It's wonderful to see uh the US Philippines society here as well. Such a key partner um and many thanks to our Filipinos like CSI and and others uh for putting on this fora. Uh I really like here today as before colleagues of the panel. Um uh I'd like to sort of start with the strategic 30,000 foot view and then gradually do down a little bit uh into more specifics about things on a gamma corridor. Uh but let me start by saying that several years ago uh key folks in the US government um realized that that we as a government needed to do a better job of coordinating our economic tools to foster uh and support US companies, US investment and to support key um key regions of the world. And so we developed this corridor concept uh and they actually have several corridors around the world. You may have heard of the Legito corridor in Africa. There's the TransCaspian script corridor across Central Asia to Eastern Europe. Uh and in Pacific uh we have the Luzon economic corridor here in the Philippines. uh as somebody who studied economic diplomacy for the last 30 years uh with the state department, this is like music to my ears to be able to uh bring together the different tools of a head of the US government to support investment. Uh, as both President Trump and President Vargas have said, economic security is national security. And so, uh, taking those tools and putting them to work for US companies, US investors and partners like the Philippines, uh, is hugely important to us. Uh, the Luzon Economic Corridor Initiative uh, punched in 2024. It's a trilateral initiative involving United States, Philippines, and Japan. uh and it's meant to catalyze this investment 48 investment to um to contribute to creating jobs and creating a more connected um and competitive and prosperous Philippines the Hison area which we all know accounts I think for all these 50% of the GDP of the Philippines. Uh so so we has worked three the three triilateral uh partners out of regular uh engagements where we're uh combining together the work on investment and uh particular infrastructure projects uh and then then working to support the private sector. Um in May we were delighted to agree on eight our partners on the economic corridor in that's Australia, Canada, Denmark, uh France, Italy, Korea, South Korea, uh Sweden and the UK. uh at each of those countries has brought in both their government and their private sector to support infrastructure investment in the corridor which I bet you all probably know starts in the north with Subi uh Subic Bay, Clark, Manila and Mutangas and really tried to catalyze private sector investment uh breeding the tools of our governance and support of our private sector to create jobs um uh create opportunity ities uh companies. We look at three sort of sectors in uh in Tibber through the economic corridor initiative. Transport and logistics uh energy and then digital innovation and then advanced manufacturing. I would say a core component of the forer is what we would call regulatory issues and basically working with the Philipp government and working with private sector to identify bottlenecks and look for solutions to problems that um that then can catalyze more investment. Um, if I were to give you some examples of some of the things the United States is doing in each of those areas, you know, really the order kind of started came in almost before it was identified as a border with the a big deal up at Sud Bay uh with Cberus and the Philippi and Philippi partners. Um and I was here as uh working in the embassy in 2021 and 2022. Um was at the launch of this new project uh involving service in the Philippines and he walked through the what was then the Hanjin shipyard. It was empty. There was not the cap. Uh and then to come back uh in Bane when I was in Maine to go hack up Sud Bay to see the Hyundai shipyard which just recently launched the sport ship uh coming out of that shipyard was really inspiring and incredible to think that in the space of five short years would take what was you know uh a facility that was underutilized and interpreted to very reduction um uh uh uh investment. Uh so so Bergie then also in transport on logistics on rail. Japan of course is a huge uh plays a huge role in this in this area when uh the work you're doing on the passenger rail and other toms of rail. We are partnering with Swedability study to develop a freight rail system which would be first as high within the Philip gates. So those are just a few of the areas transport logistics that we're working on uh in energy which we all know is a is a key bottleneck a key challenge no matter what kind of investment you're looking at uh we're chai we're you know working on programs that will create you know like a a fuel pipeline from sub to carp supporting the fuel lust infrastructure that exists in the tongus to how we do uh looking at how we can improve transmission and distribution really trying to tackle black programming. We have some great American companies who are interested in working with us on that. Then then in the um digital innovation and advanced manufacturing there's a it's a tremendous story here that long creates on account board or with companies like Texas Instruments Collins Aerospace you know Philippines has this niche of like for well and advanced manufacturing and I think the scope for for them to do more for is to be more and we're eager to cooperate with them in that area and you know we are working on on substables and uh fiber uh the networks in the Clark area for symbol. These are just a few of the areas uh that we're working on in each of those to these sectors uh through the United States and our partners also working with our fellow keys to um address regulatory issues. uh what I think the uh we have to create more have the uh uh some of the investor you know connections and expansions things that we're working on to try to make that business environment even more uh beneficial to investors own US investors international investors here also will be an investor and there will be companies I thought stop right there um look forward to the conversation to hearing your suggestions how we could do better or how we can do more um you know as a government you we need to listen to the private sector in terms of what you need and so really happy to hear your >> thank you very much. Thank you Heather for providing that context says it. That's an excellent way to begin and we can pick up on that theme by turning to Miso and M I'd like to invite she talk about some of the key issues and opportunities shading particularly energy infrastructure. >> So thank you for that pass. So the key words so the key words that I that I pick up from religious pension would be the the period pension to catalyze uh more investment to the region. uh you already met that uh that corridor is around 50% of total GDP and then there's always an effect for Filipinos to try to just natur to the land area of the Philippines but it represents over 3% of her GB figured out just imagine how robust how busy and how hooked exit area is by at least that corridor it introduces to you know decongest economic activities within that area and and then also to put the area proper context. uh we are in a very important phase of the of Philip Philip history under federal administration we are sitting on a very compass uh pipeline of infrastructure right obviously it's a lubarate but if you we have over 250 plus major projects around 3.2 trillion pesos that's 50 billion US it it's just it just jump started uh after the implification of the PPP law of the Philist so we've definitely received a lot of support and making sure that the under laws rules are in place and we've been seeing the positive results of that. So a couple of projects consistent with the May light would be the railway. So over over out of the three trillion over two trillion are in railway projects all around the Philippines and as opposed to prior projects they are not just within states it's the tech polices so which is a really good place for us so transport rail day stopper wash transport stoper and that and then Those would be if different phases of auas. So either if project preparation at the bulua stage or at curate for private sector testers. Then as metro just focused obviously the lous area but also throughout our cut. So top three areas would be uh central na right what there's a there's a big opportunity for American petrol servers there is an international airport and then thanks to kilo which implementing rules were released that could be in 2024. it has really sped up over the uh number of projects that have it added to that pipeline >> and then also I think it's very important that for the past 20 years learning unlearning a lot of things probably there were more unsolicited proposals pastor very important because he's from the private sector but then what's there a warrant or deliver it raised questions on meetings and then followed by presidentino aware okay let's make sure that we prepare properly so that everything is everyone's accord but in terms of proper direct projects but obviously it slow down the many and then it was a different view from President Ter where Borit was to government financing but again so there were some projects that were started but cannot resolve actually execution issues just imagine trying to implement the railway project in a very coffee pet >> and then and then now here we are as a festive far co and then I think what's exciting would be the extent of new projects that will actually be awarded hopefully operational with the history. So that's for an infrastructure high level on an energy also from a national perspective. It's also an operative type because we are in the middle of at an intent to decarbonize when you pitch your car gets off. Right now we're at around 256% pretty equal energy relative to total takes intent is to make it 35% or 30 of 20 30 35%. 2040 could be 50%. And then this one fair projections by 2050%. of the vis since it's more than 20 years in the future is less committed care. So it turns on attentions to you invest in renewable energies particularly there's a lot of uh next time robust interest in we hope to see more investors like that uh enter the market but for us it's not a one is to one invested obviously as account that we like to follow the but so what we're seeing is there's e corp peso investment there's a 1.8 to 2.5 multiplier because uh we see the various renewable energy projects just solar grid hydropower we're very familiar with geother sources you got a lot of full system related effects so including transit college also this energy efforts at the right so it's really very important okay with those food banks structure and energy and place and I think one important topic that we've always uh one concern that the would be will the society enough will the society enough to cater to the V3 system at the map uh from the economic corridor. I mean two schools of thought. If you just read the Philippine Department of LG, I mean the installed dependable RH is always higher than the peak demand for doing a fighter success. But for the concerns right that there might not be enough supply uh to address for him that they of other cad that should also be >> uh many of you are or maybe we already familiar with the for an report entitled the sanio um the central message of this report is this Friday says that global marine fisheries lose about 83 billion US dollars in economic benefits every year because fisheries resources are not managed to their full picture a lot management is not simply an environment that This as said also area is its singing for conscious as a stability. It is also connected full security marine governance and national security. Today I want to focus on one part of that chase that remains particularly difficult to understand. I I call it or my team calls it the black pole illegal, unreported and unlicang or new economy is valued at about 1.1 trillion pesos in reg to led to about 3.8% of the gross domestic product. Ocean fishing remains the largest sub sector accounting to about 24% of the total. However, fisheries production has been declining and the report from our Bureau of Fisheries is declined from 2.1 million tax state to about just 1.7 in 2024. But our future is data only that still reflect what is planted but does not reflect others that are not standard. So it reflects only those standard recorded monitor and reported leaving a significant part of the music's activity. I'll take the picture. What about the cast that ship or vessels that go dark while fishing or other activities that never in earth or fish out in 2019 a joint assessment by the US government and the bureau of fisheries and aquatic resources estimated that eel fishing represented 37 to 40% of the fish caught in the Philippines that's a n equivalent to approxim imately 62 billion pesos and quality because I fishing is incredibly difficult to measure significant DS remain. In practical terms, we are managing a major economic resource asset of the country without a complete picture of how much ski productions business admits policy may be based on incomplete information for businesses and investors. It creates risk in seabboard supply chains and for responsible fishers illegal activity can underc carry per lawful fishing case becomes more complex because teachers fisheries economic activities so right strategic competition increase intersect for some multitude the Philippine Bosar reported more Chinese militia swarming around Russo reef an important fishing area within our west sea. They not here windy Filipino fishing boats near is called a show were subjected to water cannons and danger struck in maneuvers by the Chinese coast vessels leaving free kilobinos fishers. Palaman fishers have also reported being monitored by Chinese droves while fishing families near Panasa Island have seen their incomes fall by as much as 70% as pressure to city next access traditional fishing grounds. This incidents demand us the access to the burious resources. Understanding what is operating at sea and protecting our economic interest cannot always be treated as separate ships. Are you refusing the restrict is a dynamic challenge that physically intersect with the broader national security concerns. Can economic resilience and maritime security depend on the basic capability having another feature of what is happening only our waters having the institutions partnerships and resources on this information. So what does this mean for the ocean? are trying to build and champion. The village base is already putting a torn up frame in place including a proposed blue economy act in the national maritime moist fish. But fol are not enough. Their value will depend on whether we can translate them to better information, stronger coordination and the Syrian infrastructure and the rest. And when we talk about the infrastructure for the economy, we should take beyond ports for trades, information systems, connectivities and DBT evidences and institutions that turn information into action are also part of its expression and ocean economy would be I would suggest three areas where Philippines and the United States had a deeper operation. First we need to test in information and infrastructure and improve the flow of information from SE shore. The SQL ecology will reveal the black food of IIO fishing. Satellite information gives us one part. Vessel monitoring gives us another. Fish optives themselves are also an important sources of information. groupite. The US government is supporting community reporting of possible if she ship and other maritime forces not only to replace to replace government oratory systems but complemented by organizing fish observations improving connectivity in connecting the information with the appropriate government agencies. Second, we need a stronger maritime science and better evidence. Science reduces uncertainty. It helps the government underflying what is happening to a major economic asset like the fisheries. It gives politicians investors greater confidence and resources based on which sequel supply chains. US filament faculty cooperation can generate practical decision information on resource conditions, fishing activity and changing conditions at sea. Third, we need strategic investment advisories of alli alli ocean industries. Better information in record science must ultimate economic value. A resilient social economy needs a physical and market extract infrastructure that allows for fishing and legitimate seaffort businesses to complete to compete and grow that includes connectivity ports and food chains traceability insurance processing mar and technologies that we apply supply chains more transparent and efficient. So shike we are also working with the government in the private sector fish risk assessment and architect education for us the issue ultimately comes down to confidence and this is about confidence in the resource confidence relable and transpire supply chains and that legitimate business will have will not continue be undercut by liberal activities. These three are closely connected. Community recording helps us see what is happening. My science researcher helps us understand what strategic investment help us to knowledge to stronger out. >> Together they provide areas where big and the United States can deepen cooperation. Bringing together governments, science, technology, communities and business to statate both the Syrians and the value of developing ocean economy. The lessons from the million report was hope of one. These losses are recoverable and not permanent. For the Philippines, there needs information infrastructure that helps us see better the science that helps us understand better and economic infrastructure that allows us to produce risk to compete in grow. We cannot build a economy around what we cannot fully seek others. Those information gaps around fishing is not only a fisheries priority. Securing the future value of the Philippines most important assets. Thank you. >> Thank you Nigel for adding a very important dimension of the economy and about resilience and also about the different connections between the economy and national security. So I think your remark saw some highlight and it's not just about the national dimension but also about the security people security food security lots of different dimensions that are highlighted. So uh Erin I'd like to try to you to talk a little bit more about paying for all of these things and how we resource investment what we may learn other Jeff. All right. Uh thank you everyone. Uh thank you Darva Devela for uh moderating this panel uh for CSIS for brie for the second version of this forum. So thank you Greg, thank you Jet and Reika the CSIS team uh to my fellow panel and everyone here and now that I have under my attention after lunch and for the jetag folks going to talk about money and how we're going to pay for all of this. So let me start by defining how I define uh what critical infrastructure is and it's water energy transport and ICT. Now that's an umbrella. There's a lot that goes under that. But there's railroads or some cables, oceans, food security. So it's a pretty broad definition. Um do we need it? And and what kind of infrastructure do we need? uh critical infrastructure is not just called that there is the reason why critical is in front of government infrastructure but I think what is also incredibly important in putting in infrastructure and one thing I think we are all increasingly realizing is that it also needs to be resilient these are things these are systems that once built must be maintained upgraded repaired um which leads to the types of questions that we need to ask when it is selecting the project, funding the project and that's who pays, who bails, who maintains and who benefits. That last question is where detention really starts in who benefits because money is evolved and there's a question over whether or not it's a public good. um these critical infrastructure, you don't really appreciate it until it breaks down and you really need to use it. Whether it's the internet goes out, the train is delayed, uh your flight is canceled because of a erupting volcano in Indonesia. There's all sorts of things that will happen, but ultimately it's something that we all need. It helps with the transportation of ideas, trade, commerce, uh all the important things. Um and they also serve our most basic needs where there comes heating and cooling, eating safe food, drinking clean water, um it and be connected to others. So as if you read the uh CSIS uh paper that came out right before this but also what we heard in the first panel um there are a lot of challenges that the Philippines I think is right ground zero for uh the supercharged Elino for example um we don't really know what that's going to happen and I'm not going to also borrow you about whether or not climate change is real climate is changing resiliency ECG put in place to protect all of these things but they also need to expanded whether or not a climate change was an issue. Co taught us that we are digitally connected. Uh nearly all of our services had to go online while we were stuck at home. Whether it's e services like healthcare, education, uh but also just trading uh selling things online, buying things online. I know about a lot of ridiculous things uh you know just in the name of small businesses and the economy. Um but when we look at the Philippines and what is happening here, we've heard about the UAN corridor which is really a huge effort uh addressing almost all of those pieces of infrastructure that I discussed. This is a government-led initiative uh and as the master noted many many countries that are involved from Europe, G7 countries, York, America showing that this is a pretty significant piece. It in some ways is a great pilot project as well as how can you bring all of these pieces together in a major infrastructure project in an archipelago um and address all this critical needs but also build for the future. Uh it's emblematic uh partnerships alliances but also geostrategy and geoeconomics. Uh it's no big secret that there's competition with China. the mag chise and this is one way of addressing uh ways in which we've been backing or struggling with a competing with the belt and drove initiative. This is cherine values based infrastructure plan with transparency quality infrastructure um and part of that is by bringing in the money to do that in a transparent manner. Some of the biggest players in this are development finance institutions such as the US international development finance corporation which you can thank for international cooperation and from all the other countries that I mentioned their development finance institutions and their versions of a ministry of foreign affairs afraid. Uh but what I would say with this is well back up a bit these DFIs are able to remind some tools to make investing in these types of projects more helpful or easy as political risk insurance is guarantees it's loans equity financing is uh experted guarantees these are the ways that government hopes will attract private sector into these corridors into these these larger investments even if you get beyond the borders to the Philippines itself how to attract crisis sector investment and this is where things get a little um brass tax. So for the private sector you have to ask yourself why did I invest here? What is driving here and how do I make a return on investment? The ROI hoax that is kind of the key part there. uh the DFC is probably one of the few parts of the US government that uh understands their money as a free it's supposed to get big backed and as the private private sector in uh investors also think that sense of geostrategic competition uh is not necessarily part reversal of the investor strategy to a region. So you have to think beyond convincing an investor oh well we're competing with China or we're competing with X Y and Z. It's not like that. It's how are they going to make money? And that sounds pretty vicious, but that's that's kind of what it is. When I talk to private equity investors, uh, we have a completely definition different definition of what an emerging economy is. I might say, you know, I love those. Uh, you know, I might say some other country. Uh, they say Poland or Chiwe. To me, those are very developed countries and not emerging. But I think that difference of understanding of what we're working with I think shows where private sector investments are. So I think the ambassador said it would be great to talk to the private sector and find out what they need. This is also it would be great at forum if also we're talking about in a previous discussion you know where does this a forum a need to what sort of action items comes out of this? Well, this is a great way for the private sector to talk to government officials being saying like this is what we need to invest in political risk insurance. It's that the foundational pieces of uh transparency of investment of taxation that's what AC basics where we can even play but never just guessing what investors need is not going to be the best way. And um again you go to DLC. I love the Gordor idea. But if you're trying to retract flight investment, it is what they need. But it is also a balance. You can't just skip a private sector after everything they want. And of course they're going to ask for the sun and the uh and then they not be possible. So in government who builds, who pays who I do benefits and looking at a project, you know, I think this is where where does government fit in? in terms of what is the public good? What is going to build that foundation that is not only going to help communities but actually attract that private sector? Is energy stable? Is there enough? It is reliable. Um where does the Philippines want to go? Uh President Marbos has talked about uh clean energy but also energy stability. There's also the discussion about uh the Philippines being part of the AI system whether it's with data centers or whatnot like well data centers can either take all the resources or help spur investments and infrastructures around it that doesn't just benefit that data center but also the infrastructure that goes around that for the communities and it goes to all that the pieces of the definition infrastructure water energy transportation ICT of first And if you've read the news, there's some headlines that uh some folks think AI is really false by the end of this decade. So maybe you don't want to invest in that. That's fine. True. >> Um it's a little scary. Um so you can see that governments were gung-ho about affiliates. I they're really gung-ho about Dan Corridor. But if you look at the fine print on a lot of these declarations, these uh press releases, it says mobilizing private sector capital. It's going to be the main thrust of financing this. And I'm not sure the private sector knows that they're going to be mobilized to finance this. So sometimes it's better to have the room uh with coming out of these plans before you uh announce them. But um that doesn't mean that it's not going to happen and it is happening but this is really a discussion between the private sector, the public sector and the communities in which they're involved because it's all part of the keys for this to go forward. Um there was one thing that uh was said this morning by here we go Gloria which really I think stood out to me and I think should kind of inform the Philippines as well in deciding where their future goes and and who's going to be investing here that the Philippines doesn't want to and I'm going to paraphrase this terribly so yell at the news later that the Philippines doesn't just want to be a trust in subcontractor someone else's and I think that's a really powerful statement you want to increase your value in the supply chain. Um, and you know, I think that there's a lot of opportunities there. It's finding the right thusters, seeing if that matches what your your pursuit is going forward and see how these DFIs and discover when HRS could help you in that in that way. I mean, the number of countries that the ambassador listed, it's pretty astonishing. So, you know, go with that momentum and uh hopefully we build a nice resilient infrastructure for the future. face if I >> cuz I think I've been hearing a lot about Harris uh expected it to happen uh at least for my room it's right here right so we've been experiencing Henry call it even relative to prior years it has been a bit more intense so we really plan to maybe there is an outgoing decision it's regarding uh the zoe economic corore. So one clear suggestion is hopefully uh all of the technical specifications uh that will be included at that specific study will be as updated as possible to ensure that watch operational specific like the specific issues at visit Alaska and then we know for sure that aside from flooding earthquakes akes and the like are also uh risky factors for heling infrastructure that will be put in place that those proper studies are considering and addressed and I think that would be a step towards heavy truly resilient infrastructure for this project. Yeah, thank you for that intervention and I think there are some pretty clear things coming out from the comments that the speakers have made during this panel. I think we heard a lot of uh excitement about the opportunities in the Philippines which in China cases have been there for many years are coming together in a particular configuration right now. But we also hear a lot of challenges related everything uh such as regulation forcement resourcing public and private sector incentives etc. Uh so just to pick up on the likes concept of resilience um you know that's a very complex concept we have to think about resilience of each of the topics that our speakers have brought up. We have to think about how they're connected across the share areas. And then we have to think about why Greg is stakeholders who are involved in creating and maintaining these essential systems. And again, just to reiterate earlier pointed, I think that this channel is getting to that intersection of economics and security, but we're hearing a lot more about individuals, communities, society, and we have the rest of the Boranese so far. So uh to pick up on Arian's comments and just ask a few follow-up questions. I think this issue of mobilizing prior under investment is one that we hear all the time for folks who work um you know in infrastructure aid etc. And you know there was this idea that if we build it the private sector will come and that they will pay and this will work out. But we've seen time and time again that that does not necessarily happen. So actually to curse to bite because you talked a lot about the investor excitement and it does sound there are a lot of promising opportunities but often the problem with mobilizing investment is the risk of course right so maybe you could tell us a little bit about you know some of the risks or concern to here and um give you ideas about how those could be a good successfully that would give a wonderful way to start >> thank you for that so definitely there ru with the net shot there is a strong demand from private investors for more projects. So the perceptualization of the Ludanoli corridor is definitely a prayer absent with it. So one would be there's always the risk regarding uh demand demand forecasting uh we see the deal book adobo if that has been shared but uh we've seen a lot of familiar names across water electricity transported logistics so I think it it is clearly true v that demand the fact that there are a lot of proponents that are made to help put the rates in a future budget and then if good luck to finance it will always be what the numbers will take right so demand forecasting event will get us to pay studies it affects its heart when it's a first type project for a particular location right so if there has been a prior market uh for that project at that location there's higher predicate but in the absence of such then uh where will the private proponents get their basis for their less than fixes based for obtain approvals from the intestance committees etc. So I think those would be the fundamental ID error. So let me connect that where will the answers come from. So that's where clear cooperation with the local cover tech as a local basis. And then number two comparable transactions, comparable projects even from other countries. So that's where uh you know cooperation with other countries other corporations agate corporations today's show you know when we rolled out this project at this state or in this other country these were the metrics these were the economic effects so at least they take clear bases right not in the Philippines because maybe there's no comparable projects but at least it is it is unacceptable for the aggressive communities of those private cos >> so Erin I think I go back to you just briefly I mean from your perspective you know you laid out the ecosystem of uh different stakeholders of who benefits the you know where do you think those sticking points are maybe drawing on some of your work on specific aspects of infrastructure >> uh in terms of the sticking points you mean like What is >> in terms of you know reducing risk you making a attract and raspberries to and not only come in initially but to sustain their involvement make this a worth relationship that fully focused >> right I think you know I guess not um it requires real decisiveness at the beginning uh you know in looking at historical examples within the United States uh sometimes it comes out of a crisis and you know we to 40 people. So, we're going to do a Tennessee Valley of 40 or we're going to do a amazing railroad, highways, all that other stuff. But this doesn't need to come out of a crisis. Maybe it's crisis, but um and you know, energy spirit, but it's decisive leadership. Um it's folks that you know it's kind of a culmination of working the right people together which is you know trying to admit the stars align but having for folks in the room that know how to move things know how what tools are affected and that's where the relationship building is. It comes really down to relationships. tree the DFIs uh the development finance institutions with the private sector with the local government know the project is going to be and the communities to where it's going to go. Now that sounds like a lot of work, but can you do that? You fro that that um helps with the permitting, the regulation, the tax authorities, those very unsexy things that can totally derail um that's kind of a pun there. Uh a project uh also where the financing comes from and I think it's a very cleareyed and about where that's going to come from. uh there are many tools along the investment life cycle which who's make project preparation maybe it's uh a financing facility a legend financing facility maybe is full of bank ad just multilateral development base uh but finding out before you get to Gary Tur project who the heck is going to pay for it but also considering within that project what it's going to take to maintain I mean obviously with something as big as hey like building a port or an airport and or brand lines. Um that's going to be multigenerational and so for some the worries is a rock of the future but I would have to say that it cuts down to money and relationships and they are intertwined. Uh it sounds very basic and a little transactionary but um that's kind of what it is but really it's a lot for the front end but it certainly gives off and stays later uh in building those relationships. >> Okay. So maybe I return to Heather that asked you know maybe building on some of these comments. Um you know if we look to the future a very important consideration is sustainability. Okay, just being ensure this isn't something that comes with pass etc. What would you see is the key thing is to the success of the Lison Papa corridor and trying to really make sure that you know your treatment of future we're seeing of this. >> Um thank you so much. Yes, I um we are very committed to this concept um the concept of lose on board or the concept of uh catalyzing private sector and investment. Uh and it's one that has lasted through a couple different administrations on the Philippine side and along the uh American side. Uh the infrastructure takes a long time. Uh it's not an overnight thing. We're trying to do a lot of things uh that maybe you know in an ideal world would be sequenced but in fact need to be a parallel and so there are challenges that come along with that. Uh uh I you know I think I think that one important thing to remember is that particularly when it comes to the United States and the Philippines our relationship is longstanding. We're celebrating 80 years of diplomatic relations, but in fact height, American companies has made me here for a century um and and doing really good board investing uh and we are just working to build on that. The reason I happen to be in Mino at this moment is because uh starting tomorrow we will host the Guison economic corridor investment forum uh that is bringing together the private sector government nations Philippine companies uh to you know look for ways that we can work together uh to build that needed infrastructure and I couldn't agree more that it's complex it requires different tools uh and we're excited that we have more than 600 people who are going to be with us tomorrow to to talk about these things and and in some ways that's also the idea behind the corridor and his initiative of uh you know we want to catalyze private sector investment we also have strategic and national interests that we share with the Philippine Japan and our other nations and you know so where you know where in that complex structure can be you to leverage private investment, but maybe he need to have a little government support to get that across the finish line or to meet that need. And so finding those uh those gaps and in finite ways that we can fill them and you know already you're seeing a lot of very tangible things coming out of the initiative. I mentioned a few of them in the beginning. there's more you know um Ice Square and other US private equity capital firms because a lot of fakes here related to cold storage and helping you know food the Hubble security working on the uh uh fuel and storage and and pipelines that that bring fuel. We're absolutely looking to be additive. We realize that there are pressures on different you know on this infrastructure on the financing on that power and the goal that we have is to ensure that what we break adds to the economy uh and fosters growth for the Philippines and is uh and is not so I'm going to turn to the audience in a moment so please get your questions right here but I went to ask to h Idra first to you very useful fully focused on UX operation in your micro data sheets. But just to open it up a little bit, do you see opportunities for other partners also to to help with the issues that you identify and what would be some of the key procations you may have had just to give us a sense of what that >> yeah right now actually it's also I'm cor on the lone economic corridor. So the partners that are identified in the lone economic order are practical also are the partners that we are also looking into uh our the western side of the or the west economic zone of the Philippines. So all activities that we're doing there are together with our with our Fisher Baser partners and of course the the government agencies uh but partners from from you know from out outside the US actually the partners from the that those will be water economic corridor so we are foring many of our activities also in that area is particularly less risk >> so from Patangas up to up to Ilo up to Iloilopas not just up to Sambalis but near so and then I I think what will Ky see is the extent of market out and market conservations that they've been handling so I heard about this project s black conference with America she gave very active in soliciting ideas is looking for India state proponents. So I hope the energy you know that has been ga over the past few years will get picked. I'd like to think that there are still a lot of companies that would take this step to invest but they or some strange reason they have prepared about the corator of this uh major project yet. Right? So I hope that uh the government and that the proponents could put participants investors as well as potential ideas. >> And then last but not least for a question for you about energy. So, you know, I think some people would be reassured by your her state that the the Philippines actually has the capacity to to cover all of these initiative was a public surprise with that. And so, you know, when you think about resilience, you identify internal dispatch political considerations as as perhaps the big charge. Um, but for those people in the ruring about the broader, you know, fix like the war in Iran, all kinds of shortages. Do you see any other risks that you would highlight to the >> Well, I think inherently uh we're dependent of folks. So, so that's a inherent map. You have to report it's a subject of our uh the value of our vessel. So, yes, built in there are those streets are not uh do not white. How emmer has pointed out by either the planet is there or there's and you know if you relate that that's sort of hard I recall I mean in 1979 I was used to land you were 25% uh reliant on uh uh indigenous energy ID that was 75% on oil And in just five years in 1984 and the shape of the Americas preach it or 52% renewables and indigenous and 48% on a combination of poverty. So historically we've done it we put our we put our mind to it. That's the same message I have, you know, but this but it >> it's not that be the first time we start encourage. So, um I'd like to open up to the audience at this point. If you have questions, please raise your hand and then when I call on you, stand up and wait the mic. So there is one right please identify yourself before asking the question two questions only decision regarding this successful monitor then we just shoot ourselves in the foot number one and number two for anybody I've reacted to a previous gentleman. I'm also old many years ago in the 80s. I was with now in Japan part of the DFB. We worked very closely with the Japanese government of coming up with what was known as the Kadabar zone regional development plan. the Japan International Copper A Shake Cake H with a development plan that featured heavy industry, agriculture and these various components. Now admittedly this was driven by a Japanese vision. So heavy government involved heavy use of uh government funds and the private sector would for this is the general section. Now clearly the zone economic corridor has a ditter you but is it not possible to dust off that old digital development plan? It relied on government money giving your way because the Japanese got this exit on the pulser. You bring in a big boy and he brings in his parents. If this kind of duty can be adopted perhaps, it'll make these best rather than relying too much on only the private sector because if the governor is there, it lacks three days. It will reduce confidence. It will reduce coordination and it will endanger this is not hardest part. It would endanger continuity of this program. We have 2028 coming and this program has nailed to the wall before that. >> Thank you. >> So let's go to Nigel first. for for the first question. Uh yeah uh that's really unfortunating uh about that Supreme Court uh decision. Uh practically it is set in us back by by say by eders in a way. Um the reason for this is that remember we used to be uh given a yellow card by the European Commission uh because of our our parks are not uh are not traceable in in a way uh our most is not really traceable and that was and that was the response of the government to set up the vessel monitoring system to maybe to make our products or sh products cap products tra I I think there's a par that we get getting another year apart or a year apart from the European community. So for me it's um uh could have wish did that happen. Uh I know that the bure of fisheries department resources is fighting and motion for reconsideration but I don't know how will that work. Uh but really it's a big step backwards terms of our money resources. if 2028 coming and this program has to be nailed to the wall before that. >> Thank you. >> So let's go ahead Joel first. >> Yeah, for for the first question. Um yeah uh that's unfortunate uh about the super decision. Uh practically it is setting a spark plot right by say by 10 years in a way. Um the reason for this is that remember we used to be uh given a yellow card by the European Commission uh because of our you know our cards are not uh are not traceable in a way uh or in most cases not really traceable and that was that was the response of the document is to set up that with vessel monitoring system to make to make our products or fish products capital products traceable. So with that decision I think there's the peril that we get again another year of priority for high court from the European community. So for me it's u uh could wish did that happen. Uh I know that the bureau officialist sympatic resources is filing uh the motion for reconsideration but I don't know how it could work. uh but creates a leak that hurts themselves automatically require resources for generation. >> And then the second question was about a greater goal in perhaps something more like a Japanese bubble that was referenced that could be an optit perhaps to anyone area. >> Okay. Well, um I mean the way that Japan invests, this is still the case. It's almost at the Jan Egg where you have government egg coming up the plans. you have JVC providing either the ODA or basically the foundational financial assistance uh to help out the project and then you have the trading houses whether it's Mitsu species whatnot and they all kind of go in as a force and it works and that's partly because for um their investment strategy there is a geostrategic angle or at least for policy angle that is also part of the fabric of the private sector investment. So it tends to sometimes especially in Japan's vast economic and national security interest tends to align that's not necessarily the case for say the US or Europe um but with that intersection of private sector and for government and we'll say that for the most part on infrastructure it really has to be led by government at first but with a sense of communication for private sector because these projects don't tend to make money. A lot of it is in a public good. Now, does the premise sector boost the infrastructure? Yes. But are they going to get money from it? No, probably not. Unless it's a toll road or um um incentives from an airport project or a port project. So, a lot of this does have to be led by government. And um you know where the private sector comes in is whether we have a higher killed or maintain it to attract private sector is looking at where do they fit into the overall project. Um the good thing for the Philippines as the ambassador was noting is that there are a lot of well-known companies that are already here. Uh KKR is here. They are investing in telecom towers. You have Microsoft is here. Um you have UPS and FedEx. Um, and there's investments into cold storage and semiconductors and whatnot. So, how could that get involved or this be part of a larger investment? I think that's where you attract more private sector capital, then it does have to be governmentled. The one thing that I would point out and it's pretty sort of based but it's it's if other private sector sees companies investing somewhere getting really apt dead just like a thumb up like well I must be messing up I got to get there the fact that the Phil gates has great companies here um you know I think that that goes a long way but in terms of the planning it's yeah you could dust that off update it a bit um know where is technology where where are the lights uh where has the climate uh the Philippines and where are those locations in that plan uh how are they impact this um but it probably should skirt out and left great so let's take a couple more questions let's see here one at the back right there if you could please stand the panel also this question concerns the blue economy Um actually this is quite a but considering that the blue is a shared interest of both the Philippines and China is impossible to enter a fashion and it cooperation with Beijing in a way that allows Manila to secure its ecological atrias without compromising 2016 arbitral war while simultaneously serving as non-inatory guard rules to the escalate brazel friction is a That's what it Let's take one more question. It is that yes below. Thank you. My question Mr. or minister to enforce dangerous televites requires accurate information on the seas partnerships. Given that maritime information crosses national boundaries, how should the Philippines decide which partners it can exchange information and how far that information sharing should go given diplomatic sensitivities? Then for you already and I had a hard time getting your attention. Uh Eric, you talked about public good trade. How should the Philippines balance diplomatic sensitivities against partnerships that would help protect our maritime? >> So I think we'll go to Nigel first for that. So the first question is about cooperation with any about sharing. uh maybe I like to tell a story about because before where I was here there is um I was still a student at that time and maybe a fresh first time when I was uh I told you uh last few years there is that commission called South China Sina sea commission where all countries around the south China sea are contributing to that commission it existed before but unfortunately geopolitics cabin came in and particularly destroyed that that objectively to that commission although the commission uh was already devolved even before that but for me the reason is that because you can go back to that you can go back to a certain body our regional officialist organization like you know we have the WCDFC the the Pacific and practically the the the countries around South China can do the same and sharing misinformation actually There are also some degree of sharing among the information among scientists. Unfortunately, this is not clear with together with the government. It's only among scientists. So there is potential for sharing good farmers and it happened before. So my my argument clearly is that it's not an impossibility because it happened and at the same time it worked in many instances in regional fisheries organizations. the the Atlantic Atlantic Atlantic as its own acidic as its own. Unfortunately in the South China Senate does not longer as it so I think get impacted that world practically sought the shelication. >> Yeah to other question um I was building on P's answer and there's I feel like when you talk about a public good it's only that is only shar so many um where you see to be in a kind of an era of selfishness where it's um just extracting resources almost hoarding them uh in a way and you know you would hope that something like the co 19 pandemic would have some sort of like we're all this together let's all work together to solve and that wasn't always the case. Um, so I think it's kind of an uphill battle. Now, the Philippines has had some success using international multilateral institutions to help with its claims uh to support these diplomatic efforts. The UN system is not exactly strong at the moment um for many reasons. Um but I think getting an eye to those fora where there can be discussions on buttershare interests um you know it you see this happening even within a um with transnational issues whether it's on stamp centers or um terrorism uh but with these types of things um you know use the leverage that you have and some parts of the international system are still working Um but it might just take a regional approach. US it's not a great time right now for uh you know middle powers trying to fight their way through some of these things and I recognize that but you know it's it's whether it's bandwagoning boy that might be a bad word but you know in in looking at a South China Sea forum or coming out with something um is it bad to add another forum and another meeting and another ministerial to already a long gentleman list that uh you know I think belies what being part of Azan is But there are some levers in that that >> let's take two more questions from the audience. Let's go all the way back there to the corer to whip the >> you can. Yes. Hello. Hello. Hi Kumik. Um I am Sam Beltran. I'm a journalist from the South China Morning Coast and a fellow the free eer stiff women in security book. So I have a question again going back to what is probably the hottest topic today which economic corridor and this has been answered in a a few variety ways but I just wanted to ask something that has a bit more point. Um so it's been four years since uh Hison economic order was announced and obviously there's a lot of uh excitement around him but there are also questions about how hungry um this is actually shaping up to be. So uh I guess I wanted to ask what are the most concrete signals here that we can count on in terms of private investments which we brought up earlier and is there something around Japan for example of like is there heavier involvement in the Japanese side since this is after all a trilateral uh opinion in Kim >> let's take one more question in the back yes I'm from policy international Uh my question is for Mike Curry. Hi I um a few of you mentioned regulatory challenges and with respect to decarbonization Mike what do you think should be the government's priority regulatory changes in order to support carbonization. >> So thank you authority then papa. So uh in terms of uh what just to try to answer that of the challenges that Christy has actually tried to develop an existing bold planet that's to renewable energy right so I think there there are still uh there have to be more financing incentives uh that need to be put in place to incentivize a coal plant operator with at least 15 to 80 years worth of actually contract. Why would he exchange that for reusable energy that will still be constructed within x number of years? Right? So that is one obvious uh issue as far as financial returns are concerned by it invention. It's an automatic arai issue for nonappa. Why will you stop a cash cow from generating money to China who decarbonalize? It's hard to answer that question. And then number two uh also the it's also about energy security right uh because the actual transition from having a stain based plant right it's cool and then the the act of transitioning within 5 to 8 years is also a big challenge so we've brought it up with the local empowerment against it. It has been a big issue that has not been in proper interest. Uh we are aware of several attempts by different multilateral agencies to really push for early transition right but again so many other considerations and even basic livelihood right so which one is more important the current employees of your old plant or the contractors workers who will help construct the renewable energy plant It's very very sensitive topic if you're talking about livelihood of equal so to the extent that potential unpredictability could be addressed. Uh I know it's not a indirect policy answer but those are on the ground issues that we uh that we had to deal with and then for that particular project they eventually changed their minds but on settle thought we were not trying to translate to so but maybe number two would be we've seen similar F4T Indonesian APMBBG is helping several other companies in Indonesia trying to do to the early vaccation frequency uh uh from that other jurisdiction and transplant. First of all, I think uh Mike tipped to me square when he said that you can you can uh take out your very lucrative co contract. What did I say earlier? You are paid in the basis of contracted capacity not delivered energy. So how do you replace that? Well, you don't hand but in our system we have priority dispatch to motors. Add more renewables. They will naturally displace for and more poor. And as you displace coal, when coal does not serve its market, the market charters coal for spot prices for those energy delivered to their uh customers. In other words, add more and more nomos. That's the way for your decarbonization according to our system. In other words, if you do that and since coal is more expensive, it is more expensive. That's why Baraldo is like one of the top 10 most expensive distribu. So if that happens more and more then coal will die in there. That's the only we're reducing the share of coal within our market. Otherwise you you are keeping that the uh owners are alruist of other uh objectives other than taking care of the chair's question. >> Sure. Uh thank you for that question. Um, you know, I we could actually like to refer you all to a couple online products that will give you some very specific answers to that question. The first is Luzon economic border fact sheet. We published this in May on the margins of our stereotact sheet. You will have six pages of very concrete examples the kinds of things that the United States, Japan, Philippines and other partners are doing together that bring benefits to the region, bring benefits to the people of the Philippines and then benefits to all of our countries. Uh the second uh uh place I would is the Annafford Investment foreign website. It's LAC forum. Uh so if you look up the hack, we have a a list of um of we have a tool book that that highlights particular digitals that we're working on looking for investment in uh and describes what is going on in different parts of the corridor. Uh and we also we will see the agenda and the speakers. We're already interested participation but it will be live and you can see some of the that we're doing some of which I highlighted here whether it's you know jet fuel pipelines fuel storage or uh coal storage and food security uh whether it's fing ports uh more efficient air ports how we fix data to be more efficient you mentioned our Japanese friends um and you know there's really no our Japanese friends are doing many things in relation to the core war and some of that is listed out in the fact sheet that I mentioned, but there's nothing more tangible um in terms of what the four-door means and what our funds are doing than the passenger rail and um all you have to do is go to Clark Air For you see pretty soon people will be able to jump on a train in Manila and then then power it at the front door at the door of the Clark airport which already services like 8 million passengers a year and has capacity more. It's a beautiful facility very soon a lot of capacity u that is a you know just in terms of its tangible impacts that's one of many that I can offer thank you for well we went all out time because we cut all day but I thank our speakers for sharing their expertise us through quite a wide exciting house here in the Philippines as well as outlining some of the shaand still in so please join these ladies No, very sticky. I minutes.