Post 15 of 20: Rural Industrialization thru Green Power

     OTA Formula 5: Rural Industrialization thru Green Electric Power: Target (post charter change): Make full use of Philippine green power potentials towards 1st World-level industrialization.  The MC formula:

    [All MCs as 30-50 member consortia] plus [1st World JV power plant builders & eqpt suppliers] plus [world green Funds equipment and materials loans (guaranteed by the Phil. govt) at 60-70% project cost] create over the years [200k mini hydropower plants @ 50KW (kilowatts) to 10MW (megawatts) capacity each] plus [100+ fumarole type geothermal plants @ 50MW to 200MW each] plus [300k ethanol-fueled turbine power plants @ 50MW to 100MW each] plus [400k agroforest methane biogas power plants @ 100KW to 2MW each] plus [300k solar cell farms with ethanol-fed generator support @ 5MW to 20MW each] plus [200k wind turbine facilities  with ethanol-fed generator support] which altogether yield [trillion-watt level 24/7 power priced lowest in Pacific Rim] that energizes [MC JVs' all-electric mini steel mills, alloy parts-making plants and foundries, machine tool factories, construction steel & heavy industries, ship and boat yards, defense works, electric motor factories, chemical plants, transport industries, and factories that manufacture goods made of plastics, ceramics, glass, cement, aluminum as well as electrical and electronic items, and all manner of producer and consumer goods] all together creating [millions of jobs for bottom poor] and [endless quadrillions more wealth for investing masses and involved cos.] plus [Phil govt tax & other incomes rising 50-100x current levels] plus [endless interest income for involved Green Funds] plus [endless trillion-ton levels of atmospheric CO2 & methane gasses sequestered or prevented versus global warming]

    Q1:Why should the MC Movt create trillion-watt power?   A1: (a) 99% of factory, office and home machines run on electricity, mostly thru electric motors, electric furnaces and related equipment.  A 3rd World nation that manages to create ultra-cheap, 24/7, trillion-watt power, possesses sufficient local and 'imported' industrial skills, is run by a business-friendly, corruption-free govt., and offers low business taxes will be flooded by 1st World techno companies eager to set up local JVs for cost reductions & market expansions.  JV terms may include technology licensing, capital-sharing, parts-making and component assembly, franchising, contract production and other profit-making arrangements.  (b) The  Philippines has billion-ton reserves of iron and magnetite (black) sand (for steel-making), nickel, chromite and molybdenum (for making stainless steel and all manner of alloyed machinery parts), copper (for all manner of electrical and electronic equipment powered by electric motors), limestone (for cement), bauxite (for aluminum), silica (for glass and solar cells), plus some 2bn tons of gold and silver reserves. MC JVs may import billions of tons more of raw or processed metals & minerals of such nature from various countries if their prices prove lower.  MC JVs' electric-powered furnaces & electrolysis equipment can melt crushed & electrolyzed metal ores into purified ingots and mix appropriate quantities of said ingots to create stainless steel & other alloys for making machinery parts and all manner of metal-based products.  Other electric-powered factory machines (grinders, mixers, automatic parts molders, machine tools, laser cutters, sheet stamping sets, drills, lathes, welders, quenching baths, etc., much of them robotic can convert said metals and minerals into all manner of parts and machines for industrial and consumer markets worldwide. The Philippines therefore has great potential to be an industrial power but only if it raises its electricity generation capacity from a currently pitiful 24bn watts to trillion-watt levels. (c) 75% of current Philippine power comes from plants that run on coal, oil and natural gas, all exuding global-warming gasses.  All such fuels are imported except for some 'native' natural gas whose reserves are about to run out.  The rest of power come from hydroelectric plants and some wind and solar.  Fortunately, global warming is now taken seriously by world powers, and trillion-dollar green funds are now available for financing clean and green projects.  All said circumstances present a long-awaited chance for the Philippines to fully industrialize thru 'clean' electricity and 'green' industries largely financed by world Green Funds.  To facilitate the great 'full industrial awakening', the Philippines has to use said very real global warming dangers as 'bait' to acquire much-needed financing from the world's trillion-dollar Green Funds.

    Q2: Why build nets of mini-dam hydropower plants?  A2: The Phils. has some 140 major rivers supplied by several thousand upland streams that form rainy season nets of flowing water on some 18 million hectares of uplands. Currently 'dead' dry season streams once reforested and dammed by MC JVs should create year-round waters able to run tiers of small hydroelectric turbine plants from an average of 1,500 meters upland heights and down to the plains.  Such tactic of re-using dam & run-of-the river waters many times thru tiers of dams with power plants under single watercourse runs should generate power at combined 500+bn watts capacity.  The massive electrical production should add to other clean power facilities (geothermals, ethanol-fed turbines & 'ex-diesel engines', methane biogas plants, wind and solar farms) to create trillion-watt level power in rural areas, which should lead to full rural industrialization.  Reason: bottom-priced electricity (due to 'free fuel' from nature) will attract all 1st World industries wanting to contract production or engage in all manner of joint ventures in the 3rd World to reduce their costs & expand their world markets.

    Q3: How much will it cost to create trillion watt level power?  Can the MC Movt, its govt. and allies afford it?  A3: Networks of mini-dams may cost $50M-$100M or so per set of 5-10 tiers depending on scale of watercourses.  Geothermal power plants may cost $50M to $200M each depending on size of wells.  MC consortia comprising 100-200 members that contribute $5M-10M per member, + 1st World corporate JV partners contributing an equal amount, + State-guaranteed green loans at 60-70% of project cost payable 20 years on revolving basis & 5-yr grace period is a very viable financing scheme for all concerned.  Feasibility is further assured by the quick set-up and expansion of MC's export-oriented MC JV industries as herein described, all of them able to pay enormous power bills due to profitable, world-scale operations.  Proceeds from power sales will take care of paying out quarterly loan installments & interest as well as provide sufficient funds for maintenance and equipment replacements plus operational expansions.  Since all the projects will be using 'free' or low-cost energy (water, methane biogas, solar, geothermal steam, wind, ethanol), massive profit windfalls should rain down upon all involved on endless basis.  Clean Phil. industrialization should be highly affordable and profitable indeed!

    Q4: How much will it cost to sufficiently industrialize rural Phils.?  A4: An electric-powered sponge iron plant (for steel raw materials) & mini steel mill can cost around $500M each.  The same financing scheme as in the power plants may apply to enable consortiums of 50-100 MCs, their JV partners and green Funds to finance scores of the other giant industrialization projects.  Downstream industries (factories making construction steel, sheet and plate steel, machine tool plants and foundries making alloy ingots and machine parts, parts-making and assembly plants for land transports, ships, defense works, heavy industries, etc., may cost $200M to $500M per project.  Again consortiums of 50-200 MCs plus their partner JVs and green financiers (under State guaranty) can afford to build the industries over a decade or less.  Marketing the consequent trillion-dollar production will not be problematic, since the Philippines imports almost all producer and consumer goods at around $8bn monthly.  Right after setup, every plant and factory described will be flooded with orders from local importer companies transitioning to import substitution.  Since the Philippines currently has near-zero 'all local content' manufacturing industries, the new JV mfg. industries will sell $96+bn yearly just for local sales.  Concurrently, 1st World JV cos. that manufacture all manner of industrial, vehicle & home machines that set up Phil. factories for parts production already have world-scale markets that keep on expanding.  Aided by ASEAN Festival Malls & related market outlets worldwide, it may take just 2 decades or less for Phil. GDP to shoot up to over $1trn (minimum 1st World rate) from the current $400bn or so.  With democratic MC systems (masses part-owning world-girdling corporate groups), consequent wealth in monthly billions of $s will flow among the masses, not just to a few local elites unlike past & present conditions.  Import substitution plus exports of manufactures thru parts-making & assembly joint ventures with 1st World companies will ensure no late payments of MC industrialization loans.  Phil govt loan guarantees for JVs will very likely never be applied & will only serve as lenders' confidence-builder at planning stage.  

    Additionally, Philippine R&D budgets (10% of all State incomes and loans as provided by a MC Movt law) should enable universities, State & private corporations & even student & employee teams to endlessly invent new products and technologies. How? Initially by improving upon the world's over 25 million inventions, of which less than 10% have been commercialized. Market & techno intelligence from MC consortiums' research bodies & the ASEAN Mega Co-ops Worldwide research divisions will reveal further saleable, original, 100% local content products which local R&D industries may routinely invent & commercialize.  Individual or small-group inventors may rent corporate & university R&D facilities to develop new saleable products for licensing to appropriate MCs for world-scale marketing.  Said inventors will likely become $ millionaires thru a percentage of sales as license fees.

    Q5: How may rural industries prevent COVID and other pandemics?  A5: (a) All previously described industries will necessarily be dispersed in rural areas (where spaces are cheap), thereby avoiding dangerous crowding of populations that lead to pandemics;  (b) Mega co-ops should require factory site dispersal requirements at say 500 meters from each other, to include their employees' residential condos;  (c) Mega co-ops should require every factory to be equipped with industrial grade air filters and ozone generators at sufficient scale.  During pre-work & post-work hours, all personnel should be evacuated and the ozone generators switched on for several minutes.  As proven by scientific studies, ozone destroys all types of viruses, including SARS/COVID, aside from bacteria and molds.  Ozone generator sets are in fact routinely used in hospitals to disinfect equipment and interior spaces; (d) All factories should also be equipped with powerful rooftop fans that will quickly exhaust interior air towards the atmosphere during work hours.  The sun's rays will quickly destroy the dispersed viruses and germs during the day as well as those that settle on surfaces during the night.  (e) The same ozone, filter and exhaust systems should be installed in employees' condos, gyms and social halls according to appropriate scale; (f) Public transports should similarly be equipped on appropriate scale & times to supplement face masks and social distancing when required; (g) Since rural-wide mega co-op agroforest farms by nature will create distanced jobs for workers, no pandemics will prosper for long in such sun-drenched, wind-blown regions.  Millions of currently unemployed & under-employed populations in pandemic-prone, tightly-packed urban communities decamping for work in rural agroforests will hence end potential pandemics even before they begin.  Copied by other overpopulated 3rd World tropical countries, the combined schemes previously described should help prevent population-killing and misery-creating pandemics for all time, even as their agroforests endlessly 'inhale' trillions of tons of global warming atmospheric gasses.  Why will the scheme work initially in the Philippines?  The main reason is affordability.  Mega co-op joint ventures with 1st World companies will expectantly be well-financed and earning outstanding income considering their world-scale operations.  Hence they will surely afford to purchase, set up and maintain the described anti-pandemic systems.  Such preventive measures should be much more effective than the usual reaction-based procedures that the medical and political worlds currently practice to address pandemics.

    Q6: Why target full rural industrialization only after charter change?  A6: All past Phil. regimes targeted poverty alleviation thru foreign investments but results were dismal at best.  Reason: Although most of over 18,000 national to local level Phil. politicians have 'clean' reputations corruption-wise, said exemplary leaders have consistently failed to check their few corrupt colleagues' insatiable tendencies to 'mine' State posts of trillions of pesos within their six years' reign.  Every regime had its share of the active Phil media & some courageous opposition politicians & allied groups digging out, publicizing & filing court cases against corruption issues worth billions of pesos each, to near-zero effect.  Hundreds of such crusaders had been 'graduated to Heaven' by killer squads of the corrupt, thus the culture of mega-mining of State positions never ends due to public fears of similar 'graduations.'. The 1st World's investor grapevines certainly know about out all the unending scandals, so it's no surprise that the Phils attracts a mere $2 billion or less yearly in mostly portfolio (quick exit, stock buy/sell) investments versus tens of billions in direct (factory & industrial) investments enjoyed by other developing countries.  The Philippines only hope these times is therefore a complete overhaul of corruption-creating systems in gov't.  Our MC Movt will have to replace old-style politician-leaderships with a meritocracy composed of millions of the country's top retired skills in business, Academe & State as heads & managers of an initial 200k or so MC corporate groups & more later.  Concurrently, thousands more of such 'clean', productivity-oriented, democracy-loving business talents who want to maintain their families' good name should dominate the State thru MC Movt action in all elections & appointments.  Anti-corruption systems described in this blog, including the 10,000 strong Bid Awards & Controllership Body which enshrines a culture of 'too many to bribe = no bribe' from national to local levels will ensure the permanent end of Phil. corruption, a welcome factor for all investors local & foreign.  The Phil. rise to the 1st World is therefore possible only after a charter change whereby true pro-people political & economic systems become permanent cultures, and 'clean', production-oriented local expert 'names' perform all the managing.

    Read next post: MC Movt setup of ASEAN Festival Malls worldwide as sales outlets for MC corporate groups and private companies.  The malls should also serve as friendship centers to convert locals into tourists and joint venture entrepreneurs all over ASEAN.  (For Android cellphones, swipe screen up & down, tap arrow at left of title, and tap Post 16: ASEAN Festival Malls Worldwide).  For Question & Answer procedure, tap Post 19: Time to Act! Help Promote Our Mega Co-op Movement!     For comments: email fermin4megacoops@gmail.com