BusinessMirror April 25, 2019

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M.W.S.S. FINES MANILA WATER P1.1B By Jonathan L. Mayuga

dation of the MWSS Regulatory Office on the imposition of the penalty relative to Manila Water’s failure to comply with Article 10.4 of its concession agreement with the MWSS. The Resolution was signed by Demonteverde and Velasco, who sits as concurrent vice chairman of the MWSS Board, together with members Melchior I. Acosta Jr., Mariano C. Alegarbes, Merly M. Cruz, Jose R. Hernandez, Valeriano F. Pasquil, Melanie Sia-Lambino and Elpidio J. Vega. The additional penalty of P600 million was imposed on Manila Water to be allocated in the funding of new water source. In a separate statement, Manila Water said, “We will abide by the MWSS

@jonlmayuga

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HE Metropolitan Waterworks and Sewerage System (MWSS) has slapped Manila Water Co. Inc. with a total P1.134-billion fine in connection with the severe water shortage which continues to affect water customers in the East Zone concession area since March 6. The decision, which includes a P534,050 million fine and additional P600-million fund for the development of a new water-supply source, was jointly announced by MWSS Chairman Franklin J. Demonteverde and Administrator Reynaldo V. Velasco after the MWSS Board unanimously approved the recommen-

DEPT. OF SCIENCE AND TECHNOLOGY

PHILIPPINE STATISTICS AUTHORITY

2018 BANTOG DATA MEDIA AWARDS CHAMPION

decision to impose a penalty. While we are not the root cause for the inadequacy of the raw water supply coming from Angat Dam, which we are mandated to treat and distribute, Manila Water, as agent and contractor of water services of MWSS, hold ourselves accountable for our inability to provide our consumers with the usual uninterrupted water service.“ Manila Water President and CEO Ferdinand de la Cruz added: “Our inability to provide our usual 24/7 water supply to some of our consumers are because Manila Water’s allocated water supply from Angat Dam is no longer sufficient for the total demand of the East Zone consumers. See “MWSS,” A2

broader Look » B4-B5

United on the net: Labor wieLds capitaL’s new offspring to advance rights in a changing workpLace

BusinessMirror A broader look at today’s business

www.businessmirror.com.ph

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Thursday, April 25, 2019 Vol. 14 No. 197

Study: TRAIN law hurt lower-income folk more T

By Cai U. Ordinario

@caiordinario

HE implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) law may have worsened the plight of lowerincome households, according to studies commissioned by state-owned think tank Philippine Institute for Development Studies (PIDS).

In a study, titled “Assessing the TRAIN’s coal and petroleum excise taxes: Macroeconomic, environmental and welfare effects,” Philip Tuaño of the Ateneo de Manila

University said the results showed an increase in poverty incidence, and only the top 3 income deciles did not see a reduction in their incomes.

Tuaño said taking into consideration all the changes introduced by TRAIN 1 and the scenario on all the changes of the TRAIN 1 plus the Unconditional Cash Transfer,

World Bank: Friend or foe? Rene E. Ofreneo

LABOREM EXERCENS

A

FEW days ago, Finance Secretary Carlos Dominguez, speaking in Washington, D.C., cited the World Bank as the country’s leading development partner. He announced that the Philippines is now poised to graduate as a middle developing country, partly with the help of the World Bank, the country’s biggest source of ODA funds for infrastructure and other development projects. Accordingly, the Philippines shall now become an “upper middleincome economy” this year, three years ahead of the target 2022 schedule. An upper middle-income status means a per-capita income that ranges from $4,000 to $12,000. Continued on A11

See “Train law,” A2

Duterte at Belt-Road Forum; talk on West PHL Sea still a big ‘if’ By Bernadette D. Nicolas

P

@BNicolasBM

RESIDENT Duterte is now in Beijing for the Second Belt and Road Forum for International Cooperation to affirm the country’s commitment to further enhance regional connectivity and economic integration. President Duterte is also scheduled to meet Chinese President Xi Jinping and Premier Li Keqiang on Thursday prior to the forum to talk about key developments in bilateral relations and regional affairs, including issues surrounding West Philippine Sea. The President will also meet with Filipino and Chinese business leaders to explore ways to further enhance two-way trade and investments also before the forum. Upon the invitation of Chinese President Xi, the President will then be attending the forum, together with over 35 leaders and heads of international organizations, to discuss, among others, how to boost connectivity, further strengthen policy synergy and build closer partnerships and promote greener and sustainable development. The forum, which runs until April 27, is also an “opportunity for the Philippines to explore synergies on connectivity” initiatives, such as projects under the Belt and Road

BSP issuing 1st part of IRR on national payments law

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“China has always insisted on its own position and has given very little concession to the Philippine position. I don’t expect any difference this time around. There will probably be little relief in the situation, especially since President Duterte has always presented the Philippines to be in the weak position vis-à-vis China.”—Batongbacal

the Panatag (Scarborough) Shoal. The Panatag or Bajo de Masinloc has been a traditional fishing ground of Filipinos for generations. It is located about 198 kilometers (123 miles) west of Subic. “We are now looking into the possibility of declaring Pag-Asa Island and Eastern Kalayaan as marine protected areas.

HE Bangko Sentral ng Pilipinas (BSP) said on Wednesday it is releasing the first part of the implementing rules and regulations of Republic Act 11127, or the National Payment Systems Act (NPSA). The NPSA, the landmark legislation that gives the BSP authority to handle its mandate of maintaining a safe and reliable payment system, was signed by President Duterte in October 2018. “As the first comprehensive legal and regulatory framework governing the payment systems in the Philippines, the NPSA can well support the twin objectives of maintaining a payment system that is necessary to control systemic risk and providing an environment conducive to the sustainable growth of the economy,” the BSP said. The draft circular is part of the first phase of the BSP’s implementation plan of the law. As such, the BSP said it is looking to prioritize the creation of a baseline inventory of all operators of payment systems (OPS) with the new circular. This is required under Section 10 of the NPSA, which provides that all OPS shall register with the Bangko Sentral. According to the BSP, this inventory will also be used as inputs to

See “Pag-Asa,” A2

See “BSP,” A4

Initiative and the country’s “Build, Build, Build” program, as well as other development programs.

West Philippine Sea

MEANWHILE, maritime law expert Prof. Jay Batongbacal said it is “probably better to keep expectations low” on the Duterte-Xi side meeting even though there is a possibility that the two leaders will take up the situation in the West Philippine Sea. “So far, China has always insisted on its own position and has given very little concession to the Philippine position. I don’t expect any difference this time around. There will probably be little relief in the situation, especially since President Duterte has always presented the Philippines to be in the weak position vis-à-vis China,” Batongbacal said in a message to the BusinessMirror. See “Belt-Road,” A4

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“What happens is that under the TRAIN 1 and the Unconditional Cash Transfers, it’s the seven lower-income deciles that suffer even with the cash transfers.”—Tuaño

the higher incomes gained under all the changes in the TRAIN 1 and the introduction of the UCT did not affect the lower-decile people’s incomes. “What happens is that under the TRAIN 1 and the Unconditional Cash Transfers, it’s the seven lowerincome deciles that suffer even with the cash transfers,” Tuaño said.

2017 EJAP JOURNALISM AWARDS

HYBRID E-TRAIN The new Hybrid Electric Train is seen after its inaugural run on Wednesday (April 24) by the Department of Science and Technology at its Biñan, Laguna, station. The hybrid train, a joint project of the DOST and the Philippine National Railways, is touted to help provide a solution to the country’s mass transport problems. The inaugural run began from Alabang PNR Station to Biñan. Story on page A12. ROY DOMINGO

Locsin backs Pag-Asa marine protection bid

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OREIGN Affairs Secretary Teodoro L. Locsin Jr., said he welcomes a proposal to declare Pag-Asa (Thitu) Island and Eastern Kalayaan in the West Philippine Sea as marine protected areas. “A great idea and a step toward a larger solution he and I share,” he said, referring to National Security Adviser Hermogenes Esperon Jr. The latter said

declaring the concerned areas as marine protected would promote efforts toward environmental and marine biodiversity protection in the West Philippine Sea or South China. Esperon’s proposal to declare PagAsa (Thitu) Island and Eastern Kalayaan as marine protected areas came in the wake of the reported harvesting of giant clams by Chinese vessels in

n JAPAN 0.4644 n UK 67.2129 n HK 6.6242 n CHINA 7.7211 n SINGAPORE 38.2913 n AUSTRALIA 36.8869 n EU 58.3302 n SAUDI ARABIA 13.8523

Source: BSP (24 April 2019 )


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BusinessMirror April 25, 2019 by BusinessMirror - Issuu