Businessmirror april 26, 2015

three-time rotary club of manila journalism awardee 2006, 2010, 2012

U.N. Media Award 2008

BusinessMirror

www.businessmirror.com.ph

A broader look at today’s business

n Sunday, April 26, 2015 Vol. 10 No. 199

P25.00 nationwide | 6 sections 28 pages | 7 days a week

PHL seeks higher credit rating No trade breakthrough J expected during Abe

By Bianca Cuaresma

week ahead

ECONOMIC DATA PREVIEW

Foreign exchange

n Previous week: The peso largely rallied to appreciate and depreciate during the week but stayed in the low-44 territory relative to the previous week’s trade average. In particular, data from the Philippine Dealing System showed that the peso opened the week with a trade value of 44.195 to a dollar, which depreciated on Tuesday at 44.265 to a dollar. The peso then climbed back to 44.225 to a dollar on Wednesday, and then back to 44.268 to a dollar on Thursday.

The peso ended the week at an appreciating note of 44.245 to a dollar on Friday. The total traded volume is slightly lower at $2.83 billion, from the $2.87 billion traded in the previous week. The average trade for the week is at 44.2396 to a dollar. This is the strongest weekly average of the peso since early March this year.

n Week ahead: The Bank of the Philippine Islands told its clients that the peso-to-dollar rate will continue to move in increments during the week, as markets watch for cues abroad, particularly for the federal openmarket committee meeting on Thursday.

Liquidity growth

(March 2015) April 30, Thursday

n February’s M3: The central bank earlier said that preliminary data show that domestic liquidity grew by 8.5 percent in February to reach P7.5 trillion.

This was faster than the two-year low domestic liquidity growth at 7.7 percent. The tame growth rate during the period was attributed to the sustained demand for credit and the increase in placements of trust entities in the BSP’s special deposit accounts. The tame growth also reflected the statistical base effects associated with the significant increase in domestic liquidity a year ago of 36.6 percent.

n March M3: Domestic liquidity is not expected to deviate from the single-digit growth trend seen in the previous months, as the recent move of the Bangko Sentral ng Pilipinas to rein in on liquidity still has an effect on the market, and as base effects continue to be favorable.

The Monetary Board also noted that, while M3 is back to the single-digit growth trend, liquidity continued to be ample for the growing economy.

Bianca Cuaresma

UST a few years after the Philippines has been lifted out of the junk status and placed into the investment-grade category, the country is now aiming to be in the upper-medium grade in the next years, economic officials said, after an international credit watcher affirmed the country’s rating anew.

Further upgrades are seen to be “achievable for the country” over the medium term, Finance Secretary Cesar V. Purisima and Bangko Sentral ng Pilipinas Governor Amando M. Tetangco Jr. said in their reaction statement, following the Standard & Poor’s (S&P) move to affirm the Philippines’s “BBB” rating—which is one notch above the minimum investment-grade rating.

The “BBB” rating was assigned in May last year, and is still given a stable outlook—which means that the country will likely be able to sustain this in the next 12 to 18 months.

While it lauded the country’s strong external position— with a rising foreign-exchange reserve and a low debt burden, S&P warned of downside risks on the Philippines’s low-income level and a “developing institutional and governance framework that

visit in U.S. next week

PURISIMA: “If compared with those of other emerging markets, fundamentals of the Philippines are one of the strongest.”

hampers policy responsiveness.”

In particular, S&P forecasts gross domestic product per capita to average at 4.4 percent over 2016 to 2019, reflecting the modest outlooks for the Philippines’s trading partners.

Also, S&P said that uncertain conditions in export markets and inadequate infrastructure, mainly in transportation and energy, are See “Credit Rating,” A2

In this April 24, 2014, file photo, President Barack Obama (left) shakes hands with Japanese Prime Minister Shinzo Abe, as they arrive to participate in a bilateral meeting at the Akasaka State Guest House in Tokyo. AP/Carolyn Kaster

W

ASHINGTON—Japanese Prime Minister Shinzo Abe’s visit to Washington next week comes amid heightened attention in Congress to an Asia-Pacific trade deal that has created a deep rift between President Barack Obama and members of his Democratic Party, and whose central feature is liberalized commerce between the US and Japan. Related story on C1. See “Trade Breakthrough,” A2

Bangko Sentral sees continued economic upturn T

HE local output growth in the first three months of the year has likely gone through an “economic upturn,” as seen in select indicators leading to the announcement of the first-quarter gross domestic product (GDP) growth, the central bank said.

In the recent highlights of the Bangko Sentral ng Pilipinas’s (BSP) latest monetary policy-setting meeting on March 26 that were released just this week, the seven-man Monetary Board of the central bank expressed optimistic views on the local economy in the months of January to March this year.

“Indicators of domestic demand remain firm. The latest business-cycle analysis of the BSP and various leading economic indicators monitored by the BSP point to a continued economic upturn in the first quarter of 2015,”the BSP bared in the recent highlights of the meeting.

The BSP said this is consistent with the results of the first quarter of 2015 Business Expectations Survey, showing positive confidence in the first half of 2015.

In addition, the BSP said that the purchasing managers index (PMI) suggests that the Philippine economy was still in an expansion phase during the period.

“Based on the January 2015 Labor Force Survey of the Philippine Statistics Authority, the unemployment rate declined to 6.6

PESO exchange rates n US 44.2680

See “BSP,” A2

Lifting of ‘yellow card’ to generate $300-M fishery exports to EU

T

he European Union’s (EU) lifting of the “yellow card” warning for the Philippines will pave the way for the country to boost its export of marine products—a top export commodity to the EU— estimated to be worth at least $300 million, a trade official said on Saturday.

With the deterrent out of the way, the country can now maximize the country’s use of EU’s preferential trade scheme, the Generalized System of Preferences Plus (EU-GSP+), under which marine products can enjoy 0-percent tariff.

“The lifting of the yellow card ensures

that the Philippines can meet its inclusive growth objective in the EU GSP+ because a critical sector—the fisheries sector—will benefit from the market access through the EU-GSP+. This is relevant, since a number of players in the fisheries sector are in Mindanao,” Assistant Secretary for Industry Development Ceferino S. Rodolfo said at the sidelines of an event organized by San Miguel Corp.

In June of 2014, the European Commission slapped a yellow card against the Philippines, a warning that it is not doing enough to comply with rules governing illegal, unreported and unregulated (IUU) fishing.

Although the warning did not entail any immediate effects on trade, the EU Commission warned that, if not addressed, the Philippines may face trade sanctions on its marine exports to the EU.

This posed a serious challenge to the Philippines, as the EU is the top market for local marine and aquaculture products, accounting for 28.5 percent of global Philippine marine exports.

The IUU regulation’s scope was vast: It covers 94.1 of Philippine exports to the EU. Its value, under the regular GSP, was

See “Yellow Card,” A2

n japan 0.3705 n UK 66.6942 n HK 5.7124 n CHINA 7.1423 n singapore 33.0014 n australia 34.4498 n EU 47.9600 n SAUDI arabia 11.8117 Source: BSP (24 April 2015)

News

BusinessMirror

A2 Sunday, April 26, 2015

Credit rating... the main factors that add to downside risks to their growth outlook.

“We may raise the ratings if further institutional and structural reforms boost investment and economic growth prospects, or if changes in governance and the policy environment lead us to a better assessment of institutional and governance effectiveness. We consider this scenario unlikely over the next year, however,” S&P said.

“We may lower the ratings if the administration’s reform agenda stalls or if a successor administration reverses recent gains in the Philippines’s fiscal or external positions,” the credit watcher added.

The country’s economic managers still remain optimistic on the country’s sovereign ratings, saying that their next goal is to secure a category “A” rating over the medium term.

“Fundamentals of the Philippines significantly improved over the last few years. With the trend staying positive, additional upgrades in the credit ratings over the medium term should be achievable,” Tetangco said.

“On the part of the BSP, efforts to further improve the regulatory environment for financial institutions, maintain price stability, and strengthen external payments po-

Yellow card... estimated at $300 million in 2013.

In December last year, the Philippines hurdled qualifications for the EU-GSP+, a preferential trade scheme that allows the country to enjoy duty-free privilege on 6,274 product lines exported to the EU, a wider coverage compared to a previous GSP scheme that only covered 6,209

continued from A1

sition would be its contributions to placing the economy on an even higher gear,” he added.

Purisima also said a credit rating in the “A” category should be attainable, especially since the Philippines still remains underrated if one would compare the country’s credit ratings with how the market prices Philippine debt papers.

“If compared with those of other emerging markets, fundamentals of the Philippines are one of the strongest. And with continually improving major credit indicators, including debt manageability, credit ratings, ideally, should adjust accordingly,” Purisima said in a statement.

For S&P, the minimum rating within the “A” category is “A-”.

This is just two notches away from the Philippines’s current rating of “BBB.”

At the moment, the Philippines is rated a notch above the minimum by both S&P and Moody’s at “BBB” and “Baa2,” respectively. The economy has the minimum investment grade of “BBB-” with Fitch.

The Philippines has just completed its ascent to the investment-grade rating category for the first time in the country’s history in 2013 after being stuck in the junk status.

BSP...

continued from A1 percent from 7.5 percent a year ago,” the BSP also cited.

The BSP also said that global economic prospects—whose growth and development is crucial for the Philippines’s trade performance—have turned “slightly more positive” during the period although still at an uneven pace.

Earlier, Moody’s Analytics forecasted first-quarter growth to surge to 7.3 percent.

This is higher than the 6.9-percent growth seen in the last three months of 2014.

The quarter’s forecast is within the government’s growth target bracket for the year at 7 percent to 8 percent.

The most recent forecast was attributed by Moody’s Analytics to higher infrastructure investment and government spending, alongside robust domestic demand.

“Electronics account for half of the nation’s exports, and they improved through the first quarter thanks to improved US tech demand,” Moody’s said.

At this rate, Moody’s Analytics said the first-quarter GDP report of the Philippines will cement the country’s place as one of the “strongest performing economies” during the period.

Bianca Cuaresma and Genivi Factao

continued from A1 products, majority of which only had preferential trade margins privilege.

Marine products had a 4.0-percent to 20.5-percent preferential trade margin in the previous scheme. “This is also a testament that the Philippines is a conscientious trade partner,” Rodolfo said.

The Philippines is expected to enjoy

the EU-GSP+ scheme for six to seven years or up until it graduates from its level as a lowermiddle income country, which has a threshold of a GNP per-capita income of $ 4,000.00 .

When the Philippines goes beyond this level, or becomes a upper-middle income country, it can no longer enjoy the EU-GSP+. Catherine Pillas

news@businessmirror.com.ph

Trade breakthrough...

White House officials said on Friday that Obama and Abe are not expected to announce a final agreement on trade talks between the two nations. Officials said negotiators have made progress, but differences remain over how to reduce US auto tariffs and Japanese barriers on US agriculture products.

Abe’s official visit to Washington on Tuesday will include a state dinner with about 300 guests and an address to a joint meeting of Congress, the first by a Japanese leader.

New security arrangements between the US and Japan are a top agenda item for the two leaders as Abe seeks to strengthen Japan’s defense capabilities.

Given that it is the 70th anniversary of the end of World War II, Abe is also facing some pressure

TPP...

continued from A1

to address Japanese army behavior against South Korea and China during the war.

The White House is especially eager for Abe to mend fences with South Korea. And this week, 25 US lawmakers urged Abe “to formally reaffirm and validate” apologies made by his predecessors for Japanese wartime aggression.

Yet even without prospects for a breakthrough on trade, the negotiations between the US and Japan are likely to take precedence as Congress moves to give Obama so-called fast-track authority to negotiate international trade deals. House and Senate committees both approved legislation that would set standards for any trade deal but would permit Congress only to approve or reject, but not

amend, any final agreement.

Obama wants such authority to complete a 12-nation Pacific Rim agreement. The US and Japan are the two largest economies in those negotiations, which means that resolving their differences would go far in approaching a broader deal.

Caroline Atkinson, White House deputy national security adviser for international economics, said on Friday negotiators had made substantial progress, but “we do not expect any announcement of a final deal. We still have some work to do.”

Abe arrives in the US just as Obama is engaged in a fierce fight with liberals and organized labor, who oppose giving him trade promotion authority and who are suspicious about trade deals because they fear job losses. AP

The US is eyeing to speed up the approval of the trade deal before the US presidential polls goes in full swing this year.

The TPA, however, is on a contentious path to approval as Republicans and Democrats in the US Congress locked horns on specific provisions on the TPP, especially those affecting US workers.

The outcome of the measure in the US is critical as the Philippines is considered among the foremost candidates for accession to the TPP.

“We cannot enter the TPP without the countries concluding the TPP, and without finalizing the accession protocol. We are preparing to be able to make an informed decision to join the TPP,” Rodolfo said.

The trade official, however, cautioned that the Philippines still has to weigh the cost and benefits of the deal as commitments in trade deal—mostly on intellectual property and public-health measures—may face domestic opposition. He also stressed that the text has not been made publicly available and will weigh into the Philippines’s decision.

“We are not only consulting with TPP countries but with local groups with a stake in the discussion,” Rodolfo added.

The TPP countries have a combined gross domestic product of $28 trillion, or 40 percent, of world GDP, trade in goods at around $9 trillion and $2 trillion in trade-in services.

continued from A8

Australia, the US and New Zealand.

The TPP is currently composed of 11 countries, namely, the US, Australia, Brunei Darussalam, Japan, Chile, Malaysia, New Zealand, Peru, Singapore, Vietnam, Canada and Mexico.

Among the hot-button topics in the US now is the approval of a bill allowing US President Barack Obama to be vested with TPA, or the power to fast-track the trade accords by sending trade agreements to Congress for voting without altering the agreements already concluded by the negotiating countries.

It also prescribes that the US trade representative conduct the trade negotiations, on any trade deal, according to terms and procedures dictated by the US Congress.

EconomySunday

www.businessmirror.com.ph • Editor: Vittorio V. Vitug

Manila Water forays into bottled water market

By Roderick L. Abad

E

AST Zone concessionaire Manila Water Co. Inc.’s unit can now implement a full-scale marketing and promotion of its healthy bottled-water offering in Metro Manila, after it gained approval from the Bureau of Food and Drugs to market and sell the product on Friday.

The listed company disclosed that Manila Water Total Solutions Corp. (Total Solutions) received the Certificate of Product Registration for its Healthy Family Purified Drinking Water.

It said that this 5-gallon purified bottled water is produced via a closed-loop fully automated system that guarantees no human contact.

To ensure high quality, the water firm added that it undergoes strict processes overseen by certified water experts.

With a shelf life of six months, the bottled water is directly delivered to the homes of their customers, it said. The product is now available for distribution and consumption in Pateros, Taguig, and select areas of Manila, Makati and Mandaluyong.

Total Solutions plans to expand its distribution in other areas of Metro Manila in the third quarter of 2015.

Its foray into purified-water business forms part of Manila Water’s current organizational transformation in support of its strategy to diversify and sustain the growth momentum.

The Ayala-led water concessionaire serves parts of Manila, San Juan, Taguig, Pateros, Antipolo, Taytay, Jala-Jala, Baras, Angono, San Mateo, Rodriquez, Marikina, Pasig, Mandaluyong, Makati and most of Quezon City.

For the full-year 2014, Manila Water reported a modest growth in consolidated net income to P5.82 billion, or 1 percent higher than P5.75 billion in 2013.

BusinessMirror

Sunday, April 26, 2015 A3

proposes stiffer penalties Lenders imposed tighter loan Bill vs unscrupulous businessmen approval standard in Q1–BSP A

L

By Bianca Cuaresma

ocal lenders imposed tighter standards in lending to both enterprises and households in the first three months of the year, due largely to reduced tolerance to risks and a perception of stricter financial system during the period.

In the presentation of the results of its latest Senior Bank Loan Officers’ Survey, the Bangko Sentral ng Pilipinas (BSP) said that banks pointed to a net tightening of overall credit standards for loans to both enterprises and households in the first quarter of 2015, as opposed to the results in the previous quarter ending December 2014, when the results showed that credit standards for corporate lending were unchanged, while credit standards for loans to households showed a net tightening.

The DI, or diffusion index, of banks’ standards in lending to enterprises is at 13.8 percent and 5.3 percent in lending to households in the first quarter of the year.

The BSP uses the DI approach in determining the movement of loan standards of local banks. The DI takes those that indicated that they tightened their credit standards and subtracted them to those that indicated otherwise, which means that a positive DI points to a net tightening and negative DI to net easing and 0 as unchanged.

For enterprises, banks said that the tighter overall credit standards were attributed to their reduced tolerance for risk, as well as perceptions of stricter financial-system regulations.

The tightness in lending standards for enterprises is seen in terms of stricter collateral requirements and loan covenants for all types of business loans, except microenterprises, as well as shorter loan maturities for loans to small and medium enterprises.

For households lending, meanwhile, banks also implemented stricter collateral requirements for all types of loans extended to households and wider loan margins for housing and auto loans.

In the quarter ahead, most respondent banks see largely unchanged credit standards—but a slight skew is seen toward easing in enterprises and tightening in households loans.

“Respondent banks cited more aggressive competition from banks and nonbank lenders, increased tolerance for risk, and improvement in the profitability of banks’ portfolio as among the reasons behind the expected net easing of credit standards [for enterprises],” the BSP said.

Expectation of continued strict financial-system regulations and banks’ reduced tolerance for risk, meanwhile, put pressure on banks to tighten credit standards in lending to households for next quarter.

lawmak er has moved to increase the penalties against unscrupulous traders and business establishments who are robbing consumers of their hard-earned money.

Rep. Anthony G. del Rosario of the First District of Davao del Norte made the proposal contained in House Bill 5472, which amends Republic Act 7394, also known as the “Consumer Act of the Philippines.”

Del Rosario said the penalties provided for in the present law are somewhat ineffective.

“Everyday new violations are being committed to the detriment of the consumers who are robbed in broad daylight of their hardearned money. When such penalty is being used on a regular basis against recidivists who violate the law, then perhaps such penalty is not working,” del Rosario said.

Del Rosario said it is imperative that stiffer penalties be imposed in order to establish an environment that will provide better and greater protection for the consumers.

“Increasing the penalties will encourage conduct and behavior geared toward the observance of our consumer laws for the benefit of the consumers and for businesses to compete efficiently and fairly.

This is a timely reform that will give more teeth to our current statute in order to put heavier burden to those who violate it, provide redress to those whose rights are injured and enable those who implement it,” del Rosario said The bill amends Article 19 of the Consumer Act of the Philippines, which imposes a P1,000, but not more than P10,000 fine or imprisonment of not less than two months but not more than one year on any person who is found guilty of violating any provision of Article 18.

Under the bill, del Rosario proposed to impose a P50,000 fine but not more than P1 million, or imprisonment of not less than three years but not more than seven years.

Article 41 of Republic Act 7394 is also amended by increasing the years of imprisonment of not less than one year but not more than five years to not less than three years but not more than seven years and a fine of P50,000 but not more than P1 million from not less than P5,000 but not more than P10,000.

Furthermore, the measure amends Articles 47, 60, 65, 73, 95, 107 and 123 all increasing the penalties to P50,000 but not more than P1 million. PNA

SundayV

Busine

A4 Sunday, April 26, 2015

editorial

A resignation at the Bureau of Customs

T

O a community accustomed to seeing people outstanding in their ordinariness coming into and going out of high office in the government, the resignation a few days ago of Customs Commissioner John Philip P. Sevilla is tinged with sadness.

For, as it turns out, Sevilla was anything but ordinary. He was a man of technical competence and moral integrity.

The Bureau of Customs (BOC) is almost synonymous with corruption in the Philippine government. Past administrations have tried to clean it up, but their efforts had been unavailing.

On his appointment to head the bureau in December 2013, Sevilla vowed to raise the technical and moral caliber of the agency. He was on the way to success.

In his 15 months in office, Sevilla made all import transactions public by posting them on the bureau’s web site, and set up a public database of frequently imported goods to make it easier to spot irregularities. He investigated his staff, suspended permits of some companies and brokers, and clamped down on the release of illegal rice shipments.

Customs collection, which accounts for 20 percent of government revenue, rose 21 percent last year. Collection this year is expected to grow by a smaller rate due mainly to the fall in the price of oil.

Sevilla’s resignation was prompted by political pressure over key appointments in the bureau of people not technically competent for the jobs in question. Rather than succumb to external demands, he preferred to hand in his resignation. He also refused to submit to the old practice of making the bureau a milking cow of politicians prior to elections.

Sevilla was a former Finance Undersecretary and Goldman Sachs Executive in Hong Kong.

He completed his bachelor’s degree in Economics and Government at Cornel University and his master’s degree in Public Affairs at Princeton University.

Finance Secretary Cesar V. Purisima gave Sevilla profuse thanks “for his exemplary leadership for implementing reforms in the BOC and for his dedicated service to the nation.”

Another word of appreciation came from the Samahan ng Industrya at Agrikultura (SINA) that said that, for the first time, SINA was given by the commissioner regular access to vital information in the bureau related to importation and that its members “are saddened by this development and are apprehensive that his resignation may derail the common objective of the BOC and the agriculture industry to combat smuggling [of agricultural products from various countries].”

President Aquino accepted the resignation and designated businessman Albert D. Lina to take over the position.

The acceptance was prompt. Could not a few words of support for his resistance to political pressure, refusal to allow the bureau to become a milking cow of politicians, and contribution to the campaign against graft and corruption in government have persuaded Sevilla to stay on, perhaps to the end of the President’s term in June 2016?

The words were not forthcoming.

Reality check: Drones aren’t magic E Bloomberg View Noah Feldman

Gospel

Sunday, April 26, 2015

VERY weapons system, from the bow and arrow to the intercontinental ballistic missile, sometimes kills the wrong people.

So why has the revelation that a USdrone strike accidentally killed two al-Qaeda hostages—a US citizen and an Italian aid worker—created such a storm of drone “rethinking”?

Part of the answer is that liberal critics of drone strikes, who’ve questioned their legality, are using the opportunity to repeat and reframe their criticisms. I’ve joined in some of that criticism in the past and stand by it.

But the deeper reason for the renewed discussion is a pernicious myth: The fantasy that drones are uniquely precise. From the start, this fantasy of precision has been at the heart of the political and tactical appeal for US President Barack Obama.

The same myth has also been central to legal criticisms of the strikes, from the standpoints of US constitutional law and of international law.

Start with the appeal of drones.

The intelligence community was the first to be smitten, not for drones’ capacity to strike but for their ability to circle repeatedly and gather detailed information without creating risk to US pilots. As an intelligencegathering tool, unarmed drones are, in fact, highly distinctive. Satellites can take increasingly precise photographs without being noticed, but most can’t point their cameras at one place for very long. Of course, if a satellite is on a geosynchronous orbit, it can aim at a specific target indefinitely—but, then, it can’t look anywhere else unless you move it, which requires substantial effort.

Drones are much more nimble.

This information-gathering ad-

I

vantage sparked, I think, the fantasy of drone precision in airstrikes. It’s true that the operator of an armed drone can deliver a missile to a site that’s been carefully scoped out by other drones. But conventional aircraft could use that same intelligence to deliver missiles with similar precision (and a similar margin for error).

The real military advantage of the armed-drone strike over a conventional airstrike, then, isn’t the precision of the hit. It’s the fact that a pilot isn’t being put in jeopardy. Yet somehow the idea that drone strikes are more precisely targeted has lingered, giving the technique greater public appeal.

There can be little doubt that the Obama administration benefited politically from this aura of precision.

If the characteristic George W. Bush bombing tactic was “shock and awe,” the technologically sophisticated Obama’s signature became targeted drone strikes. It’s an easy sell: The use of smart power to kill only the bad guys.

At the same time, the fantasy of precision had a substantial legal downside. No one believes that an American army fighting in the battlefield against an enemy that includes a handful of US citizens would owe any special legal duty to the Americans fighting for the enemy. Yet, a memorandum written by the White House’s Office of Legal Counsel argued that Americans, who would be targeted in drone strikes, apparently deserved constitutional protection under the due-process clause.

Astonishingly, this crucial memo has still not been released in full, despite repeated promises by the administration to release it—and

AM the good shepherd. The good shepherd lays down His life for the sheep. He who is a hireling and not a shepherd, whose own the sheep are not, sees the wolf coming and leaves the sheep and flees; and the wolf snatches them and scatters them.

He flees because He is a hireling and cares nothing for the sheep. I am the good shepherd; I know My own and my own know Me, as the Father knows Me and I know the Father; and I lay down my life

despite the fact its author is now a federal appellate judge. Parts of the memo argued that due process was satisfied by an internal White House review process, one that didn’t include the opportunity for arguments before a neutral decision-maker, traditionally the core of due process.

But due process is what an individual gets if put on trial—emphasis on “individual.” That standard could apply to drone strikes only if you imagined drones as highly targeted weapons rather than generalized bomb strikes.

The fantasy of precision was also at the core of international legal criticism. Critics like a special rapporteur appointed by the United Nations, Philip Alston, focused on international legal prohibitions on targeted, extra-judicial killings. No one applies such terms to ordinary warfare— even though ordinary bombs kill people without due process.

To be sure, these criticisms had and have legal bite. There is something different about a military attack that aims to kill particular individuals. But legally speaking, the criticisms should apply with equal force to a conventional airstrike that uses the same targeting criteria.

When it comes to drones, the fantasy of precision is just that, a fantasy. Killing innocent civilians, whether they’re Americans or Pakistanis or Yemenis, is an inevitable reality of war. The right criteria to analyze attacks are the familiar ones of policy and law: Is the strike justified? Is it aimed at a military target?

Is it proportional?

To answer those crucial questions, we need to start from facts, not fantasy.

for the sheep.

And I have other sheep that are not of this fold; I must bring them also, and they will heed my voice. So there shall be one flock, one shepherd. For this reason, the Father loves Me, because I lay down my life, that I may take it again. No one takes it from Me, but I lay it down of my own accord. I have power to lay it down, and I have power to take it again; this charge I have received from my Father.”—John 10:11-18

Voices

essMirror

opinion@businessmirror.com.ph • Sunday, April 26, 2015 A5

The real reason for celibacy A Free Fire

By Teddy Locsin Jr.

WOMAN religious said that celibacy is not about what a priest must not do: that is, satisfy the sexual urge. Celibacy is about what he must be, in this case the representative of the celibate Christ. But speaking more practically, Fr. Thomas Loya explained that it isn’t about celibacy or about having no sex. It is about overhead.

When a Brazilian cardinal asked which is more likely to happen first, the ordination of women or the lifting of the celibate vow, the Vatican answered: the ordination of women.

Long ago, the Church came to the

conclusion that it is hard enough to feed one mouth—the priest’s; it is inviting bankruptcy for the Church to feed two: the priest and his wife; not to mention their kids. And then there is widows’ pensions and orphans’ upkeep. The Church can’t afford it. The Church does not collect taxes even if some religions tithe.

Taxes allow public officials to have many families, not to mention pampam girls. This is why Cabinet meetings are conducted in KTVs, I mean not the formal ones but the ones where the real decisions are made.

One drink—crème de menthe—

costs P10,000 but then you get to grope the girl.

What all this means is that when the Church finally ordains women, they will have to be celibate, too. The Church cannot afford to maintain a family where one celibate religious will do. And that is why it is no big deal—in fact, it is just a confessable sin for a priest to take up with a woman. Heck, what the heck, so long as he doesn’t take her to live him behind the chapel to share his meager meals.

Whenever there is a clamor for married priests, and there are TV

documentaries about priests who were expelled and now live married lives in poverty—and how hurt their children are by the stigma that shouldn’t be there—I always say that it can’t be helped. There should be no stigma of course but there cannot be married priests either. Especially among Catholics as kuripot as the Filipinos who still drop a P5 coin or even a P1 coin as quietly as she can into the collection sack at the end of a long, long pole. The length of the pole is because miserliness has a distinctly bad smell.

If priests marry here, their wives

will have to street walk to make ends meet.

So female ordination will happen first before celibacy is abandoned.

And that won’t be a problem for women. Women are better at celibacy than men. Except for that Italian nun who discovered she was miraculously pregnant, women take to celibacy for the best of reasons aside from avoiding further contact with men.

Celibacy makes it easier for them to love and help everyone if they aren’t compelled by marriage vows to love and help just one. That’s what one nun said.

Beyond green ban: Perils of life in Asia’s largest truck pit

By Manoj Sharma

Hindustan Times, New Delhi, TNS

F

OR about 2,500 transporters in the Sanjay Gandhi Transport Nagar, arguably Asia’s biggest transport hub in outer Delhi, Gunjeet Singh Sangha’s name has been nothing short of an insurance. He said his name “Sangha”— it is painted in white bold letters on about 10,000 trucks—ensures no problems with the traffic police or the transport department. He gets hundreds of calls for help from other transporters and drivers and the requests are always granted.

However, for the past couple of weeks he spends most of the time over the phone soothing frayed nerves in the wake of the National Green Tribunal’s (NGT) order to ban 10-year-old diesel vehicles.

“It is not the police they are worried about these days. They fear that their trucks will be impounded and scrapped,” Singh said, who drove a truck for two decades before he became a transporter. “It is not an easy task. This place is an area of darkness.”

It takes a trucker’s resolve to survive in this transport hub. It is home to thousands of truck drivers, sex workers, gamblers, workshops and truck artists. The roads here are nothing but crater-ridden dust tracks; the gutters overflow and mounds of garbage can be spotted at every street corner.

The roads are lined with ramshackle shops selling old and new tires, canvas and tarpaulin to cover the trucks, and several beer shops.

Most walls are painted with slogans promoting the use of condoms. In fact, about 10,000 condoms are picked out daily from boxes that have been put up at several shops.

Those who work here don’t have a high opinion of the place.

“It is a dangerous place to work; it is a den of criminals and prostitutes. The authorities have turned a blind eye to the pathetic condition of the place and the murky goings-on here,” said an auto-parts dealer, who did not share his name out of fear of transport associations.

But Kultaran Singh Atwal, chairman of the All India Motor Transport Congress, agreed with the description of the place.

Atwals’s plush office is in stark contrast with the dirt and decadence that pervades the area. He came from a family of transporters who had started as drivers and then grew on to own and run their own businesses.

He said the issue is not just polluting vehicles, but also the livelihood of two lakh families.

“If the NGT persists with the ban, 50,000 trucks in Delhi and NCR will go off the roads, affecting over two lakh families. A lot of people here are drivers turned transporters with just one or two trucks. It is not possible for them to buy new trucks. A new truck costs nothing less than Rs. 25

The Sanjay Gandhi Transport Nagar is a dangerous place to work; it is a den of criminals and prostitutes. The authorities have turned a blind eye to the pathetic condition of the place and the murky goings-on here,” said an autoparts dealer, who did not share his name out of fear of transport associations. lakh,” said suave and soft-spoken Atwal sitting behind a large wooden desk with a MacBook Air and a replica of the Golden Temple resting on a side table.

Atwal said that more than the age of the vehicle, overloading is responsible for pollution.

“A 15-ton capacity truck is loaded with at least 50-tons of goods. This increases emissions. The corrupt transport authorities and the police allow this for money. Such trucks should be impounded,” he said.

Atwal said the government must expedite work on the Kundli-Manesar—Palwal expressway so that trucks do not enter Delhi at all.

“Transport system of a country forms the backbone of economic growth. Transporters have to pay all taxes in advance but what do we get in return? Transport Nagar is one of the capital’s filthiest and most crimeinfested areas. Incidents of loot and

robbery are reported almost every day,” Atwal said.

At least 8,000 drivers are there in Transport Nagar on any given day.

Most of them are from Haryana, UP, Bihar and Himachal Pradesh. But it was not the case until a decade ago when most drivers were from Punjab, especially from Gurdaspur and Kapurthala districts.

“Hundreds of drivers died of AIDS in mid-1990s, and therefore, most young people gave up the profession. Now only a handful comes from Punjab,” Ranjeet Singh, a driver from Punjab, said. “Besides, the profession has no respect and dignity.

We are humiliated every day. The police beat us and abuse us. We don’t get to meet our families for months.

Nobody leads a more miserable existence than us.”

The threat of sexually transmitted disease (STD) is still alarming.

Several non-governmental organizations work in Transport Nagar with drivers and sex workers.

“The community [truckers] continues to be at a high risk of HIV infection. They stay away from home for months. There is still a high prevalence of unsafe sex and drug addiction among them,” Amit Ranjan Chaudhary said, who heads a program “Targeted Intervention” launched by CSR wing of Apollo Tyres in Transport Nagar.

The Apollo health-care center— its entrance has a plastic box fitted on the wall which has condoms for

free distribution—is visited by 30 people every day. The clinic has distributed small white boxes with messages on safe sex printed on them to various roadside dhabas, paan shops to keep condoms for sale. Chaudhary said about 10,000 condoms are sold every day here.

For those who complain about daily rigors of a job, Rakesh Yadav has a destressing fact to share.

Yadav, a native of Mainpuri in Uttar Pradesh, said he drove about 1,400 kilometer in 28 hours, as he watched a Mithun Chakraborty movie with a dozen drivers in a small first-floor one-room office of a transporter. He had just returned from Kolkata.

“If you are bringing fruits and vegetables, you cannot afford to be late. So I keep driving throughout the night. It is bukki [poppy straw] that helps me keep awake,” he said.

“And then the love of Anita keeps me going. I am looking forward to meeting her tonight.”

Anita, the driver said, is a sex worker based in Burari. “But she does not charge me any money. We are in love with each other. She also takes care to bring chocolates [chocolateflavored condoms].”

He said he is married but hardly gets to meet his wife. “Tell me where do I go?” He laughed and turned his attention to television. The next morning, he had to drive back to Kolkata on another assignment.

Tribune Content Agency Llc.

To solve hunger, start with soil

By Anne-Marie Steyn Inter Press Service

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A IROBI, Kenya—Peter looked confused as he recounted how he’d painstakingly planted potatoes to sell and to feed his family of eight, only to find that when harvest time rolled around, he had been greeted with tiny tubers not much bigger than golf balls.

A young farmer living in Bomet County in Kenya, Peter had recently been “shaped up” on film, as part of our farming reality TV show Shamba Shape Up. The show is aired as a sixmonthlong (one growing season) series of 30-minute television program on leading channels in Kenya, Tanzania and Uganda 2012 to audiences across Kenya.

Without farmers understanding the importance of soil and having easy access to soil improvement methods, they cannot win the battle against declining soil fertility. And without soil fertility, they will lose the battle against hunger or poverty.

It is Africa’s first makeover reality

television program using real experts to show small-scale farmers how to improve pest management, irrigation, cattle rearing, poultry keeping, financial education and crop management techniques, in an engaging yet informative way.

Peter’s story is discouraging, yet it’s happening to farmers all over Africa, not just with potatoes but all manner of crops that just don’t grow like they should.

One reason for this is that the very soil in sub-Saharan Africa that should be a fertile home for helping crops thrive, is degraded, acidic and simply won’t support crop growth.

In fact, it has been estimated that as much as 65 percent of Africa’s arable land is depleted of vital nutrients, which have been taken from the soil through continuous farming, and never replaced. Sub-Saharan Africa represents 10 percent of the total global population yet only 0.8 percent of total fertilizer use.

In a region that is struggling to feed itself, addressing soil health is already a critical issue. But we need to start by showing the farmers

themselves why it is so important, and why investing in soil health will pay off. Most farmers simply do not understand the importance of looking after the soil to their farm, and apply the same fertilizer, without knowing if it is the right one, season after season for their whole farming lives.

Of the 180 farms Shamba Shape Up has worked with, only one had ever conducted a soil test, to find out what kind of nutrients they needed to boost productivity. Yet, when we survey farmers, or review requests coming in through our SMS information service, the topics of fertilizer, soil fertility and soil testing are among the most requested.

It is clear that there is a great knowledge gap. Bridging this gap, and educating farmers on soil health is going to be critical, if we are to meet the proposed Sustainable Development Goal to end hunger by 2030. And monitoring farmer outreach that takes place on effective soil management practices could be an effective way to track this progress.

Of the 180 farms Shamba Shape Up has worked with, only one had ever conducted a soil test, to find out what kind of nutrients they needed to boost productivity. Yet, when we survey farmers, or review requests coming in through our SMS information service, the topics of fertilizer, soil fertility and soil testing are among the most requested.

Peter got some advice for his potatoes. An expert recommended the Viazi Power Programme, which uses a combination of nutrients that are applied to the potato crop at various stages of growth. This treatment has helped farmers on one acre of land to reach yields of 50 to 80 sacks of potatoes, that are large and of a good quality.

But Peter had actually tried to use the Viazi Power Program in the past, and failed. His downfall was using recycled seeds from his farm that

were not certified, and carried Bacterial Wilt. Sending three children to school, Peter couldn’t afford the higher price of the clean seed.

Lack of access to finance is a key obstacle to farmers taking on soil health techniques. But here is where education once again plays a vital role: If farmers are shown the return they can have on their investment and how to realize this gain, more will be encouraged to adopt more costly practices.

Shamba Shape Up now includes a soil-health element in every episode we produce, and our method of farmer education is proving successful. Of the 50 percent of the audience who adopt new practices every year from the show, 97 percent say that the change caused an increase in money or food production from their farm.

Anne-Marie Steyn is series producer of Shamba Shape-Up and a spokesman for Farming First. The Farming First coalition is currently in New York advocating for agriculture’s central role in meeting the Sustainable Development Goals.

NewsSunday BusinessMirror

A6 Sunday, April 26, 2015 • Editor: Vittorio V. Vitug

Philippines, China trade accusations over sea threats

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ANILA, Philippines—The Philippines accused China of aggressive maneuvers against its reconnaissance plane and fishermen in disputed seas where Beijing has stepped up construction of artificial islands, but China reiterated its claim on the strategic waterways.

A Chinese vessel flashed powerful lights and radioed the Philippine navy plane to leave the area near one of the islands in the Spratlys chain in the South China Sea, Philippine military spokesman, Lt. Col. Harold Cabunoc, said on Friday.

“This is an aggressive action on the part of the Chinese vessel,” Cabunoc said. “They said, ‘You’re entering Chinese territory, leave.’”

He said the incident happened on Sunday close to Subi Reef, which is near Pag-asa—also called Thitu—

Island, which has been occupied by Philippine troops since the 1970s.

Among the hundreds of Spratly isles, coral reefs and shoals, less than 50 are occupied by troops from countries with competing claims—the Philippines, Vietnam, China, Taiwan, Malaysia and Brunei Darussalam.

China claims most of the South China Sea on historical grounds and in recent years has dispatched more vessels and patrols to stake its claim, alarming neighbors. Satellite images have shown massive reclamation

work on seven islands, which the Philippines and the US say could be used to build bases for refueling naval and air patrols and establishing a stronger military presence.

In Beijing, Foreign Ministry Spokesman Hong Lei said that Philippine planes had “illegally flown over Chinese waters on numerous occasions recently” and that Chinese forces had issued a radio warning. He said it was “untrue” that a powerful light was used against the Philippine plane.

He said that China’s armed forces will continue to conduct surveillance over the waters and skies in the area, the official Xinhua News Agency reported.

He also dismissed a report by the Philippine Fisheries Bureau that the Chinese coast guard earlier this month fired a water canon at Filipino fishermen and seized some of their catch near Scarborough Shoal, which China seized from the Philippines in 2012. Hong said the shoal was Chinese territory and urged the Philippines to ensure its fishermen

are aware of the “illegality of fishing” there.

The Philippines filed a case in 2013 with the international arbitration tribunal challenging China’s claims.

The head of the Philippine Fisheries Bureau, Asis Perez, called on global action to stop China’s reclamation activities, saying they caused massive coral destruction—about 311 hectares—that will take thousands of years to repair.

“This is not a simple dispute over territory, but there is actually a huge environmental impact that will affect not just us,” he said.

Beijing says the structures being built are for public service use and to support Chinese fishermen.

At a summit next week, Southeast Asian leaders will seek ways to hasten plans for a binding code with China that will govern behavior in the disputed South China Sea. Malaysian Foreign Minister Anifah Aman said the reclamation work and the code of conduct will be an “important topic” at the summit starting on Monday. AP

www.businessmirror.com.ph

Family of Mary Jane Veloso gets execution order–DFA

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he family of overseas Filipino worker (OFW) Mary Jane Veloso, who was sentenced to death in Indonesia for drug trafficking, has received the execution order for her, the Department of Foreign Affairs (DFA) said on Saturday.

In a meeting on Friday night, Indonesia’s prosecutor gave the notice letter to the family, informing them of the impending execution, but no date was indicated as to when it will be done, DFA Spokesman Charles Jose said in a news statement.

“The Attorney General’s Office [AGO] will announce it,” he said.

“The prosecutor does not know the exact date of execution.”

Veloso, 30, who was caught carrying 2.6 kilograms of heroin in her luggage at the Yogyakarta Airport in 2010, has maintained her innocence, insisting she was tricked into bringing the drugladen suitcase by a Filipino friend who also acted as her recruiter.

As a policy, Indonesia gives embassies a 72-hour notice before the date of execution of

foreign prisoners.

Jose said the 72-hour count will only begin once the AGO announces the date.

In the same meeting, Jose said the prosecutor clarified arrangements for the family’s visit to Veloso in Nusa Kambangan, a maximum detention facility in an island where death row prisoners are transferred for execution.

The family and lawyers were scheduled to go to the prison on Saturday, he said.

Jose also said that Indonesian Foreign Ministry officials met representatives from six embassies who have death convicts.

The Philippine government filed another appeal on Friday in a last-ditch effort to save Veloso’s life, but officials say the appeal is not a guarantee that it can prevent the execution.

Veloso will be the first Filipino to be executed in a Southeast Asian country in 20 years.

Flor Contemplacion, the Filipino domestic helper found guilty of murder, was put to death in Singapore in 1995. PNA

Paje: Forest cover grew by a million hectares in last four years with NGP briefs

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nvironment Secretary Ramon JP Paje said the country’s forest cover has grown by at least a million hectares—from 6.8 million hectares to 7.8 million hectares—in the past four years.

Paje attributed the growth to the implementation of President Aquino’s National Greening Program (NGP) which aims to plant 1.5 billion trees in 1.5 million hectares by 2016.

From 2010 until December 2014, Paje said the government and its partners from the private sector has successfully reforested over a million hectares. The areas covered by the NGP are expected to increase further as the massive tree-planting activities start in June this year.

Speaking during the Earth Day Celebration at the Amphiteater of the Ninoy Aquino Park and Wildlife Center on Tuesday, Paje said the government aims to institutionalize reforestation, even after Mr. Aquino’s term ends in June 2016.

He said since the Department of Environment and Natural Resources (DENR) was created in 1987, “various environmental laws were enacted in a flurry” to deal with various environmental problems besetting the country.

The government, he added, has entered into international treaties toward the protection of the environment, preserve and conserve biodiversity and fight climate change.

“In all our endeavors, sustainable development has al-

qc mayor eyes ‘retrofitting’ toward ‘greener’ building

PAJE: “In all our endeavors, sustainable development has always been our guiding principle.

Sustainability entails the protection of the environment and natural resources and to provide social and economic welfare to the present and future generation. It is an integrative process built upon three pillars—environmental, social and economic aspects.”

ways been our guiding principle. Sustainability entails the protection of the environment and natural resources and to provide social and economic welfare to the present and future generation. It is an integrative process built upon three pillars—environmental, social and economic aspects,” he said.

He said that while the government has done so much, such accomplishments “will never be enough.”

“The series of natural disasters that plagued our country during the recent years serve as a grim reminders of the effects of utter disregard of the laws of nature. Climate change is now a part of our lives. It is no longer an impending threat.

It is happening, and now, this is the new normal,” he said.

Paje said that the country is now “turning the tide” and building long-term results, and identified reforestation as among the DENR’s most noteworthy achievements.

Through the NGP, he said the government aims to strengthen the country’s natural defense against calamities and climate-change impacts.

So far, he said the NGP has generated more than 2 million jobs benefiting 318,000 individuals. The NGP, he added, is 82 percent more than the reforestation efforts of the country in the past 25 years.

Paje said that the NGP is complimented by enforcement of environmental laws to protect the country’s forests against further degradation.

The ban on the harvesting of trees in natural forests, as mandated by Executive Order 23, reduced the number of illegal logging hotspots from 197 to just 31 in 2011. Today he said there are only 23 identified illegal logging hot spots which the Anti-Illegal Logging Task Force aims to wipe out by the end of the year.

According to Paje, the DENR has also canceled all logging concessions or 19 Integrated Forest Management Agreements (Ifmas) inherited by the Aquino administration.

Three of these Ifmas cover a total area of 239,360 hectares with annual logging area of 10,107 hectares and annual allowable cut of 312,579 cubic meters.

In a span of three years, he said the Aquino administration’s move has saved a total of 937,737 cubic meters of trees from 2011 to 2013.

The government, he said, has also intensified the campaign against illegal logging that resulted in the confiscation of close to 30 million board feet of illegally cut forest products.

A total of 1,411 illegal logging cases have been filed with 197 persons having been convicted by the court of law.

To sustain the gains in terms of reforestation, Paje said the DENR is continuously producing planting materials through its partners. More clonal and regular tree nurseries, he added, will be put up “until planting materials can be distributed for free.”

Last year Paje announced that 20 tree nurseries will be put up by the DENR, including the five regular tree nurseries which will boost production of planting materials to achieve this year’s target of planting 300,000 hectares of degraded forests with assorted tree species. The DENR is planting native and fruit-bearing trees and high-value crops like rubber, cacao, coffee, coconut and bamboo.

Quezon City Mayor Herbert Bautista is eyeing to make the city “greener” by asking building owners to retrofit their building to withstand strong earthquakes and use environment-friendly designs.

Speaking during the launch of the GP3 Conference at the LLDA Green Building in Quezon City on Friday, Bautista said he had already asked the city’s building officials to look into the old structures and coordinate with owners to make the buildings greener.

“We started doing this at the Lung Center and Heart Center and they are now doing this. But what I am saying is that when we retrofit, we must include green features,” he said.

This way, the mayor said investors will be lured to continue doing business in the city, while inviting new prospective investors to come in.

Bautista said that QC lies directly underneath the West Valley fault and it is only prudent to prepare for the worst-case scenario to ensure the safety of the people.

bright prospects in career in tech-voc careers

Technical Education and Skills Development Authority (Tesda) Director General Joel Villanueva enjoined students entering senior high school starting the Academic Year 2016 and 2017 under the K to 12 curriculum to get into the technicalvocational livelihood track as their specialization.

“Tech-voc graduates land in jobs at once, especially those in occupations that are in-demand,” Villanueva said.

Citing the 2013 Impact Evaluation Survey of TVET (Technical Vocational Education and Training) Programs, the Tesda chief noted the improvement on the employability of tech-voc graduates during the Aquino administration.

Employment rate of graduates in the construction sector registered at 78 percent; agriculture and fishery (77 percent); metals and engineering (72 percent); garments (79 percent); processed food and beverages (70 percent); and health, social and other community-development services (71 percent).

“These are tangible results that show bright prospects for graduates of tech-voc. Students can never go wrong in taking this path,”Villanueva said. PNA

aquino delegates oparr functions to neda

President Aquino III has transferred the functions of the Office of the Presidential Assistant for Rehabilitation and Recovery (OPARR) to the National Economic and Development Authority (Neda).

Presidential Communications Operations Office Secretary Herminio B. Coloma Jr., in a news statement on Saturday, said Mr. Aquino issued Memorandum Order 79, entitled “Providing for the Institutional Mechanism for the Monitoring of Rehabilitation and Recovery Programs, Projects and Activities for Yolanda-Affected Areas,” which took effect on April 22.

Coloma said the Neda Director General, being the National Disaster Risk Reduction and Management Council vice chairman for rehabilitation and recovery, “shall assume the coordination, monitoring and evaluation of all disaster-related programs, projects and activities previously under the OPARR, and ensure the full implementation of this order.” PNA

RegionsSunday BusinessMirror

www.businessmirror.com.ph • Editor: Dionisio L. Pelayo

Sunday, April 26, 2015 A7

MNTC sets integration of Nlex-SCTEx toll collection

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By Lorenz S. Marasigan

HE projected traffic congestion on the North Luzon and the Subic-ClarkTarlac expressways (Nlex-SCTEx) is now being mitigated with the implementation of a three-stoponly toll-collection scheme that was successfully implemented during Holy Week by the toll-roads operator.

Manila North Tollways Corp. said in an advisory that the scheme will be implemented during the weekends only, as traffic surges during the said periods.

Under the scheme, cash-paying motorists bound for Tarlac will no longer have to stop and pay at the Dau Exit Toll Plaza northbound as all manual lanes will serve as pass through lanes every Saturday from 4 a.m. to 2 p.m. Combined toll will be collected at the SCTEx Mabalacat Toll Plaza. The same goes for motorists heading to SCTEx Subic.

Likewise, southbound motorists using Nlex will not need to stop at the Dau Entry Toll Plaza, where all manual lanes will be designated as pass through lanes every Sunday, starting 2 p.m.

The company is in the process of integrating the toll collection system of the two toll roads, earmarking some P650 million for the project. Aimed at completing the integration by the fourth quarter of this year, the project is seen to shorten the queues on the exit plazas of the two tollways.

The toll integration project involves the conversion of separate Nlex and SCTEx toll collection systems into a single system that would allow for more efficient toll collection and faster movement of traffic for motorists. It also involves the installation and removal of temporary plazas and the construction of interchange plazas that will also require the widening of existing entry or exit ramps.

Bulacan lawmaker dismayed

by Comelec decision on recall

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IBERAL Party Rep. JonJon Mendoza of Bulacan on Saturday expressed dismay over the decision of the Commission on Elections (Comelec) junking the petition for recall against incumbent Bulacan Gov. Wilhemino Sy-Alvarado.

Mendoza said the Comelec decision was based on lack of material time to conduct the recall elections.

He, however, considers the decision as a victory to the 319,000 Bulakeños who signed the petition “despite the threats, harassments and delays.”

Mendoza called a media briefing in Quezon City to express his mixed feelings over the decision of the poll body.

He said the fact that the petition reached such stage against an incumbent governor is still a victory.

He clarified that the Comelec en banc did not rule on the merits of the verification process, particularly on the disputed signatures, contrary to what the camp of Alvarado is projecting to the people of Bulacan.

“We were ready to present documentary proofs on each and every disputed signature unlike Governor Alvarado, who has put to bad light sworn affidavits and the notarial law and

consistently undermined the jurisdiction of the Comelec en banc, using officials who have less authority than the Comelec en banc itself,” he said.

According to Mendoza, every step of the recall process was met with dilatory tactics by Alvarado—from questioning the Comelec en banc on its decision to proceed with the recall elections, appealing said decision to the Supreme Court, to the delay in servicing the notice, to the temporary restraining order issued by the Regional Trial Court in Bulacan, replacement of provincial election supervisor by a regional election head who chose to rule knowing only the Comelec en banc can do that.

Mendoza said that nonetheless, “the fight for transparency and accountability continues for it is a commitment of every public official. It is the driving force of the recall petitioners and signatories. Public service has to improve, competent use of taxpayers money assured and the state of the province needs to regain the best years of Bulacan for we can soar as a province.

That was a fulfilled promise of past governors.”

He called on Bulakeños to remain vigilant for a better Bulacan.

Palaweños could expect full-blast infra development

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UERTO PRINCESA CITY—Palawan Gov. Jose Alvarez said on Friday that Palaweños can expect full-blast infrastructure development, specifically in the concreting of 5,570 kilometers of lateral-livelihood roads in the province when all 341 light- to heavy-equipment facilities have been completely turned over to the towns.

Alvarez made the assurance during the blessing of the equipment center at the provincial government motorpool in Barangay Irawan here.

“Constructions have started in other towns, and if we’ve completed the distribution of all, they will be nonstop,” Alvarez told the Philippine News Agency.

Presently, some of the new equipment are now being used in the construction of hospitals, water-supply projects, schoolbuildings, airports and road construction in the towns of Aborlan, Narra, Rizal, Brooke’s Point, Bataraza and Taytay.

The towns of Coron, Busuanga, Agutaya and Dumaran are on the road too, to infrastructure development with the transportation of equipment units to their areas recently.

The whole fleet is composed of 50 excavators, 27 six-way dozers, 10 low-ground pressure dozers, 26 boom trucks, nine dropside trucks, nine self-loading trucks, 140 dump trucks, nine graders, and 20 compactors—the largest the provincial government has purchased in recent times, amounting to over over P1 billion, “the thriftiest acquisition among local governments in the country,” Alvarez said. PNA

Sheriff tells CJHDevCo to leave Camp John Hay

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HE sheriff of the Regional Tr i a l C ou r t (RTC) in Baguio City served on Monday last week served a notice to vacate Camp John Hay Development Corp. (CJHDevCo) and all persons claiming rights under them.

In a statement, Arnel Paciano D. Casanova, president and CEO of the Bases casanova Conversion and Development Authority (BCDA), said the Sobrepeña-led CJHDevCo should respect the rule of law and abide with the notice.

“The arbitration was a process that CJHDevco forced BCDA to participate in. Now that the court has

spoken, they should follow the rule of law and vacate Camp John Hay,” Casanova said.

Casanova also cautioned the sub-lessees to seek legal counsel to protect their investment in Camp John Hay because they are part of the notice to vacate.

The notice to vacate is addressed to CJHDevCo “and all persons claiming rights under them.” The latter refers to the sub-lessees.

The notice to vacate starts the 30-day countdown for CJHDevCo to leave Camp John Hay and to promptly deliver the leased property, inclusive of all new constructions and permanent improvements to the BCDA within 30 days, the statement said.

Meanwhile, the BCDA said that it deposited on April 17, 2015, the amount of P1.42 billion in favor of Branch 6 of the RTC in Baguio.

The amount represents the refund of all rentals that CJHDevCo paid to BCDA over the years. The arbitral panel that decided the BCDA-CJHDevCo controversy said BCDA to refund all rentals paid by CJHDevCo.

2nd Front Page BusinessMirror

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Sunday, April 26, 2015

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BDO exec lists opportunities, uncertainties in 2015

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By Genivi Factao

DO Unibank Inc. (BDO) sees a positive outlook on large-scale infrastructure projects in the Philippines on sustained economic growth, but warned of uncertainties hounding the banking industry.

BDO President and CEO Nestor V. Tan said that, despite the positive outlook on the economy, the banking industry is faced with uncertainties on interest rates that are prompting the bank to be watchful on portfolio investments.

“We see sustained loan, and current- and savings-account growth, but pressure on yields continues. Also, there’s [an] uncertain interest-rate outlook this year,” he said at a recent news conference.

BDO is well-placed to take advantage of market opportunities, and is taking an active part in the country’s economic expansion.

“BDO has big exposures in project finance, with a combination of different types of industries from energy to toll roads and airports. We’re also a major player in mortgage lending,” Tan said, adding that, among Philippine indus-

tries, growth is driven by real-estate and infrastructure industries.

He cited the risks, which include diverging global monetary policies among central banks, geopolitical tensions in the Middle East, weak job creation and additional banking regulations.

On a positive note, Tan said the Philippines enjoys subdued inflation on low oil prices; an expected increase in public spending and election expenditures this year; and continued overseas Filipino workers’ (OFWs) remittance and revenue from the business-process outsourcing (BPO) industry.

BDO Executive Vice President and Treasurer Pedro M. Florescio III said the bank took advantage of its view of a strong dollar scenario, allowing the bank to generate trading profits.

BDO expects the US dollar to continue outperforming other

DOTC, Marina launch measures to boost local maritime safety

By Lorenz S. Marasigan

Tan: “Pressure on yields continues.” nonie reyes

currencies this year, thus, its trading and portfolio activities will be aligned with this outlook.

“We expect the US Federal Reserve to hike the interest rates in the second half of 2015,” Florescio said.

“We will also take a cue from the stronger Philippine economy, anchored on OFW remittances and BPO revenue. Election spending, government infrastructure spending and lower commodity prices will support this scenario,” he added.

BDO said the Philippines remains one of the region’s top performers in 2015, with growth driven by a resilient consumer sector, rising investment flows and revived government spending.

The country offers a lot of potential, and is an attractive growth market, given its expanding domestic base, young population and rising per-capita incomes.

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ARITIME transportation in the Philippines might have gone through a lot of reforms in the past, but these, according to a Cabinet official, are not enough.

Transportation Secretary Joseph Emilio A. Abaya admitted that the government sees a number of loopholes in the implementation of maritimesafety programs in the country, given the unstable situation of the Philippine seas.

He was quick, however, to allay fears that the state, being faced with the challenge of enforcing maritime-safety rules over a large fleet in an archipelago, is not doing its best. In fact, he said, the Maritime Industry Authority (Marina) is currently drafting a road map to successfully implement up-to-date and relevant maritime regulations.

“The Philippines is committed to pursuing innovations and initiatives to promote the safety of its ships. Being an archipelagic nation, our people are dependent on ships for the carriage of passengers, cargoes and services between our islands. Ships and shipping services are important to our economic survival as a people and as a nation. Naturally, it is our duty to ensure that we have a strong maritimesafety program that promotes the safety and security of life and property at sea, as well as the protection and preservation of the marine environment,” the Cabinet official said on Friday.

Currently, the Philippines has a fleet of 5,934 ships, with an average size of 72.46 gross tonnage.

In the recent past, the government has implemented several programs to ensure the safety of seafaring in Philippine waters,

one of which involves the structural reforms in the administration of maritime safety-related functions in the country.

“One of the most important measures taken over the years has been the clarification of the delineation of the primary mandates of various government agencies tasked to perform maritime-safety activities. This primarily includes the coordination of four agencies or offices under the Department of Transportation and Communications: Marina, Philippine Coast Guard [PCG], Philippine Ports Authority and the Office for Transportation Security,” he said.

The government, Abaya added, also pushed for the development and formulation of maritime-safety rules and regulations over the past years.

“Another important measure being undertaken by the government is the clarification, through safety rules and regulations, of certain maritime-safety obligations of the shipowner, operator and crew. One example of these rules and regulations is the National Safety Management [NSM] Code, which is a domestic adaptation of the International Safety Management Code, under Chapter IX of Safety of Life at Sea, or Solas,” he said.

The NSM Code requires that all owners and operators, masters and crew members must ensure the ship is safe, properly equipped, manned by duly trained and certificated crew, and operated in a safe manner. It also specifies the maritime-safety obligations of some non-governmental actors, such as ship designers, builders and class societies, in terms of the general safety condition of ships; ship operators, in terms of the safe operation of ships; and officers and crew, in terms of the

operation and maintenance of safety equipment, and the shipboard implementation of the NSM Code.

“Aside from the NSM Code, Marina continues to review, amend and update existing vessel-safety regulations, as well as formulate and adopt new ones.

The agency is now in the process of drafting a 2015 version of the Philippine Merchant Marine Rules and Regulations, or PMMRR, the consolidated codification of safety standards for vessels in domestic service. Marina is also drafting new policies on the importation of secondhand vessels, carriage of Automatic Identification Systems, or AIS, among a host of other issues,” the transport chief noted.

The government, Abaya said, also enhanced the capacity of technical personnel involved in the administration of maritime safety.

“Continuous technical capacity building is an important component of our maritimesafety program. In particular, Marina and PCG inspectors exercising flag state implementation and port state control duties require specialized technical training,” Abaya said.

Marina has recently overhauled its Ship Safety Survey System, introducing greater efficiency in the process of updating, harmonizing and rationalizing ship survey protocols. The system includes a vital training component, whereby inspectors from the different regions participate in national workshops to share experiences and lessons learned. Aside from in-house workshops, the training program occasionally includes exchanges with bilateral partners, such as Japan, through the Japan International Cooperation Agency.

lechon fusIÓn

Spanish Ambassador to the Philippines Luis Antonio Calvo (third from left) slices a jamon Iberico, while Tourism Secretary Ramon R. Jimenez Jr. (right) chops into a lechon to open the trade exhibit at the three-day Madrid Fusión Manila at the SMX Convention Center in Pasay City, which started on Friday.

Spain’s exports to the Philippines reached $395.2 million in 2014.

Stella Arnaldo

PHL remains keen on joining US-led TPP

By Catherine N. Pillas

T

HE Philippines remains keen on joining the United States-led Trans-Pacific Partnership (TPP) trade deal, as political developments unfolding in Washington may hasten the TPP’s approval and open the trade agreement to new members.

Trade Assistant Secretary for Industry Development Ceferino S. Rodolfo told reporters on Saturday that the trade office is still conducting technical consultations with TPP members in an effort to determine if it can meet commit-

ments in the trade agreement.

The Department of Trade and Industry’s (DTI) Industry Development and Trade Policy group, the main trade negotiating group of the DTI, is currently in Canada and Mexico conducting technical consultations considered as vital in weighing if the Philippines can join the multilateral trade deal.

The trade official said the country is still doing due diligence, as significant developments are unfolding in the US that may hasten the approval of the TPP, after which the accession protocol for new members may be tackled.

“We are closely monitoring the developments in the US Congress on the trade promotion authority [TPA] for the US president, as that is a critical element toward the resolution of contentious issues in the TPP. Even as the TPP is now closed to new members, the Philippines would like to be in a position to make a decision as soon as the agreement is finalized and the text is made publicly available. In this context, the Philippines is doing technical consultations,” Rodolfo said.

The Philippines has so far initiated consultations with Malaysia, See “TPP,” A2