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A broader look at today’s business n
Sunday, July 24, 2016 Vol. 11 No. 288
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CORN WORLD Taking advantage of the hot, sunny weather, a farmer sun-dries his corn harvest on a multipurpose pavement in Santiago City, Isabela. Next to rice, corn is a major cash crop in the province up north. SUZANNE JUNE G. PERANTE
Group pushes rail system at port area to ease traffic By Lorenz S. Marasigan
@lorenzmarasigan
A
CARGO-train system operating in the capital’s port area will serve a two-pronged purpose: Decongest traffic in Metro Manila and improve efficiency in the cargo-transport sector, a transport group said on Saturday. National Alliance of Transport Organizations (Nato) Executive Director Michael Salalima said his group supports the proposal of various prominent private and public transport and management groups to alleviate the chronic traffic congestion through a cargo railsystem project. “A rail-based solution is a viable alternative to address the congestion in Metro Manila and its environs. Expanding the rail systems, both for more efficient cargo transport, as well as commuter relief, is the first step to decongest our major roads,” Salalima said. The implementation of a container rail service is among the transport projects presented by Transportation Secretary Arthur P. Tugade in his first 100 days in office during a business forum earlier this week. “From a transport industry’s perspective, among the projects being considered by the transport department during the first three months of the Duterte administration, the See “Port,” A2
Aggressive infra spending seen to put pressure on peso South China Sea A ruling has so far By Bianca Cuaresma
@BcuaresmaBM
GGRESSIVE spending and investment, as planned and promised by the current administration, is likely to affect the movement of the peso in the near to medium term, economists said.
At the onset of the administration of President Duterte, ramping up spending in infrastructure is among the priorities of his economic team, citing the losses the country is seeing amid the lag in infrastructure. This, according to economists, will not only help speed up the economic expansion and increase the productive capacity of the country, but also move to influence the peso Continued on A2
fueled tensions
Ecotourism and leisure do mix in Nasugbu, Batangas I
By Leony R. Garcia
USED to consider Batangas as my provincial home. On summer vacations during my high-school days, my uncle’s wife would bring me to her hometown for a vacation in Cuenca. Later after college, and while savoring my singlehood, my friends and I would go to Nasugbu—in the towns of Looc and Calayo—every time we had a chance to join church activities with the locals. At that time, there was hardly any electric service in Looc; there was none in Calayo. Transportation by public bus taking the Tagaytay route—which took four hours from Manila—was far from desirable. From Nasugbu proper, we had to content ourselves riding a jeepney jampacked to its roof traversing rugged roads to be able to reach Looc, while we had to ride a motorized banca from Nasugbu port, in order to reach the coastal town of Calayo. In fact, the most fearful experience I had happened one summer, when my friends and my
PESO exchange rates n US 47.1630
A woman walks past a billboard featuring the South China Sea on display with Chinese words that read “South China Sea, our beautiful motherland, we won’t let go an inch” in Weifang, in east China’s Shandong province on July 14. Chinatopix via AP
I
A VIEW of the infinity pool and beach at Pico de Loro Beach and Country Club.
family went to Calayo. Our banca nearly capsized in the middle of the sea. Onboard with us were my 8-month-old son and the year-old son of our pastor. We went back to Calayo after three years for the church’s summer camp, when my son was about 3 years old. That was some 20 years ago. Since then, I had not gone back to Looc or Calayo because of work and time constraints. But I was happy that in recent years, Nasugbu has been included among the
LEONY GARCIA
popular tourist destinations this part of Batangas province. Most tourists flock to Nasugbu to enjoy the beauty of nature and to visit the Nasugbu beach resorts. Many are attracted to mountain trekking in Pico de Loro, Mount Talamitam and Mount Batulao, and even activities like deep-sea fishing. And with Nasugbu being increasingly urbanized, a lot of residential and resort properties with beautiful amenities are in store for tourists. See “Nasugbu,” A2
T’S a ruling that China cannot accept, and one that the Philippines must. An international arbitration panel’s decision on the contested waters of the South China Sea, so far, is fueling regional tensions, rather than tamping them down. In the ensuing 11 days China has responded to the sweeping victory for the Philippines by flexing its military might. The Philippines faces pressure both at home and abroad not to cede an inch to China after the July 12 decision by a tribunal at The Hague-based Permanent Court of Arbitration. The South China Sea is dot-
ted with reefs and rocky outcroppings that several governments claim, including China and the Philippines. The arbitration panel didn’t take a position on who owns the disputed territories. It did conclude that many of them are legally rocks, even if they’ve been built into islands and, therefore, do not include the rights to develop the surrounding waters. That and other findings invalidated much of what China called its historic claims to the resourcerich sea. In order to ease tensions, China, the Philippines and possibly other claimants must define what the ruling means Continued on A2
n japan 0.4458 n UK 62.4202 n HK 6.0812 n CHINA 7.0640 n singapore 34.8066 n australia 35.3487 n EU 52.0066 n SAUDI arabia 12.5765
Source: BSP (22 July 2016 )
NewsSunday BusinessMirror
A2 Sunday, July 24, 2016
South China Sea ruling has so far fueled tensions
A Chinese H-6K bomber patrols the islands and reefs in the South China Sea. An international arbitration panel’s decision on the contested waters of the South China Sea, so far, is fueling regional tensions rather than tamping them down. In the ensuing 11 days, China has responded to the sweeping victory for the Philippines by flexing its military might. Liu Rui/Xinhua via AP
Continued from A1 for fishing, offshore oil and gas exploration, and military and other activities in the vast body of water that lies between the southern Chinese coast and the Philippine archipelago. A major diplomatic test starts on Sunday in Lao PDR at a threeday meeting of Southeast Asian foreign ministers that will include sessions with their Chinese and US counterparts. Past Asean meetings have broken down over disagreements between those taking China’s side and those opposing it. The US, whose Navy patrols the waters, has called on China to abide by the ruling while also urging calm. Longer term, there are compelling reasons for China and the Philippines to talk, but also significant obstacles to that happening. Unless the two sides can find a way around their impasse, the ruling may simply prolong the South China Sea’s long-running territorial disputes, which also involve Vietnam, Taiwan, Malaysia and Brunei Darussalam in a mesh of overlapping claims.
China
In recent days, the military has staged live-firing exercises in the area, and stated it would begin regular aerial patrols over the sea. It also has asserted it will not be deterred from continuing construction of its man-made islands in the South China Sea. In a veiled threat, a senior
government official said China has a right to declare an air-defense identification zone (Adiz) over the area if its security is threatened. Under a so-called Adiz, countries require that aircraft in the zone identify themselves and their routes and follow Chinese instructions. At least the US and Japan would almost certainly refuse to comply, creating new opportunities for confrontation. While Beijing’s initial fury was widely foreseen, the controversy essentially disappeared from Chinese state media on Friday, a possible indication China is preparing to tone it down. The approach threatened to tarnish China’s global prestige by making it appear unwilling to play by the rules of international law. In particular, China’s relations with the 10-member Asean could suffer, further reducing its hopes of regaining its status as Asia’s dominant political and economic power. Under such circumstances, Beijing might at least try to give the appearance of engagement on the issue. China is hosting the Group of 20 meeting of major economies in September and doesn’t want the summit to turn into a “China-bashing fest,” said Yanmei Xie of the International Crisis Group think tank. However, it’s far from clear whether its neighbors will see any outreach from China as sincere. The Philippines already has turned down an offer for bilateral talks, saying China first must recognize the panel’s ruling.
Philippines THE Philippines’s new president, Rodrigo R. Duterte, is on a tightrope. The arbitration ruling was a huge legal victory, but also presents a dilemma to Duterte, who has made friendly overtures to Beijing. On one side, he aspires to repair strained relations with the Asian economic powerhouse, which has offered to finance railway projects he had sought. On the other, any move that can be seen as a compromise on the ruling can provide ammunition to his political opponents. The Philippines wants the Chinese coast guard to stop harassing Filipino fishermen near reefs claimed by China, as well as to allow it to explore for desperately needed offshore oil and gas. “The new government here in Manila is grappling with what might be called catastrophic success,” former Australian National Security Adviser Andrew Shearer said last week. “What comes next is obviously going to be a delicate balancing act.” Philippine Foreign Secretary Perfecto R. Yasay Jr. has revealed that, during talks on the sidelines of a recent Asia-Europe meeting in Mongolia, his Chinese counterpart Wang Yi asked Manila to be open to bilateral negotiations “outside of and in disregard of the arbitral ruling.” “This is something that I told him was not consistent with our Constitution and our national interest,” Yasay said. Wang warned that if the Philippines insists on Chinese compliance with the
ruling, “then we might be headed for a confrontation,” he said. The meeting of Asean foreign ministers in Laos may signal whether the Philippines will stick with a low-key and non-confrontational approach despite its rejection of China’s condition for talks.
What’s next
HAD the decision been handed down during the time of Duterte’s predecessor, Benigno S. Aquino III, the government had planned to build pressure on China to comply by raising the issue in all international arenas, including the UN General Assembly, according to Filipino diplomats at the time. The new president’s nonconfrontational approach carries risks, if China doesn’t reciprocate. “Duterte is staking his own political capital and engaging in a very risky diplomatic gambit by trying to extend the olive branch to China,” said Richard Heydarian, a Manila-based expert on the South China Sea issue. “He can’t just keep on extending the olive branch and not get anything in exchange. He would be lambasted at home and the opposition forces and his critics would use this to undermine him.” Behind China’s vitriol, some analysts parsing the government’s words detect a possible softening of its stance. China has suggested it might be willing to have talks on joint development of resources, while setting aside the disputes over sovereignty. AP
Aggressive infra spending seen to put pressure on peso
Continued from A1 in the foreign-exchange market. In the near term, Bank of the Philippine Islands (BPI) research officer Nicholas Antonio Mapa told the BusinessMirror that having to invest heavily on infrastructure projects may cause a depreciation of the peso against the US dollar, owing to the increase of imports needed for the projects. “Yes, [President] Duterte and [Budget Secretary Benjamin E.] Diokno plan a very aggressive rampup in infra spending to bridge the infrastructure gap we have with the rest of the region. We have the lowest or second lowest WEF [World Economic Forum] infrastructure ranking in the Asean area and we need to address this,” Mapa said.
As of 2015, the Philippines ranked 90th out of 144 economies worldwide in terms of the quality of infrastructure, according to the WEF annual report. “A stark increase in infra spending will call into the need for more imports, in the form of steel bars, capital machinery and other materials used in the building of roads and bridges. Should the jump in dollar demand outweigh the supply of dollars from remittances, exports and BPO [business-process outsourcing], we may see some pressure on the peso,” Mapa said. Data from the PDS Group showed the peso losing steam against the dollar in recent days. The peso ended the trading week at 47.12 against the US dollar on Friday, losing 5 centavos of value from
the previous day’s trade of 47.07 to a dollar. In the longer term, however, the peso is likely to gain back against the dollar once infrastructure quality has already improved in the country. In a separate response to the BusinessMirror, Moody’s Analytics economist Jack Chambers said better infrastructure will attract more players to invest in the local scene and eventually bring the peso’s value up against the dollar. “Increased infrastructure spending, particularly public-private partnerships, should help to make the Philippines a more attractive investment destination. This will help to improve capital inflows to the country, leading to an appreciation of the peso,” Chambers said.
Just recently, the International Monetary Fund (IMF) said the Philippines is poised to post at growth of 7 percent to 8 percent due largely to the Duterte administration’s plan to aggressively increase infrastructure and social spending. “So despite the [expectation] that the Philippines [will continue] to grow 6 percent for the next few years, with the added efforts in infrastructure investment and increase in social spending, like education and health, the country’s growth rate will become even higher, possibly within the new government’s target of 7 percent to 8 percent,” IMF Mission Head Chikahisa Sumi said. In the first quarter of the year, the local output hit 6.9 percent, one of the fastest sprints in the region.
www.businessmirror.com.ph
Nasugbu…
Continued from a1
Nasugbu Special Tourism Zone
NASUGBU is a first-class municipality bounded on the north by the municipalities of Maragondon, Magallanes and Alfonso in the province of Cavite; on the east by the Batangas municipalities of Laurel, Calaca and Balayan; on the south by the Batangas municipalities of Lian and Tuy; and on the west by the West Philippine Sea. It is the largest town in western Batangas with a land area of 276.33 square kilometers. Because of its rolling terrain and coastline location, agriculture (sugarcane, rice, corn, vegetables, coconut, fruits) and aquaculture are Nasugbu’s main industries. On August 3, 2007, by Executive Order 647, then President Gloria Macapagal-Arroyo declared Nasugbu a special tourism zone, mandating the formation of a private sector-led “Nasugbu eminent persons group” to oversee development. The Nasugbu Special Tourism Zone covered areas included in the Nasugbu Tourism Development Plan prepared by the municipal government and validated by thenPhilippine Tourism Authority, now Tieza. With this, SM Investments Corp. (SMIC) was able to construct a 59-sq-km resort, the Hamilo Coast. Also included in the tourism zone are Punta Fuego and Mounts Palay-Palay–Mataas-na-Gulod Protected Landscape, where Mount Pico de Loro is located.
Hamilo Coast: Philippine Riviera
HAMILO Coast is a sprawling seaside sanctuary located within the municipality of Nasugbu. Three coves at Hamilo Coast have been declared marine-protected areas (MPAs), namely, Pico de Loro Cove, Santelmo Cove and Etayo Cove. The global Coral Triangle is the world’s center of marine biodiversity. Often referred to as the “Amazon Rainforest of the Seas,” it is home to 76 percent of the world’s coral species and 37 percent of the world’s reef-fish species. The Coral Triangle encompasses the waters of six countries, namely, Indonesia, Malaysia, the Philippines, Papua New Guinea, the Solomon Islands and East Timor. The Verde Island Passage located
Port…
between the provinces of Batangas and Mindoro Oriental in the Philippines is dubbed as the world’s “center of marine shorefish biodiversity,” hosting the greatest number of shorefish species. Last week I grabbed the opportunity to see Looc and Calayo once again and, of course, the country’s Philippine Riviera through the invitation of the SM Foundation Inc. To my pleasant surprise, going to Nasugbu is now a joyful ride. After passing several towns of Cavite, we reached the well-kept and concrete winding Ternate-Nasugbu Highway with its varying terrains and breathtaking landscapes of Mount Palay National Park. In no time at all, we passed through Kaybiang Tunnel, whose mountain and ocean backdrop is postcard-perfect and worthy of snapshots. With the Ternate-Nasugbu Highway and Kaybiang Tunnel, traveling to Nasugbu is a breeze. It’s now only a 90-minute drive from Manila.
Pico de Loro Cove
NAMED after the famous trekking spot distinct for its shape, resembling a parrot’s beak, Pico de Loro is one of the 13 coves found along Hamilo Coast, which SM Land Inc. has developed with residential/ leisure offerings done in a tropical contemporary aesthetic. The development includes residential buildings, a country club and a hotel, and the facilities include a man-made saltwater lagoon at the center, all blending perfectly with the lush vegetation and the towering mountains surrounding it. Wesley Caballa, senior manager of Hamilo Coast, said the seaside community has worked with the WWF-Philippines on environmental programs aimed at preserving the quality of its natural surroundings. Since 2007 the WWF has been assisting Hamilo Coast in coastal-resource management, renewable energy, solidwaste management and ridge-toreef management. This includes the installation of solar panels along selected points of the property, volunteers for bantaykalikasan boatmen and strictly nonfishing activities in the protected coves, among others.
Continued from a1
container rail-services project is the most viable and critical for implementation,” Salalima said. “It would bring a two-pronged benefit by providing significant relief to commuters who daily traverse our congested roads, as well as result in a more efficient cargotransport system.” Industry observers believe the lack of connectivity to Manila ports is one of the main reasons truck operators are losing profits owing to the traffic congestion. MRail Inc. has proposed the restoration of the rail connectivity between Manila ports to an inland container terminal facility in Laguna. The private company, a subsidiary of Manila Electric Co. (Meralco), recently signed an agreement with the International Container Terminal Services Inc. to operate a freighttrain service in the existing tracks of the Philippine National Railways. It plans to operate at least eight round trips per day with an average daily container transfer of 600 twenty-foot equivalent units from the Manila International Container Terminal to the Laguna Gateway Inland Container Terminal and vice versa. The company wants to operate the freight train round the clock. Currently, there is a significant resurgence of the country’s manufacturing and trade activity. This is fueling a beehive operation in the ports and, as a result of increasing trade volumes, heavy port usage contributed to traffic in the metropolis. The service, once revived, will act as the unconstrained avenue to move cargos to and fro which will eventually free up port storage within a shorter period to significantly increase port capacity without additional yard space and berth, resulting in increased revenue-generating capacity.
The proposal was submitted to the government in September last year, but was left untouched by the former officials of the transportation department. Metro Manila loses roughly P2.4 billion in traffic daily, estimates from the Japan International Cooperation Agency (Jica) showed. This is expected to balloon to P6 billion by 2030. To avert this, the Aquino administration adopted the Jica’s Roadmap for Transport Infrastructure Development for Metro Manila and its Surrounding Areas, otherwise known as the Dream Plan. The P4.67-trillion road map calls for the establishment of a modern, well-integrated, coordinated and affordable transport system for Metro Manila and the adjacent areas of Bulacan, Pampanga, Cavite and Batangas. The system will consist of expressways, new roads elevated and on ground, railways elevated and on ground, subways, airports and seaports. Near-term components are for completion by 2016, while medium- and longer-term components are for completion by 2020 and 2030, respectively. When completed, the plan will accomplish at least three objectives: The reduction of traffic congestion in the metropolitan area; the diminution of air pollution in the metropolitan area and its environs; and the reduction of transportation costs to the urban population, especially the poor and other low-income groups. At the level of the individual, completion will result in the reduction of the average travel fare of commuters from the current P42 to P24, and also the lowering of the current average travel time of 80 minutes to 31 minutes.
NewsSunday BusinessMirror
www.businessmirror.com.ph • Editor: Dionisio L. Pelayo
Alvarez vows to pass bills restoring death penalty, reducing age of criminal liability By Jovee Marie N. dela Cruz @joveemarie
P
DP-Laban Rep. Pantaleon D. Alvarez of Davao del Norte, who is touted to be the next Speaker, has vowed to pass bills seeking the restoration of the death penalty and reducing the age of criminal liability of juvenile offenders from 15 to 9 years old within the year. Alvarez said these measures are now ready for deliberations when the 17th Congress starts session on Monday. “The House will try to pass all these [President] Duterte and 17th Congress priority bills within a year,” Alvarez said. He said the reimposition of the death penalty for heinous crimes and the mode of its implementation, both subjects of repealed laws, are crucial components of an effective dispensation of both reformative and retributive justice. Alvarez is the author of the bill seeking to restore the penalty of death for certain heinous crimes, such as plunder, trafficking in illegal drugs and carjacking. “ T he nationa l cr ime rate has grown to such alarming proportions requiring an allout offensive against all forms of felonious acts. The Philippines society is left with no option but to deal with certain grievous offenders in a manner commensurate to the gravity, per versity, atrociousness and repugnance of their crimes,” the lawmaker said. Also, Alvarez said the measure seeking to amend Republic Act (RA) 9344, or the Juvenile Delinquency Act of 2006, or the “Pangilinan law,” should be passed. RA 9344 raised the minimum age of criminal responsibility from 9 to 15 years old. Alvarez said the choice of 9 years as the minimum age of criminal responsibility under the Revised Penal Code was infused with wisdom, saying, “Most children above this age, especially in these times when all forms and manner of knowledge are available through the Internet and digital media, are already fully informed and should be taught that they are responsible for what they say and do.” Under the bill, “a child 9 years of age and above, but below 18 of age, shall, likewise, be exempt from criminal liability and subjected to an intervention program, unless he or she is determined to have acted with discernment, in which case he or she shall be subjected to appropriate proceedings in accordance with this act.” The lawmaker also said the joint resolutions for convening a Constitutional Convention (Concon) that will amend the Consti-
tution to pave the way for a shift from the unitary to a federal system of government is included to its priority measures. Alvarez added that among the reasons for amending the Constitution is to “make the form of government more responsive to the needs of the nation.” Based on the Alvarez’s resolution calling for the convening of a Con-con, “the best mode of revising the 1987 Constitution is through a Constitutional Convention, wherein the delegates who will propose revisions are regionally elected for that purpose. This process shall ensure that the people-at-large, from the very outset, shall be part of the changes that will be introduced for the fundamental structure of our society.”
Support
MEANWHILE, several neophyte lawmakers have backed the legislative agenda of President Duterte and the 17th Congress. During the recent neophyte lawmakers’ fellowship dinner, Nacionalista Party Rep. Raymund Villafuerte of Camarines Sur said 104 neophyte lawmakers are determined to help improve the image of the House of Representatives, where lack of quorum remained a major problem in the 16th Congress. “Right now, we can unite with a common agenda, especially the neophytes to uplift the image of the House of Representatives. We should be more active in our attendance and very participatory in the committee hearings,” Villafuerte said. “Despite being neophyte, I think everybody can agree that we are really fully committed in crafting pro-poor legislation to improve the life of our constituents. I’m sure we can all safely say that we will fight for our vision in improving the image of Congress as an institution,” he added. The lawmaker, however, said they assure their respective constituents that all bills and resolutions up for approval in the 17th Congress would go through constructive debates and meaningful deliberations prior to their enactment into laws. For his part, Alvarez, also a first-term being a returning congressman, said that his colleagues should religiously attend congressional sessions and committee deliberations on the proposed important pieces of legislation. “Kailangan talaga mag-attend tayo ng session at committee hearings, huwag n’yo pong sayangin ang panahon ninyo na hindi kayo naga-attend ng session at committee hearings, marami kayong matututnan dito at tungkulin po natin ito sa bayan at sa ating constituents,” Alvarez said.
Another slight oil-price rollback expected
A
PRICE rollback in petroleum products is expected soon, based on the latest assessment of the Department of Energy (DOE). Oil Industry Management Bureau Director Melita V. Obillo said oil companies might implement a price reduction by as much as P0.30 per liter on gasoline and diesel products. Obillo said the price cut is anticipated to be smaller for gasoline. Just last week oil companies implemented price reductions in gasoline by P0.55 per liter and P0.75 per liter in diesel and kerosene. This brought the year-to-date adjustments to net increases of P1.04 per liter and P4.63 per liter for gasoline and diesel, respectively. During the first few days of trading last week, supply in the international oil market remained
on the rise. Demand, on the other hand, was weak. The DOE also said heavy rains muted requirements in India and China. Indonesia had also a weaker demand for gasoline. There was also lack of demand for diesel both within and beyond the Asian region. Moreover, Chinese refineries cut diesel output owing to limited consumption in the mining, construction and manufacturing sectors. Therefore, the DOE said over the weekend, domestic prices may fall. A contributory factor is the stronger peso. Oil companies adjust their prices on a weekly basis to reflect prices of imported oil products that arrive in the country. It takes a week for the oil companies to bring their products to the market from the time they import the products. Lenie Lectura
Sunday, July 24, 2016 A3
Drilon eyes stiffer sanctions against political turncoats
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By Butch Fernandez
@butchfBM
FTER seeing the erstwhile ruling Liberal Party (LP) decimated by defections and its headcount cut down to 30, from more than 150 members in the House of Representatives, outgoing Senate President Franklin M. Drilon, a ranking LP stalwart, wants Congress to pass a law imposing stiffer sanctions against turncoats.
Asserting that “political turncoatism should never be encouraged nor tolerated,” Drilon moved to introduce remedial legislation for consideration and approval by members of the 17th Congress in a bid to deter political butterflies who switch party alliance “for convenience.” Lamenting that “most political aspirants change political parties for convenience, rather than because of conviction,” he said “this only shows the lack of ideological
DOE allows 4 power firms to conduct GIS By Lenie Lectura @llectura
T
HE Department of Energy (DOE) has cleared the proposed power projects of four companies for the conduct of a grid-impact study (GIS). A clearance for the conduct of a GIS is necessary for a power company before it can proceed with the construction of its power generation project. Latest data from the agency’s web site showed that the proposed projects could generate 1,046.7 megawatts (MW) of power capacity. Based on the DOE list of companies given clearances for GIS as of June 2016, four companies were given the green light to put up two solar, two coal and one wind-power projects. In particular, SMC Global Power is putting up a 600-MW coal plant in Pagbilao, Quezon, and another 328-MW coal powerfacility in Davao del Sur. The power company’s application for the conduct of a GIS was cleared on June 8. Bronzeoak Philippines Inc.’s 100-MW wind-power project in San Carlos City, Negros Occidental, also secured the green light of the agency for the conduct of the said study on June 6. For the two solar projects, the DOE cleared Sun Premier Bogo Philippine Corp.’s 16.7-MW project in Bogo, Cebu, on June 30 and the 2-MW power project of Sunasia Energy Inc. in Sumilao, Bukidnon, on June 7. The DOE approved in May similar applications for five power projects that could generate 258.9 MW of power capacity. The proposed power projects involved three solar, one biomass, one energy-storage facility and one diesel plant. In 2015 over 13,000 MW of power capacity from various power projects were approved by the DOE for the conduct of the said study.
commitment of the members of party because they choose parties based on the rise and fall of the tide of opportunity.” In filing Senate Bill (SB) 226, Drilon introduced penal provisions barring political turncoats from running under any political party for any elective position in the next succeeding elections after they changed party affiliations. “ They [turncoats] will also refund any and all amounts they
received from their political party, including a 25-percent surcharge, the incumbent LP vice chairman said. He noted that, while political parties in the Philippines are normally used as political vehicles to win an election, “the political party system is centered on personalities rather than ideology and political platform.” To address the aberration, Drilon drew up a political-reform bill aimed at strengthening the political system by deterring party switching and, at the same time, “level the playing field” of political parties. He stressed it is about time that lawmakers pass a law institutionalizing and strengthening political parties “as pillars of the country’s democratic system.” Drilon added: “It is imperative that the country’s political party system should be strengthened in order to achieve genuine political development and democratization.” The senator recalled previous attempts to reform the orientation of political parties in the past “to veer away from the concept of traditional politics,” admitting that “unfortunately, these attempts remain unsuccessful because of lack
of legal institutional framework to govern system of political parties.” He asserted that SB 226, also known as the Political Party System Act, aims to “promote party loyalty, discipline and adherence to ideological principles, platforms and programs.” Once enacted into law, the senator said the remedial legislation would also provide a state subsidy fund intended to augment campaign expenditures and party development expenses. “The funds can be used to augment the operating funds of the accredited national political parties for party development, which include, among others, party administration and recruitment, research and policy development, and education and training of members, said Drilon, adding it could also be used to fund campaign expenditures, including traveling expenses of the candidates and support personnel in the course of the campaign. He said the funds could also be tapped for the hiring of party personnel and secretariat, setting up of headquarters, production and distribution of campaign paraphernalia and other relevant electoral expenses.
SundayV
Busine
A4 Sunday, July 24, 2016 • Editor: Angel R. Calso
Trump’s 45-percent tariff for China
A
By Peter Navarro | Los Angeles Times/TNS Forum
S a policy advisor to the Donald Trump campaign, I frequently get asked whether he is serious about imposing a 45-percent tariff on Chinese imports.
Skeptics cry “protectionism” and warn of a trade war. Let’s set the record straight. Trump will impose countervailing tariffs not just on China, but also on any American trade partner that cheats on its trade deals using practices, such as currency manipulation and illegal export subsidies. Such tariffs are not protectionist, but rather, defensive—and consistent with actions taken by American presidents from George Washington to Ronald Reagan. Indeed, one of the first bills Washington signed was a tariff, which Alexander Hamilton justified as a necessary defense against a mercantilist Europe. Is a 45-percent tariff too high? When Japan flooded global markets with underpriced computer chips in the late 1980s, Reagan slapped a 100-percent tariff on semiconductors, plus high-end computers and televisions. The total tariffs were based on the economic injury suffered by the US semiconductor industry as result of Japan’s cheating on a trade agreement. This is the kind of flexible case-by-case approach that a Trump White House, Treasury Department, Department of Commerce and US trade representative would use. Still, Trump’s suggestion of a 45-percent tariff on Chinese imports would, by my calculations, be an appropriate level. More than 10 years ago I began analyzing exactly how China’s state-run industries significantly undercut foreign manufacturers and found that lower labor costs accounted for only 39 percent of China’s price advantage. Five other unfair trade practices—the aforementioned illegal export subsidies and currency manipulation, along with intellectual-property theft and lax worker safety and environmental regulations—are the bigger story. For example, China’s central bank keeps the yuan undervalued, thereby overstimulating the nation’s exports while discouraging imports from the US. Such blatant currency manipulation contributes significantly to a $365-billion trade deficit last year with China that would not exist in a freely floating exchange rate world. Similarly, when China simply steals the intellectual property behind US technology—and avoids incurring substantial research and development costs —it gains a huge advantage in key industries, such as autos, biotechnology and pharmaceuticals. Likewise, when Chinese companies evade the environmental and worker-safety costs imposed on American industry, made-in-China stuff can get even cheaper. When I added up the effects of such practices in China in 2006, they accounted for 43.7 percent of the artificially low price of Chinese manufactured goods—almost exactly the amount of Trump’s proposed tariffs. In the decade since my study was conducted, China’s cheating has only worsened and become more institutionalized. For example, the bipartisan Commission on the Theft of American Intellectual Property in 2013 estimated that the US loses more than $300 billion a year to intellectual-property theft and blames China for 50 percent to 80 percent of the problem. The Peterson Institute for International Economics in 2012 attributed “half or more of excess US unemployment” to currency manipulation and identified China as “by far, the largest” currency manipulator.
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Understanding negotiation Conclusion
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ANY of these disciplines have tried to explain human behavior in prenegotiation stages, using the unit of analysis at the individual level and others at the group level or at the organizational level. At the individual level, analysis has been on personality, motivation and education. At the group level, the emphasis is on structure, leadership style, power and politics. At the organizational level, the concern is on culture, structure, technology and management.
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By Cecilio T. Arillo
Its theoretical and practical frameworks are premised on the assumption that the government and the private sector properly allocate their scarce resources, such as management, funds and people. Resources are the inputs that these sectors use to produce outputs, such as coherent policies, professionalism, safety and security. The means by which these sectors allocate these inputs and outputs are called the process. The term process in this module refers to empowerment, continuous learning and providing support programs. You have to bear in mind that almost all ideologies are claiming to be nationalists. But can they? For instance, how can the members of the Left claim nationalism when they are using foreign ideology (Marxism)? China and Russia, both Marxists, are themselves now capitalists. In this part of the series, the case history of the Mindanao conflict, which has already claimed the lives of more than 120,000 people over the past decades is quite instructive, particularly on the issue of ideology and the wrong use of terminology (Cultural Anthropology, Linguistic, Arillo, 2004).
History, geography and demography
THE Philippines is peopled by 111 ethnic, linguistic and cultural groups speaking 70 major languages and dialects. Despite variations in cultural and religious practices, it is one coherent nation, organized into one secular and democratic state, with an estimated 102.7 million people, who share a common racial identity, moral concepts and historical experiences, better known as Filipinos. These Filipinos, of whatever religion and persuasion, enjoy equal rights and privileges, including freedom of religious belief and worship, under the Philippine Constitution. The separation of Church and State is part of its national policies. Geographically, the Philippines, with a total land area of 115,800
square miles, is divided into 18 regions, comprising 81 provinces, 145 cities and 1,489 towns scattered in 7,641 islands from the northern tip of Luzon, the central plains and mountainous areas of the Visayas, and up to the Southwestern tip of Tawi-Tawi Province in Mindanao. Luzon, with a contiguous land area of 41,754 square miles, is the biggest of the islands followed by landlocked Mindanao with 36,372 square miles and the Visayas, with 37,674 uncontiguous land area. The people of Luzon are known by their ethnic identities. For example, those from the high and lowland provinces of Kalinga, Apayao, Abra, Mountain Province, Ilocos Norte, Ilocos Sur, La Union and Cagayan Valley are called Ilocanos and those from the central plains of the provinces of Pangasinan, Tarlac, Pampanga and Bulacan are, respectively, called Pangasinense, Tarlakeños, Pampangeños and Bulakeños. Those from the Greater Manila Area are called Manilans; those from the Bicol Region are called Bicolanos; and those from the Visayas are called Warays, Ilongos and Cebuanos. Those from the provinces of Sulu, Tawi-Tawi, Basilan, Zamboanga del Norte, Zamboanga del Sur, Maguindanao, South Cotabato and Lanao provinces in Southwestern and Central Mindanao are called Samals, Tausogs, Bilaans, Chabacanos, Maguinadanaoans and Maranaos. Mindanao has as population of over 32 million. This population is commonly classified into three ethnic-linguistic cultural minorities: 1. The internal migrants, whose cultural origins lie in the northern islands of Luzon and the Visayas, number about 19.5 million. They are commonly known as “Christians,” not because of religion, but because of their relative modern lifestyles. 2. The indigenous cultural minorities, better known as “hilltribes,” or lumads, have their distinctive way of life, manner of dressing (with their women commonly known as “bare-breasted”), and a definite hierarchy of values. They number roughly 4.5 million. 3. The Filipino communities who mostly live in coastal areas and follow Islam. These are divided into more than 15 communal groups with an estimated population of 5 million. They make up the majority in four (Sulu, Tawi-Tawi, Maguindanao and Lanao del Sur) of the 24 provinces and nine cities in Mindanao. Islam came to the Philippines in the late 13th century and became a
heritage of the entire Filipino nation. In fact, its preservation and enhancement, like the other minorities, constitute a national policy.
No moral, legal and religious justification
VIEWED from these demographic realities, there is no moral, legal and religious justification in calling these Filipinos as Muslims, a generic term. Besides, the conflict in Southwestern Mindanao, Sulu and Tawi-Tawi is the result of historical inequities and misunderstandings. Colonization by Spain severed the basic unity of Filipinos and drove a serious wedge between the Filipinos of the North and the Filipinos of the South. Colonization and the subsequent protracted struggle against it left a legacy of social, cultural, political and economic iniquities. Colonial administrators and post-World War II politicians accorded a low priority to the development of Mindanao. This neglect prevented local citizens from learning the skill and acquiring the habits and frame of thought necessary for their personal upliftment and the region’s economic growth and development. It is from this context that the conflict in Mindanao must be viewed with a high degree of fairness, accuracy and understanding, using Cultural Anthropology as a unit of analysis in the proper use of terminology (linguistic) in referring to people. Notes: The ideas in this series—interests, options, standards and alternatives—originated from the PON lectures and Getting to Yes by Roger Fisher and William Ury (Boston: Houghton Mifflin, 1981); Your BATNA came from Roger Fisher and William Ury (PON, Haravard Law School, 1983); Negotiation Theory and Practices from J. William Breslin and Jeffrey Z. Rubin (PON books, 1999) Elements of ideology is from Jeswald W. Salacuse’s lectures and from his bestselling book, Making Global Deals, (Times Books, 1991). The Mindanao case study is from Dr. Cecilio T. Arillo, an alumnus of the Harvard Program on Negotiation (June 2002). The five barriers to negotiation— Your reaction, their emotion, their position, their dissatisfaction and their power—are from William Ury’s lectures at Harvard and Getting Past No (Bantam Books, NY, USA, 1993). The sixth barrier, Dealing with ideologies, is from Jeswald W. Salacuse. To reach the writer, e-mail cecilio.arillo@ gmail.com
Voices
essMirror
opinion@businessmirror.com.ph • Sunday, July 24, 2016 A5
Ours alone
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HE Hague decision is our victory and ours alone. It is not a victory of other claimants. We have nothing in common with them, not even geography. They are on the Asian mainland within spitting distance of an unstoppable Chinese army. While we are out here, surrounded by the stopping power of water, according to John Mearsheimer, author of the classic Deterrence, and the leading military strategist today.
Free Fire
By Teddy Locsin Jr.
With this victory, ours ceased to be claims; they became rights in international law. And as such, they are binding even if not enforceable against everyone who signed up to the United Nations Con0vention on the Law of the Sea (Unclos) like China did. The United States did not. So its opinion is ignored. Indeed, the US is a party only to that part of international law that is identical to its foreign policy of the moment. China is starting to think the same way and may pull out of the Unclos. Taiwan has taken China’s side in anticipation of its eventual absorption by China soon. Asean, on the Asian mainland, may want to play the Philippine victory card in their talks with China. But judicial precedent holds little water in international law—
unless it is backed up by force. And former President Fidel V. Ramos has suggested he may give up The Hague decision. Good. No force will back up Asean on the Asian mainland within 72 hours of a Chinese army. Japan, too, has only claims. But thanks to our singular victory at The Hague, we have rights. This situation is unique to us, not least because it was not just the past administration that did it. The nation, as a whole, went along in taking the gamble that no other country dared to take—not even the US. And that is to take China to court. When we sit across the table with China, we shall look at China as the one that drew first blood when it took Mischief Reef and everything else that followed. But
Asean, on the Asian mainland, may want to play the Philippine victory card in their talks with China. But judicial precedent holds little water in international law—unless it is backed up by force. And Ramos has suggested he may give up the Hague decision. Good. No force will back up Asean on the Asian mainland within 72 hours of a Chinese army. those were pinpricks. China will look at us as the one that drew second blood when we sued China. This alone resulted in a massive blood letting of diplomatic credibility. When we won, it became a hemorrhage. So
we cannot allow our victory at The Hague to be used for any other purpose, but exclusively our own; nor for any other country or region or hemisphere for that matter. This is ours. We paid brilliant lawyers handsomely to represent us and no one else: $5 million at last count. We took the risk, which we continue to face of infuriating China, the superpower that’s feared from East to West, including Africa. As Ramos takes his seat at the table, with Letty Shahani and Albert F. del Rosario behind him, all we can offer is the wisdom of Confucius, who said, “It is only when mosquito land on one’s testicle does one realize that there are other ways to solve a problem than by violence.” That’s according to our leading China expert, Arch. Jun Palafox.
To walk in ‘bright sunshine of human rights’ A
By Bruce Caswell | Tribune News Service Forum
S the nation watches the Democratic National Convention this week, we should recall the history made the last time the Democrats met in Philadelphia. In July 1948 a group of liberal activists engineered the adoption of the Democrats’ first strong civil-rights plank. This was an important milestone in the long and ongoing struggle for civil rights and, in many respects, the beginning of the modern Democratic Party.
After World War II, civil rights emerged as an important national issue. President Harry Truman appointed a committee on civil rights in 1946. Truman embraced the committee’s recommendations in his 1948 message to Congress. Party leaders, however, opposed the inclusion of these recommendations in the party platform, mostly out of
fear of defection of Southern states, as Republicans had won control of the House and Senate in the 1946 midterm elections. As a result, the civil-rights plank was shouted down in committee. A group of liberals, though, led by the Americans for Democratic Action (ADA) and hosted by the group’s local chapter, persisted with a proposal from the floor of the convention, even though Democratic leadership had attempted to deny liberals’ access to the convention. The group sought a strong sponsor for the civil- rights plank and focused its efforts on ADA cofounder and vice chairman, Hubert Humphrey, at the time the popular 37-year-old mayor of Minneapolis and candidate for US Senate. The “Happy Warrior” was a reluctant warrior at first, but agreed to make
the case for the civil-rights plank to the convention floor. With hardly any sleep, Humphrey wrote a speech, then rose to deliver one of the great convention speeches of all time. The plank declared its belief “that racial and religious minorities must have the right to live, the right to work, the right to vote, the full and equal protection of the laws, on a basis of equality with all citizens as guaranteed by the Constitution.” Humphrey closed his speech with words that confirmed his reputation as an orator: “My friends, to those who say that we are rushing this issue of civil rights, I say to them we are 172 years late. To those who say that this civil-rights program is an infringement on states’ rights, I say this: The time has arrived in America for the Democratic
Party to get out of the shadow of states’ rights and to walk forthrightly into the bright sunshine of human rights.” Truman seized the moment by issuing executive orders desegregating the military and providing equal opportunity in federal employment. The Truman campaign used the civil-rights plank to mobilize voters and win upset victories in Ohio and Illinois, presaging the crucial role of minority voters to the modern Democratic Party. The result was one of the most famous come-from-behind election victories in US history. Once again, our nation is plagued by tensions inflamed by violence and discrimination against AfricanAmericans, immigrants, religious minorities and LGBT Americans. To make matters worse, we have a
presidential candidate who seems determined to divide our nation along these lines with bigoted rhetoric. During this year’s Democratic National Convention, ADA will be celebrating the historic adoption of the first Democratic civil-rights plank, as well as contemplating action to remedy the ongoing struggle for civil rights in America. We are excited about the Democratic Party’s adopting what is likely the most progressive platform on a wide range of issues that our nation needs to address and having this again be a defining moment for the future of human and civil rights. It’s beyond time to stop making excuses for hate. It’s beyond time to correct inequities plaguing our nation. Indeed, it’s time to once again walk into the “bright sunshine of human rights.”
Kaine choice is responsible (though light on pizzazz) B Y choosing Sen. Tim Kaine of Virginia as her running mate, Hillary Clinton opted for governing credentials over political pizzazz. Kaine, a former governor of his swing state, is an experienced public official and mature moderate who could step into the presidency.
Bloomberg View
By Albert R. Hunt
And while Kaine’s home-state popularity may have figured in his selection, he lacks what some party activists say Clinton most needs: Excitement and enthusiasm, something that the first female presidential nominee has yet to generate. Earlier this week, in an interview with PBS’ Charlie Rose, she said she was “afflicted with the responsibility gene” in picking a running mate. Kaine is a responsible choice. He has a lot in common with his
Republican counterpart, Gov. Mike Pence of Indiana. Both are deeply religious, Kaine a Roman Catholic, Pence an evangelical Christian. Both have been state chief executives and members of Congress. Both have about two decades of political experience under their belts, and both are relatively mild-mannered and temperamentally ill-suited for the role of leading attacks against their opponents. That’s something the principals don’t need much help with, anyway. The Virginian is respected by Republican and Democratic senators. He got high grades as mayor of Richmond in 1998 to 2001, presiding over falling crime, and as governor from 2006 to 2010. He also served briefly as national Democratic chairman. By Virginia standards he’s a
progressive, and was once considered too liberal to win statewide. He favors gun control, opposes the death penalty and, in tobacco country, initiated anti-smoking measures. Left-wing activists have lobbied against his selection. They note his general support of free-trade measures and charge that he hasn’t been hostile enough to Wall Street and big banks. Bernie Sanders, in an interview with me for Charlie Rose’s PBS program a few weeks ago, made it clear that he didn’t think Kaine should be Clinton’s choice. While praising his Virginia colleague as “a very decent guy,” he said Clinton’s running mate should be “a very strong progressive who has a history of standing up to big money interests.” He left no doubt that Kaine didn’t meet that standard.
A strong asset Kaine brings to the ticket is fluency in Spanish; he gave the first Senate speech entirely in that language. Democrats are putting exceptional emphasis on turning out Latino voters this autumn, hoping to benefit from Donald Trump’s scornful comments about Mexican immigrants. Kaine also has been a voice on national security, serving on both the Senate Armed Services and Foreign Relations Committees. He is especially passionate about requiring congressional authorization for military actions, particularly in the war against the Islamic State. He is a practicing Catholic who took a year off from Harvard Law School to volunteer with Jesuits in Honduras. He’s married to Ann Holton, the Virginia secretary of education and
This is what ‘travesty of justice’ looks like C
By Noah Feldman | Bloomberg View
ALL it Scalia’s revenge. In one of the last cases that he authored before he died in February, Justice Antonin Scalia convinced his colleagues to strike down a key clause of the Armed Career Criminal Act (ACCA) because it was unconstitutionally vague. As a result, thousands of convicted felons are now asking courts to have their sentences reduced. The legal rules for considering such postconviction requests are tricky and technical. But in most of the country, prisoners are getting another day in court to have their ACCA convictions reviewed in the light of the new legal principle. In the Eleventh Circuit, which includes Alabama, Georgia and Florida, the process has gone badly awry. This week a judge on the circuit’s court of appeals
cried foul, calling for a fundamental change in how its handling these cases. To understand the problem in the Eleventh Circuit, you have to start with the federal law. The ACCA imposes harsh sentences for previously convicted felons who use a firearm to commit another crime. The way it works, basically, is that a felon with three or more prior convictions must get a mandatory
minimum sentence of at least 15 years. Scalia’s ruling in Johnson v. United States, handed down in June 2015, had to do with what’s known as the “residual clause” of the law. That clause defined the felonies that count for purposes of the ACCA as “violent” ones, which, in turn, were defined as those involving “conduct that presents a serious potential risk of physical injury to another.” The court held that this definition was so vague that it violated the constitutional principle requiring that criminal laws be specific rather than arbitrary and indeterminate. That brought out the convicted felons currently serving sentences under the ACCA—in droves. In April the Supreme Court, minus Scalia, held that the Johnson decision should be applied retroactively. (Weirdly,
not all constitutional decisions by the Supreme Court do apply retroactively. But the court held that this one did.) For those prisoners who never previously filed postconviction motions for habeas corpus, seeking review of their ACCA sentences post-Johnson is straightforward: a federal district court will consider their claims. But in the real world, there are relatively few criminals sentenced to significant federal jail terms who haven’t already asked for some form of postconviction relief. Before a prisoner can go back to the district court for what’s called a “second, successive” postconviction petition, he or she needs special permission from a federal court of appeals. The stakes are high for the prisoners. In some cases, the difference might be
between the 15-year minimum imposed on felons with three prior convictions, and a sentence of 10 years or less for fewer convictions. Consequently, the US Court of Appeals for the Eleventh Circuit has been immersed in the time-consuming process of figuring out who should be allowed a second chance to file a petition in District Court seeking review of their sentence. It’s studying presentence reports to ascertain whether any of the prior convictions should still count and, if so, how that might change the petitioner’s sentence. Yet,no other court of appeals appears to be engaging in this kind of case-by-case analysis. They’ve been approving the requests automatically and allowing a federal district court to sort out the details. Judge Beverly Martin of the Eleventh
daughter of Linwood Holton, the first elected Republican governor in Virginia history. Virginia has lax ethics rules and, as governor, Kaine accepted some free trips and gifts from wealthy benefactors. His successor, Bob McDonnell, a Republican, was convicted for taking lavish gifts amid charges of quid-proquo arrangements. The conviction was overturned by the Supreme Court in a case that turned on subtle differences between corruption and legal influence peddling. Trump undoubtedly will seize on this and try to paint Kaine as crooked. But any parallel to McDonnell is flawed; there was no suggestion of any quid pro quo in Gov. Kaine’s case. Republicans and Democrats have both praised Kaine’s integrity.
Circuit issued an unusual and stirring opinion this week declaring that the process in her court wasn’t working. Martin asserted that among the thousands of applications and hundreds of denials, her court has been making mistakes—mistakes that, by their legal nature, can’t be appealed. “A court of appeals is simply not equipped to construct a new basis for a prisoner’s old sentence in this way,” she wrote. To make matters worse, the Eleventh Circuit gives itself 30 days to rule on each request. The presentence report can be inadequate or misleading, and there are no attorneys involved to explain what it means. And most prior convictions are under state law, which varies from place to place and have technical details that are hard for the court to determine without a lawyer’s help.
NewsSunday BusinessMirror
A6 Sunday, July 24, 2016
Senate will not investigate de Lima’s ‘link’ to drug lord without resolution
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By Butch Fernandez
@butchfBM
HE Senate is not likely to look into Solicitor General Jose Calida’s exposé hinting at cordial relations between then-Justice Secretary now Sen. Leila M. de Lima and a convicted drug lord detained at the national penitentiary, unless a resolution is filed calling for an inquiry.
Asked if the Senate can look into the Solicitor General’s allegation that de Lima could be coddling imprisoned drug lord Jaybee Sebastian, whom de Lima allegedly visited at the New Bilibid Prisons in Muntinlupa City, incoming Senate President Aquilino Q. Pimentel Jr. said a resolution is needed to trigger an investigation into the matter. “Let us wait for a resolution to be
filed on the issue,” Pimentel said. “If none, then [the Senate has] no business looking into it,” he added. Pimentel, however, was unsure if any member of the Senate would initiate filing such a resolution calling for an inquiry into de Lima’s alleged links to the drug convict as claimed by Calida. “If nobody files, there’s no probe [against de Lima],” he said, pointing
Young engineers key to lasting water supply
VICTOR LEE, CFO of Pure Energy, talks about the various technologies in hydropower generation and its potential application in underdeveloped communities during the Engineering Beyond Borders conference that was held recently.
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UBIG Pilipinas, a subsidiary of Pure Energy Holdings Corp., said young engineers can be the driving force that will help secure lasting water supply to far-flung communities. Elsa Mejia, Tubig Pilipinas advisor, said future engineers can bring a strong influence on matters concerning the country’s water resources amid an increasingly complex set of challenges. “Young engineers can scale up water utilities and secure potable water systems by raising awareness and capacity to solve the country’s risks from lowering water supply and by changing our approach to bringing longlasting water security to various communities,” she said during the Engineering Beyond Borders conference organized by the Engineering College Government of the De La Salle University (DLSU). Mejia, a former World Bank consultant for water vending, said engineers today can view water security more proactively and engage in a deeper way from a completely different vantage point considering the available technology. “We have to stress the importance of water,” Mejia said. “Our technologies today can support the upkeep of potable drinking water for all Filipinos.” “Not many of us realize how much work and investment are needed to supplying clean drinking water and we need to continue to stand ready to provide critical infrastructure in the countryside where we can add value,” she added. Mejia mentioned that young
engineers can also provide underprivileged communities access to sustainable, potable and safe water by scaling up supply. Tubig Pilipinas is a utility company focused on providing clean potable water to communities. Meanwhile, Victor Lee, CFO of Pure Energy presented before DLSU students and other delegates the feasibility of microhydropower systems and its potential for development. Lee said that, while microhydropower can generate electricity for some provinces, it is difficult to maintain because of poor accountability of some cooperatives owing to the organizational nature of microhydropower projects and the lack of financing. “But with the government support and public investments, we can maximize and invest in renewables and give greater importance and priority to microscale hydropower projects,” he said. Lee also discussed the various technologies in hydropower generation and its potential application in underdeveloped communities, where electricity problem is most persistent. Lee said: “There is a need for financing options to generate renewable energy and, at the same time, help the natural environment with modern and sustainable technology at a microscale. We hope to be able to encourage individuals and young Filipino engineers to come up with cheaper technologies for hydropower and also help the nation to produce renewable energy at reduced prices.”
out that, “It must come spontaneously from the senators.” Incoming Majority Leader Vicente C. Sotto III, a known anti-illegal drug advocate, agreed that a Senate inquiry can be conducted by the senators, but only “if a complaint is filed.” But in case a resolution is finally filed to inquire into Calida’s claim linking de Lima to a convicted drug lord, comebacking Sen. Richard J. Gordon said this would likely be referred to the Ethics Committee, which will conduct hearings on the matter. For her part, de Lima “denounced in the highest possible terms this latest demolition job linking me to maximum security inmate Jaybee Sebastian or to any other convicted or suspected drug lord or operator now or in the past.” In a statement, she categorically denied “any insinuation of me extending any protection or accommodation to any criminal.” De Lima added: “My personal and professional records would belie all accusations hurled against me, which
are obviously intended to malign my good name and reputation and to undermine the performance of my lawful duties as a senator.” “Atty. Jose Calida, who once served as justice undersecretary and acting secretary during the Arroyo administration, should have known better that public servants, like us, conduct meetings, or attend events or activities, or both, with all kinds of people in pursuance of official duties, similar to the much-publicized meeting or encounter between [the National Police chief] Director General Ronald dela Rosa and several convicts, like Herbert Colangco, Peter Co and Jaybee Sebastian,” de Lima said. While serving as justice secretary, de Lima recalled, she attended several Management Committee (ManCom) meetings of the Department of Justice (DOJ), including one hosted by Bureau of Corrections (BuCor), then headed by BuCor Director Gaudencio S. Pangilinan Jr. “That one meeting, which was covered by the media at the premises of the National Bilibid Prison, was
also attended by other top officials of the DOJ, including the heads of attached agencies and BuCor officials. At the sideline of the event, the ManCom members mingled with some inmates during certain activities on the same day as part of the reformatory program of the BuCor. It is most likely there that the photograph was taken and is now being shown by Calida out of context,” de Lima said. She suggested that Calida stop “his fixation on Throwback Thursday photos of me and, instead, just start doing his real job of reading the 501-page decision on the West Philippine Sea case.” “Meanwhile, I warn those who are attempting to implicate me to any illegal activity, and much less to illegal drugs, which I have always fought: You will be frustrated. While I have been patient with all the attacks, I will never be intimidated. Rather, I will remain steadfast in fulfilling my sworn duty as senator to uphold the Constitution and human rights,” de Lima added.
Militant legislators seek RP-US Edca abrogation By Jovee Marie N. dela Cruz @joveemarie
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EMBERS of the Makabayan Bloc in the House of Representatives are pushing for a resolution calling for the abrogation of the Enhanced Defense Cooperation Agreement (Edca) between the United States and the Republic of the Philippines (RP). In House Resolution 31, Party-list Reps. Ariel Casilao of Anakpawis, Carlos Zarate of Bayan Muna and Emmi de Jesus of Gabriela said Edca violates the Philippines’s sovereignty, imperils the geopolitical situation in the West Philippine Sea and endangers the livelihood of farmers, fishermen and tribal communities. Edca was signed by former Defense Secretary Voltaire T. Gazmin and US Ambassador to the Philippines Philip Goldberg in Manila on April 28, 2014, just before the arrival of US President Barack Obama. The lawmakers said the growing US military presence in the Philippines has negatively affected the country’s international relations with other countries, such as China. “Chinese aggression in the region correspondingly heightens as already shown in the latter’s incursive moves in the West Philippine Sea, its banning of Filipino fisherfolk in the Panatag Shoal, and its construction of man-made airstrips in the Fiery Cross Reef, Spratly Islands,” they added. They said the continued US military presence in the country through Edca complicates and even jeopardizes the country’s claim to the West Philippine Sea. Moreover, prior to the signing,
AIRCRAFT, shooting stars and planets, are visible from the flight deck of the Navy’s only forwarddeployed aircraft carrier USS Ronald Reagan (CVN 76) as it transits the Luzon Strait. Ronald Reagan is the flagship of Carrier Strike Group 5 and is on patrol in the US Seventh Fleet area of responsibility supporting security and stability in the Indo-Asia-Pacific region. US Navy photo
the lawmakers said the details of the agreement were not made public and the preparatory meetings conducted by the departments of Foreign Affairs and National Defense, and Office of the President regarding the drafting of the Framework Agreement for the Increased Rotational Presence, which started way back in 2011, were kept secret. They said the joint RP-US Balikatan Exercise through the years have affected the communities of farmers and Aeta tribesmen around Camp O’ Donnell and Crow Valley mountain range in Capas, Tarlac; around Clark Air Base in Pampanga; the Fort Ramon Magsaysay military reservation in Nueva Ecija; and other areas in the country. “These military exercises also affect the fishermen’s communities in Subic and San Antonio,
Zambales, around Sangley Point in Cavite, Mactan Air Base in Cebu, San Jose, Antique, Puerto Princesa City and Oyster Bay in Palawan and other military bases and reservations in the country,” the party-list legislators added. They said the country was transformed into a virtual US military base in the Asia-Pacific region, where US armed forces units have practically been given free rein in conducting operations of whatever nature in strategic points inside Philippine territory. In fact, the lawmakers said, American soldiers are allowed to use the Antonio Bautista Air Base in Palawan; Basa Air Base in Pampanga; Fort Ramon Magsaysay in Nueva Ecija; Lumbia Air Base in Cagayan de Oro; and Mactan-Benito Ebuen Air Base in Cebu.
www.businessmirror.com.ph
Sabotage causes line tripping in Mindanao grid By Juzel L. Danganan Philippines News Agency
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HE National Grid Corp. of the Philippines (NGCP) on Friday condemned what it called “an act of sabotage”—the throwing of a tree branch tied to a rope at NGCP’s Baloi Agus 2’s 138 kilovolt (kV) Line 1 in Barangay Adapun Ali, Balo-I, Lanao del Norte, on Wednesday morning. Lawyer Cynthia D. PerezAlabanza, NGCP spokesman and head of the company’s Corporate Communications and Public Affairs Department, said in a statement that such “act of sabotage” directly caused the Baloi-Agus 2 138-kV transmission line to trip, which then isolated the Agus hydroelectric plants that supply power to the rest of Mindanao grid. Earlier, NGCP was reported to have cut the power connection of the two units of the Agus hydroelectric plants, which have a total capacity of 82 megawatts, from Mindanao grid, after a tree branch attached to a rope damaged the plants’ transmission lines. Alabanza clarified impressions that NGCP deliberately cut off the power connection of the two units of the Agus hydroelectric plants. She reiterated that, “unidentified perpetrators’ act of sabotage [i.e., a tree branch tied with rope intentionally thrown at a transmission line] directly caused the Baloi-Agus 2 138 kV transmission line to trip, which isolated the Agus hydro plants supplying power to the rest of Mindanao grid.” NGCP appealed anew to the public to respect transmission right-of-way clearances to prevent power interruption and accidents. Just a week ago, Line 2 of the same Baloi-Agus 2 line was similarly sabotaged. Line 2 has been out since July 12 after unidentified persons maliciously erected a bamboo pole within NGCP’s right-of-way corridor, causing the transmission line to trip. Attempts to reenergize the line failed after claimant over the property refused NGCP access to the transmission lines to conduct restoration activities. Since it started operations, NGCP has been the subject of harassment by persons who claim that they own the land under the company’s transmission lines and towers. While local governments have set the assessed and market values of the lands affected, the owners invariably ask for more and the company’s refusal to agree to the higher rates have resulted in a rash of transmission tower bombings and other acts of sabotage against its facilities.
Pinoy professionals in Dubai ask for own testing center from PRC By Recto L. Mercene @rectomercene
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ILIPINOS in Dubai want their government to hold a separate professional licensure examination in the emirate in addition to Abu Dhabi to save money, time and effort. The request for an additional testing center in Dubai was the subject of discussion between Philippine Consul General Paul Raymund P. Cortes and leaders of the Filipino community, whom he met recently, according to Gulf News. Filipinos who want to become licensed professionals need to take and pass the board examinations given by the Professional Regulation Com-
mission (PRC), Cortes said. The Philippine-recognized license ensures that the holder has gone through a reliable, trustworthy and progressive system that is validated, recognized and regulated by the government. In the Middle East the special examinations will be given from September 14 to 16 in Abu Dhabi, Doha, Riyadh, Jeddah, Al Khobar and Kuwait. The examinations will be for 16 professions, including architects, engineers and nurses, among others. “The board examination take two to three days, so those taking them from Dubai have opted to stay in hotels there to avoid the hassle of daily commuting. That’s an additional ex-
pense considering the bulk are from Dubai anyway,” Jaime Tasarra of the United Architects of the PhilippinesDubai Chapter said. Maria Fe Dayot, who represents the Overseas Filipino Civil Engineers Association, said having a testing center in Dubai will also help relieve the stress of those taking the examinations. “Those who can’t stay in hotels commute to the testing center every day. By the time they reach the center, they’re already exhausted from the commute,” Dayot said. Cortes noted the group’s sentiments and promised to send a formal request to the PRC in Manila for Dubai to have its own testing center. “A round 90 percent of the
e x a minees a re in Duba i. We hope to get a favorable response from the PRC because demand is greater here,” Cortes added. Meanwhile, as new generation of Filipinos have embraced information technology (IT), Filipino job seekers in the United Arab Emirates can grab off these jobs right away. “The constantly evolving IT industry offers candidates with new opportunities to contribute and explore new avenues to find their way in.” Observers said the surge in digital technology in almost all companies all over the world and the emergence of online businesses has triggered an increased demand for jobs opportunities in technical positions.
Sports BusinessMirror
‘NEVER A QUIET DAY’ S
French victory at this year’s race. Froome did not panic, quickly borrowed a teammate’s bike and salvaged his torn yellow jersey after crossing the finish line 36 seconds behind Bardet. The Frenchman climbed to second place overall after Froome’s previous closest rival, Bauke Mollema, crashed and never recovered. Froome increased his lead by 19 seconds, holding a lead of four minutes, 11 seconds over Bardet, with two-time runner-up Nairo Quintana of Colombia moving up to third, 4:27 back. Froome slipped on road paint as he crossed a white line and hit the ground just 13.5 kilometers (8 miles) from the finish of the nervy 146-km (91-mile) ride to Saint-Gervais Mont Blanc featuring four ascents. He was able to continue racing after swapping bikes with teammate Geraint Thomas. “I think that I hit one of the white lines on the road and lost my front wheel,” Froome said at the finish, his right knee heavily bandaged. “I’m okay, I’m lucky that nothing is seriously injured.” Froome was descending at a relatively cautious speed of almost 45 kilometers per hour (28 miles per hour) when he fell. With his jersey torn, blood dripping down his right leg, cuts and bruises on his back and blood on his right elbow, Froome understandably
AINT-GERVAIS-LES-BAINS, France— If Chris Froome wins the Tour de France on Sunday, it won’t have been an easy ride to the Champs Elysees. After a pileup forced him to run up part of Mont Ventoux last week, the twotime champion escaped from another crash on Friday during a chaotic and spectacular penultimate Alpine stage held in stormy and wet weather. Two days before the ceremonial ride to Paris, rain played havoc at the Tour, causing many crashes and reshuffling places in the general classification. But Froome was lucky enough to escape with no serious injury, and even emerge with a bigger lead overall. “A crash like that could have gone either way, and I’m grateful that nothing is injured,” Froome said. “Never a quiet day on the Tour.” Since he took his rivals by surprise with a daring downhill attack that earned him the race leader’s yellow jersey on the eighth stage, media reports have portrayed Froome as the inevitable winner. Day after day, as his overall lead built up, Froome kept insisting that the Tour was not over. Friday’s 19th stage proved him right. Froome, who won the Tour in 2013 and 2015 and crashed out of the 2014 race, hit the ground with former Tour champion Vincenzo Nibali in a descent, soon after Romain Bardet launched a decisive attack to post the first
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OR the next two days, Philippines-Mighty Sports will be facing crack teams when it starts its title bid in the annual William Jones Cup tournament at the Hsinchuang Gymnasium in Taiwan. The heavily reinforced squad will take on host Chinese Taipei A at 7 p.m. on Sunday in what could be the start of the team’s long drive to the top. After the host team, Mighty Sports, backed by Scratch It Pera-Pera Agad-Agad! and Symarom, will face the dangerous Korean club at 5 p.m on Monday. Leading the charge for the country’s representative here are high-scoring former NLEX import Al Thornton, who, for several years, was a certified National Basketball Association blue chipper until he was slowed down by a knee injury. But Thornton can still shoot the lights out as proven by his spectacular performance in the Philippine Basketball Association (PBA) Commissioner’s Cup when he tallied 69 points in one game, the most produced by any player in the league since 21 years ago. Also with Philippine-Mighty Sports is former Barangay Ginebra import Vernon Macklin, the 6-foot-10 inside operator who led the Gin Kings to their last finals stint in the 2013 Commissioner’s Cup. Other imports, who previously had stints in the PBA and now playing for Philippines-Mighty Sports, are Zach Graham, Michael Singletary and Hamady N’ Diaye. Local players are also expected to play big, like Jeric Teng, who was loaned by Rain or Shine in this tournament to prepare the swingman when he returns to action in the PBA.
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Cignal’s Cherry May Vivas (right) unleashes a powerful spike against Renelyn Raterta of Amy’s Kitchen. NONOY LACZA
TROPANG TNT WINS T
looked uncomfortable on Thomas’s bike. Despite the circumstances, Froome caught up with the group of favorites in the brutal final climb to Le Bettex with the help of teammate Wouter Poels. Froome crossed the line grimacing in pain, then put his arm around Poels to thank him for the support. “I just lost a bit of skin but today,” Froome said. “It was great for me to have teammates all the way up until the finish there, with Wout in particular and all the guys. It was a great team effort and it feels great to be one day closer to Paris.” Mollema was one of the many riders who fell in the damp weather, with Daniel Navarro and Tom Dumoulin forced to abandon. “I’m not too badly injured, just a hip and elbow,” said Mollema, who crashed at a roundabout as his hopes of finishing on the podium in Paris disappeared. “The classification is gone. I’m 10th now, but that was not the goal.” Bardet was the day’s big winner after posting his second Tour stage win. “I rode with my instinct. I’m second overall, I won the stage, it’s beautiful,” he said. Spaniard Joaquim Rodriguez finished the stage in second place, in the same time as Alejandro Valverde, 23 seconds back. In the overall, Adam Yates dropped from third to fourth, nine seconds behind Quintana.
CIGNAL KEEPS AMY’S WINLESS
PHL-MIGHTY 5 STARTS BID
EI WEI Gao blew a 2-up lead in the early going and flubbed a birdie putt on the 18th, enabling American Eugene Hong to escape with a 1-up win in their quarterfinal duel in the US Junior Amateur Match Play at The Honors Course in Ooltewah, Tennessee, on Friday. Gao, 16, birdied No. 4 and watched Hong bogey the par-5 sixth to go 2-up but fumbled with bogeys on Nos. 8 and 9 for an all-square match. He birdied No. 11 to go up again, then split the next two holes to move five holes from reaching the semifinals. But Hong birdied the 15th and Gao bogeyed the next, as the Filipino fell behind by one and missed birdie putts in the last two holes to drop out of the title race. It was a sorry setback for the Cebuano bet who showed a lot of promise with a seventh place finish in the 36-hole stroke play elims he spiked with an ace. He beat Brendan Hansen, also of the US, in the opener of the knockout phase, 3&2, then posted two wins in one day to advance to the quarterfinals. His Last 8 showing, however, assured him of a spot for next year’s staging of the one of the world’s top amateur events. Hong, however, lost to Aussie Min Woo Lee, who snared a 1-up win to set a title duel with Noah Goodwin, who edged John Pak on the 20th hole.
unday, July 24, 2016 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao
Froome crashes but keeps yellow at Tour
Britain’s Chris Froome, wearing his torn overall leader’s yellow jersey, bleeds after crashing during the 19th stage of the Tour de France. AP
GAO BOWS OUT
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ROPANG TNT handed Meralco its first loss with a thrilling 98-95 win on Saturday to grab a share of the lead in the Philippine Basketball Association (PBA) Governors’ Cup at the Smart-Araneta Coliseum. Jayson Castro, snubbed by the fans for a spot in the starting unit in the North Team of the next month’s All-Star Game, proved why he’s still the best guard in the league, leading the Tropang Texters’ charge, while import Mario Little was not much of a factor on offense. Castro, the two-time Mythical Five member of the International Basketball Federation Asia Championship, finished with 24 points, seven rebounds and five assists, as Tropang TNT joined San Miguel Beer and Mahindra at the top of the standings with identical 2-0 win-loss slates. Little though had a double-double game with 14 points and 11 rebounds, but it was Castro and new recruit Kris Rosales who provided the spark for Tropang TNT in the match. “Kris has been a good reliever for Jayson,” said Tropang Texters Head Coach Jong Uichico, who is still missing the services of Troy Rosario, Matt Ganuelas-Rosser and Kelly Williams. Asian import Michael Madanly added 14 markers for Tropang TNT, which was trailing 86-87 when Castro anchored a 12-2 assault for a 98-89 lead with 3:22 remaining.
But the Bolts, behind Chris Newscome and Reynel Hugnatan, answered with a 6-0 run to threaten at 95-98 with 53.4 ticks left in the game. Meralco had the chance the move closer when Newsome drew an offensive foul from Madanly but Allen Durham turned the ball over in the next play. Cliff Hodge gave the Bolts another shot to send the game in overtime after blocking Castro’s jumper, but Jared Dillinger’s gametying triple missed the target as time expired. Hodge led Meralco with 18 points, while Dillinger contributed 15. Durham, who averaged 34 points in the first two games, was held down to just 14 points on 6-of-16 from the field. Veteran guard Jimmy Alapag had 11 points and 12 assists for Meralco, which dropped to 2-1. Meanwhile, GlobalPort is parading a new import when it faces Star on Sunday. Batang Pier tapped Mike Glover, who replaced Dominic Sutton who failed to give the team a win in two starts. Joel Orellana
IGNAL ended its frustrating first round on a high note as it blanked Amy’s Kitchen in straight sets, 25-21, 25-12, 25-21, in 2016 Philippine Superliga (PSL) All-Filipino Conference women’s volleyball tournament on Saturday at the Filoil Flying V Centre in San Juan City. Middle hitter Jeanette Panaga scattered 12 spikes, five blocks and an ace for 18 points, while Cherry May Vivas chipped in 10 hits to help the HD Spikers earned the win before heading to the second-round classifications of the interclub league bankrolled by KLab Cyscorpions, Asics, Mikasa, Mueller and Senoh with TV5 as official broadcast partner. “Kahit nanalo kami hindi ako satisfied kasi, as I said before, ’yung pinapakita nila sa ensayo hindi ganun kaganda sa actual game,” Cignal Head Coach Sammy Acaylar said. “Maybe there’s something wrong psychologically with my players, kasi napapansin ko sa kanila kapag nauunahan biglang nadadown, hindi nila alam paano i-recover ’yung sarili nila,” he added. After prevailing in a tight first set, the HD Spikers sizzled in the second set, mounted a 16-11 lead and scored nine of the last 10 points to take
the commanding 2-0 match advantage. Cignal was starting to pull away in the third set with a 23-17 cushion but Amy’s Kitchen trimmed it to 23-21 to give the Acaylar-coached squad some anxious moments. But Vivas and Carmela Tunay cemented the victory of the HD Spikers with crucial points. Cignal finished the first round with two wins against five losses, while Amy’s Kitchen, which was led by Cindy Imbo’s13-point output, finished the round winless after seven matches The second round starts on Sunday with all the records of the bottom four teams—Standard Insurance-Navy, Generika, Cignal and Amy’s Kitchen going back to zero and will play another single-round robin to determine the fifth to eighth placers. “In-accept ko naman ’yung mga talo namin at kahit hindi kami nakapasok sa top 4, but then, it’s a lesson learned for us,” Acaylar said. “Now we’re focusing sa Group B. Sabi ko sa kanila we’ll just play at ipakita sa mga tao at management na kahit ganoon ang nangyari we have to bounce back and give our best in PSL.” RC Cola-Army, F2 Logistics, Petron and Foton are all locked in the final four and will clash for another single-round robin in the second round to determine the semifinal pairings. Lance Agcaoili
The day had started quietly for Froome, who joked with Peter Sagan at the front of the pack after a group of 20 riders immediately jumped away from the peloton. The bestplaced rider in the breakaway was Frenchman Pierre Rolland, who lagged 22:51 minutes behind Froome overall at the start, and Team Sky did not chase. But the ideal scenario changed dramatically when the weather turned wet. As rain started to fall, Michael Matthews was among the first escapees to be caught a few kilometers from the summit of the punishing Montee de Bisane, a 12-km climb with an average gradient of 8 percent. Rolland then moved away from his breakaway companions in the ski resort of Les Saisies, with former world champion Rui Costa following right on his wheel. But the Frenchman slid off the road on the descent and heavily hit the tarmac. With his jersey lacerated and covered with dirt, Rolland remounted his bike after consulting with the race doctor and finished the stage. Froome needs to negotiate one more tricky mountain stage on Saturday before the ceremonial ride to Paris. “Tomorrow is going to be hard, it’s going to be really hard and I’m sure that I’m going to be a bit stiff after today,” he said. “Hopefully, I can rely on my teammates and it’s just one last push.”
Batang Gilas loses to Taiwan in U18 tourney
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HE campaign of the Batang Gilas Under-18 squad in the International Basketball Federation (Fiba) Asia U-18 Championships started on a wrong foot, absorbing a 74-88 loss to Chinese Taipei in their Group A match on Saturday morning in Tehran, Iran. After battling the Taiwanese in the first period neck and neck, the young Filipino dribblers were dominated in the second canto, as they were outscored 30-11 to enter the break trailing by 20, 29-49. Chinese Taipei led by as much as 25 points in the game before the Michael Oliver-mentor Batang Gilas team unleashed a 10-2 assault to slice the lead to 71-83 with three minutes left in the game. But Kuo-Hao Kao hit a three-pointer and split his two free throws to douse the rally of the Filipinos, and give the No. 27 worldranked Taiwan a 87-71 lead, 1:32 remaining in the game. Jonas Tibayan was the lone player in the Philippine side to hit double figures with 15 points, while Rendell Lee and JV Gallego each had nine markers for the PHL 5, which was playing Qatar as of press time. John Bryle Bahio had eight points and eight rebounds, while Fran Yu and team skipper Jolo Mendoza had seven apiece. Mendoza struggled in the game, hitting 3-of12 from the field. Kao and Sheng-Ju Ting each had 16 points for Chinese Taipei, while Kuei-Yu Chou added 12 markers. Other opening day winners were Lebanon over Kazakhstan, 9737; defending champion China walloped Iraq, 93-28; South Korea downed Japan, 92-72; India surprised Thailand, 100-93; and Iran demolished Indonesia, 106-40. The top 3 teams in this tournament will advance to the Fiba U-19 World Championship in Cairo, Egypt, next year. Joel Orellana
Joshua Sinclair (right) of the Philippines protects the ball from Chinese Taipei’s Sheng-Ju Ting. FIBA.COM