DEPARTMENT OF SCIENCE & TECHNOLOGY
PHILIPPINE STATISTICS AUTHORITY
2018 BANTOG DATA MEDIA AWARDS CHAMPION
BusinessMirror
www.businessmirror.com.ph
A broader look at today’s business n
Sunday, June 2, 2019 Vol. 14 No. 235
2018 EJAP JOURNALISM AWARDS
BUSINESS NEWS SOURCE OF THE YEAR
P25.00 nationwide | 2 sections 16 pages | 7 DAYS A WEEK
One-fifth of land value spikes from MRT-3 already equals the total cost of building it, says an ADB study, and experts are now mulling over how to coax that veritable genie in a bottle to make money for development.
A GENIE CALLED DEAD end of the Light Rail Transit Line 2 near the Recto Station on Recto Avenue in Manila. MICHAEL WELS/ DREAMSTIME.COM
By Cai U. Ordinario
I
‘LVC’
MAGINE this. Just a fifth of the increase in land values spurred by the MRT-3 is already equivalent to the total construction cost of the mass transit system, according to the Asian Development Bank (ADB).
The Manila-based multilateral development bank said this only indicates the potential of using Land Value Capture (LVC) in financing infrastructure projects and programs, including those needed to improve mass transit systems. LVC is a “public infrastructure funding instrument" anchored on higher property values. LVC revenues can be reinvested into mass rapid transit to allow cities to ex-
pand their transport networks, among other projects. Given such awesome potential, the question then is, why hasn’t this LVC concept been used for planning the financing of big-ticket projects, such as those on which the Duterte administration pins its high-growth projections? In fact, there has been much discussion about that, it turns out, but experts agree legislation is
needed. Members of the incoming 18th Congress, please take note.
Government efforts
THE National Economic and Development Authority (Neda) said all publicly funded projects can be used to capture LVCs. Neda Assistant Secretary for Investment Programming Roderick M. Planta told the BusinessMirror that this is now being discussed at the Infra-
structure Committee (Infracom). Planta said, however, that this requires legislation since it is a form of taxation. Currently, the Infracom is in the process of studying the country’s options when it comes to LVCs, particularly on how other countries are implementing it. He added that since the LVCs is about public infrastructure financContinued on A2
China gears up to weaponize rare earths dominance in trade war By Jason Rogers, David Stringer & Martin Ritchie
B
Bloomberg News
EIJING is gearing up to use its dominance of rare earths to hit back in its deepening trade war with Washington. A flurry of Chinese media reports on Wednesday, including an editorial in the flagship newspaper of the Communist Party, raised the prospect of Beijing cutting exports of the commodities that are critical in defense, energy, electronics and automobile sectors. The world’s biggest producer, China supplies about 80 percent of US imports of rare earths, which are used in a host of applications from smartphones to electric vehicles and wind turbines. The threat to weaponize strategic materials ratchets up the ten-
sion between the world’s two biggest economies before an expected meeting between Presidents Xi Jinping and Donald Trump at the G-20 meeting next month. It shows how China is weighing its options after the US blacklisted Huawei Technologies Co., cutting off the supply of American components it needs to make its smartphones and networking gear. “China, as the dominant producer of rare earths, has shown in the past that it can use rare earths as a bargaining chip when it comes to multilateral negotiations,” said
PESO EXCHANGE RATES n US 52.2570
IN this December 30, 2010, file photo, workers use machinery to dig at a rare earth mine in Ganxian county in central China’s Jiangxi province. CHINATOPIX VIA AP
George Bauk, chief executive officer of Northern Minerals Ltd., which is producing rare earth carbonate from a pilot-scale project in Western Australia. The US shouldn’t underestimate China’s ability to fight the trade war, the People’s Daily said in an editorial Wednesday that used some historically significant language on the weight of China’s intent. The newspaper’s commentary included a rare Chinese phrase that means “don’t say I didn’t warn you.” The specific wording was used by the paper in 1962 before China went to war with India, and “those familiar with Chinese diplomatic language know the weight of this phrase,” the Global Times, a newspaper affiliated with the Communist Party, said in an article last April. It was also used before conflict broke out between China and Vietnam in 1979. On rare earths specifically, the Continued on A2
n JAPAN 0.4768 n UK 65.8961 n HK 6.6592 n CHINA 7.5720 n SINGAPORE 37.8976 n AUSTRALIA 36.1148 n EU 58.1673 n SAUDI ARABIA 13.9352
Source: BSP (May 31, 2019 )