BMReports
PHL confronts challenge of China on sovereign soil By Recto Mercene @rectomercene & Manuel T. Cayon | Mindanao Bureau Chief @awimailbox
Part One
C
ITIES of Manila and Davao—Forget all the cheap talk about the Chinese sending a survey ship to peer beneath the seabed of Benham Rise, looking for minerals and hydrocarbon deposits like oil and gas. They are surveying Benham Rise’s surrounding oceans the way they surveyed, occupied and reclaimed the bottom of the South China Sea and the Scarborough Shoal as part of their long-range aim “to project military power” over the western Pacific Ocean. So say defense experts. “They [China] want it [Benham Rise] now protected, because if and when they feel the need to, once and for all, settle the Taiwan ‘question’, they want that no nation, specifically the United States, to intervene,” Party-list Rep. Francisco Ashley L. Acedillo of Magdalo said in an exclusive interview with the BusinessMirror. Continued on A2
media partner of the year
United nations
2015 environmental Media Award leadership award 2008
BusinessMirror A broader look at today’s business
www.businessmirror.com.ph
Monday, March 20, 2017 Vol. 12 No. 159
Abolish VAT to plug tax leakage–Alvarez T n
By Jovee Marie N. dela Cruz
@joveemarie
he leader of the House of Representatives is keen on replacing the valueadded tax (VAT) with the goods and services tax (GST) being implemented in a number of Asian countries to improve revenue collection.
Alvarez : “My proposal is to remove the VAT, and change it with the GST that is currently being implemented in Singapore and Hong Kong.”
Speaker Pantaleon D. Alvarez said the GST will increase the Bureau of Internal Revenue’s (BIR) VAT collection, which currently stands at 4.3 percent of GDP. See “VAT,” A2
2016 ejap journalism awards
business news source of the year
P25.00 nationwide | 6 sections 36 pages | 7 days a week
PPProlific Manila PPP Lead Alberto C. Agra
W
hich local government unit (LGU) has the most number of awarded public-private partnership (PPP) projects? Is this the same LGU that has the most number of reclamation projects? For this LGU, what PPP modality did it use to develop its infrastructure projects? The most PPProlific LGU is the City of Manila, led by its PPPeople-driven mayor, former President Joseph E. Estrada. In the past three years, Manila has already awarded 10 PPP contracts. Aside from these, it is currently vetting three more. What set in motion the proliferation of this development strategy in the capital of the Philippines is its PPP framework. In 2014 the City Council enacted Ordinance 8346, which provides for PPPs through joint ventures (JVs). Continued on A15
GOVT TO CREATE TRADE Coal plants to boost PHL power supply REPRESENTATIVE OFFICE 13,000 MW By Lenie Lectura
By Cai U. Ordinario
T
@cuo_bm
he Duterte administration is reviving plans to establish an agency similar to the United States Trade Representative (USTR) Office in its bid to boost the country’s export revenues. According to the Philippine Development Plan (PDP) 2017-2022,
the trade representative office will focus on the country’s efforts in meeting its regional and global trade commitments. This effort will also be accompanied by measures that seek to build the capacity of Philippine trade negotiators in assessing and crafting the country’s trade positions.
PESO exchange rates n US 50.1910
See “Govt,” A2
T
@llectura
he Philippines is assured of 5,000 megawatts (MW) of new power-generation capacity between this year and 2020, with coal power plants still dominating the power mix. In the 2017-2020 list of committed power projects released by the Department of Energy (DOE), the bulk of the capacity will come from Luzon. The DOE data is as
The current power demand of the country, according to the DOE of January 2017. Of the 3,537.915 MW of capacity that will come on-stream this year in Luzon, 2,720 MW will be sourced from coal-fired power plants,
65 0 MW from natural gas, 62.5 MW from hydro, 43 MW from geothermal, 29.515 MW from solar, 22.9 MW from biomass and 10 MW from battery storage. The Luzon data indicates that over 1,400 MW of the capacity is targeted either for commercial operation or commissioning this year. These include the coal power projects of SMC Consolidated Power Corp. in Limay, Bataan, (300 MW) and Pagbilao Energy Corp. in
Quezon (420 MW). Energy World Corp. is targeting the commissioning of its 650-MW gas project in Pagbilao, Quezon, in June for Unit 1, September for Unit 2 and December for Unit 3. For sol a r, t he committed power projects with target commercial operation for the year are the 18 MW of Next Generation Power Technology Corp. in Mariveles, Bataan; 1.675 MW of CW See “Coal plants,” A16
n japan 0.4430 n UK 62.0461 n HK 6.4649 n CHINA 7.2737 n singapore 35.8328 n australia 38.5316 n EU 54.0457 n SAUDI arabia 13.3882
Source: BSP (17 March 2017 )
BMReports BusinessMirror
A2 Monday, March 20, 2017
www.businessmirror.com.ph
PHL confronts challenge of China on sovereign soil Continued from A1
The actual goal is to strategically position their military way beyond China’s coast, in preparation for the day when they have to invade or to reclaim Taiwan, a renegade province, as far as the Chinese are concerned, Acedillo added. “From a military standpoint, it is not surprising that China would undertake military surveys in the Benham Rise region,” Jay Batongbacal, director of the UP Institute for Maritime Affairs and Law of the Sea, said.
President’s view
HOWEVER, the President has
VAT. . .
Continued from A1
“My proposal, actually, is to remove the [current] VAT and change it with the GST that is currently being implemented in Singapore, Hong Kong and other countries,” Alvarez said in a recent radio interview. The GST in Singapore and Hong Kong is the counterpart of the country’s VAT. However, the GST is a broad-based VAT levied on import of goods, supplies of goods and services. Under the GST system all indirect taxes will be abolished and only GST would be levied. Alvarez said a GST system is needed to address tax leakages in the country. “The VAT collection rate is at 4.3 percent. That’s very low. It did not even reach half of our 12-percent target. This happens because there are leakages in our VAT system. The VAT system is not being enforced as designed because of
thumbed down options of standing up to China militarily. China “can do what it wants” in the contested South China Sea islands, including in the Panatag Shoal, Duterte said, citing his government’s incapability to confront militarily the continuing activity of China in the area. Still, the President warned anew that he would “bring into the table the arbitral ruling”. But it would not be anytime soon, the Commanderin-Chief added. “We cannot stop China from doing their thing. Even the US was not able to stop it,” he told reporters over the weekend. “What do you want me to do, declare war [against] China?” Duterte, however, said he can
do so, an option “that would only wipe our military and we can end up a destroyed nation.” He said he would be bringing the favorable ruling of the Geneva-based United Nations Arbitral Tribunal “when it [China] starts tinkering” with any of the Philippine island territory. He described the activities as still in the “waters” and hoped his openness to allow international Right of passage would also be accorded by China to the Philippine Coast Guard when ordered to pass those sea lanes. Duterte said he has allowed such passage to the US, even Russia, “because we are friends, and we are not at war with Russia or the US.”
deceitful VAT input,” he said.
It also proposes a staggered increase of P6 per liter of diesel, kerosene, and LPG to be imposed within a three-year period. The CTRP is also imposing excise tax on vehicles. It also includes the relaxation of the Bank Secrecy Act, taxing Philippine Charity Sweepstakes numbers’ game and lotto winnings. House Committee on Ways and Means Chairman and PDP-Laban Rep. Dakila Carlo E. Cua of Quirino said the support of the President and the lower chamber for the tax-reform program would boost its passage in the 17th Congress. “Their support will help us, of course. But what’s important here is that the Malacañang has taken a definite stand on [tax reform],” Cua said in an interview. “Also, the leadership is very supportive of the bill. However, supporting the bill doesn’t mean that they will close their eyes and just pass it. They support its intention to help the poor,” he added.
House priority
Alvarez said the lower chamber will prioritize the passage of the Duterte administration Comprehensive Tax Reform Package (CTRP) when session resumes on May 2. “President Duterte wants us to pass the tax package. And I asked for a meeting with Cabinet members here in the House to discuss it, so that, we can put it in the [2018 national] budget,” he said. Instead of approving it last week, the House Committee on Ways and Means has created a technical working group (TWG) to further study the CTRP. The tax-reform package seeks to exempt those earning P250,000 and below from personal income tax. However, the tax proposal also includes the imposition of excise tax on fuel as compensatory measure for the foregone revenues due to the lowering of income tax.
Taiwan question
ACCOR DING to Batongbaca l, China’s presence at the Benham Rise “is not for the purpose of claiming territory”. “Rather, it is for the purpose of gaining practical military advantage,” he said. “This would be consistent with China’s well-known need, under the so-called Two Island Chain Strategy, to gain the ability to control the seas in the area of the so-called Second Island Chain, which spans the Pacific Ocean from southern Japan to northern Indonesia and Papua New Guinea.” The Taiwan question refers to whether the island would remain an independent democratic state or would eventually be absorbed
Govt. . .
Continued from A1
“[The government also intends to] explore the possibility of establishing a body similar to trade representative offices in other countries. This body will coordinate Philippine positions and negotiate bilateral, regional and multilateral arrangements,” the PDP read. The plan to create a dedicated trade office comes at a time when the Philippines and its regional and other trade partners are faced with “inward-looking policies and protectionism”. These, the PDP stated, could make the conclusion of preferential or multilateral trade agreements “increasingly difficult”. “This comes with the risk of igniting trade wars or ignoring estab-
by their Communist neighbor, through natural assimilation over time or by invasion. Although both China and Taiwan maintain separate militaries and governments, China continues to assert sovereignty claims over Taiwan. Beijing officially seeks peaceful reunification, but has not ruled out the use of force in countering efforts to create an independent Taiwan. China might be forced to invade Taiwan if a Taiwanese leader calls the legitimacy of the Communist Party into question. “But the most likely situation would be some sort of situation in which the mainland leadership felt that their hold on power was already shaky or some sort of challenge to
their hold on power,” according to the Center for International and Strategic Studies. That view echoes the official stand of the Chinese Communist Party (CPC). In his report to the 18th CPC National Congress, Hu Jintao has emphasized that the CPC “resolutely oppose[s] any separatist attempt for Taiwan independence.” “The Chinese people will never allow anyone or any force to separate Taiwan from the motherland by any means,” Jintao has said in 2012. “Any separatist attempt for Taiwan independence, which undermines the common interests of the compatriots on both sides of the Taiwan Straits, is doomed to fail.”
lished international rules in trade and commerce,” the PDP stated. Currently, the Philippines has no dedicated trade agency. The de facto representative of the country in trade negotiations is the Department of Trade and Industry (DTI). Philippine trade policy is formulated by the Committee on Tariff and Related Matters (CTRM), which is chaired by the DTI secretary and cochaired by the National Economic and Development Authority. “Reforms are yet to be fully implemented, including streamlining of export and import procedures and other trade-facilitation measures. Opportunities from existing bilateral and regional trade agreements were not fully utilized,” the PDP read. The Philippines acceded to the World Trade Organization in 1995
and has since steadily treaded the path of liberalization by cutting tariffs and scrapping nontariff trade barriers. The country is also a signatory to various bilateral and regional trade agreements, including the Japan-Philippines Economic Partnership Agreement and a regional agreement with China through the Asean. Despite these, the utilization rate of free trade agreements in the country by businesses is only at 22 percent. In 2005 the Philippine Institute for Development Studies (PIDS) recommended either the strengthening of the CTRM or the creation of a Trade Representative Office. PIDS said the country’s success in international trade will depend on a “cohesive” trade policy and negotiation structure.
To be continued
The Nation BusinessMirror
news@businessmirror.com.ph
Health workers: Protect us from armed groups By Marvyn N. Benaning Correspondent
P
HYSICIANS and other health workers are demanding that President Duterte guarantee their safety as they work in the countryside, in the wake of the killing of Dreyfuss Perlas, a physician, by a lone gunman in Kapatagan, Lanao del Norte. Dr. Julie Caguiat, convener of Protection and Justice for Doctors and Health Workers and the Community Medicine Development Foundation Inc., condemned what she described as the “harassment, intimidation and even murders of community-based health professionals and health volunteers.” For her part, Dr. Edelina de la Paz, president of the Health Action for Human Rights, said, “As we mourn the death of Doctor Perlas and await the result of the investigation that hopefully would serve him justice, we also remember the other doctors and health workers whose rights are continuously being violated or even killed without justice being served until now.” The Council for Health and Development (CHD) executive director, Dr. Eleanor A. Jara, also expressed indignation over the killing of Perlas, who worked as a contractual physician for the Doctors to the Barrios DTTB) program of the Department of Health. Jara’s group is the national secretariat of more than 60 community-based health programs nationwide. CHD said the killing of Perlas is a slap on the face of the Duterte administration, which has not only failed to provide enough doctors in rural communities, but has also been remiss in providing security to community doctors who risk their lives in the service of the people.
Editor: Dionisio L. Pelayo • Monday, March 20, 2017 A3
China planning to include Panatag in its Adiz–Carpio
S
By Joel R. San Juan
@jrsanjuan1573
UPREME Court (SC) Senior Justice Antonio T. Carpio has alerted the government that the reported plan of China to install a radar station in the disputed Panatag (Scarborough) Shoal could be part of its air-defense identification zone (Adiz) at the West Philippine Sea.
Carpio said the installation of an environmental monitoring station at the shoal may be part of its radar coverage of the West Philippine Sea. “A radar station on Scarborough Shoal will immediately complete China’s radar coverage of the entire West Philippine Sea. China can then impose an Adiz, or air, defense identification zone, in the area,” Carpio pointed out. He reiterated that the shoal is part of the Philippine national territory, and that the country has sovereignty over it. Car pio noted that China has just completed building its radar stations in the Subi Reef, Mischief Reef and the Fier y Cross Reef, which are composed of conc rete he x agon a l str uctures w it h retractable roofs
CARPIO: “These developments call for a national debate and consensus on how the nation should proceed with its bilateral relations with China.”
to house missile batter ies. “China will use its HQ-9 surface-to-air missiles to enforce the Adiz. These missiles are now installed on Woody Island in the
Paracels,” Carpio disclosed. HQ-9 is China’s medium- to longrange active radar homing surfaceto-air missile system similar to the Russian S-300 and the American Patriot systems. “The Chinese will, of course, also use these same military installations to enforce the 9-dash line as China’s national boundaries at the West Philippine Sea. That means China will grab 80 percent of the Philippines’s exclusive economic zone, and 100 percent of Philippine extended continental shelf in the West Philippine Sea,” he added. Carpio recalled how China built in 1987 a radar weather station on the Fiery Cross Reef (an outcrop in the Spratlys just a meter above water) ostensibly to help the United Nations Economic, Scientific and Cultural Organization’s global oceanic survey. But about two years ago, it turned the weather station into a 270-hectare military air-naval base. Because of this, the SC justice called for a stronger response from the government against China’s plan. “These developments call for a national debate and consensus, on how the nation should proceed with its bilateral relations with China,” he suggested. Carpio was part of the legal team that presented the country’s case against China’s reclamation in the West Philippine Sea before the United Nation’s Permanent Court of Arbitration in 2015.
Troops kill, wound 47 BIFF gunmen in 3 days By Priam F. Nepomuceno Philippines News Agency
A
T lea st 47 members of t he Bangsamoro Islamic Freedom Fighters (BIFF) and their allies were reported killed and wounded, while five homemade guns and numerous components were seized during a three-day operation in Datu Salibo, Maguindanao. The offensive against the BIFF started on March 13 and ended on the 16th, Capt. Jo-ann Petinglay, Armed Forces Western Mindanao Command spokesman, said in a statement on Sunday. The series of military operations, which included artillery and air strikes, was conducted by troopers from Joint Task ForceCentral (JTF-C). Brig. Gen. Arnel dela Vega, JTF-C commander, said an initial 21 BIFF bandits were killed and another 26 were wounded in the operations. No casualties were reported on the government side. In addition, the troops recovered five homemade bombs, four pressure-type and one command detonated, and numerous bomb components in Barangay Tee of the same town. Dela Vega said the three-day offensive was designed to dislocate forces under Muhammad Ali Bin Abdulrahman, alias Muawiyah, allegedly a foreign terrorist; Salahuddin Hassan, a bomber trained by the latter; and Esmael Abdulmalik, alias Abu Toraype, the Dawlah Islamiyah Maguindanao founder and a BIFF brigade commander. Persistent reports that these terrorists were killed in the attack are still being validated.
Economy BusinessMirror
A4 Monday, March 20, 2017 • Editors: Vittorio V. Vitug and Max V. de Leon
Govt must promote PHL as sports tourism site
A surfer rides the waves at the Cloud 9 spot on Siargao Island. file
By Jovee Marie N. dela Cruz
T
@joveemarie
O attract more local and foreign tourists, a vice chairman of the House Committee on Local Government on Sunday urged the Department of Tourism (DOT) to include extreme sports and ecotourism destinations in its plan to set up a database of Philippine tourist attractions.
Nacionalista Party Rep. Luis Raymund F. Villafuerte Jr. of Camarines Sur said promoting a site as a sports tourism hub has a higher probability of tourists returning to the area. Villafuerte made a statement following the reported DOT plan to set up a database that will list all tourist destinations in the country, in response to the ever-changing
preferences of tourists and tourism investors. The lawmaker, citing the United Nations World Tourism Organization (UNWTO), said sports tourism is a $600-billion market that is expected to expand by an average of 5.3 percent annually. He said sports tourism is projected to grow 6.1 percent from
2013 to 2020, and by 4.7 percent from 2020 to 2030. The lawmakers also said the UNWTO tourism projections show that tourist arrivals in the Asia-Pacific region is expected to more than double to 541 million by 2030, from 204 million arrivals in 2010. The UNWTO Confidence Index also forecasts growth to be stronger in Asia and the Pacific (+4 percent to +5 percent) and the Americas (+4 percent to +5 percent), followed by Europe (+3.5 percent to +4.5 percent). Citing data from the Philippine Statistics Authority (PSA), Villafuerte said tourism, as a percentage of the total GDP, contributed 8.2 percent to the economy in 2015. He said employment in “tourism-characteristic” industries was estimated at 5 million in 2015, higher by 3.4 percent compared with 4.8 million in 2014. He added the share of employment in tourism industries to total employment in the country was recorded at 12.7 percent in 2015.
Chemical sector pushes strategies for becoming leading exporter in 6 yrs.
C
hemical industry players are seeking to implement a threepronged strategy, including creating a cluster to enable cost-efficiency in production of their products, in line with a goal to establish the sector as a leading exporter in six years and develop a strong foothold in the global market by 2030. They also aim to establish Engineering and Science Advanced Technology Program to develop the technical and scientific skill of Filipinos, and set legislative policies that are based on sound technical and scientific studies that take into account the total system in which the chemical industry operates. Industry players considered the government as the major stakeholder in the three gears, where it serves the role as the enabling mechanism that will allow for smooth implementation of the recommended programs. The Department of Science and Technology’s current research and development programs on chemical products, through the initiatives of the Industrial Technology Development Institute and the Philippine Council for Industry, Energy and Emerging Technology Research and Development, are more open for partnerships with private organizations, particularly proposals for joint research projects with the private sector.
The sector is looking at brighter prospects, noting the demographic characteristics of the Philippines point to a large domestic market and a strong manpower base. “This young population is also increasingly spending on health and housing needs. More important, Filipinos are open to consume organic-based herbal medicines and consumer products. This consumption behavior provides a promising market base for pharmaceutical, personal care, cleaning substances, coatings and other chemicals businesses,” it said in a road map. The sector is represented by the Samahan sa Pilipinas ng mga Industriyang Kimika or the Chemical Industry Association of the Philippines, with 69 company members producing agrochemicals and fertilizers; coatings, ink and adhesives; industrial gases; inorganic chemicals; oleochemicals and surfactants; plastic products; petrochemicals; petroleum; specialty chemicals; chemical traders and distributors; chemical storage and transport logistics; and chemical disposal and recycling. The sector has extensive links with other industries, including agriculture/ agribusiness, automotive, cement, creative, construction, energy, fishing, health, housing and pharmaceuticals industries. Philexport News & Features
Villafuerte cited the success of Camarines Sur, which is currently regarded as a famous sports and adventure destination. “Our strategy was a resounding success, because sports hubs tend to get a high number of repeat visitors who have to stay weeks ahead before a sports event to adjust themselves to the weather in the area and train there. They also return to the place to improve their skills. Not only that, they also come with their relatives and friends in tow,” he said. Villafuerte added there are other areas in the country that can be marketed as sports destinations. These are San Mateo in Rizal for mountain biking; Baler in Aurora and Siargao Island in Surigao del Norte for surfing; Cagayan de Oro and Davao for whitewater rafting; Anilao in Batangas for diving; and Mindoro for windsurfing. “Marketing tourist spots, such as beaches, into sports capitals or hubs is a value-added factor that helps sustain high tourist arrivals and incomes from tourism-related businesses,” he said.
news@businessmirror.com.ph
Employers of PWDs should get more incentives—Pids study By Cai U. Ordinario @cuo_bm
E
xpanding incentives for employers and improving the quality of education will increase employment among women with disabilities, according to a study released by the Philippine Institute for Development Studies (Pids). In a recent presentation, Pids research associate Christian D. Mina said expanding incentives beyond tax deductions and exemptions will encourage companies to hire more women persons with disabilities (PWDs). The government think tank said improving the quality of education of PWDs will not only make them eligible for employment, but also competitive in their chosen field. “[There is a need to] expand incentives for employers of PWDs— aside from tax deduction or exemption. The process of claiming tax incentives should also be eased to genuinely incentivize employers,” Mina said. “The quality of education of PWDs has to be improved to make them more competitive,” she added. Mina said women PWDs suffered from low levels of education and a lack of training experience. They are also constantly challenged by their physical conditions and accessibility to opportunities. The researcher added there was also a general lack of employment opportunities for them, as well as low awareness on relevant government policies and programs. To remedy these, Mina urged the National Council on Disability Affairs to create an award-giving body to recognize employers that employ and comply with the Accessibility Law. The award-giving body can be created together with the departments of Labor and Employment and Interior and Local Government. “Then, a certain percentage of products and/or services needed by government offices should be purchased from these awarded establishments,” Mina said. In terms of improving education, she said the Technical Education and Skills Development Authority can offer skills or livelihood training for PWDs. Mina said these trainings must not only
focus on increasing blue-collar employment for women PWDs. “Tesda can assist various DPOs [disabled people’s organizations] in the preparation of documentary requirements and in finding a funding agency,” Mina said. “DPOs should be more active in disseminating employment- and training-related information to their members.” The study indicated that over 50 percent of women with disabilities in Cebu, particularly in Mandaue, are not part of the labor force. Data also showed that for those who were part of the labor force, the women PWDs were mainly engaged in low-quality jobs, such as farming, retail trade, street vending and other services. Among the women who were mobility-impaired, they were mainly employed in retail trade, street vending and other services. They were also into dress making, working in factories, health services, such as those in health centers, selling ice, scrap buying and selling, laundry service, running a sari-sari store, and selling fish, fruits and vegetables. Visually impaired women were into street vending, broom making, or were employed by retailers. Some of them, particularly those in San Remigio, were working as domestic help and quack doctors. Pids data also showed that hearing-impaired women were mainly into farming, employed by retailers, street vending and working in factories. They work in canteens, in a crabmeat factory, sold ice, provided janitorial services and manicure services. Women who had psychosoc i a l /i nte l le c t u a l d i s a bi l it ies were hired as farm workers and market vendors. “The majority of workers are either vulnerable [self-employed, unpaid family workers] and/or informally employed [not vulnerable but not permanent [temporary without contract, daily hire],” Mina said. “Among those not vulnerable [based on class of worker] and not informally employed [based on nature of employment], 73.3 percent are laborers/unskilled, 40 percent are underemployed and the remaining 13.3 percent are a small-scale retail store owners,” she added.
‘Exporters need govt help for promotion funds, market intelligence’
A
N official of the country’s umbrella group of exporters said promotion funds and market research assistance is among the major assistance that small and medium enterprises (SMEs) need to compete against their peers in the Association of Southeast Asian Nations (Asean). In line with the government’s drive to access new markets and raise Philippine export competitiveness, Ma. Flordeliza C. Leong, assistant vice president for advocacy of the Philippine Exporters Confederation Inc. (Philexport), called for enhanced channels through which critical marketintelligence reports can flow to the export community. In a trade presentation on March 16, Leong said tackling the information gap, especially on regional markets and Asean competitors, is one of the urgent government interventions the export community seeks. She explained SME exporters don’t have the resources to conduct regular field researches on opportunities in new markets. “It is in this area of gathering current, relevant information on the ground about our new trading partners that we strongly need government help.” She said the country is “only scratching the surface” in terms of knowledge about the Asian marketplace, adding that, “despite our proximity to them, we practically know very little of the buying
LEONG: “What are the things we can produce in big volumes that the Chinese, the Indians, the Japanese, the Thais and the Indonesians may be interested in buying? Who are their importers, traders and other potential partners?”
patterns of our neighbors”. “What are the things we can produce in big volumes that the Chinese, the Indians, the Japanese, the Thais and the Indonesians may be interested in buying? Who are their importers, traders and other potential partners? What prices and consumer trends are dominant? There are a lot of key facts we want and need to know to open new markets,” she continued. Equally crucial is to get inputs on what other regional exporters, especially those in Asean, are up to, she added. “If we are lacking fresh information on our potential and present markets, we know even less about what our competitors are doing to beat us. It is in this area—intimately knowing the market and competition— where exporters badly need fresh information.” Gover nment embassies and trade attaches seem to be in the position to help, Leong continued. “Officia ls
who are in major or untapped markets abroad are in the best position to fil l the infor mation gap.” “With Internet access, it is now faster and cheaper to search for and send information to our exporters. The DTI [Department of Trade and Industry] may also use Philexport and other business organizations to reach out to exporters.” Besides disclosing information on import policies, and consumer, product and price trends in key markets, Leong said overseas outposts may also be of help in more practical ways. “There might be times when these officers may be requested to check the legitimacy of certain buyers, or follow up payments, or troubleshoot for certain shipments, or even do the actual export promotion.” In addition, the export officer cited the importance of sufficient financial resources for export promotions, including for product development and adaptation. “ The P280-million export-promotion fund and the P200-million exportsupport fund from the previous administrations somehow helped fill this gap.” Leong was one of the presenters at a DTI and European Union-organized three-day training session to increase the overall capacity of agencies to address trade-related issues. Philexport News & Features
Agriculture/Commodities BusinessMirror
news@businessmirror.com.ph
Editor: Jennifer A. Ng • Monday, March 20, 2017
A5
Myanmar to tap PHL hybrid-rice seed technology–SLAC
M
yanmar will plant hybridrice seeds developed in the Philippines to expand its paddy production and regain its status as the world’s biggest rice exporter, according to hybrid rice and seeds producer SL Agritech Corp. (SLAC).
SLAC Chairman Henry Lim Bon Liong said President Duterte may sign a bilateral agreement with Naypyidaw for the planting of hybrid rice in Myanmar. The President left for Myanmar on Sunday. “During our visit with President Duterte, we will talk about the planting of hybrid rice on 14,000 hectares in Myanmar,” said Lim, who joined the Philippine delegation to Myanmar, along with other private-sector representatives. In a harvest festival held in Barangay Triala, Guimba, Nueva Ecija, last Friday, Lim said the Duterte administration
has declared to expand its support for hybrid-rice expansion in the country. The SLAC chief said the deal will allow the Philippines to help Myanmar become the world’s biggest rice exporter, a status that it used to enjoy before World War II. Since it introduced reforms in 2010, Myanmar has opened trade to the world with many multinational firms, including Philippine-based companies. Myanmar has around 17 million hectares of uncultivated arable plant that can be planted with rice. This, SLAC noted, is far bigger than the rice area of Thailand and Vietnam—two of
the world’s major rice exporters today. “Hopefully, the President will be able to set foot on a hybrid-rice field soon, and ensure that we won’t need to import rice,” Lim said. Agriculture Secretary Emmanuel F. Piñol affirmed the government’s support in planting hybrid rice on an additional 1 million hectares when he visited North Cotabato early this month. “The rice technical working group targets an additional area of 1million hectares to be planted with hybrid rice in the next three years. This could yield an additional 4 million metric tons [MMT] of paddy rice per year,” Piñol said. Lim said Piñol and Duterte are expected to visit hybrid-rice fields on April 5, when the most successful hybrid-rice farmers’ cooperative—Nagkakaisang Magsasaka Agricultural Primary MultiPurpose Cooperative Inc. (NMAPMPC)—would hold its own harvest festival in Tabacao, Nueva Ecija. NMAP-MPC not only offers credit, but land preparation, milling, warehousing, postharvest and marketing services, to member-farmers in the rice central Nueva Ecija. It supplies 2,000 cavans of rice to the University
of Santo Tomas Hospital every 15 days. Ricardo Buenaventura, NMAP-MPC president, has become a model pioneer in planting hybrid rice, as he reaps at least 10 metric tons per hectare in the dry season using hybrid-rice SL-8H. The figure is more than double the national average yield in the country, currently estimated at 3.9 MT per hectare. Piñol is banking on hybrid-rice seeds to make the Philippines rice sufficient by 2020. “With a milling recovery of 65 percent, the added production could yield 2.6 MMT of rice, more than enough to cover the national shortage of 1.8 MMT every year,” he said. Lim noted the Philippines has a huge potential to succeed in hybridrice farming in Myanmar, after the company found this viable in a 100-hectare farm in Yangon’s Dagon township. This initiative was under a joint venture with private companies Nine Seas, led by Aung Tan Oo, and Water Ston,e led by Filipino Norberto Ong. The expansion of hybrid-rice planting in Myanmar will likely be supported by the country’s microfinance leader, CARD, under CARDMyanmar Co. Ltd. Jasper Emmanuel Y. Arcalas
Businessmen from Bahrain keen on putting up sugar mill in PHL
B
usinessmen from Bahrain have expressed interest in investing in the construction of a sugar-processing plant in the Philippines, officials of the Department of Agriculture (DA) said over the weekend. The DA said officials from the Bahrain Chamber of Commerce and Industry (BCCI) made the pronouncement during a meeting with Agriculture Undersecretary for Agribusiness and Marketing Bernadette Romulo-Puyat and Agriculture Assistant Secretary Leandro H. Gazmin on March 17. “Some Bahraini investors are interested to undertake a joint venture with local producers. They are actually asking for assistance in feasibility studies for the products that they want to invest in,” BCCI Chairman Khalid A. Rahman was quoted as saying in a statement released by the DA. Rahman was referring to the possibility of establishing a sugar-processing facility in the country. He added the processed products from the facility will be repackaged in Bahrain and sold in Saudi Arabia. Bahrain’s capital city, Manama, is about 24 kilometers off the east coast of Saudi Arabia. Bahrain is a net importer of sugar. In a February Reuters report, Manama’s lone sugar refinery stopped production in October last year to prepare for a change in the company’s ownership. The sugar firm reportedly struggled to recoup start-up costs and has racked up large debts. In 2015 Manama imported some $114 million worth of sugar, of which 49 percent came from Brazil, according to the latest data from the Massachusetts Institute of Technology. The DA said it would link the interested Bahraini investors with sugar planters in the country for the conduct of a study to determine the feasibility of establishing the proposed sugar mill. “The (DA) can link our foreign investors to our farmers’ cooperatives and help them with the requirements,” Puyat said. Jasper Emmanuel Y. Arcalas
The Regions
A6 Monday, March 20, 2017 • Editor: Efleda P. Campos
BusinessMirror
PHL’s largest solar center to rise in Tarlac
C
By Catherine Joy L. Maglalang | Correspondent
ONCEPCION, Tarlac—A P10billion solar project that can supply electricity to 300,000 households is set to rise in Barangay Santa Rosa in this municipality. The 150-megawatt (MW) Concepcion Solar Farm of Solar Philippines aims to provide a cleaner alternativeenergy source to the Filipino people and make the Philippines a leader for solar energy worldwide. Leandro Leviste, Solar Philippines president and CEO, said the facility is going to be the biggest in the country and, most impor-
tant, the largest unsubsidized solar project with batteries in the world. The project will consist of approximately 450,000 solar panels in over 150 hectares, with room to expand as demand for solar power with batteries increases. “In over three decades of operation, it is expected to offset over 3 million tons of CO2, equivalent to
planting over 15 million trees,” Leviste said. Meanwhile, the Department of Energy (DOE) expressed its full support to the construction of the P10billion, 150-MW solar farm that can supply power to the entire province of Tarlac. Energy Secretary Alfonso G. Cusi said one of the objectives of the DOE is to energize all households by 2022. “We are finding a balance for the demand and supply. As of now, the country’s power demand is something like 13,000 MW. However, our supply is barely 14,000 MW. The supply is barely meeting its demand, that’s why we need more,” Cusi said. The DOE is technology neutral and is eyeing every possible source of power, especially for far-flung barangays and island provinces.
“ If sol a r power f rom t h i s project can be stored, then we can source a lot of power from this,” Cusi said. As the country enters the summer season, the DOE is keenly watching the daily condition of the power plants to make sure the country has enough electricity and to avoid any power interruptions and spike in power prices. “How I wished this project has been realized earlier. With the inverters already available, this is no longer a groundbreaking, but more of a work in process,” Cusi said. Inverters play a crucial role in any solar-energy system and are often considered the brains of a project with the basic function of inverting the direct current output into alternating current for commercial appliances.
Piñol to open 5-day farmers, fishers expo in Pangasinan By Orly Guirao Correspondent
S
ANTA BARBARA, Pangasinan—Bounties of the land and of water will be showcased in a five-day product exposition of farmers and fishermen here from March 28 to April 1, an event described by organizers as “a curtain-raiser for the colorful and meaningful Pistay Dayat, dubbed as Pangasinan’s mother of all festivals.” Agriculture Secretary Emmanuel F. Piñol has been invited to open the festivities to be held at the sprawling 5-hectare nursery of the provincial government in Barangay Tebag of this town, the province’s rice granary. He will be assisted by Gov. Amado I. Espino III, along with regional and provincial agriculture officials. A wide array of the province’s farm and fish crops - rice, corn, watermelon, mango, various vegetables and bangus (Pangasinan’s pride), tilapia, gurami and catfish to the tasty carabeef—will adorn the booths of the agroindustrial trade exposition, provincial agriculturist and chief event organizer Dalisay Moya said. Dubbed “Umaani Expo 2017”, the event will also showcase latest farm-technology innovations being used by the farming community, including the provincial government’s upgraded service system to further improve the quality of crop yield and increase farmers’ income. For the past three consecutive years, Pangasinan won acclaim as one of the country’s top 3 achievers in rice and corn production. Keeping tab on agricultural production, the governor programmed as early as October last year a series of installation of shallow deep wells with water pumps in rain-dependent farmlands as part of the provincial government’s intensified irrigation program started with a P100-million fund allocation by the previous administration of then-Gov. Amado T. Espino Jr., now Fifth District representatives of Pangasinan. The province’s agriculture office also ventured into high-value mushroom and silage production, tilapia culture and food processing. Only recently, Espino III led the massive dispersal of 300,000 tilapia fingerlings on the mouth of the giant reregulating pond of the San Roque power-dam facility to beef up fish stock along the Agno River and downstream waterways connected to the integrated irrigation system of the National Irrigation Administration expected to supply water to 32,000 more hectares of farmlands in Pangasinan. Suppor t ing enter t a inment jousts include eating competitions of siling labuyo (hot chili peppers), ripe mango, onion and boiled sweet corn.
GOLD ORBS Franklin Almoza, a small-scale miner, shows the gold nuggets he excavated from a mine in Loacan, Itogon, Benguet. MAU VICTA
news@businessmirror.com.ph
UNDP, EU turn over disaster-resilient structures to Yolanda victims in E. Visayas By Elmer V. Recuerdo Correspondent
T
ACLOBA N CI T Y—More than four years after Super typhoon Yolanda (international code name Haiyan) hit the Visayas provinces, recovery efforts continued for communities with the turnover of disaster-resilient infrastructure in Tacloban and Palo in Leyte, and in Balankayan, Hernani and Quinapondan in Eastern Samar for three days last week. The European Union (EU) and the United Nations Development Program (UNDP), represented by its Deputy Country Director Enrico Gaveglia, turned over on Wednesday resettlement housing units and a multiuse training center in Tacloban and a coastal resource management center in Palo. In Eastern Samar, community evacuation centers and housing units are now ready for use in Balankayan, Hernani and Quinapondan. “The EU believes we have helped build stronger and more united and empowered communities that will always rise up to any calamity that might happen in the future,” EU Ambassador to the Philippines Franz Jessen said. The structures now make these communities more prepared and assured of more resilient shelters and evacuation centers should another disaster threaten their provinces. “We are pleased to support the continued recovery of Yolanda-affected communities. It is a long process for development to take place, but with our collective efforts we are helping to ensure a safer and resilient future for the communities,” Gaveglia said. The construction of disaster-resilient infrastructure is part of the EU’s package of assistance, delivered through UNDP’s Project Recovery, to help families affected by Yolanda. With funding support of €9.7 million (abut P508 million) from the EU, Project Recovery complements the efforts of national and local governments in enabling the timely and sustainable recovery of Yolanda-af-
fected communities and builds their resilience to future natural disasters. The community evacuation centers and multiuse training center will double up as sites for livelihood or other community activities and will be maximized even when there are no disasters. UNDP and EU worked in 15 local government units (LGUs) severely affected by Yolanda for Project Recovery: three in Leyte (Tacloban City, Palo and Ormoc City), four in Biliran (Biliran, Caibiran, Cabucgayan and Naval); and eight in Eastern Samar (Balangkayan, Giporlos, Guiuan, Hernani, Lawaan, Mercedes, Quinapondan and Salcedo). Eleven of the 15 LGUs received community evacuation centers (CEC), each with a 50-family or 250-person capacity, while others received support to develop coastal and small public infrastructure. All LGUs are being trained on disasterrisk reduction, preparedness and response, hazard-risk-capacityvulnerability assessments and contingency planning. They are also provided with basic communication, emergency response and rescue equipment, and training support on evacuation, and water/mountain search and rescue. Project Recovery also extends support to families and communities engaged in the farming and fishing industries, as well as those in off-farm economic activities, who, based on records of the LGUs, suffered major losses in livelihood assets and completely lost their houses. The project operates from the three hubs—Tacloban, Guiuan and Ormoc. The EU has to date provided about €40 million (P2.08 billion) in financial assistance to Haiyan victims, including €30 million (P12 billion) for emergency aid and another €10 million (P520 million) for reconstruction, which includes the construction of cold-storage facilities and community evacuation centers. Together with the EU member-states, the EU assistance amounts to €500 million (P26 billion) for families and communities affected by Haiyan.
Ayta residents want pact Cebu investment office identifies new with CDC amended indicators to LGU competitiveness Cipo facilitated By Ashley Manabat Correspondent
C
L A R K F R E E P O R T— A n amendment of the Joint Management Agreement (JMA) among the Clark Development Corp. (CDC), the National Commission on Indigenous Peoples (NCIP) and an Ayta tribe, signed on December 6, 2007, is now being considered by the affected parties. In a text message last Tuesday, the representative of the indigenous peoples (IP,) in the Mabalacat City council said they are open to an amendment of the JMA after the signatories conducted a mandatory review of the agreement last week. “We are also open to an amendment. We will look into it in our next meeting with CDC,” Mabalacat City Councilor Ruvielane S. Margarito said. CDC Communications Manager Noel G. Tulabut said: “As agreed upon in a meeting called by CDC, the JMA will be amended.” Tulabut also said they are now awaiting the feedback of Ayta leaders as to who their legitimate representative will be. Initially, Margarito said the Ayta tribe wants the JMA canceled because it was never valid right from the beginning. A position paper signed recently by Margarito also called for the cancellation of the JMA. “Our elders and chieftains want it canceled already, but we will still have another meeting for the final decision,” Margarito said. Then-CDC President and CEO Lib-
erato P. Laus initiated the signing of the JMA that called for a profit-sharing scheme where the Aytas get 20 percent while the CDC gets 80 percent of the profit. The CDC will manage the development of about 10,684 hectares of Ayta ancestral lands for a period of 50 years under the JMA. However, then-Rep. Carmelo F. Lazatin branded the JMA as “onerous”, considering its lopsided sharing scheme, and called for a congressional investigation. Laus said he welcomed the investigation “because this will give us the timely opportunity to clear the air of any reservation or misinformation about the agreement and provide valuable inputs as well to our legislators that could be useful in their legislative agenda for the country's indigenous people.” In House Resolution (HR) 545, Lazatin said, the guaranteed income stipulated in the agreement, which was computed at P1 million per year for the whole area, was unfair to the Tribung Ayta composed of 13 tribes or about 3,000 families from the towns of Bamban, Tarlac and Mabalacat City, Pampanga. However, as part of the JMA, the CDC turned over 13 special utility vehicles (Mitsubishi L-300 FB) to each of the tribes for their various transport requirements, particularly in moving products and peoples from the uplands to the lowlands. Laus said the turnover was consistent with the spirit of the agreement that seeks essentially to improve the lives of the Aytas in the Clark hinterlands.
By Charles R. Pepito | Correspondent
D
ISASTER resiliency and sustainability were among the new indicators added to measure the local government units’ (LGU) performance in the economy, infrastructure and governance in the annual Cities and Municipalities Competitiveness Index (CMCI). This was according to the Cebu Investment and Promotions Office (Cipo), the capitol’s investment arm. Just this year the National Competitiveness Council (NCC) added a fourth criterion and set of indicators in measuring the overall competitiveness of LGUs. NCC’s Cities and Municipalities Competitiveness Index is the yearly measurement of the LGU’s infrastructure, economic dynamism and government efficiency. It is a scorecard that can be used by potential investors to assess the performance of the LGU. Cipo Development Management Officer July Anne Guibone said the indicators on resilience and sustainability were recently added among the CMCI’s criterion. Resilience indicator will measure the LGUs’ capability to adjust or adapt to misfortunes following the country’s experience with typhoons and storms, Guibone said. CMCI now cover almost 1,400 LGUs across the country in a span of four years. The CMCI’s overall competitiveness rating is the sum of all scores based on the four pillars, namely, economic dynamism, government efficiency, infrastructure, and resilience and sustainability. Economic dynamism pertains to the transformation of economic system that reflects market behavior, businesses and general economy. As for government efficiency, it measures opportunities and effectiveness of services of the LGU based on its program, resources, time and cost. Infrastructure covers the fundamental facilities that are necessary for its economy to function, and improve the living condition of the people. Resilience, the fourth criterion, gauges the LGU’s ability to adapt to changes, calamity or hardships. Cipo head Roy Soledad said following this development, his office held a series of orientations among investment officers in the province, adding that the seminar would guide LGUs to appreciate important
the seminar as it will enable the cities and municipalities to fully understand the importance of data gathering and what data are required [of] in the CMCI.”—Soledad
data needed to qualify for the CMCI, where awardees will be identified this July. “Cipo facilitated the seminar as it will enable the cities and municipalities to fully understand the importance of data gathering and what data are required [of] in the CMCI,” Soledad said. The quality of data gathered can elevate the LGU’s ranking in the national level. Soledad explained that the ranking of Cebu Province is reliant upon the scores of the cities and municipalities. “When the rankings of the cities and municipalities are improved, the overall ranking of the province will be elevated, since the score of the province is highly dependent on their scores,” Soledad said. In 2015 Cebu Province was named third most competitive province in the country by the NCC. Cebu City was adjudged as the third most competitive city in the country for highly urbanized cities category. Soledad said the LGU can benefit from the data they collected. LGU officials can use that information as tools to assess the competitiveness of their cities or municipalities, and identify areas for improvement through policy-making, development planning and investment promotions, he said. Cipo also launched the Provincial Competitiveness Challenge, which aims to improve the competitiveness ranking of each cities and municipalities.
news@businessmirror.com.ph
The World BusinessMirror
Editor: Lyn Resurreccion • Monday, March 20, 2017
A7
Tillerson strikes cordial tone in China swing
B
EIJING—The United States is looking forward to the first meeting between President Donald J. Trump and his Chinese counterpart, Xi Jinping, Secretary of State Rex Tillerson said on Sunday, on the final day of a swing through Asia dominated by concerns over North Korea’s nuclear and missile programs.
In talks with Xi in Beijing, Tillerson said Trump places a “very high value” on communications with the Chinese president. Trump looks forward to “the opportunity of a visit in the future”, Tillerson said, in an apparent reference to unconfirmed reports of plans for the two leaders to meet in Florida next month. While few details of his talks have been released, Tillerson appeared to strike a cordial tone during his meetings in Beijing, in contrast to Trump’s tough
talk on Chinese economic competition during his presidential campaign. Xi told Tillerson China considered his meetings last Saturday with Foreign Minister Wang Yi and top diplomat Yang Jiechi to have been productive and constructive. “Both [Trump] and I believe that we need to make joint efforts to advance China-US cooperation and we believe that we can make sure the relationship will move ahead in a constructive fashion in the
Syrian rebels begin evacuation from besieged city of Homs
In this February 26, 2016, file photo, a Syrian boy rides a bicycle through a devastated part of the old city of Homs, Syria. Syrian opposition fighters began to leave the last rebelheld neighborhood in the city of Homs under a Russia-backed deal signed on March 13. AP
H
OMS, Syria—Scores of Syrian opposition fighters and their families began leaving the last rebel-held neighborhood in the central city of Homs last Saturday as part of a Russian-backed evacuation deal signed earlier this week. By sunset, 344 fighters and their families had left the city—once a center of protest during the 2011 uprising—completing the evacuation for the day. They were bound for a town on the Turkish border after the latest in a series of local agreements in which insurgents have relocated to the rebelheld north after months or years under siege in the country’s major cities. Green government buses ferried the fighters, many carrying assault rifles, and their families from the northern al-Waer neighborhood to Homs’s western entrance, where they disembarked and had some of their bags searched under the supervision of Syrian and Russian military police. Three fighters arrived in wheelchairs. The men, women and children, most carrying their belongings in suitcases and plastic bags, boarded white busses taking them to the northern rebel-held town of Jarablous on the Turkish border. The evacuees were assisted by Syrian Arab Red Crescent members as they loaded their belongings onto the busses. The al-Waer neighborhood is home to about 75,000 people and has been under a government siege since 2013, triggering shortages of medicine, and occasionally of food. The evacuation is the third phase of an agreement reached last year that saw hundreds of fighters and their families leave the area. Homs Governor Talal Barrazi said around 1,500 fighters are expected to leave al-Waer, with only their personal rifles, over the next six to eight weeks. Once the first batch has left, food and basic aid will enter the neighborhood, Barrazi said. He had said earlier this week that fighters who decide to stay in al-Waer can benefit from a government amnesty issued earlier. An official at the governor’s office said later on Saturday that 344 fighters and about 1,050 civilians were headed to Jarablous aboard 35 buses. The official spoke on condition of anonymity because he was not authorized to speak to the media. Some opposition activists have criticized the agreement, saying it aims to displace 12,000 al-Waer residents, including 2,500 fighters. The opposition’s Britain-based Syrian Observatory for Human Rights called the evacuees “internally displaced” people. Al-Barrazi denied statements that said al-Waer residents are being forced to leave their homes, adding that thousands will stay on and many departing because of violence will return in the future. Maher Kayyal, the head of the Syrian Arab Red Crescent’s operations in Homs, said they were informed of three medical emergency cases, adding that the number might rise to six. Ten ambulances were available at the scene. “There are no difficulties so far as all parties respect the agreement,” he said earlier in the day. Once the evacuation is completed, the government will be in full control of Homs—Syria’s third largest—for the first time in years. AP
new era,” Xi said. Tillerson’s Beijing visit followed his remarks in South Korea last Friday that preemptive military action against North Korea might be necessary if the threat from its weapons program reaches a level “that we believe requires action”.
China, the North’s biggest source of diplomatic support and economic assistance, hasn’t responded directly to those comments, although Beijing has called repeatedly for all sides to take steps to reduce tensions. China has agreed reluctantly to UN Security Council resolutions
sanctioning North Korea, but is adamantly opposed to measures that might bring about a collapse of North Korean leader Kim Jong Un’s regime. Beijing fears Kim’s fall would send waves of refugees into northeastern China and see South Korean and American forces taking
up positions along its border. Beijing’s patience with Pyongyang appears to be growing thin, however. Last month China potentially deprived Kim’s regime of a crucial source of foreign currency by banning imports of North Korean coal for the rest of the year. AP
A8
The World BusinessMirror
Monday, March 20, 2017
www.businessmirror.com.ph
Death toll rises to 72 in Peru rains, flooding
L
IMA, Peru—The intense rains, overflowing rivers, mudslides and flooding being experienced in the country are the worst seen in two decades, Peruvian authorities said last Saturday, affecting more than half the nation as the death toll since the beginning of the year hit 72.
The highly unusual rains follow a series of storms that have struck hard along Peru’s northern coast, with voracious waters inundating hospitals and leaving some small villages isolated. The storms are being caused by a warming of the surface waters in the Pacific Ocean and are expected to continue for another two weeks. Peru’s government said 374 people were killed in 1998 during a similar period of massive rains and flooding caused by rains blamed on the El Niño climate pattern. Last Saturday Prime Minister Fernando Zavala updated the number of dead from the latest flooding to 72. The rains have overwhelmed the drainage system in the cities along
Peru’s Pacific coast and the health ministry has started fumigating around the pools of water that have formed in the streets to kill mosquitoes that carry diseases like dengue. Lima has been without water service since the beginning of the week. The government has deployed the armed forces to help police control public order in the 811 cities that have declared an emergency. “The prices for lemons have gone up, as well as for potatoes and cooking oil,” said Sara Arevalo, a mother of five who was shopping at a market in northern Lima. The government has acknowledged that prices have shot up some 5 percent because of the flooding.
Melenchon calls for deep reforms in France’s Charter
P
A man is pulled to safety on a zipline harness in Lima, Peru, on March 17. The number of people killed in Peru following intense rains and mudslides wreaking havoc around the Andean nation climbed to 67 last Friday, with thousands more displaced from destroyed homes and others waiting on rooftops for rescue. AP
In the Lambayeque region, 22 inmates at a juvenile detention center took advantage of the rains to escape. And in the city of Trujillo, rains flooded a cemetery with the waters carrying bones through the streets. Even Peru’s capital city of Lima,
where a desert climate seldom leads to rain, the police last Friday had to help hundreds of residents in an outskirt neighborhood cross a flooded road by sending them one by one along a rope through choppy waters. The muddy current channeled
down the street after a major river overflowed. Some residents left their homes with just a single plastic bag carrying their belongings. The presidents of Chile, Bolivia and Venezuela offered to send help to Peru. AP
North Korea Trump says US ‘must be paid more’ to defend Germany tests newly W developed rocket engine Strong support Light joke Minimal rapport
T
OKYO—North Korea has conducted a ground test of a new type of high-thrust rocket engine that leader Kim Jong Un is calling a revolutionary breakthrough for the country’s space program, the North’s state media said last Sunday. Kim attended Saturday’s test at the Sohae launch site, according to the Korean Central News Agency (KCNA), which said the test was intended to confirm the “new type” of engine’s thrust power and gauge the reliability of its control system and structural safety. Kim called the test “a great event of historic significance” for the country’s indigenous rocket industry, the KCNA report said. He also said the “whole world will soon witness what eventful significance the great victory won today carries” and claimed the test marks what will be known as the “March 18 revolution” in the development of the country’s rocket industry. The report indicated that the engine is to be used for North Korea’s space and satellite-launching program. North Korea is banned by the United Nations from conducting long-range missile tests, but it claims its satellite program is for peaceful use, a claim many in the US and elsewhere believe is questionable. North Korean officials have said that under a five-year plan, they intend to launch more Earth observation satellites and what would be the country’s first geostationary communications satellite—which would be a major technological advance. Getting that kind of satellite into place would likely require a more powerful engine than its previous ones. The North also claims it is trying to build a viable space program that would include a moon launch within the next 10 years. The test was conducted as US Secretary of State Rex Tillerson was in China on a swing through Asia that has been closely focused on concerns over how to deal with Pyongyang’s nuclear and missile programs. It’s hard to know whether this test was deliberately timed to coincide with Tillerson’s visit, but Pyongyang has been highly critical of ongoing US-South Korea wargames just south of the Demilitarized Zone and often conducts some sort of high-profile operation of its own in protest. AP
ASHINGTON—President Donald J. Trump said last Saturday that Germany owes “vast sums of money” to Nato and the US “must be paid more” for providing defense, reiterating his stance that European allies need to meet their end of the bargain if they are to continue benefiting from the military alliance. Trump’s tweet from his Florida resort, where he is spending the weekend, came the day after his first meeting with Germany’s leader. “Despite what you have heard from the FAKE NEWS, I had a GREAT meeting with German Chancellor Angela Merkel,” the president wrote. “Nevertheless, Germany owes...vast sums of money to NATO & the United States must be paid more for the powerful, and very expensive, defense it provides to Germany!” Trump and Merkel tried to sidestep their differences in their meeting at the White House last Friday, but it was punctuated by some awkward moments. During a photo op in the Oval Office, the two did not shake hands before reporters. Later, during a joint news conference, Trump pushed back against the notion in Europe that his “America First” agenda means he’s an isolationist, calling such a suggestion “another example of, as you say, fake news.” And he referred to the United States as “a very powerful
company”, before quickly correcting that to “country”. When a German reporter asked Trump if he regrets any of his commentary on Twitter, Trump said, “Very seldom.”
the world entirely. Trump said trade agreements have led to greater trade deficits. The US trade deficit with Germany was $64.9 billion last year, the lowest since 2009, according to the Commerce Department.
Those comments appeared aimed at making a case to Trump on the benefits of the European Union. Trump backed Britain’s departure from the EU and has expressed skepticism of multilateral trade agreements.
THE new president reaffirmed the United States’s “strong support” for Nato, but reiterated his stance that Nato allies need to “pay their fair share” for the cost of defense. Trump said at the press conference that many countries owe “vast sums of money”—but he declined to identify Germany, at the time, as one of those nations. Prior to his inauguration, Trump declared Nato “obsolete” but has since modified his stance, telling European leaders the alliance remains of strategic importance. Only the US and four other members currently reach the benchmark of spending 2 percent of GDP on defense. Germany currently spends 1.23 percent of its GDP on defense, but it is being increased. When the topic moved to trade, Trump said the US would do “fantastically well” in its trade relations with Germany. The president has been deeply critical of foreign trade and national security agreements but suggested he was only trying to revise trade deals to better serve US interests, rather than pull back from
MERKEL maintained her composure when Trump repeated his contention that former President Barack Obama may have tapped his phones in Trump Tower. He sought to turn the explosive charge into a light joke when asked about concerns raised by the British government that the White House is now citing a debunked claim that UK spies snooped on Trump. “At least we have something in common, perhaps,” Trump said casually, referring to 2013 reports that the US was monitoring Merkel’s cell-phone conversations. As for the most recent report, Trump said he shouldn’t be blamed for quoting a Fox News analyst who had accused British intelligence of helping Obama spy on him. On economic issues, Merkel attempted to project a conciliatory approach. She said the “success of Germans has always been one where the German success is one side of the coin and the other side of the coin has been European unity and European integration. That’s something of which I’m deeply convinced.”
THE two leaders tried to express their common bonds but showed minimal rapport in their first encounter, a departure from Merkel’s warm relations with Obama during his eight years as president. At the start of the news conference, Merkel sought to break the ice, saying that it was “much better to talk to one another than about one another”. Merkel said delicately that while she represents German interests, Trump “stands up for, as is right, American interests. That is our task, respectively.” She said they were “trying to address also those areas where we disagree but tried to bring people together.” “We need to be fair with each other,” Merkel said, saying both countries were expecting “that something good comes out of it for their own people.” The meetings at the White House included discussions on fighting the Islamic State group, the conflict in Afghanistan and resolving Ukraine’s conflict, all matters that require close cooperation between the US and Germany. AP
ARIS—Far-left French presidential candidate Jean-Luc Melenchon gathered tens of thousands of supporters in Paris at a rally last Saturday calling for deep reforms in the French constitution. Melenchon, who wants to shorten France’s 35-hour workweek, leave the North Atlantic Treaty Organization, block free-trade deals and stop using nuclear energy, has pledged to summon a constituent assembly if he wins the election. The 65-year-old former Socialist who previously served as minister for vocational training often depicts himself as the candidate of the people. He promises to get rid of what he calls the “presidential monarchy” and give more power to parliament. The gathering last Saturday between two iconic squares in the French capital—the Place de La Bastille and Place de la Republique— took place on the anniversary of the Paris Commune, an alliance between the middle and working classes who broke into revolt on the 18th of March 1871 in the wake of the collapse of Napoleon III’s Second Empire. Melenchon was greeted to chants of “President! President!” as he joined the rally. He later said on his Twitter account that 130,000 people had attended. “Without us, nothing makes sense in France,” Melenchon told his supporters. “We are not here to support a person, but a platform. This is a political demonstration, a citizen’s insurrection against the presidential monarchy.” Melenchon, who is supported by the Communist party, has so far struggled to make his campaign take off. Opinion polls suggest he has no chance of making it to the second round of France’s presidential ballot on May 7. Melenchon and his Socialist rival Benoit Hamon are running neckand-neck in opinion polls, but well behind far-right National Front candidate Marine Le Pen, independent centrist Emmanuel Macron and conservative hopeful François Fillon. Both Melenchon and Hamon have criticized Socialist President François Hollande’s austerity politics but have failed to join forces in the presidential race. The first round of the French presidential vote will be held on April 23, with the two top vote-getters there going into a presidential runoff ballot on May 7. AP
EU citizens in UK anxiously seek security before Brexit
L
ONDON—Sam Schwarzkopf, a German neuroscientist at University College London, was startled to receive a letter from the British government telling him that his application for permanent residence had been rejected and he should prepare to leave the UK. As a European Union citizen, he is legally entitled to live in Britain, and last year’s decision by UK voters to leave the 28-nation bloc hasn’t changed that. But he is one of hundreds of thousands of Europeans battling British bureaucracy to confirm their legal status—and sometimes discovering that the process only increases their uncertainty. Schwarzkopf, who has lived in the UK since 2009 and is married to a Briton, thought his application for a permanent resident card “would be a formality”. When he got the rejection saying he should prepare to leave, he was at first surprised, then angry.
“It’s outrageous that they use statements like that, especially at a time like this,” he said. Schwarzkopf was trying to obtain a small blue card emblazoned with the logo of Britain’s Home Office and the words “UK residence documentation”. Before last year’s EU membership referendum, most people didn’t even know the cards existed. Residents of EU nations can live and work across the bloc—no special visas or paperwork are needed for Europeans living in Britain. That will change once Britain leaves the EU, after a two-year divorce process due to begin by March 31. But no one is sure exactly how.
No details
BRITAIN says it will end free movement and impose controls on EU immigration, but has given no details. Officials in both the UK and the EU say the 3 million EU citizens living
in Britain—and the 1 million Britons who reside elsewhere in the bloc— should be allowed to stay. But there has not been a formal guarantee, or a decision on when the cutoff date for legal residence could be. That leaves Europeans in Britain anxious, and gives the previously obscure residence cards new value as proof of immigrants’ legal status. The number of residence cards issued by the British government shot up sevenfold between the final quarter of 2015 and the same period in 2016. There were 240,000 applications in all of 2016—a number that has overwhelmed the civil service, which is sitting on a backlog of 90,000 applications. Applicants have to fill out an 85page form and supply reams of supporting documents including pay slips, bank statements and proofs of address. Chris Jordan from Brighton in southern England weighed the
material submitted by his German wife: It came to 1 kilogram.
Simple mistakes
MORE than a quarter of applicants are rejected, sometimes because of simple mistakes in filling out the form. Schwarzkopf was turned down because he had sent a copy of his German passport rather than the original. Like him, other rejected applicants have been sent government letters telling them to prepare to leave the country they call home. Schwarzkopf said the “threatening” wording of the letters “is just really irresponsible”. Following complaints from Schwarzkopf and others, the Home Office says it has changed the wording of its refusal letters “to make clear that nobody who has the legal right to remain in the country has to leave the country”. It also says it has
simplified the application process. It says “there is no requirement to register for documentation certifying permanent residence” to confirm EU nationals’ status—but that hasn’t slowed the tide of applications.
Moved retrospectively
CRITICS accuse the British government of acting with insensitivity—or even hostility—to longtime residents. “The goalposts have been moved retrospectively,” Liberal Democrat politician Sarah Ludford said in the House of Lords earlier this month. “People are being asked to document every movement in their lives.” Some applicants have fallen foul of a requirement that people who are not employed or looking for work, such as students and full-time parents, must prove that that they had “comprehensive sickness insurance” while living in Britain. AP
www.businessmirror.com.ph
The World BusinessMirror
Monday, March 20, 2017
A9
Trump plans to build high wall at Mexican border
W
ASHINGTON—The Trump administration wants to build a 30-foothigh border wall that looks good from the north side and is difficult to climb or cut through, according to a pair of contract notices posted to a government web site further detailing President Donald J. Trump’s promise to build a “big, beautiful wall” at the Mexican border. The notices were made public late on Friday by Customs and Border Protection (CBP), the Homeland Security Department agency that will oversee the project and eventually patrol and maintain the wall. The proposals are due to the government by March 29. One of the CBP contract requests calls for a solid concrete wall, while the other asks for proposals for a see-through structure. Both require the wall to sunk at least 6 feet into the ground and include 25- and 50foot automated gates for pedestrians and vehicles. The proposed wall must also be built in a such a way that it would take at least an hour to cut through it with a “sledgehammer, car jack, pick axe, chisel,
battery-operated impact tools, battery-operated cutting tools, Oxy/acetylene torch or other similar handheld tools.” The government will award a contract based on 30-foot-wide sample walls that are to be built in San Diego. This is the latest step in the Trump administration plan to build a border wall. Last month CBP put out a call for “concept papers” to design and build prototypes by March 10. Trump has bragged in recent days that the wall is ahead of schedule, though it’s unclear from the latest contract notices if any firms have submitted wall proposals or if any such
In this January 25 file photo, a truck drives near the Mexico-US border fence, on the Mexican side, separating the towns of Anapra, Mexico and Sunland Park, New Mexico. White House budget documents show President Donald J. Trump wants billions of dollars to start building a wall at the Mexican border and fund efforts to find, jail and deport immigrants illegally in the country. AP
submissions have been rejected. The government has not said where the wall will be built, though the contract notices suggest some pieces of a new wall could replace existing fencing that stretches over about 700 miles of the roughly 2,000-mile border. The current fencing of mixed construction, including 15-foot steel posts set
inches apart that are designed to keep people from crossing and shorter posts that are intended to block cars. Border Patrol agents are constantly repairing holes in the structure. Trump has long promised that Mexico would pay for the wall, which he has said is necessary to stop the flow of immigrants
crossing the border illegally and drug smugglers. This week the president sent a budget proposal to Congress that included a $2.6-billion down payment for the wall. The total cost for the project is unclear, but the Government Accountability Office estimates it would cost about $6.5 million a mile for fence to
keep pedestrians from crossing the border and about $1.8 million a mile for a vehicle barrier. Cong ressiona l Republicans have said Trump’s wall would cost between $12 billion and $15 billion and Trump has suggested $12 billion. An internal report prepared for Homeland Security Secretary John Kelly estimated the cost of building a wall along the entire US-Mexico border at about $21 billion, according to a US government official who is involved in border issues. The official spoke on condition of anonymity because the report has not been made public. That report proposed an initial phase that would extend fences 26 miles and a second wave that would add 151 miles, plus 272 “replacement” miles where fences are already installed, according to the official. Those two phases would cost $5 billion. It is unclear how soon Congress might act on that request or how much money lawmakers will ultimately approve for the wall. Democrats and some Republicans have said a border-long wall is unnecessary. The Department of Homeland Security reported earlier this month that the number of border arrests dropped about 44 percent from January to February, the lowest monthly tallies since at the least the start of the 2012 budget year. AP
The World BusinessMirror
A10 Monday, March 20, 2017
German FM: Turkey ‘further away than ever’ from joining EU R
news@businessmirror.com.ph
Alleged torturer of migrants from Ghana jailed in Sicily
OME—A young man from Ghana has been jailed after migrants told authorities he tortured them while they were in Libya awaiting smugglers to send them by boat to Italy, the police said last Saturday. The police in Agrigento said several migrants identified the 20-yearold as the man who had raped several women and beat, burned or administered electric shocks to migrants who were kept in a “safe house” in Libya awaiting passage. A police statement said the man arrived on the Sicilian island of Lampedusa on March 5. Authorities said migrants recognized him as having committed torture and they had to intervene to stop several from trying to lynch him. T he a l leged tor t urer, who wasn’t identified in the statement, is being investigated for human trafficking, kidnapping, sexual violence and aiding and abetting clandestine immigration. Other migrants who have reached Italy after rescue at sea in recent years have given authorities similar accounts of being tortured while spending weeks or months in Libya waiting for passage after long land
journeys across Africa, where they are fleeing poverty, persecution or violent conflict. The police said the migrants said the Ghanaian man would torture them while they were speaking by phone to relatives as a way to extort more money from family members, who, alarmed by their screams, would send additional funds to ensure the migrants would soon leave Libya. The police statement quoted one migrant as saying that whenever he called home, the Ghanaian man would tie him up, make him lie down and beat the soles of his feet with a rubber tube, to the point he could barely walk. Another migrant said the alleged torturer attached electrodes to his tongue and set off an electric current. Others reported being burned by boiling water he poured on them. Palermo-based prosecutors issued an arrest warrant for the man on March 14. With much of Libya essentially lawless after the 2011 demise of longtime dictator Moammar Gadhafi, authorities in Italy have heavily relied on migrants’ accounts to learn about human traffickers and their helpers. AP
Congo disappearances raise alarm as political tensions grow
D
Kurdish women in traditional costumes living in Germany stand together on the square in front of the Old Opera in Frankfurt, Germany, on March 18. Thousands celebrate the Newroz spring festival and protest against Turkish President Erdogan. AP
B
ERLIN—Senior German officials cast doubt last Saturday on Turkey’s chances of joining the European Union, amid growing tensions with Ankara over human rights and Turkey’s claim that it’s being treated unfairly by countries in western Europe. In an interview published by Hamburg weekly Der Spiegel, Germany’s foreign minister suggested that for now the most that Turkey can hope for is to, one day, achieve a “privileged partnership” with the bloc. “Turkey is further away than ever before from EU membership,” Sigmar Gabriel was quoted as saying.
Gabriel said he was always skeptical of the idea of Turkish EU membership. He told Der Spiegel that upcoming negotiations about the EU’s future relationship with Britain might provide a blueprint for Turkey “in the long term”. Thomas Oppermann, the parliamentary caucus leader of Gabriel’s
Social Democrats, said Turkey’s chances of joining the EU would be “gone for good” if the country reintroduced the death penalty, as Erdogan has suggested. “[Erdogan’s] announcement makes clear that he isn’t interested in joining at all,” Oppermann said. “Erdogan is clearly on the wrong path and he’s harming Turkish interests.” Relations between Berlin and Ankara have soured recently over a German Parliament resolution labeling the 20th-century killing of Armenians as “genocide”, Turkey’s crackdown on the opposition and civil society following a failed coup last summer, and appearances in Germany by Turkish officials campaigning for constitutional change in an upcoming referendum. A German satirist’s poem poking fun at Turkish President Recep Tayyip Erdogan and the arrest of a German-Turkish journalist in Istan-
bul have further fanned tensions between the two countries. Erdogan’s call on Friday for Turks living in Europe to have at least five children, as a response to Europe’s “injustices”, has also angered German nationalists—who responded by renewing calls for an end to dual citizenship. Ankara, meanwhile, has accused Germany of allowing the banned Kurdistan Workers Party, or PKK, to hold rallies in Germany. Kurds make up a sizable number of the over 3 million people of Turkish origin in Germany. About 30,000 Kurds gathered in the central city of Frankfurt last Saturday to protest against the constitutional reforms sought by Erdogan, which would give the president greater power. Dozens of protesters unfurled banned flags of imprisoned PKK leader Abdullah Ocalan at the rally. AP
Candy, K-pop get doused amid China’s ire over Thaad
S
EOUL, South Korea—The oncecordial ties between South Korea and its biggest trading partner have soured due to the perception that China has targeted businesses, sports teams and culture to protest deployment of an advanced US antimissile system in South Korea. A South Korean candy maker, a chocolate factory, video games and a soccer team have suffered from actions many in South Korea view as retribution, and Chinese have vandalized some South Korean-run stores. Beijing is incensed over the Terminal High-Altitude Area Defense (Thaad) system. The US and South Korea say it’s needed as a defense against a belligerent North Korea, but China believes the system could be used against its own missiles as well. China denies any direct link between its ire over the US missile system and recent troubles for South Korean businesses. Some recent developments viewed as retaliation:
Bittersweet: Lotte’s lament
CHEWING-GUM maker and retail giant Lotte Group, South Korea’s No. 5
business group, took the brunt of the backlash after agreeing to let one of its golf courses in southeastern South Korea be a site for deploying Thaad. Lotte Duty Free said its shopping web sites were knocked offline for more than six hours a few days after the agreement was signed, in what it believes were cyberattacks by Chinese, based on an analysis of IP addresses. At least 55 of 99 Lotte Mart discount stores in China were shut in early March for a month each after surprise inspections found violations of fire safety standards. Five Lotte department stores and 13 smaller supermarkets remain open, the company said on Friday. A Hershey chocolate factory in Shanghai jointly operated with Lotte suspended production earlier this month for what Hershey said was maintenance for a routine inspection, but South Koreans linked it to the spat.
K-Pop, K-Drama
SINCE last year, some K-pop and Kdrama stars have cancelled visits to China due to visa delays. South Korean actor Ha Jung Woo could not get a visa needed for a movie
project with China called The Mask, starring Chinese star Zhang Ziyi, his agency confirmed on Wednesday. The representative for Ha, who was not authorized to talk about the matter and, thus, asked not to be identified, would not say if the project fell through because of the Thaad problem. Regional satellite broadcasters have reportedly been ordered to suspend broadcasts of South Korean television dramas. Online distributors such as Youku, a homegrown YouTube clone, have apparently also stopped buying broadcast rights to South Korean shows. On Youku, Guardian: The Lonely and Great God, a series featuring South Korean actor Gong Yoo, was no longer on the platform as of Friday. The fantasyromance drama, which aired its final episode in January, had been available on Youku, but reports emerged in February they were removed. Other shows haven’t made new episodes available, though past episodes can be seen. In January South Korean soprano Jo Sumi said her concert in China was canceled, possibly due to the diplomatic spat. “I had been preparing for [it] since
I got the invitation two years ago, but there was no word on why it was cancelled,” Jo, a Grammy Award-winning soprano, said on Twitter. “It’s very sad that conflicts between countries are getting in the way of culture and the arts.”
Football
CHINA and South Korea play each other in the central Chinese city of Changsha on March 23. China reportedly refused to let the team take a chartered flight. That could leave them at a disadvantage, and also limit the number of supporters they can bring. China trails in its group, and a loss to South Korea could anger local fans, adding to tensions.
Cosmetics
SOME South Koreans believe China’s recent rejection of some South Korean cosmetic products also was fallout from the Thaad issue. Beauty companies whose products are popular in China, like Amorepacific and LG, have downplayed suggestions that such actions were linked to politics, saying they have not noticed any meaningful decline in sales to Chinese. AP
AK AR, Senegal—Nearly a week after Congo’s government announced the kidnapping of two United Nations experts, along with their translator and drivers, no trace of them has been found. Their abduction in a region of the country where kidnappings are rare, and where the experts were investigating abuses by state and militia forces, has raised alarm as political tensions spread over an election crisis. Michael Sharp of the United States and Zaida Catalan of Sweden were abducted with three Congolese colleagues while traveling by motorcycle through Central Kasai province. It was not clear when exactly the kidnapping occurred. It is the first recorded abduction of international workers in the province, a region far from the usual turmoil in eastern Congo where multiple armed groups roam. A new report by the UN secretarygeneral has warned that violence and threats to civilians have spread to new parts of the vast country because of Congo’s prolonged political crisis. President Joseph Kabila’s mandate ended in December, but he has stayed on as presidential elections once set for last year have been delayed. A political agreement reached between the ruling party and opposition after weeks of deadly protests promises an election by the end of this year, and that Kabila will not run. But the new report by UN chief Antonio Guterres says the agreement is in peril as the sides engage in “brinksmanship”. Further delays in implementing the deal “will only serve to inflame tensions and fuel the violence that is now spreading across the country,” the report says. Parts of Congo have experienced insecurity for more than two decades since the end of the Rwandan genocide led to the presence of local and foreign armed militias, all vying for control of mineral-rich land. But the Central Kasai province, where the UN experts were abducted, represents the new expansion of tensions. Sharp and Catalan had been looking into recent large-scale violence and alleged human rights violations by the Congolese army and local militia groups. Hundreds of people have been killed in an upsurge of violence since July in the province, according to the UN Joint Human Rights Office. While the violence is linked to local power struggles, there are also clear ties to the national political
crisis, according to experts, who say Congo’s security forces have been known to back local leaders seen to be loyal to Kabila. Meanwhile militia groups support those who are believed to support the opposition. Just days after the UN expressed grave concern about reports of more than 100 people killed in Central Kasai region during clashes between soldiers and Kamwina Nsapu militia fighters, a video posted online appeared to show men in Congolese uniforms fatally shooting more than a dozen alleged militia members armed with little more than sticks. International governments and rights groups have called for investigations into the shootings, which followed months of alleged violence by the militia after its leader was killed in a police operation in August. Seven soldiers have been arrested in connection with the killings in the video, Congo’s armed forces auditor general, Maj. Gen. Joseph Ponde, said on Saturday. They are charged with various war crimes, including murder, mutilation and inhumane treatment, he said. Ponde also promised investigations into allegations of mass graves in the area. Also on Saturday, the UN mission in Congo reported renewed violence in the past week, with credible reports of a “high number of deaths” as Congolese security forces clashed with local Kamwina Nsapu militia members in the capital of Central Kasai province, Kananga. In a statement, the mission said it was concerned about the targeting of civilians, including women and children. The UN mission also said security forces had restricted its movement in the area in recent days. The UN Secretary-General’s Special Envoy for Congo, Maman Sambo Sidikou, called for an investigation by authorities into the violence. Though little is known yet about the kidnapping of the UN experts, one motive might be an effort to silence independent investigators, said Ida Sawyer, Central Africa director at Human Rights Watch. “We can’t rule out the possibility of involvement by the militia groups active in the area, and/or the Congolese army or government,” Sawyer said. She added: “The disappearance ...likely will have a dramatic deterrent effect on other independent investigators looking into violence in the region.” The spokesman for the UN mission in Congo, Charles Bambara, said the mission had intensified its searches for the missing experts and their colleagues. AP
AseanMonday BusinessMirror
news@businessmirror.com.ph
Regional security sought by Aussie, Indonesian execs in defense gab
J
AKARTA—Australian Minister for Defense Marise Payne met his Indonesian counterpart Ryamizard Ryacudu in Sydney on Friday for the annual Indonesia-Australia Defense Ministers meeting. Payne affirmed that Australia and Indonesia have enjoyed a longstanding and productive bilateral defense relationship that supports mutual interests in ensuring security and stability in the Indo-Pacific region, according to a statement of the Australian Department of Defense published on its web site last Saturday. The ministers discussed the regional security dynamics and the importance of the Asean security frameworks to build regional trust, transparency and cooperation. The ministers also reinforced their support for the recently signed Joint Declaration on Maritime Cooperation. Payne noted that Australia and Indonesia were cochairmen of the next cycle of the Asean Defense Ministers Meeting-Plus Experts Working Group on peacekeeping operations. “This represents a great opportunity to strengthen regional peacekeeping efforts and build upon the existing bilateral peacekeeping cooperation,” he said. During the bilateral meeting, the ministers discussed strengthening cooperation in the fields of defense, science and technology. “Cooperation in science and technology has great potential to build the depth and resilience of our bilateral relationship, and we agreed to greater cooperation and engagement,” Payne said. The Australian Department of Defense said it is looking forward to welcoming Indonesia’s Head of Defense Ministry Research and Development Agency Dr. Anne Kusmayati in Australia this year. Payne invited Ryacudu to Darwin to view the US Force Posture Initiatives. “The Force Posture Initiatives provide new opportunities for regional defense engagement, including with Indonesia, in order to build mutual trust and contribute to regional peace and security,” she added. PNA
Indonesia still seeks to make Bahasa Asean's lingua franca
S
ARABAYA, E. Java—Indonesian education and cultural attaches from the embassies of Manila, Kuala Lumpur, Singapore and Timor Leste are making steady efforts to establish Bahasa Indonesia as the lingua franca of the Asean. A workshop, titled “Development Strategy to Establish Bahasa Indonesia as Asean’s Lingua Franca”, was recently held at the Indonesian Embassy in Manila. On Friday Indonesian Ambassador to the Philippines Johny Lumintang informed Antara of the importance of consistent efforts and right strategies to establish Bahasa Indonesia as the bridge language for the Asean economic community. At the start of the workshop, materials from the Padjajaran University Fatimah Djajasudarma on the development of Bahasa Indonesia, both as a language and its related government policies, were distributed. At the workshop, Fahmy Lukman, the education and cultural attaché of the Indonesian embassy in Manila, highlighted the development of Bahasa Indonesia through the approach of language and art. PNA/Antara
Editor: Max V. de Leon • Monday, March 20, 2017 A11
Indonesia deports two French journalists from Papua province
J
AKARTA, Indonesia—Indonesia has deported two French journalists for committing visa violations while shooting a documentary film in Indonesia’s easternmost province of Papua.
Immigration Office Spokesman Agung Sampurno said on Sunday the journalists, Jean Frank Pierre and Basille Marie Longhamp, were sent home on Friday through Mozes Kilangin airport in Timika. The journalists carried out coverage from the air but had ordinary visas without necessary documents from related institutions, Sampurno said on Sunday. He quoted local im-
IN this August 26, 2009, file photo, elephant keepers assist Motola, a 48-year-old female elephant who lost part of her left front leg after stepping on a land mine 10 years ago, after attaching her with an artificial leg at the Elephant Hospital in Lampang province, northern Thailand. The Thai Civilian Deminer Association is helping government soldiers clear an area in Chong-prik temporary border pass, Buached district of the northeastern Surin province, for land mines. AP
Civilian group clears unexploded land mines to help Thais live normal lives
B
ANGKOK—A Thai civilian group said recently that they have found some 2,971 land mines in an area near Thai-Cambodia border since last September and was helping the military clear them all in several days. This area, marked Suspected Hazardous Area (SHA) 397-01-2AD and located in Chong-prik temporary border pass, Buached district of the northeastern Surin province, is just one small share of mine-contaminated lands along Thailand-Cambodia border. These mines dated back to the Cambodian civil war. Amornchai Sirisai, project manager of the Thai Civilian Deminer Association, who knew this part of history and these mines very well, said many forces had buried mines here. “The history and these war remnants just keep us in mind how terrible the war is and what the importance right now is to clear them all and return this contaminated area to local people,” Amornchai said. These contaminated areas, mostly forests, are traditionally “supermarkets” for local people, as they like to go inside to pick up mushrooms, vegetables, etc. Many of them had stepped on these mines leaving crippled and even losing their lives. “I am so happy that they came here to clear these mines,” said Teerapong Chandam, a 50-year-old local
resident who lost his leg 30 years ago when picking up mushrooms in the forest. From Monday to Saturday, some 12 members of the civilian group climbed a mount and went into SHA 397-01-2AD to detect the land. Once they find a mine, they will mark the place with a wooden stick and a small red board reading “Danger! Mines.” Officers of the third Humanitarian Mine Action Unit of the Thai army will then stand in to clear the mines. During five months, Amornchai’s team has found 2,971 land mines in the sultry tropical woody area, where, according to them, was a battlefield between various forces. Many red boards could be seen sometime dense in the field. According to Kan Rittiplang, field manager of the group, all these 2,971 land mines would be cleared soon and those which are dangerous to move will be destroyed at the site where they were buried. “I am not afraid, we are familiar with this job,” said Khamfai Yaowasri, a member of the civilian group. Khamfai, who was born in Sisaket province, a border province next to Surin, said he began to learn how to clear mines because one of his relatives died after stepping on a mine long ago. Many members of the civil group established in 2010 had experience of addressing of unexploded land
mines along the Thailand-Cambodia border for more than 10 years, as they worked with Thai military and Thailand Mine Action Center before. Local people, like Teerapong, also told officers about the location of these mines according to their knowledge. Amornchai’s team also mentioned their gratitude for China for the help in training them to deal with mines for three months in 2005 in a Thai sapper school and giving Thailand many related equipment. Amornchai said after these areas are cleared, local residents can go inside to collect forest products and the development of border trade will be promoted. The group has already finished a project from April 2014 to September 2015 in Surin province, removing some 2,729 land mines, and thus, clearing an area of 2,445,513 square meters, he told Xinhua. According to the Thailand Mine Action Center, an estimate until September 2016 showed there are still 304 SHAs in 13 provinces, covering an area of 421,403,072 square meters, 83.3 percent of which is in the seven provinces along the ThaiCambodia border. “After we finished the clearance here in Thailand, I think we will go to Laos, a country severely contaminated by unexploded cluster bombs,” Amornchai said. PNA/Xinhua
Asean not yet ready for a single currency
H
AVING one currency note to be use by members of the Asean is not yet feasible in this point in time. Foreign Affairs Assistant Secretary for Asean Affairs Maria Helen de la Vega said Asean was not yet ready to duplicate what the EU had done. “Most members of the Asean are still considered developing countries and [the] Philippines is one of them,” de la Vega told the Philippine News Agency at the sidelines of an Asean meeting at the Philippine International Convention Center in Manila. She said EU members have almost on equal level of gross national product and they were considered rich countries in that part of the world. However, de la Vega said on
Thursday, the EU still had not perfected the euro as common currency and there were some glitches needed to be address. She even cited London, which refused to use the euro as currency and continue to use the British pound as legal tender. “Take a look at London, they are the richest among EU members but refused to follow what they have agreed upon,” she said. “Now, London has decided to leave EU as membercountry.” De la Vega is not discounting the possibility of duplicating what EU had done in the future, but before the Asean will give weight on this, they want first to improve the status of being a developing country to developed country in the future.
That was why, she said, in Asean, they already removed tariff to all commodities to make it affordable to consumers and continue transfer of technology to help each other grow faster and compete globally. They also remove visas to all Asean-member who want to visit their country to boost tourism. She noted that the whole world is now watching Asean because they foresee the big and fast development of member-countries which had been very vocal on how they can share to boost the morale of every member. “We have a common goal to improve not only trade and commerce, but also enhance regional security, exchange of culture and many more.” PNA
migration chief Jesaya Samuel Enock as saying the journalists’ activities were appropriate, as they were sponsored by the national flag carrier Garuda Indonesia but lacked coordination with related institutions. Local media reported Pierre and Longhamp were taken into custody when they were about to take pictures of Cartenz areas using a helicopter. AP
Duterte seen to solidify Myanmar-PHL relations
N
AY PYI TAW—President Duterte's first official visit to Myanmar is expected to strengthen relations between the two countries, a senior Philippine official said. Duterte will meet with Myanmar President U Htin Kyaw to discuss the strengthening of bilateral relations between the Philippines and Myanmar. “Duterte’s visit to Myanmar is significant in many respects,” said Alex Chua, Philippine ambassador to the Republic of the Union of Myanmar, said. “In particular, the discussion will include talks on improving trade and investment relations.” The official visit, which will be on March 19 and 20, will coincide with the celebration of the 60th anniversary of the establishment of Philippines-Myanmar bilateral relations. “Commemorative activities have been held beginning last year and the President’s visit to Myanmar this year is the culmination of the celebration of this milestone in our friendly relations with Myanmar,” Chua said. According to the envoy, this year, the Philippine President’s visit to Myanmar, an Asean member-country, symbolizes the Philippines’s commitment to the shared aspiration and values of the Asean. This year the Philippines chairs the Asean, as the region celebrates the 50th anniversary of the establishment of the grouping. Chua said a memorandum of understanding on food security and agricultural cooperation will be signed between the two governments during Duterte’s visit. Duterte is also scheduled to meet with key political figures in Myanmar. “Duterte’s meeting with President U Htin Kyaw, Myanmar’s first civilian president in five decades, is a concrete manifestation of the Philippines’s continued support for countries in the region,” Chua said. The President will also meet with State Counselor Daw Aung San Suu Kyi to discuss regional cooperation and Commander in Chief Sr. Gen. Min Aung Hlaing to explore the deepening of the two countries’ bilateral defense cooperation. Since the establishment of their bilateral relations in 1956, the Philippines’s and Myanmar’s economic relations have grown, according to Chua. Based on the Philippine Statistics Authority’s trade statistics, the Philippines’s top exports to Myanmar are medicaments, while the country’s major imports from Myanmar are agricultural products. The embassy is hopeful that the recently concluded sister-city agreement between Quezon City and the Yangon region, the first twinning agreement between the two countries, and the memorandum of understanding between the Philip-
pine Franchise Association and the Myanmar Retailers Association will facilitate stronger business relations between the Philippines and Myanmar. The Filipinos in Myanmar are professionals, working as teachers, lawyers, engineers and humanitarian workers. There is also an increasing number of Myanmar nationals studying in the Philippines. “It is these exchanges between Filipinos and Myanmar nationals that strengthen our relations,” Chua said. The Philippine Embassy in Yangon have facilitated the conclusion of a visa-free agreement with Myanmar in 2013, which allows Filipinos to stay in Myanmar for up to 14 days without the need for a visa. This visa-free agreement is expected to lead to more people-topeople exchanges. The Filipino community is looking forward to welcoming President Duterte. “Masasabi kong lubos na nasasabik ang mga Pilipino na makita at makapiling ang ating mahal na Pangulo sa kanyang pagbisita sa Myanmar [I can say that the Filipinos here are very much excited to meet the President when he visits Myanmar] ” Chua said. Duterte garnered more than 56 percent of the votes cast in Myanmar. “Karamihan po sa ating mga kababayan ay naninirahan sa Yangon, na may limang oras ang layo sa Nay Pyi Taw, kung saan bibisita si Pangulo. Limang oras sa sasakyan patungong Nay Pyi Taw at limang oras muli pabalik ng Yangon [Most of our compatriots here live in Yangon, which is five hours away from Nay Pyi Taw, where the President will make his visit. Five hours going to Nay Pyi Taw and five hours going back to Yangon]” Chua said. He further noted that Filipinos are regarded well in Myanmar. “They contribute to the development of the economies of both the Philippines and Myanmar,” Chua said. “[The] majority of professionals [are] working as engineers, teachers, managers, lawyers and humanitarian workers.” The envoy said that, as teachers, Filipinos contribute to building Myanmar’s human resources, while they provide assistance in difficult front-line conditions as humanitarian workers. Last year, the Philippines ranked as Myanmar’s 16th biggest investor. Philippine companies that have carved their own niche in this country include United Pharma, Liwayway Corp., Asia Brewery, Splash Corp., Manila Water, ComWorks, and Universal Robina Corp. Just last year, Phinma Education, along with leading clothing brands Bench and Penshoppe, joined the list of growing Philippine companies in Myanmar. PNA
Green Monday BusinessMirror
A12 Monday, March 20, 2017
www.businessmirror.com.ph • Editor: Lyn Resurreccion
Large sections of Great Barrier Reef now dead
T
he Great Barrier Reef in Australia has long been one of the world’s most magnificent natural wonders, so enormous it can be seen from space, so beautiful it can move visitors to tears.
But the reef—and the profusion of sea creatures living near it—are in profound trouble. Huge sections of the Great Barrier Reef, stretching across hundreds of miles of its most pristine northern sector, were recently found to be dead, killed last year by overheated seawater. More southerly sections around the middle of the reef that barely escaped then are bleaching now, a potential precursor to another die-off that could rob some of the reef ’s most visited areas of color and life. “We didn’t expect to see this level of destruction to the Great Barrier Reef for another 30 years,” said Terry P. Hughes, director of a government-funded center for coral-reef studies at James Cook University in Australia and the lead author of a paper on the reef that published last Thursday as the cover article of the journal Nature. “In the north, I saw hundreds of reefs—literally two-thirds of the reefs were dying and are now dead.” The damage to the Great Barrier Reef, one of the world’s largest living organisms, is part of a global calamity that has been unfolding intermittently for nearly two decades and seems to be intensifying. In the paper, dozens of scient ists desc r ibed t he recent disaster as the third worldwide mass bleaching of coral reefs since 1998, but by far the most widespread and damaging. The state of coral reefs is a telling sign of the health of the seas. Their distress and death are yet another marker of the ravages of global climate change. If most of the world’s coral reefs die, as scientists fear is increasingly likely, some of the richest and most colorful life in the ocean could be lost, along with huge sums from reef tourism. In poorer countries, lives are at stake: Hundreds of millions of people get their protein primarily from reef fish, and the loss of that food supply could become a humanitarian crisis. With this latest global bleaching in its third year, reef scientists say they have no doubt as to the responsible party. They warned decades ago that the coral reefs would be at risk if human societ y kept bur ning fossil fuels at a runaway pace,
67%
The percentage of corals that had died in the stretch north of Port Douglas of the reef
releasing g reenhouse gases that warm the ocean. Emissions continued to rise, and now the background ocean temperature is high enough that any temporary spike poses a critical risk to reefs. “Climate change is not a future threat,” Hughes said. “On the Great Barrier Reef, it’s been happening for 18 years.” Corals require warm water to thrive, but they are exquisitely sensitive to extra heat. Just 2˚ Fahrenheit or 3˚F of excess warming can sometimes kill the tiny creatures. G l o b a l l y, t h e o c e a n h a s warmed by about 1.5˚F since the late 19th century, by a conservative calculation, and a bit more in the tropics, home to many reefs. An additional kick was supplied by an El Niño weather pattern that peaked in 2016 and temporarily warmed much of the surface of the planet, causing the hottest year in a historical record dating to 1880. It was obvious last year that the corals on many reefs were likely to die, but now formal scientific assessments are coming in. The paper in Nature documents vast coral bleaching in 2016 along a 500-mile section of the reef north of Cairns, a city on Australia’s eastern coast. Bleaching indicates that corals are under heat stress, but they do not always die and cooler water can help them recover. Subsequent surveys of the Great Barrier Reef, conducted late last year after the deadline for inclusion in the Nature paper, documented that extensive patches of reef had, in fact, died and would not be likely to recover soon, if at all. Hughes led those surveys. He said he and his students cried when he showed them maps of the dam-
In this May 2016 photo released by The Ocean Agency/XL Catlin Seaview Survey, an underwater photographer documents an expanse of dead coral at Lizard Island on Australia’s Great Barrier Reef. Coral reefs, unique underwater ecosystems that sustain a quarter of the world’s marine species and half-a-billion people, are dying on an unprecedented scale. Scientists are racing to prevent a complete wipeout within decades. The Ocean Agency/XL Catlin Seaview Survey via AP
age, which he had calculated in part by flying low in small planes and helicopters. His aerial surveys, combined with underwater measurements, found that 67 percent of the corals had died in a long stretch north of Port Douglas, and in patches, the mortality reached 83 percent. By luck, a storm stirred the waters in the central and southern parts of the reef at a critical moment, cooling them, and mortality there was much lower—about 6 percent in a stretch off Townsville, and even lower in the southernmost part of the reef. But an Australian government study released last week found that overall, last year brought “the highest sea surface temperatures across the Great Barrier Reef on record”. Only 9 percent of the reef has avoided bleaching since 1998, Hughes said, and now, the less remote, more heavily visited stretch from Cairns south is in trouble again. Water temperatures there remain so high that another round of mass bleaching is under way, the Great Barrier Reef Marine Park Authority confirmed last week. Hughes said he hoped the dieoff this time would not be as serious as last year’s, but “ backto-back bleaching is unheard of in Australia.” The central and southern part of the reef had already been badly damaged by human activities, like dredging and pollution. The Australian government has tried to combat these local threats with its Reef 2050 plan, restricting port development, dredging and agricultural runoff, among other
risks. But Hughes’s research found that, given the high temperatures, these national efforts to improve water quality were not enough. “The reefs in muddy water were just as fried as those in pristine water,” Hughes said. “That’s not good news in terms of what you can do locally to prevent bleaching—the answer to that is not very much at all. You have to address climate change directly.” With the election of Donald J. Trump as the American president, a recent global deal to tackle the problem, known as the Paris Agreement, seems to be in peril. Australia’s conservative government also continues to support fossil fuel development, including what many scientists and conservationists see as the reef’s most immediate threat—a proposed coal mine, expected to be among the world’s largest, to be built inland from the reef by the Adani Group, a conglomerate based in India. “The fact is, Australia is the largest coal exporter in the world, and the last thing we should be doing to our greatest national asset is making the situation worse,” said Imogen Zethoven, campaign director for the Australian Marine Conservation Society. Australia relies on the Great Barrier Reef for about 70,000 jobs and billions of dollars annually in tourism revenue, and it is not yet clear how that economy will be affected by the reef ’s deterioration. Even in hard-hit areas, large patches of the Great Barrier Reef survived, and guides will most likely take tourists there, avoiding the dead zones.
The global reef crisis does not necessarily mean extinction for coral species. The corals may save themselves, as many other creatures are attempting to do, by moving toward the poles as the Earth warms, establishing new reefs in cooler water. But the changes humans are causing are so rapid, by geological standards, that it is not entirely clear that coral species will be able to keep up. And even if the corals do survive, that does not mean individual reefs will continue to thrive where they do now. Coral reefs are sensitive systems, built by unusual animals. The corals themselves are tiny polyps that act like farmers, capturing colorful single-celled plants called algae that convert sunlight into food. The coral polyps form colonies and build a limestone scaffolding on which to live—a reef. But when the water near a reef gets too hot, the algae begin producing toxins, and the corals expel them in self-defense, turning ghostly white. If water temperatures drop soon enough, the corals can grow new algae and survive, but if not, they may succumb to starvation or disease. Even when the corals die, some reefs eventually recover. If water temperatures stay moderate, the damaged sections of the Great Barrier Reef may be covered with corals again in as few as 10 or 15 years. But t he temperat u re of t he ocea n is now h igh enough t hat globa l mass bleac h ing events seem to be g row ing more f re quent. If t hey become rout ine, ma ny of t he world ’s ha rd-h it
cora l reefs may never be able to reestablish themselves. Within a decade, cer tain k inds of bra nc h ing a nd pl ate cora l cou ld be e x t inct, reef sc ient ists say, a long w it h a va r iet y of sma l l f ish t hat rely on t hem for protection f rom pred ators. “I don’t think the Great Barrier Reef will ever again be as great as it used to be—at least not in our lifetimes,” said C. Mark Eakin, a reef expert with the National Oceanic and Atmospheric Administration, in Silver Spring, Maryland. Eakin was an author of the new paper and heads a program called Coral Reef Watch, producing predictive maps to warn when coral bleaching is imminent. Even though last year’s El Niño has ended, water temperatures are high enough that his maps are showing continued hot water across millions of square miles of the ocean. Kim M. Cobb, a reef scientist at the Georgia Institute of Technology who was not involved in the writing of the new paper, described it and the more recent findings as accurate, and depressing. She said she saw extensive coral devastation last year off Christmas Island, an Australian territory nearly a thousand miles from the mainland and a place she visits regularly in her research. With the international effort to fight climate change at risk of losing momentum, “ocean temperatures continue to march upward,” Cobb said. “The idea that we’re going to have 20 or 30 years before we reach the next bleaching and mortality event for the corals is basically a fantasy.” New York Times News Service
Seal whiskerers: Navy looks to sea life for ships
N
EWPORT, Rhode Island— The US Navy is enlisting the help of seals—but not the kind of highly trained special operatives with whom it usually associates. Real seals, specifically their whiskers, may be the key to a new way for ships and underwater vehicles to sense their environment, scientists think. When a fish swims by, a hungry seal senses the wake with its whiskers. It can tell characteristics of the fish, such as shape and size, and track the location even when it’s murky or dark. Despite the adorable possibilities, scientists aren’t looking to outfit ships and vehicles with whiskers. They’re studying how the whiskers function to learn how to reverse-engineer the system. The science could be applied to the development of a sensor. “If we want to design the best systems, it makes sense to take
advantage of millions of years of work that nature has done for us,” said Christin Murphy, a marine mammal biologist. The research is taking place at the Newport division of the Naval Undersea Warfare Center. Mur phy and col leag ue Joy Lapseritis looked to seal whiskers because they’re a highly sensitive system of underwater touch that employ bumps to reduce their own self-induced vibrations, something that may help increase their sensitivity to water disturbances. That, Lapseritis said, could lead to a novel, passive sensor. “You don’t need to put sound into the water, like sonar,” she said. “This is literally feeling the landscape.” Murphy discussed their work with Ash Carter, then-secretary of defense, when he visited Newport last May. The warfare center receives funding from the Office
of Naval Research for in-house laboratory independent research, including the whisker project. The budget is about $2.4 million annually, with each project typically receiving $100,000 to $150,000 a year, according to the center. The Navy, which is also funding bio-inspired work at universities, has taken a greater interest in the field in the past decade. Animals do things well that the Navy wants its underwater vehicles to do well, like the way they propel themselves through water and can stay put in the face of currents. Scientists and engineers at the warfare center are studying a variety of creatures to borrow their best features for potential military applications, from the maneuverability of a bat in flight to cicadas’ ability to transmit sound. One researcher is even trying to figure out how a sensor could float like a jellyfish.
T he sea l wh i skers projec t shows “remarkable promise” for the Navy because a seal’s sensory capabilities are so specific and sensitive, said Woods Hole Oceanographic Institution researcher Andrea Bogomolni, who leads the Northwest Atlantic Seal Research Consortium. This month in the lab in Newport, Lapseritis and Murphy measured the motion of a harbor seal whisker in a tunnel of water as the speed of the flow changed. A cylinder in the tunnel disturbed the water flow like a swimming fish would. They work with groups that respond to reports of distressed or deceased seals to collect whiskers from seals that die. They have run hundreds of trials with different whiskers and species, and have created a whisker with a 3-D printer. They haven’t set a timeline for finishing the project. AP
Engineer David Wade and marine mammal biologist Christin Murphy position a seal whisker inside a water tunnel in a laboratory at the Naval Undersea Warfare Center in Newport, Rhode Island. Scientists think real seals, specifically their whiskers, may be the key to a new way for ships and underwater vehicles to sense their environment. AP/Steven Senne
Biodiversity Monday BusinessMirror
Asean Champions of Biodiversity Media Category 2014
Monday, March 20, 2017 A13
Editor: Lyn Resurreccion • www.businessmirror.com.ph
Gigantes Islands
Unique islands, unique biodiversity Story & photos by Jonathan L. Mayuga
A
@jonlmayuga
group of islands—Gigantes Islands, or Islas de Gigantes in the municipality of Carles in Iloilo province—is known for its rich fishing ground.
Lately, hordes of tourists in Carles visit Gigantes, which beauty was discovered by local and foreign tourists through word of mouth in the course of relief operations in the aftermath of Supertyphoon Yolanda (international code name Haiyan) in November 2013. A second-class municipality with one of the highest poverty incidence in the Visayas, Carles, 18 kilometers from Panay Island in the Visayan Sea, is developing a plan to promote sustainable tourism on Gigantes, which has 10 islands and islets. Around 13,000 people live in four barangays on its two major islands—Asluman and Granada on Gigante Norte, and Lantangan and Gabi on Gigante Sur. Legend has it that the islands were once inhabited by giants, thus, the name Islas de Gigantes. Before that, Gigantes were used to be called Sabuluag, or Salauag, the name of endemic tree species abundantly found on the islands.
Biologically diverse
The Philippines being part of the Coral Triangle (referring to a roughly triangular area of the tropical marine waters, including that of Indonesia, Malaysia, Papua New Guinea, Solomon Islands and Timor-Leste), Gigantes is home to some of the most biologically diverse and richest coastal and marine resources, according to the Foundation for the Philippine Environment (FPE). Besides the endemic species of frogs and geckos, which make Gigantes unique, several endemic bird species have been recorded on some of the islands. T hese i nc lude t he Ph i l ip pine couca l, Philippine hawk owl, Philippine nightjar, Pygmy swiftlet, Philippine pygmy woodpecker, Philippine bulbul and the pygmy f lowerpecker. FPE is working with Gigantes Islands communities, in partnership with the University of the Philippines Visayas Foundation Inc. (UPVFI), for the P2million project titled “Building Resilient and Sustainable Small Island Communities”. Gigantes is marred with political, economic and cultural issues, which result in resource degradation, insecurity and vulnerability of the island and its communities, FPE said.
Limestone karst forest, caves
Some of the islands in Gigantes are unique. Forests grow over basically limestone karsts with a number of karst caves. Some say there are 50 caves on Gigantes, but less than half have been identified and explored. Scientists and ex perts say limestone karst and limestone caves are the most specialized habitats in the Philippines because they often harbor unique species of flora and fauna that are highly restricted in distribution. According to “Status Assessment of the Population and Habitat of Threatened Endemic Limestone Karst Frogs and Lizards of Gigantes Islands [An Initial Report]”, a total of nine karstobligate species of amphibians and reptiles are currently known
50
The estimated number of limestone caves on the Gigantes Islands
in the Philippines, comprising of five species of frogs and four species of lizards. Many of the species are seriously threatened with extinction owing to high levels of disturbance of limestone karsts and caves caused by mining for cement, quarrying and collection of guano; and other human activities, such as treasure-hunting, conversion into agricultural land, urban development, slash-and-burn farming and unregulated ecotourism.
Majestic limestone karst
Frogs, geckos
The most threatened of the herpetofaulnal species in the Philippines that are endemic to karst are the Gigantes limestone frog, which belonged to the Platymantis insulatu, a species of frog in the Ceratobatrachidae family, and the Gigante limestone gecko. The Gigantes limestone frog is listed as critical, while the Gigantes limestone gecko is endangered under the Red List of Threatened Species of the International Union for the Conservation of Nature. Both species are known from the islands of North Gigantes, South Gigantes, Bulubadiang and Cabugao Dako. Director Theresa Mundita S. Lim of the Biodiversity Management Bureau of the Department of Environment and Natural Resources, said Gigantes frogs and geckos make the islands unique, thus, the clamor for its protection and conservation. “The Gigantes frogs and geckos perform important ecological functions. Their existence is important on the islands because they are control agents that can prevent population growth of potentia l ly har mful insects,” Lim said. On the other hand, she said, the extinction of any species would cause ecological imbalance, especially if it is the only one that performs particular ecological function. “That is why we really need to study these frogs and geckos. Know more about their diet,” she said.
Scallops capital
Being rich in marine and coastal resources, Gigantes is known for shellfish, including the tasty scallops that abound in the deep waters around the islands. Scallops are not easy to collect, being found only in areas at least 15 feet below sea level. Tourists consider scallops a rare treat, but not on Gigantes. Scallops on the islands are harvested daily with some fishermen, even offering tourists to harvest scallops for only P100 to
Fish and scallops at the Bangkal Fish Port in Carles, Iloilo.
P180 a kilo, already without the shell. Crabs are, likewise, popular among tourists on the islands. At P200 a kilo, cooked crabs are packed for homebound tourists.
Capacity building
FPE’s project in Gigantes called Building Resilient and Sustainable Small Island Communities, focuses on providing expertise to residents in its four islandbarangays, particularly in environmental protection and conser vation, tourism promotion and disaster-risk reduction, said UP Visayas’s Jorge Ebay, who represents UPVFI, FPE’s partner on Gigantes. Governance systems, according to Ebay, need focus to ensure sustainable tourism, in partnership with the local government unit (LGU) of Carles. With an 80-percent poverty rate, in terms of income and food threshold, some of the province’s poorest are on Gigantes. “This means the capacity to buy food is a common problem. This means most people do not have the means to buy basic goods, [such as] rice, coffee, sugar,” Ebay said.
Isda Inc.
Islands Sustainable Development Alliance Inc. (Isda), an umbrella organization of 12 community-based groups on Gigantes, was organized two years ago. Barangay Lantangan Kagawad Samuel Suguano Sr., the concurrent president of Isda, aims to work to ensure the inclusive growth and development of Gigantes. Aileen Ramirez, the alliance’s
secretary-general, said Gigantes residents have learned to appreciate having a strong voice in demanding for what are due them from local government officials. “We ask for their promise during the elections,” she said in Filipino. The four barangays in Gigantes now allocate part of their internalrevenue allotment for Isda to fund the group’s operations with the initial amount of P25,000 each. Isda is asking for its share from the environmental fees collected by Carles. The alliance intends to use it to boost the livelihood opportunities of their members.
Priority site
“Gigantes Islands is one of the six priority sites of FPE because of its unique ecosystem and diverse flora and fauna,” said Executive Director Oliver O. Agoncillo during a meeting with local officials of Carles. The meeting was part of the media exposure trip on Gigantes held from March 2 to 4 for the winners of the Sarihay Media Awards last year. Being a priority site means FPE’s long-term, proactive engagement on Gigantes, said Ramunda Debuayan, regional unit manager of FPE Visayas. FPE has been working with the communities on Gigantes since 2009. “R ight now we are putting in place a conser vation management plan. We are introducing to the popu lation the hea lth a nd env i ronment approac h,” Debuayan said. T he for mation of Isda is eyed as the sustaini ng mec h a n i sm i n Giga ntes, she said.
Fishermen unload newly harvested scallops at the fish port in Barangay Bangkal, Carles, Iloilo.
Booming tourism
Ecotourism in Gigantes is booming, said Ma. Pofe B. Esmil la, muncipa l administrator of Carles. “ We were over ta ken by the inf lu x of tour ist ar r iva ls after Yolanda [in 2013],” she said. The challenge, she said, was to finalize a sustainable tourism plan not only for Gigantes but for the entire municipality. “Tourism in Carles is still in its infancy,” which started only after the onslaught of Yolanda, Esmilla said.
Thanks to Yolanda
“With help coming Gigantes Islands’s way [to help those affected by Yolanda], by word of mouth, the beauty of the islands became known,” Julieto A. Manggasang, municipal disaster risk reduction management officer of Carles, told the BusinessMirror. “Before [the supert y phoon occurred], the communities on Gigantes Islands were the last to receive relief goods. But when Yolanda struck, it became a priority. As people come in to help, they’ve discovered Gigantes and soon after, tourists started to arrive,” Manggasang said partly in Filipino. Carles Tourism Officer SoSan B. Marcelo said the sustainable tourism plan would consider formulating a guideline for the
industry. It will include regulatory policies in the establishment of resorts, hotels and home stays, tour transportation, rate for island hopping and island tour and entrance fees—a tourism package that would ensure env i ron ment protec t ion a nd natural resources conservation.
Serious threat
Tourism in Gigantes is seen as an opportunity, as well as a threat to the islands’ ecosystems. The unregulated or unchecked ecotourism, Debuayan said, is the most serious threat to the limestone karst forest and karst cave-dwelling geckos and frogs. Citing the popularity of scallops, she said the increasing number of tourists resulted in the increased demand for scallops, making the harvest of the clam unsustainable. “We are eyeing to commission a study to look into the biology of the scallops, to know whether current practices of harvesting is sustainable,” Debuayan said. FPE, in partnership with communities, hope to change that by ensuring that people appreciate Gigantes Islands more by formulating a sustainable ecotourism plan and governance system that puts profit or money behind the islands’ unique ecosystems—their natural wealth and rich biodiversity.
A14 Monday, March 20, 2017 • Editor: Angel R. Calso
Opinion BusinessMirror
editorial
International eyes
T
here was a time when individuals and nations were expected to act in a civilized manner while still maintaining their own “sovereignty”. It was when people and states attempted to force their ideas on others and take action to impose their beliefs that steps were taken against them.
Nazi Germany is an example. Adolf Hitler became Chancellor of Germany in 1933. Brutal suppression of political opposition continued unabated and was of little European or global concern until the annexation of Czechoslovakia’s Sudetenland in 1938. Even then, it took an armed invasion of Poland to bring the Europeans to declare war. The question then was, at what point should the world have intervened to stop Hitler’s Germany? Maybe the bigger question is, at what point did the world have the right and justification to intervene? Between 1975 and 1979, an estimated 25 percent of the population (around 2 million) of Cambodia was killed under the genocidal regime of Pol Pot. Documents reveal that the US government—and by extension Europe and the United Nations—had detailed knowledge about the carnage. However, the US and the UN took no steps to end the crimes that were still under way. Under the UN banner, military “peacekeeping” missions have been conducted on nearly 100 occasions since then. Many, if not most, were made under the support of a UN resolution, not at the request of the nations involved. During the Rwandan Civil War in 1990, the UN sent a military force of about 3,000 under several UN resolutions. An argument can be made about international intervention in a nation’s internal affairs because of “alarm at reports of systematic, widespread and flagrant violations of international humanitarian law” that “constitutes a crime punishable under international law”. Yet, this all goes directly against the UN’s own reasons for existing. The UN Charter sets out the following purposes: maintaining worldwide peace and security; developing relations among nations in order to solve economic, social, cultural, or humanitarian international problems; and providing a forum for bringing countries together to meet the UN’s goals. There is no permanent legal basis for an intervention by an international force in a nation’s domestic affairs, whether the US-led UN action in Korea in the 1950s or the US-led Southeast Asia Treaty Organization intervention in Vietnam. It is all “made up as we go along”. To this list we can include the 2003 US invasion of Iraq (not the response to the Iraqi invasion of Kuwait), helping the opposition overthrow Libya’s Muammar Qaddafi, and the current involvement in Syria. The Vice President recently commented on the government’s drug-enforcement policies and implementation to the UN Commission on Narcotic Drugs saying: “To know that the international community’s eyes are on us...gives us comfort, courage and hope.” Where were the “international community’s eyes” when China invaded and occupied Panatag Shoal? That is what the United Nations was created to do. Where is the UN statement on the latest developments? The internal political situation in South Africa is in chaos with opposition calls for the removal of President Jacob Zuma for corruption, abuse of office and human-rights abuses. Yet, the opposition parties know they are not in a position to take power democratically, so the only choice they have is to destabilize the situation in the country through widespread and increasingly violent protests. Recent history has given us many examples of “international eyes” on a nation’s domestic issues turning into “boots on the ground”. The days of “mind your own business” may be gone. The line between national sovereignty and international interference is becoming increasingly blurred.
Practical tips for people in between jobs Atty. Jose Ferdinand M. Rojas II
RISING SUN
W
hen one is in between jobs and facing certain financial limitations, options could become limited. Someone recently asked me this question: “What can I do to improve my financial status, when I am in between jobs and there aren’t so many options on the horizon?” I realized there may be more people like her who are facing financial uncertainties at this time. I dedicate this column to these individuals, as I try to offer practical tips on how one can keep on growing even when one is unemployed.
First thing you need to do is to sit down and reflect on why you are in this situation, and to decide on your next move. Think about what you want out of your career and personal life, set some goals, and see how you can get there. Focus on your interests, your skills and the things that make you happy.
You can also use this lull to rest, take a mini vacation, practice a hobby, or go on a job search. Make sure that you spend each day doing something you love, so you don’t feel bad about your current situation. It is very important to stay positive and grateful, no matter what happens. You can focus on expanding your
BusinessMirror A broader look at today’s business
Ricardo Saludo
DIPLOMASIA
✝ Ambassador Antonio L. Cabangon Chua Publisher Editor in Chief
Managing Editor Associate Editor News Editor City & Assignments Editor Senior Editors
T. Anthony C. Cabangon Jun B. Vallecera Max V. de Leon Jennifer A. Ng Dionisio L. Pelayo Vittorio V. Vitug Lorenzo M. Lomibao Jr., Gerard S. Ramos Lyn B. Resurreccion, Efleda P. Campos
Online Editor Social Media Editor
Ruben M. Cruz Jr. Angel R. Calso
Creative Director Chief Photographer
Eduardo A. Davad Nonilon G. Reyes
Chairman of the Board & Ombudsman President VP-Finance VP Advertising Sales Advertising Sales Manager Group Circulation Manager
Judge Pedro T. Santiago (Ret.) Benjamin V. Ramos Adebelo D. Gasmin Marvin Nisperos Estigoy Aldwin Maralit Tolosa Dante S. Castro
BusinessMirror is published daily by the Philippine Business Daily Mirror
HOM
Publishing, Inc., with offices on the 3rd floor of Dominga Building III 2113 Chino Roces Avenue corner De La Rosa Street, Makati City, Philippines. Tel. Nos. (Editorial) 817-9467; 813-0725. Fax line: 813-7025. (Advertising Sales) 893-2019; 817-1351, 817-2807. (Circulation) 893-1662; 814-0134 to 36. E-mail: news@businessmirror.com.ph.
www.businessmirror.com.ph
Printed by brown madonna Press, Inc.–San Valley Drive KM-15, South Superhighway, Parañaque, Metro Manila MEMBER OF
Another idea is to use the time to set yourself up for serious job applications. Research online to see how you can improve your CV. Hone your speaking skills to prepare for job interviews. Visit job sites online and set up your accounts. Check your wardrobe for the appropriateness of the pieces you currently have. You can also consider setting up your own business. If you have access to enough capital, there are plenty of investment opportunities these days. Work with what interests you: coffee, books, cooking, flowers, art, photography, etc. Let your passions point you toward the right direction. Be open to new avenues and try things you haven’t tried before. It may be a different field, or a different work setup (freelancing, consulting, part-time or casual employment, contractual agreements, etc.). You can take these in-between-jobs job to tide you over until you get a permanent job that you like. This way, you will have continuous flow of income for your bills and necessities.
North Korea: No war for now, but get ready
Since 2005
Founder
skills set. Look online for courses (online and offline), workshops, classes and lectures that you can attend. The Technical Education and Skills Development Authority offers these, as well as other local and international web sites. Examples are massage therapy, jewelry making, sewing, graphic design, candle making and many more. Enroll in courses that really interest you so you will be inspired to continue and turn them into money-making opportunities. You may also want to consider further education: a second degree, postgraduate course, or distance learning. The latter is being offered by the University of the Philippines Open University, as well as other institutions based abroad. Check online for possible options. It would also be wise to visit career expos and job fairs. Look around, drop your CV with companies you want to work for, and meet potential employers. You can check online for upcoming schedules for these career events.
“North Korea is behaving very badly. They have been “playing” the United States for years. China has done little to help!” —US President Donald J. Trump, via Twitter, March 17 “Let me be very clear — the policy of strategic patience has ended. We are exploring a new range of security and diplomatic measures. All options are on the table.... If they elevate the threat of their weapons program to a level that we believe requires action, then that [military] option is on the table”. —US Secretary of State Rex Tillerson in Seoul, March 17
W
ith war very clearly on the table of possible responses to North Korea’s continued development of nuclear arms, including intercontinental ballistic missiles (ICBM) able to hit the United States, will blood flow in the peninsula?
The military option has loomed larger since US Secretary of State Rex Tillerson declared in Seoul last Friday that Washington would not negotiate with Pyongyang. The former Exxon Mobil CEO was on his first Asian visit, assuring Tokyo and Seoul of American defense commitments, and asking Beijing’s cooperation in restraining North Korea after its leader, Kim Jong Un, declared in January that it was on the “final stage” of launching an ICBM capable of reaching America. Tillerson’s statement that decades of negotiating to stop the North Korean nukes program are a failed strategy, reflected President Donald J. Trump’s tweeted view that “they have been ‘playing’ the United States for years.”
If Pyongyang wanted negotiations, Tillerson declared, that can only happen “by denuclearizing, giving up weapons of mass destruction [WMDs]”, as it had pledged in agreements since 1992, but never did, because those WMDs were its main leverage to get Washington, Seoul and Tokyo talking and giving aid, in the first place.
China wants to keep talking
Whether the tougher TrumpTillerson tack would work depends a lot on China, North Korea’s indispensable backer, which has sustained it through crushing UN sanctions. While long unhappy with Pyongyang’s aggressive, destabilizing actions, Beijing has kept supporting
it to avoid its collapse, and the rise of a unified Korea hosting American forces right at the Chinese border. After meeting two hours with Tillerson, Foreign Minister Wang Yi said the US should return to negotiations: “No matter what happens, we have to stay committed to diplomatic means as a way to seek a peaceful settlement.” Wang also rebutted Trump’s tweet, maintaining that China has “devoted much energy and effort over the years” to addressing the North Korean issue. Tillerson seemed to soften his tough line: “We share a common view...that things have reached a dangerous level, and we’ve committed ourselves to doing everything we can to prevent any type of conflict from breaking out.” So, it seems there’s no American military action, for now. The next China-US discussion on North Korea may transpire if and when President Xi Jinping visits Trump on a date still being finalized.
Preparing for war
Now, one may think everyone now takes it easy till Xi meets the Donald, but not generals and admirals in Beijing, Moscow, Pyongyang, Seoul, Tokyo or Washington. After Tillerson put guns on the table of options in Korea, defense chiefs and top brass worldwide will think through what might happen and what they need to do in case the shooting actually starts. We’ll do a broad review of Korea scenarios in a future column. For now, check out a January study by Stratfor. The think tank’s five-part report analyzed the nuclear threat
from North Korea, how to derail it by force, what air assets the US may use, how Pyongyang may retaliate and the cost of American action. Part 3 on possible US military action (https://www.stratfor.com/ analysis/what-us-would-use-strikenorth-korea) cites stealth aircraft and cruise missiles striking North Korean nuclear facilities and weaponry, based on military intelligence and satellite surveillance. Able to evade North Korean air defense, 10 B-2s alone, with a total of 13,600-kg GBU-57 deep-penetration warheads and eight 900-kilogram GBU-31 satellite-guided bombs, can destroy or severely damage known nuclear weapons infrastructure in North Korea. The US may also deploy 24 F-22 from bases in Japan and South Korea, plus 600 cruise missiles of the Seventh Fleet on ships and submarines deployed nearby. But Stratfor warns that not all nuclear weapons and facilities are known, so some or many may survive and strike back. Whether Trump would wait depends in part on what his Pyongyang counterpart Kim Jong Un does. If the latter fires another missile or detonates a nuke, there would be intense pressure on the former to take action. And what are the chances of another rocket or bomb going off up north? On March 9 Washington’s Center for Strategic and International Studies calculated a 43-percent chance of such a WMD event before the end of this week, and a 62-percent chance by April 8.
Opinion BusinessMirror
opinion@businessmirror.com.ph
Traveling 40,000 kilometers
PPProlific Manila By Alberto Agra
PPP Lead
Joel L. Tan-Torres
DEBIT CREDIT Part One
M
y recent travel to a number of global accountancy events took me to five countries for a distance of about 26,990 miles, or 43,400 kilometers, in a span of 13 days. I just realized when I returned to the Philippines that flying around the world will take less distance of 24,901 miles, or 40,000 kilometers, than what I traveled. These are amazing statistics, including that I went to countries (namely, the United States of America, Russia, Austria, Romania and the United Arab Emirates) that most of which a typical Filipino will not be visiting and flying on airlines (such as Aerofloat and Air Serbia) that I never imagined I would take in my foreign trips. This backbreaking itinerary also included my meetings with eight accountancy-related organizations in New York and Vienna in a span of nine working days (and a below freezing day before the big snow storm in New York). But all the effort and body aches were all worth it. I was able to get updates on the latest developments in a number of major accounting and audit issues. I also networked with several accountancy luminaries and personalities. In all the meetings, I was able to share with my counterparts the many exciting things happening in the Philippine accountancy scene. The first leg of my trip was in New York. On March 6 I observed the International Ethics Standards Board for Accountants (IESBA) Consultative Advisory Group (CAG) meeting held at the International Federation of Accountants (IFAC) office on 5th Avenue. Discussed during the meeting were issues on professional skepticism and the exercise of professional judgment by accountants. There were also discussions on the transformative effect of trends and developments in (a) technology and innovation on the accounting and finance function and the (b) changes in business models and their ethical implications for the global accountancy profession. Two exposure drafts for comments were presented, including the draft on “Improving the Structure of the Code of Ethics for Professional Accountants–Phase 2”, which was issued in January 2017 and is open for comment through May 25, 2017 (https:// www.ifac.org/publications-resources/ improving-structure-code-ethics-professional-accountants-) and a draft on “Proposed Revisions Pertaining to Safeguards in the Code and Related Conforming Amendments” (www.ifac. org/publications-resources/proposedrevisions-pertaining-safeguards-codephase-2-and-related-conforming), which was issued in January 2017 and is open for comment through April 25, 2017. I suggest to my fellow CPAs to take a few minutes to read these two exposure drafts and provide comments to IESBA before the deadline dates. I met with IESBA CAG Chairman Kristian Kotkvedgaard.
On March 7 and 8 I attended the International Auditing and Assurance Standards Board (IAASB) CAG meeting presided by its Chairman Prof. Arnold Schilder. The meeting was held also in the IFAC office in New York. There were discussions on the revisions of International Standard on Auditing (ISA) 540 on Accounting Estimates; ISA 315 on “Risks of Material Misstatement through Understanding the Entity and its Environment”; Small and Medium Practice; Data Analytics and Islamic Finance and Accounting, Engagement Quality Control Reviews and Quality Management Practice. All of the topics discussed during the meeting has or will have an impact on the Philippine accountancy profession. Before leaving IFAC, I met Adrian Lim, who is the one responsible for maintaining the “Statement of Members Obligation” (SMO) of the Asian countries, including the Philippines. The SMO is a set of seven benchmarks that are globally recognized as a framework for strong, credible and high-quality professional accountancy organizations. We discussed that the Board of Accountancy and the Philippine Institute of CPAs will provide updated information on the SMO of the Philippines. For more details on the SMO, you can go to https://www.ifac.org/publicationsresources/statements-membership-obligations-smos-1-7-revised. It was a very informative experience to observe the goings-on in IFAC. It validated my thinking that there are so many developments in the global accountancy area. The accountancy profession in the Philippines should not fall behind on these developments. To be continued Chairman Joel L. Tan-Torres is the chairman of the Professional Regulatory Board of Accountancy. He is a Certified Public Accountant who placed No. 1 in the May 1979 CPA Board Examinations. He is concurrently a tax partner of Reyes Tacandong & Co., CPAs. He served as commissioner of the Bureau of Internal Revenue from 2009 to 2010. This column accepts contributions from accountants, especially articles that are of interest to the accountancy profession, in particular, and to the business community, in general. These can be e-mailed to boa.secretariat.@gmail.com.
Clutter-free vision Siegfred Bueno Mison, Esq.
THE PATRIOT
A
s I write this column, I’m about a thousand feet above sea level together with some Tan Yan Kee Foundation executives on board one of the helicopters of Dr. Lucio Tan. On that day, Chairman Lucio Tan signed a memoradum of agreement (MOA) with Department of Environment and Natural Resources to continue the reforestation project in a supposed “badlands” in Carranglan, Nueva Ecija, aptly called as “Legacy Forest”. A project of such magnitude (935,000 seedlings in 900 hectares) would definitely brighten the day of Secretary Regina Paz L. Lopez after her appointment was bypassed by the Commission of Appointments. While I was flying over Metro Manila, I could hardly notice the poverty within the urban jungle, hear the unwanted noise of busy streets, smell the
stink of uncollected garbage and feel the traffic gridlock in the metropolis. I believe that any place in this world, when viewed from above, is almost
Continued from A1 What can other LGUs learn from Manila? n Have a PPP framework. A framework, in ordinance form, ensures stability, consistency, transparency, integrity, accountability, reliability and enforceability of PPPs. Having a single set of rules discourages discriminatory practices and tailor fitting. Without a legal framework, local government units (LGUs) could not adopt outof-the-box PPP modalities. Stakeholders from the public and private sectors will also be clueless.
n JV-preferred modality. The adoption of a single-PPP modality ordinance, rather than a PPP ordinance that provides for some 24 modalities, is an exercise of the wisdom of the city officials. There is nothing unlawful or disadvantageous with this. While the 1991 Local Government Code empowered LGUs to enter into joint ventures (JV), it did not supply the details—definition, contributions, requirements, procedures and term. Using its ordinance-making power, LGUs can supply these. Manila did so in 2014. n Follow the ordinance. All must follow ordinances, like laws.
Shatter the glass
Monday, March 20, 2017 A15
Thus, in obeisance with Ordinance 8346, the city officials cannot choose Manila’s JV partner absent any competition, nor can the mayor sign a JV contract without City Council authorization. Officials who disregard ordinances would render themselves liable. The JV contract itself may be assailed. n Not be risk averse. While all PPP and JV arrangements allocate risks between the city and the proponents, adopting this approach also entails risk. Thus, engaging into this alternative nontraditional strategy is not for the faint hearted. PPPs challenge the norms. Mayor Erap clearly is not risk averse. n Projects aplenty. LGUs can implement hard and soft projects through PPPs, and can even combine projects into one integrated whole. Reclamation, market redevelopment, water supply, waste-toenergy, information technology,
health care and socialized housing are just some of the infrastructure and social services-related activities for PPPs. The 10 awarded projects of Manila are: one dialysis center, four public markets, one automated clearance system, two mixed-used land development and two reclamation projects. n Follow the process. No matter how advantageous the terms are, if the process is flawed, the project and officials may be questioned. The Manila JV ordinance outlines the process for selecting the proponent compliant with the requirements of PACT—public advantage, accountability, competition and transparency. Unsolicited proposals, recognized in statutes, ordinances, regulations and jurisprudence, have been consistently utilized by Manila. It is time to relearn, unlearn and learn…and take action. Manila, thank you for leading the way.
target on increasing the membership of women in the board of directors, and announce these themselves to the public. Consistent with corporate governance rules, these companies regularly disclose to the public their compliance with their commitments. In the United Kingdom, regularly, authorities have adopted a voluntary approach by encouraging the top 100 listed companies to increase, by 2015, to 25 percent the representation of women in their boardrooms. If this benchmark is not met within that period, its Parliament has served notice of its intention to implement tougher measures, including the imposition of quotas”. (Palabrica, Supra) My personal view is that women in the Philippines can get to the top, whether in the public or private sector, without affirmative action or legally mandated quotas. We have had two women presidents, a female chief justice, a feisty ombudswoman, competent women occupying senior positions in the three branches of the government. But then, I have been blessed with the bloodline of two generations of lawyers (my father was the late Supreme Court Justice Line Mejia Patajo, and my lolo Don Domingo T. Patajo was assemblyman of Pangasinan, Second Philippine Assembly 1900-1905). I have also been blessed with mentors (both women and men) who have put me in their shoulders and offered opportunities. And my family is always my cheering squad. And being born in the year of the Dragon and with Aries as my birth sign, I have been able to rely on my fearlessness, bullishness, self-worth and clear conscience to rise above the prejudice, the insults, the challenges that is par for the course in the legal profession. But I realize that not all women are as blessed. And so, this womens’ month, I am reminded of the advice of one of the Fortune’s Most Powerful Women, Ellyn Shook of Accenture. The advice is profound in its simplicity. “As individuals, we can put cracks in the glass ceiling. But when you invest in the women around you, you create the collective force needed to not just crack, but shatter the glass!”
on the simple yet most important thing in life—“food”. And when I say food, I mean the bread of life—our material and relational needs here on Earth. Challenged with a special needs child, this working mother has removed most of her clutter, physically through her tidying marathons and spiritually by studying the Word as she reflects on her future, never her past. Activities, such as yoga, scuba diving and golf, also help remove the clutter in her mind. She has learned to let go of things beyond her control by simply saying, it has been done. She is learning to see the positive side of things by saying, it could have been worse. With less distractions in life, we can always experience the better view from above as I did over Nueva Ecija on that one fine Sunday. We can focus on real “food”, realizing that having less clutter means more joy at work and in our homes. Whether you call it 5S or KonMari method or Dr. Tessa’s Tidy Style, less clutter is not just about improved efficiency; it is also about enriched spirituality.
Where are women at present in terms of “breaking the glass ceiling”? The Economist has published in March 14, 2014, its fifth “glass-ceiling index,” which is useful in providing a benchmark for progress on gender equality in the labor market. It combines data on higher education, work-force participation, pay, child-care costs, maternity and paternity rights, businessschool applications and representation in senior jobs into a single measure of where women have the best—and worst chances of equal treatment in the workplace. The Philippines was not part of the study of The Economist, but it is useful to note from the said study that, “of the 29 countries included the overall picture painted by the data is that the long trend of improving conditions for working women has flat lined with the OECD [Organisation for Economic Cooperation and Development], a club of mostly rich countries. In 2005, 60 percent of women were in the labor force, 10 years later this ratio has edged up only slightly to 63 percent (it was 63 percent for men in both years). With relatively few women climbing the ranks, and strong old boys network helping men reach the top, female representation in well-paid and high-status jobs is closer to a third than half. And the gender wage gap—male minus female wages, divided by male wages—is still around 15 percent, meaning women as a group earn 85 percent of what men do”. (http://wwweconomist.com/blogs/ graphicdetail/2017/03dailychart-o)
In a study conducted by MasterCard (published on March 9, 2013, by GMA News) the Philippines ranked third in the Asia-Pacific region for women’s participation in the work force, having over 70 women workers for 100 men in the regular work force. Among the 14 Asia-Pacific countries surveyed, New Zealand ranked first (77.8 Index Score), followed by Australia (76.0), the Philippines (70.5), Singapore (67.5) and Taiwan (64.7), respectively. The others were Vietnam (64.4), Hong Kong (63.3), China (61.5), Thailand (61.3), Indonesia (56.5), Malaysia (54.3), India (38.0), Japan (48.1) and Korea (49.7) scored the lowest. “The index is comprised of three main indicators, which are derived from additional sub-indicators: employment [work-force participation, regular employment], education [secondary education, tertiary education] and leadership [business owners, business leaders, political leaders].” A 2014 study of the international audit firm Grant Thornton, through local member Punongbayan & Araullo, showed that four out of 10 senior positions are filled by women, making the Philippines the third-highest employer of senior female executives worldwide, with Russia as the highest and Indonesia and Latvia tying for second place. Fast forward to 2017. This year there are more Filipina CEOs, 37 percent compared to 23 percent last year. Chief operating officers (COO) increased to 26 percent, from 15 percent. For chief finance officers, the percent-
age remains at 59 percent, same as last year (cited in “Breaking The Glass Ceiling” by Raul J. Palabrica, inquirerdotnet, March 13). The trend appears to be the same with women in corporate boardrooms, as women have shown through merit or hard work (not bloodline) that they deserve their positions. The days when senior positions in companies were inherited (when COO meant “child of owner”) appear to be slowly a thing of the past. In the corporate world, women in the Philippines have ascended to the top, even without the benefit of a law or regulation giving preferential treatment or affirmative action mandating gender quotas in boardrooms. “According to reports, at least seven countries make it mandatory for publicly traded or listed companies to adopt gender quotas in their boardrooms. Norway, France, Spain and Iceland require that women constitute 40 percent of boards of directors. Belgium and Italy have pegged it at 33 percent. In the case of France, by 2017, the quota will also apply to business that have more than 500 employees or revenues of more than €50 million (roughly P3.1 billion). Israel, the country reputed to be the first to impose the “pink quota” in 1999, requires all publicly traded companies to have at least one woman director. To date, Norway may be considered as having the strictest gender quota law: Companies that fail to meet the 40-percent women membership requirement without any justifiable reason can be ordered dissolved by order of a court. Although aware of the need to increase the participation of women in corporate decision-making, Germany, the Netherlands, Sweden and the socalled bastion of racial, gender and social equality, the United States, are averse to the idea of accomplishing that objective through legally mandated quotas. They prefer that the companies concerned open their boardroom doors to women at their own terms or pace, rather than because of government pressure. In 2012 Denmark went through this route by adopting a “flexi-quota” system, where the companies set their policies and
always clean, pristine and immaculate. I believe that seeing things in a different perspective gives us a reassuring effect that, everything, amid all the chaos, will turn out fine. In our lives, we can do the same if we can only remove the clutter that bothers our vision. Flying high over Manila that Sunday morning made me appreciate the beauty of the city. In her book The Life-Changing Magic of Tidying up, author Marie Kondo offered basic philosophies in storing and discarding things. She said that, if a thing, whether a piece of clothing, a book, a gadget, or even a memento, does not spark joy, discard it. After all, memories are best kept in the heart and not in souvenir items. According to her KonMari method, if there is a thing, even if new, but is not a need, “plant a seed” she says, as in giving it to others. But essentially, she says tidying up things translates to tidying our lives. The principles of her KonMari method appear to be the precursor of the more popular 5S method, which in Japanese, stands for Seiri,
Seiton, Seiso, Seiketsu and Shitsuke. In some organizations, the 5S program was adopted to get rid of the clutter in the workplace. In Philippine Airlines (PAL), we believe that Sort, Set in Order, Shine, Standardize and Sustain are key drivers for enhanced efficiency in the workplace. Some of my colleagues, both in PAL and Bureau of Immigration, were quite pessimistic about the notion of cleaning their respective cubicles inasmuch as, according to them, they have other “better” things to do. What they do not realize is that 5S has this underlying objective of giving us a focused perspective at work. No clutter gives us more focus. More focus leads to greater efficiency. During the MOA signing ceremonies in Carranglan, Nueva Ecija, Environment Undersecretary Marlo Mendoza said fire is the most destructive agent in any forest and is inevitable in any reforestation project, particularly in Caranglan, of all places in the Philippines. He said we just have to control these fires with
daily patrols, guards posted in strategic watch towers, “jet shooter” experts to use highly pressurized yet portable water hoses, among other fire-control measures. In our lives, “fires”, whether by design as when we intentionally dispose of garbage or by inadvertence as when my parents’ house was ravaged by fire two years ago, remove the unnecessary things in life that blur our vision. However, once this garbage or clutter is removed, we gradually learn to appreciate the more important things around us. Doctor Tessa is one KonMari advocate. In her house, you see her minimalist tendencies in her furniture. Her wardrobe collection is most likely less than half of what most women would have in their closets. Over New Year’s break, she and a friend, coincidentally Japanese, went on a “tidying marathon”, where half of the contents of her pantry ended up being given to others. She has given away her unused clothes, still with price tags, to others. Her intentional use of “fires” to keep things less has allowed her to focus
Atty. Lorna Patajo-Kapunan
legally speaking
M
arch is International Womens’ Month and March 8 has been designated by the United Nations as International Womens’ Day.
2nd Front Page BusinessMirror
A16 Monday, March 20, 2017
PHL, China firm up strategies to boost tourism cooperation g By Ma. Stella F. Arnaldo
@akosistellaBM Special to the BusinessMirror
overnment officials from the Philippines and China have firmed up strategies to help boost visitor arrivals and other tourismcooperation activities between both countries. This comes on the heels of the recent launch of the Asean-China Year of Tourism Cooperation 2017, and in fulfillment of Chinese President Xi Jinping’s promise to deliver at least 2 million visitors to the Philippines every year. Tourism Secretary Wanda Corazon T. Teo led officials of the Department of Tourism (DOT) in a series of meetings with their Chinese counterparts at the Makati Shangri-La and Conrad Manila. China National Tourism Administration (CNTA) officials were headed by their chairman, Li Jinzao, according to a statement from the DOT. During their meetings last Thursday and Saturday, both groups agreed to implement marketing and communications campaigns; hold familiarization trips for media and tour operators; schedule tourism-related workshops and capacity-building sessions for travel professionals, and calendar official visits by tourism heads, as well as joint travel fairs in the Philippines and China. Visitor arrivals from China increased to 675,663 in 2016, from 187,446 in 2010, or close to a threefold growth. Data from the CNTA showed that about 1 million Filipinos visit China annually. During the meetings, both parties welcomed the implementation of the AseanChina Air Transport Agreement, which has boosted direct flights between both areas. Since the agreement’s signing, about 4,900 direct flights now connect 37 cities in Asean with 52 cities in China. Teo said more actions among Asean-China committees in aviation cooperation will support the further development of tourism in the region. Meanwhile, the Asean-China Tourism Cooperation Year 2017 was launched on March 16 at the Philippine International Convention Center, which was attended by ranking Chinese officials, led by Vice Premier Wang Yang, who oversees China’s agriculture, water resources, commerce and tourism. In a speech read by Teo, President Duterte hailed the “reawakening of an age-old kinship” with China that dates back to pre-Spanish colonial times. “Through regional cooperation and
Coal plants. . . Continued from A1
Marketing & Development Corp. in Santa Rosa, Laguna; 3.82 MW of SPARC Solar Powered Agri-Rural Communities Corp. in San Rafael, Bulacan; and 5.02 MW of SPARC in Morong, Bataan. A 1-MW solar project of Bosung Solartec Inc. in Ilocos Norte is targeted for commissioning this year. A 12-MW geothermal plant in Batangas by Maibarara Geothermal Inc. is scheduled for commercial operations in August this year. The biomass projects lined up for target testing and commissioning this year are the 1.5 MW of Asian Carbon Neutral Power Corp. in Tar-
Tourism Secretary Wanda Corazon T. Teo delivers a speech during the launch of the Asean-China Tourism Cooperation Year 2017. STELLA ARNALDO
diplomacy tourism, the goals to increase visitor arrivals, promote cultural exchanges, generate more livelihood for local people, improve infrastructure and diversify investment in tourism activities can be achieved between Asean and China,” he said. For his part, Wang lauded the friendly Asean neighbors for their neutrality in regional affairs and advancing tourism cooperation. “Tourism cooperation not only enhances our mutual understanding and friendship, but also boosts our practical cooperation in many industries.” He added China is now ready to “take the tourism year to inject a small impetus to the upgrading of China-Asean relations to a new era.” Duterte, in his speech, also observed: “The current world situation is reconciliatory. Through tourism cooperation, Asean and China can do great and good things together, like our situation in the Philippines, where we are prioritizing sustainable and inclusive tourism. With booming travel between Asean and China, our cooperation will bring nations and peoples closer together.” In her own speech, Teo noted: “Through the Asean community as defined in the Master Plan on Asean Connectivity, we envision a seamless and comprehensively connected and integrated Asean that promotes competitiveness, inclusive-
lac; the 4.5 MW of Bicol Biomass Energy Corp. in Camarines Sur; the 6.1 MW of AseaGas Corp. in Batangas; and the 10.8 MW of San Jose City I Power Corp. in Nueva Ecija. The battery storage of AES Philippines Power Partners Co. in Zambales will be operational in December this year. These power projects are on top of the new ones that recently started delivering power to the grid. These include the 414-MW San Gabriel and the 87-MW Avion gas plants of the Lopez group. In the Visayas 271.77 MW of new capacity will come on stream in 2017 to 2020. Of this capacity, coal is 135 MW; oil-based 8 MW; geothermal, 50 MW; hydro 13.1 MW; and solar 65.67 MW.
ness and a greater sense of connectivity.” She added that a major step in pursuing the Asean integration is “the strengthening of our relations with dialogue partners”, such as China. “Today, as we celebrate the 25th year of Asean-China relations, we also celebrate the Asean-China Year of Tourism Cooperation, which seeks to enhance tourism growth, through increased visitor arrivals, receipts, employment and inclusiveness.” The Philippines is this year’s chairman of the Asean summit. Tourism between Asean and China has seen tremendous growth over the years. Visitor arrivals in Asean from China jumped by 42.4 percent to 18.6 million in 2015, from 2014. Asean tourists to China, on the other hand, rose by 6.3 percent to 6.6 million in 2015, from 2014. Tourism officials project, with the average annual growth of 15.7 percent in two-way visitortraffic between China and Asean from 2011 to 2016, the target 30 million mutual visits will be realized by 2020. The Asean-China Tourism Cooperation Year is an initiative that seeks to enhance the partnership between China and the 10 Asean member-countries, which include the Philippines, Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Singapore, Thailand and Vietnam.
The power projects in the Visayas that will come on line this year are the 8-MW diesel power plant of Emergreen Power Development and Management Inc. in Negros; the 50-MW geothermal plant of Biliran Geothermal Inc.; and the 6.67-MW solar project of Cosmo Solar Energy Inc. in Iloilo. In Mindanao the committed power projects will reach 1,267.94 MW. Coal projects are 1,090 MW; oil at 29.54 MW; hydro at 134.2 MW; and biomass at 14.2 MW. The coal projects that are targeted for commissioning and commercial operations this year are San Miguel Consolidated Power Corp.’s 150 MW in Malita, Davao; 135 MW of FDC Utilities Inc. in Misamis Oriental; and 165 MW of Minergy
Coal Corp. in Misamis Oriental. For oil-based power projects, a 13.94-MW project of Peakpower Soccsargen Inc. in South Cotabato; 5.2 MW of Peakpower San Francisco Inc. in Agusan del Sur; and the 10.4 MW of Peakpower Bukidnon Inc. will come on line this year. The hydropower projects for the year in Mindanao are as follows: 2.4 MW of Euro Hydro Power Holdings Inc. in Compostela Valley; 43.4 MW of Hedcor Bukidnon Inc.; 25.4 MW of Hedcor Bukidnon; and 25 MW of Agusan Power Corp. The biomass-power projects are the 1.6 MW, 2.6 MW and 10 MW of Philipine Trade Center Inc. Green Earth Enersource Corp., and Lamsan Power Corp., respectively. Energy Secretary Alfonso G.
www.businessmirror.com.ph
‘TREASONOUS’ VIDEO MESSAGE MAY LEAD TO VP’S IMPEACHMENT By Joel R. San Juan
@jrsanjuan1573
S
OLICITOR General Jose C. Calida on Sunday said calls to impeach Vice President Maria Leonor G. Robredo for betraying the government by slandering President Duterte and his administration before the United Nations Commission on Narcotic Drugs have legal basis. Calida issued the statement after learning of Robredo’s video message to the UN, where she criticized President Duterte’s war on drugs and claimed more than 7,000 victims of extrajudicial killings by policemen and vigilantes without presenting proof.
Robredo debased her office and herself by betraying the trust of our people. Worse, she shamelessly pandered to the desperate desire of the Yellow Cult to depose President Duterte, which, if successful, will immensely benefit her.”—Calida Calida described Robredo’s action as a “treasonous act”, adding he supports the plan of House Speaker Pantaleon D. Alvarez to initiate an impeachment complaint against Robredo. “VP Robredo debased her office and herself by betraying the trust of our people. Worse, she shamelessly pandered to the desperate desire of the Yellow Cult to depose President Duterte, which, if successful, will immensely benefit her. Obviously, the carping VP Robredo has joined the ranks of the destabilizers,” the government chief counsel said. He agreed with Alvarez that Robredo “should be rightfully condemned for slandering and selling out our country and its leaders before the UN”. He vowed to lend the legal services of his office, a “tribune of the people”, to help in the planned impeachment of the Vice President, saying it is unfortunate that Robredo now “will reap the people’s wrath and contempt.” Alvarez announced his plan after linking Robredo to the impeachment complaint filed last Thursday by Party-list Rep. Gary C. Alejano of Magdalo against Duterte. Both Robredo and Alejano denied this allegation. Alvarez believes the Vice President might have betrayed public trust in her video message to the UN that destroyed the country’s image before the international community. Betrayal of public trust is one of the grounds under the Constitution to impeach an official. As this developed, Alvarez on Sunday expressed confidence that the House Committee on Justice will dismiss the impeachment complaint filed against Duterte. The Speaker said there is no need to conduct a loyalty check at the lower chamber following the removal of the House leaders who voted against his bill reviving the death penalty. “There’s no need for loyalty check to junk the impeachment complaint. I also doubt if it will reach the plenary, because, as a lawyer, I see their allegations are weak and pure hearsay,” he said. Last week soldier-turnedlawmaker Alejano filed the first impeachment complaint against Duterte. Alejano said the impeachment complaint was based on Duterte’s alleged culpable violation of the Constitution—bribery, betrayal of public trust, graft and corruption and other high crimes. Alejano added the leadership should not be complacent, as the supermajority is only good for political interests. “I just want to emphasize that the coalition of political parties in the country is based on the interest of the parties, and it is based on convenience. The moment the interest of a party is not served, the coalition could break up,” Alejano said. Meanwhile, Nacionalista Party Rep. Luis Raymund F. Villafuerte Jr. of Camarines Sur asked his colleagues to shift their focus on passing important measures. “We need this impeachment complaint like a hole in the head. I believe that we, lawmakers, could better spend our time right now crafting reform laws that would help President Duterte achieve his administration’s goal of sustaining the growth momentum, reducing poverty and transforming our country into an upper middle-income economy by the time his term ends in 2022,” Villafuerte said. According to Villafuerte, the impeachment complaint filed against Duterte “is an exercise in futility, given his overwhelming support not only in Congress but from the Filipino people, as well.” “Given that the impeachment process is a numbers game, it is wishful thinking on the part of the President’s critics that they could even reach first base in the impeachment proceedings at the House of Representatives,” Villafuerte said. With reports from Jovee Marie N. dela Cruz
Cusi sees more renewable energy (RE), particularly solar, contributing more in meeting the power requirements of the Philippines in the years to come. “Currently, the country’s power demand is at 13,000 MW and our supply is barely 14,000 MW, hence we need more power, as well as reserve power,” Cusi said. Technology neutral, the DOE nonetheless sees the continuous increase of solar power in the years to come, especially in helping attain the 25-percent ideal power-reserve requirement of the country. Cusi said the RE share of the country now stands at around 32 percent, which is the highest in the Southeast Asian region. “We are mandated to secure
sufficient, quality, reliable and reasonably priced electricity, and to develop our indigenous energy resources, thus, we are open to any technology to achieve these objectives,” Cusi said. Last week Cusi attended the groundbreaking of a 150-MW solar-power project in Concepcion, Tarlac. According to the project proponent Solar Power Philippines, the solar farm will use Philippinemade solar panels and could power around 300,000 households once completed later this year. “The power storage of the plant’s proponent is a welcome development for the DOE and for the country, because if solar can be stored already, we can source more of our power from solar energy,” Cusi said.